Who values price under Affordable Housing scheme?
Q Who values a property for sale under the Affordable Housing scheme? And what happens to the clawback if the price drops?
AThe local authority puts a value on the house or apartment being offered under its Affordable Housing scheme. The lender (who you get your mortgage from) will also get its own valuation as it does in any property purchase. After that some buyers, particularly ones who feel that the council's price has not dropped in line with the market, will get their own independent valuation and go back to the council to negotiate. As to the clawback, the Affordable Housing information site www.affordablehome.ie gives this example: if John and Mary sell their home and the market value has decreased from €280,000 to €260,000, then the clawback would be based on the lower market value of €260,000 less what they paid €196,000, which is €64,000. So they have to pay back €64,000 to the local authority when they sell in addition to any money owing on their mortgage.
Neighbours are forcing us to drop our price
Q I have been tracking (on the web) a particular apartment development in south Dublin with a view to perhaps buying for my parents next year. It is probably around five years old and while there are still new apartments for sale, there are now others being sold on. As far as I can see the new apartments are more expensive than the original ones being sold on. For example, there is a new two-bed apartment for €630,000, while an "old" two-bed is for sale for €519,950. Surely this doesn't make sense: how, as a buyer, do I negotiate my way through these varied prices.
A Firstly, the price you see in any listing on the web is the asking price - an opening gambit, not a final contract price. It could be that the developer only has a couple of apartments left and has kept the original price publicly listed, mostly to bolster existing apartment owners' confidence that their investment will hold their value. It's a sweeping statement to say that all developers with empty units on their hands are open to negotiation, but in this market it's a safe assumption.
If, having viewed an old and a new apartment, you fancy the new one then make an offer to the developer at a price you feel happy with - probably less than the price being asked for the second-hand unit and start the horse-trading there. Bear in mind, when comparing units, the square footage of the apartments, what floor they are on - the higher the unit, generally the higher the price - and the spec, particularly the kitchen and bathroom spec.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irish-times.ie. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
