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  • FIRST POST
    • 7firearcade
    • By 7firearcade 2nd Oct 17, 8:43 AM
    • 8Posts
    • 0Thanks
    7firearcade
    Selling newbie -to accept offer or not?
    • #1
    • 2nd Oct 17, 8:43 AM
    Selling newbie -to accept offer or not? 2nd Oct 17 at 8:43 AM
    Hi,

    Our flat has been on the market for about 10 weeks with the original asking price of £375,000. After about 5 weeks of only 3 viewings we dropped the asking price to £350,000 and have had a steady stream of viewings since.

    We've just received our first offer from FTBs who have viewed the property 4 times and seem very keen. They initially offered £322,000, to which we said definitely not, and they've now come back with £333,000. We don't want to accept any less than £340,000 but also don't want to be unrealistic - our lease length is only 89 years and the service charge is quite hefty (£150/month).

    We're not in a mad rush to move but equally would like to take advantange of lower house prices/interest rates.

    Anyone have any thoughts?

    Thanks!
Page 1
    • indianabones
    • By indianabones 2nd Oct 17, 8:54 AM
    • 184 Posts
    • 193 Thanks
    indianabones
    • #2
    • 2nd Oct 17, 8:54 AM
    • #2
    • 2nd Oct 17, 8:54 AM
    Anyone have any thoughts?
    Originally posted by 7firearcade
    Most buyers and sellers for that matter are using sold house prices and market trends to determine their offer. If you have a look you'll find that there's been a gradual decline in the house prices all across the country.

    The question to ask and one that not even the most intelligent economic experts can answer is, what will happen with the market.

    So I would have a look at sold house prices in your area, then read some of these official reports to how the market has been affected and then apply that to your house.

    For example if the same style of flat in roughly the same condition has been going for 340k. The report might suggest you've had a drop in the market over the last 6 months of 0.5%. So over a year that's 1% going at the same rate. So going by that the 333k offer seems reasonable.

    Unfortunately a lot of homework is required.
    • glasgowdan
    • By glasgowdan 2nd Oct 17, 9:03 AM
    • 2,520 Posts
    • 2,812 Thanks
    glasgowdan
    • #3
    • 2nd Oct 17, 9:03 AM
    • #3
    • 2nd Oct 17, 9:03 AM
    If you have a look you'll find that there's been a gradual decline in the house prices all across the country.

    .
    Originally posted by indianabones
    Which housing market are YOU looking at? Prices are steady or gradually rising in most areas. People dreaming of a crash always blurt out false facts so be careful OP.

    How desperate are you to move? Make a counter offer, 338k sounds reasonable, and then don't budge from it. Maybe ask the agent if they think a closing date for best offers might be a good idea.
    • Rambosmum
    • By Rambosmum 2nd Oct 17, 9:03 AM
    • 1,476 Posts
    • 1,926 Thanks
    Rambosmum
    • #4
    • 2nd Oct 17, 9:03 AM
    • #4
    • 2nd Oct 17, 9:03 AM
    Has anything similar in the area sold recently or been on the market?


    Suggests to me that you priced too high initially but if you've has a steady stream of viewers since reducing it but no offers it suggests there's still something amiss, either it's not presented well or it's still too highly priced for what you are selling.
    • PField
    • By PField 2nd Oct 17, 9:11 AM
    • 88 Posts
    • 64 Thanks
    PField
    • #5
    • 2nd Oct 17, 9:11 AM
    • #5
    • 2nd Oct 17, 9:11 AM
    Lates data from the horses mouth ( Land registry)
    http://landregistry.data.gov.uk/app/ukhpi/explore
    Prices are still rising, unless you are in central London ( I guess your not at that price).
    If you are getting plenty of viewing then probably your property is priced right for the market but there is something about the particular flat that does not compare favourably with others.
    • indianabones
    • By indianabones 2nd Oct 17, 9:13 AM
    • 184 Posts
    • 193 Thanks
    indianabones
    • #6
    • 2nd Oct 17, 9:13 AM
    • #6
    • 2nd Oct 17, 9:13 AM
    Which housing market are YOU looking at? Prices are steady or gradually rising in most areas. People dreaming of a crash always blurt out false facts so be careful OP.
    Originally posted by glasgowdan
    Only YOU have mentioned crash, I don't call a decrease of 0.6% in 6 months a crash, it's a gradual decline.
    • 7firearcade
    • By 7firearcade 2nd Oct 17, 9:34 AM
    • 8 Posts
    • 0 Thanks
    7firearcade
    • #7
    • 2nd Oct 17, 9:34 AM
    • #7
    • 2nd Oct 17, 9:34 AM
    Thanks all. We aren't in central London but we're in Zone 2 and we're definitely worried about house prices. Anecdotally, all of the larger properties to buy in our area which we viewed in June before marketing ours are still on the market - not one has sold yet.

    I think with our property the lease length and service charge is putting people off - also we own it as shared owners, so to sell we are simultaneously staircasing to 100% and selling on exchange, which might be offputting... maybe we should just take the money now!
    • Crashy Time
    • By Crashy Time 2nd Oct 17, 10:50 AM
    • 5,002 Posts
    • 2,157 Thanks
    Crashy Time
    • #8
    • 2nd Oct 17, 10:50 AM
    • #8
    • 2nd Oct 17, 10:50 AM
    Lates data from the horses mouth ( Land registry)
    http://landregistry.data.gov.uk/app/ukhpi/explore
    Prices are still rising, unless you are in central London ( I guess your not at that price).
    If you are getting plenty of viewing then probably your property is priced right for the market but there is something about the particular flat that does not compare favourably with others.
    Originally posted by PField

    Sales volumes are not rising though, meaning it is harder and harder to get a buyer, so don`t lose a buyer by squabbling over a few thousand quid. Obviously your initial asking price was far too high.
    • ed67812
    • By ed67812 2nd Oct 17, 12:24 PM
    • 133 Posts
    • 52 Thanks
    ed67812
    • #9
    • 2nd Oct 17, 12:24 PM
    • #9
    • 2nd Oct 17, 12:24 PM
    It looks like your original asking price was pushing it given the lack of viewings (or at least that is the best guess). Your asking price is now £350k and you are looking at an offer between £333k and £340k depending on how you negotiate. Even at the lower end that is still over 90% of your asking price which would be within the scope of normal up here in the rural bit of Derbyshire. If buyers are no longer banging down London doors to buy and there are properties that you are eyeing up that have been on the market for ages, you'll likely be able to go after such a discount yourself or at least try. Accepting an offer doesn't mean you have to sell when push comes to shove if you cannot find anywhere acceptable at the right price.
    • ProDave
    • By ProDave 2nd Oct 17, 12:31 PM
    • 313 Posts
    • 388 Thanks
    ProDave
    If you would still like to buy one of the properties you viewed earlier that is still on the market, go and make a low offer on that. If it's accepted then you can afford to accept the offer on yours and get moving.
    • Jenniefour
    • By Jenniefour 2nd Oct 17, 12:59 PM
    • 1,159 Posts
    • 1,134 Thanks
    Jenniefour
    Difficult one. London market definitely not good at the moment, and hasn't been for last year or so. A couple of properties in my area (Hanwell/Ealing) have recently gone for 10% below asking price and more have achieved nearer/close to asking price. Possibly some agents are already pricing a fair bit lower than others.

    Offer made doesn't seem bad to me, if you can afford to accept it, and can get a low offer accepted off your next property (one of those houses you saw) or you know it's been realistically priced. Or see if buyers are willing/able to come up a bit, no harm is asking.

    Just seen ProDave's post - agree.
    Last edited by Jenniefour; 02-10-2017 at 1:02 PM.
    • Rambosmum
    • By Rambosmum 2nd Oct 17, 2:18 PM
    • 1,476 Posts
    • 1,926 Thanks
    Rambosmum
    Thanks all. We aren't in central London but we're in Zone 2 and we're definitely worried about house prices. Anecdotally, all of the larger properties to buy in our area which we viewed in June before marketing ours are still on the market - not one has sold yet.

    I think with our property the lease length and service charge is putting people off - also we own it as shared owners, so to sell we are simultaneously staircasing to 100% and selling on exchange, which might be offputting... maybe we should just take the money now!
    Originally posted by 7firearcade


    Yes, it sounds like an off putting property is a slowing market (not whole of UK but certainly bits of London). I'd be inclined to take the money.
    • glasgowdan
    • By glasgowdan 2nd Oct 17, 9:22 PM
    • 2,520 Posts
    • 2,812 Thanks
    glasgowdan
    Only YOU have mentioned crash, I don't call a decrease of 0.6% in 6 months a crash, it's a gradual decline.
    Originally posted by indianabones
    What's your source?

    This says that the whole of the UK (apart from London) has risen, average 2.2%, but London has seen a 0.6% drop July-September.

    https://www.theguardian.com/business/2017/sep/29/london-house-prices-fall-for-first-time-in-eight-years-as-rest-of-uk-rises

    *Edit. just seen the poster IS in fact in London. You still can't state things like the whole country is showing house price decline when it's plain wrong.
    Last edited by glasgowdan; 02-10-2017 at 9:24 PM.
    • juniordoc
    • By juniordoc 2nd Oct 17, 9:44 PM
    • 189 Posts
    • 115 Thanks
    juniordoc
    If you want to take advantage of low mortgage rates then you'll have to move reasonably quickly, have you started looking for properties you could view?
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