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  • FIRST POST
    • Beardmidget
    • By Beardmidget 7th Feb 18, 12:20 AM
    • 115Posts
    • 78Thanks
    Beardmidget
    Viewings to offers
    • #1
    • 7th Feb 18, 12:20 AM
    Viewings to offers 7th Feb 18 at 12:20 AM
    Hi, probably looking mainly for moral support... but any advice appreciated.

    If you canít be bothered reading on, basically the question is when do you get worried that youíre going to get nowhere near what you ďneedĒ to move? How much/ how many viewings do you expect to turn into offers?

    Weíre in South West London- so the market here is a bit nervy at the minute given houses are all a lot of money.

    Had our house on the market since the Christmas holiday (so available properly since beginning of jan.) with a proper EA who is relatively higher end but is quite south London centric and at least isnít f***tons.

    Weíre on the market at 600k, which was the middling valuation we had. I donít believe the price is specifically offputting because weíve had probably 20 viewings in the last 4 weeks.

    Relative to the area, the lowest priced comparable property not too far from us is priced at 565k but that is certainly not the same standard of finish (some very expensive to replicate) weíre offering. Most near comparables are also 595k-600k. Most recent sale on this street (where sales are not frequent) was 560k in October 2017, which is 2 doors down but lacks side access (mid terrace. Weíre mid-road but end of our bit of terrace), and is about a million miles away in terms of finish, appliances etc. You can pick up an un-renovated, un-loft-converted, and unextended place on the road for 450k but the cost of doing the work to make 4 beds, 2baths and big kitchen etc makes the difference marginal (I.e. have to spend around 130-140k)

    Feedback from EA has consistently been ďbuyers love the house and finish, right size/ space for themĒ etc. But ďnot sure about the areaĒ. I roughly interpret this to mean they would like my house but 0.3miles not 0.7 miles from the station- and they donít yet know that theyíre unlikely to find that, or that they need to forget the extra space moving further out buys you. Iíve asked the EA to specify what the ratio of direct enquiries to tag-on viewings is but am waiting to hear.8

    I do realise that most buyers in this market are going to offer under asking. I had an offer last week for 500k which the EA was essentially annoyed about. Iím basically expecting another offer this week from a couple who second viewed quickly and are very keen but they felt the estate agent out with a ďmaybe itís with more
    Like 525kĒ. He pushed back on that without prompting, and I think their viewings of other places this week will bring them to the conclusion that even at a fair chunk more than that, weíre still front running. (I know everything else on the market locally).

    Overall, I donít think thereís much mileage in dropping asking price as weíve had plenty of viewings, and as you can see people arenít afraid to offer a hefty amount under the asking.

    Am I way off, or should I sit tight and hold my nerve?
    (N.b. Like all fools, iíve Found the place I want and every second that ticks by without being able to make a deal on it takes a lot of time of my life expectancy).
Page 1
    • Cakeguts
    • By Cakeguts 7th Feb 18, 12:36 AM
    • 3,760 Posts
    • 5,191 Thanks
    Cakeguts
    • #2
    • 7th Feb 18, 12:36 AM
    • #2
    • 7th Feb 18, 12:36 AM
    Hi, probably looking mainly for moral support... but any advice appreciated.

    If you canít be bothered reading on, basically the question is when do you get worried that youíre going to get nowhere near what you ďneedĒ to move? How much/ how many viewings do you expect to turn into offers?

    Weíre in South West London- so the market here is a bit nervy at the minute given houses are all a lot of money.

    Had our house on the market since the Christmas holiday (so available properly since beginning of jan.) with a proper EA who is relatively higher end but is quite south London centric and at least isnít f***tons.

    Weíre on the market at 600k, which was the middling valuation we had. I donít believe the price is specifically offputting because weíve had probably 20 viewings in the last 4 weeks.

    Relative to the area, the lowest priced comparable property not too far from us is priced at 565k but that is certainly not the same standard of finish (some very expensive to replicate) weíre offering. Most near comparables are also 595k-600k. Most recent sale on this street (where sales are not frequent) was 560k in October 2017, which is 2 doors down but lacks side access (mid terrace. Weíre mid-road but end of our bit of terrace), and is about a million miles away in terms of finish, appliances etc. You can pick up an un-renovated, un-loft-converted, and unextended place on the road for 450k but the cost of doing the work to make 4 beds, 2baths and big kitchen etc makes the difference marginal (I.e. have to spend around 130-140k)

    Feedback from EA has consistently been ďbuyers love the house and finish, right size/ space for themĒ etc. But ďnot sure about the areaĒ. I roughly interpret this to mean they would like my house but 0.3miles not 0.7 miles from the station- and they donít yet know that theyíre unlikely to find that, or that they need to forget the extra space moving further out buys you. Iíve asked the EA to specify what the ratio of direct enquiries to tag-on viewings is but am waiting to hear.8

    I do realise that most buyers in this market are going to offer under asking. I had an offer last week for 500k which the EA was essentially annoyed about. Iím basically expecting another offer this week from a couple who second viewed quickly and are very keen but they felt the estate agent out with a ďmaybe itís with more
    Like 525kĒ. He pushed back on that without prompting, and I think their viewings of other places this week will bring them to the conclusion that even at a fair chunk more than that, weíre still front running. (I know everything else on the market locally).

    Overall, I donít think thereís much mileage in dropping asking price as weíve had plenty of viewings, and as you can see people arenít afraid to offer a hefty amount under the asking.

    Am I way off, or should I sit tight and hold my nerve?
    (N.b. Like all fools, iíve Found the place I want and every second that ticks by without being able to make a deal on it takes a lot of time of my life expectancy).
    Originally posted by Beardmidget
    You do realise that the "finish" is to your taste? It may not suit anyone else and if it doesn't they won't pay extra for it.

    If you have had 20 viewings and no offers it does tend to suggest that no one wants to pay your idea of a price for your house. A house is worth what someone will pay you for it. It isn't worth what an estate agent says it is. That is only a guide.
    • Beardmidget
    • By Beardmidget 7th Feb 18, 1:03 AM
    • 115 Posts
    • 78 Thanks
    Beardmidget
    • #3
    • 7th Feb 18, 1:03 AM
    • #3
    • 7th Feb 18, 1:03 AM
    You do realise that the "finish" is to your taste? It may not suit anyone else and if it doesn't they won't pay extra for it.

    If you have had 20 viewings and no offers it does tend to suggest that no one wants to pay your idea of a price for your house. A house is worth what someone will pay you for it. It isn't worth what an estate agent says it is. That is only a guide.
    Originally posted by Cakeguts
    Yes I appreciate that- by finish I should correct myself and say iím Taking rewiring, replaster, new central heating/boiler/rads, wet underfloor heating downstairs, new kitchen, bathrooms, flooring. Iím not particularly suggesting I wouldnít take what the two doors down went for either...

    I think iíve clearly explained why iím not thinking to change asking price at present (not that ea has even suggested it), because getting people interested at that price doesnít seem to have been too tricky. It is a buyers market, though, and everyone wants a keen deal.

    What Iím asking is to what extent people ride through lowball offers.
    • JoJo1978
    • By JoJo1978 7th Feb 18, 9:51 AM
    • 313 Posts
    • 380 Thanks
    JoJo1978
    • #4
    • 7th Feb 18, 9:51 AM
    • #4
    • 7th Feb 18, 9:51 AM
    If the house you've fallen for requires all the proceeds from your sale then you'll have to wait it out. Could be a few weeks, could be months or years.

    We put a 3 bed ex LA semi on the market last May. SE London 450-475 guide price. 12 weeks, 8 booked viewings, 6 turned up but 2 didn't. No offers. Local area lead EA. Sacked the agents.

    Second agent, challengers in the area (started in yours and now opening offices in SE due to higher demand from price sensitive buyers after more affordable space.) 1 week, 4 viewings, 3 offers. EA bid them all up to within 3% of asking, which we adjusted down to 425.

    In one way or another the reason is price. Either per square foot or for the area, you'll also be competing at that price bracket with a buying group who may consider larger properties outside London and a longer commute.

    But a month on is not long, especially in the quietest months of the year. Hang tight or use the only lever you have, price.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Second career (what TBD!) 2018
    • Crashy Time
    • By Crashy Time 7th Feb 18, 2:21 PM
    • 5,511 Posts
    • 2,271 Thanks
    Crashy Time
    • #5
    • 7th Feb 18, 2:21 PM
    • #5
    • 7th Feb 18, 2:21 PM
    If people are offering, or just mentioning in this case really?, that the price is about 100k too much, then you need to have a re-think about pricing IMO.
    • Beardmidget
    • By Beardmidget 7th Feb 18, 4:37 PM
    • 115 Posts
    • 78 Thanks
    Beardmidget
    • #6
    • 7th Feb 18, 4:37 PM
    • #6
    • 7th Feb 18, 4:37 PM
    Iím definitely realistic in seeing that the market isnít right to achieve top money, but iím unconvinced the bottom really has fallen out.

    Anyway, Iím less nervous today- had an offer of 560k today but buyers position is tricky. Should give agent a bit more leverage to get what we need from (likely) offerors at end of the week. Even if 560is the level (and iím Open to that as the possibility) then that represents a flat market which is probably what the banks and websites are saying.

    (FWIW- iím Completely confident bank val will back up sale price- we had val at 600 in August, given conservative positioning of banks)
    • Crashy Time
    • By Crashy Time 7th Feb 18, 5:25 PM
    • 5,511 Posts
    • 2,271 Thanks
    Crashy Time
    • #7
    • 7th Feb 18, 5:25 PM
    • #7
    • 7th Feb 18, 5:25 PM
    Iím definitely realistic in seeing that the market isnít right to achieve top money, but iím unconvinced the bottom really has fallen out.

    Anyway, Iím less nervous today- had an offer of 560k today but buyers position is tricky. Should give agent a bit more leverage to get what we need from (likely) offerors at end of the week. Even if 560is the level (and iím Open to that as the possibility) then that represents a flat market which is probably what the banks and websites are saying.

    (FWIW- iím Completely confident bank val will back up sale price- we had val at 600 in August, given conservative positioning of banks)
    Originally posted by Beardmidget

    The bottom hasn`t fallen out of your market...yet, it probably has for other parts of the market though....


    http://www.propertyindustryeye.com/dramatic-slump-in-buy-to-let-lending-blamed-on-government-intervention/


    ..but prices will start to drop for all parts of the market if rate rises start happening, so best not to scare too many buyers away, take realistic but lower offers seriously IMO.
    • buggy_boy
    • By buggy_boy 7th Feb 18, 7:32 PM
    • 139 Posts
    • 87 Thanks
    buggy_boy
    • #8
    • 7th Feb 18, 7:32 PM
    • #8
    • 7th Feb 18, 7:32 PM
    The bottom hasn`t fallen out of your market...yet, it probably has for other parts of the market though....


    http://www.propertyindustryeye.com/dramatic-slump-in-buy-to-let-lending-blamed-on-government-intervention/


    ..but prices will start to drop for all parts of the market if rate rises start happening, so best not to scare too many buyers away, take realistic but lower offers seriously IMO.
    Originally posted by Crashy Time
    Remember Crashy has been saying the same stuff for years... Not saying prices wont drop just ignore this jester...

    http://www.cityam.com/279865/nationwide-house-price-index-annual-rate-house-price-growth
    • Beardmidget
    • By Beardmidget 7th Feb 18, 10:09 PM
    • 115 Posts
    • 78 Thanks
    Beardmidget
    • #9
    • 7th Feb 18, 10:09 PM
    • #9
    • 7th Feb 18, 10:09 PM
    Yes, well, you don!!!8217;t get to be !!!8216;crashytime!!!8217; without being saltier than a salty thing in Salt Lake City.

    I remember I joined MSE forum when we first bought just at the nadir of the modest house price correction in 2009 (which has since been totally tsunami!!!8217;d by inflation). At that time much of the advice I received warned of a thousand years of doom...
    • Crashy Time
    • By Crashy Time 8th Feb 18, 11:43 AM
    • 5,511 Posts
    • 2,271 Thanks
    Crashy Time
    Remember Crashy has been saying the same stuff for years... Not saying prices wont drop just ignore this jester...

    http://www.cityam.com/279865/nationwide-house-price-index-annual-rate-house-price-growth
    Originally posted by buggy_boy

    Halifax has a slightly different spin, and of course if your business model is based on lending people money to buy houses you are going to spin it the best you can? BTL figures hard to spin though, did that get a mention on the BBC yet?
    • buggy_boy
    • By buggy_boy 8th Feb 18, 5:07 PM
    • 139 Posts
    • 87 Thanks
    buggy_boy
    Halifax has a slightly different spin, and of course if your business model is based on lending people money to buy houses you are going to spin it the best you can? BTL figures hard to spin though, did that get a mention on the BBC yet?
    Originally posted by Crashy Time

    Halifax say house prices are 2.2% higher than in the same three months last year? Yes there was a monthly change of -0.6% but its the time of the year, if you actually look at last years monthly change for January it was -1.6%. Yes stats can be spun, the best stat is Land registry, as that is based on sale prices which although a little lagging is reporting house prices up 5.1% (Likely to be reduced by the time it catches up because of the winter slowdown but still expect a positive figure)

    BTL figures have gone down but its hard to understand as BTL has switched to being in Limited companies... BTL will be a slow sell of from those that the new tax will affect the most, those that are not highly leveraged like myself actually see a way to grow, im currently looking for another BTL but will buy in a limited company structure.
    • Crashy Time
    • By Crashy Time 10th Feb 18, 3:32 PM
    • 5,511 Posts
    • 2,271 Thanks
    Crashy Time
    Halifax say house prices are 2.2% higher than in the same three months last year? Yes there was a monthly change of -0.6% but its the time of the year, if you actually look at last years monthly change for January it was -1.6%. Yes stats can be spun, the best stat is Land registry, as that is based on sale prices which although a little lagging is reporting house prices up 5.1% (Likely to be reduced by the time it catches up because of the winter slowdown but still expect a positive figure)

    BTL figures have gone down but its hard to understand as BTL has switched to being in Limited companies... BTL will be a slow sell of from those that the new tax will affect the most, those that are not highly leveraged like myself actually see a way to grow, im currently looking for another BTL but will buy in a limited company structure.
    Originally posted by buggy_boy



    Government can change the rules on BTL in a LTD Co. anytime, they know there are votes and money in landlord milking. They will probably let as many people that want to get set up as Ltd Co`s, and then change the tax rules again IMO.
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