"cheaky offers"

kennyboy66_2

do_it_today! wrote: »

I think for a number of people who this route would be ideal have sort of left it too late to take this route so they cling to the hope of the right buyer on the open market.
one road I know there is a house been on market since Jan08 - not reduced 200k across the road same size property (I doubt the condition is that great!) anyway in July up for rent in august up for sale this month up for auction - guide price 120k :eek: the owner I guess can afford to accept such a low offer but can the 200k house owner across the road?

The point is that many sellers are also looking to buy, either trading up or down or moving area. They are probably finding it just as hard as you to get vendors to accept "cheeky offers". Anyone trading up should be hoping for price falls, but the problem is that nothing is moving. Add to that that many people have a mental block about accepting a lower price than what they felt something was "worth" 12 months ago. This is not unique to house buying, small stock market investors are guilty of this as well.

For all those putting a scattergun of "cheeky offers" in and who seen a bit obsessed about bagging a bargain rather than a home, why not just buy at auction ?

mr.broderick

kennyboy66 wrote: »

The point is that many sellers are also looking to buy, either trading up or down or moving area. They are probably finding it just as hard as you to get vendors to accept "cheeky offers". Anyone trading up should be hoping for price falls, but the problem is that nothing is moving. Add to that that many people have a mental block about accepting a lower price than what they felt something was "worth" 12 months ago. This is not unique to house buying, small stock market investors are guilty of this as well.

For all those putting a scattergun of "cheeky offers" in and who seen a bit obsessed about bagging a bargain rather than a home, why not just buy at auction ?

Thanks you saved me a post

Nenen

GDB2222 wrote: »

You'd think that inheritors would not be too fussed about price, but no it doesn't work that way.

I think the problem is that quite a few EAs (in order to get the business) have traditionally overpriced the house and then some of the inheritors take this as the amount of cash they will actually get in their hands. In their heads (if not through credit cards and overdrafts) they have already spent the whole amount and then see any lower offer as someone 'robbing' them of their inheritance!

At the beginning of the last crash we saw a house being sold by the inheritors with an asking price of about £75,000. It needed a LOT of work doing on it (including building a wall in the loft between this house and the house next door) and, having obtained quotes of over £15,000 for the work we offered £66,000. We were laughed at by the EAs and told we had 'upset' the vendors.

Six months later (when we were just about to exchange on another much better house for similar money) the EAs rang us to ask if our offer still stood! It was our turn to laugh when we told them 'no thank you' and what we were buying instead! The first property took over a year to sell and eventually went for £33,000! :eek: I guess the inheritors were more than a little upset that they hadn't taken our offer when it was on the table!

Nenen

going2die_rich wrote: »

I personally can't see why anyone who doesn't have to sell is selling in the market right now. Far better to just put up with what you have for the next few years and then sell later when things pick up.

It all depends on circumstances and what you are hoping to move to (assuming you are living in the house and it's not inherited or BTL). If you are selling to 'trade up' it is far better to do it when house prices are lower as the difference in price between a 2-bed terrace and a 3 bed semi (or a 3 bed semi and a 4 bed detached etc) is smaller when prices are lower meaning less extra mortgage needed! Many people who currently cannot afford to trade up will be able to do so if prices fall 20%.... to give an example:

Mr and Mrs A's 2 bed terraced house was worth 100,000 at peak and the 3 bed semi they wanted to buy was worth 200,000 (hence 100,000 extra mortgage/cash needed).

All prices drop 25% and although Mr and Mrs A's house is now only worth 75,000 the house they want to buy is now worth 150,000 so they only need to raise an extra 75,000!

If Mr and Mrs A wait for the market to 'recover' again they will have to spend more to 'upgrade'. Of course, Mr and Mrs B who want to downsize or move to Spain are much better to wait for the recovery!

swingjune

We have put in a cheeky offer and we got our dream home in a great location :T

Here is the post : http://forums.moneysavingexpert.com/showthread.html?t=1051917&highlight=ftb+-geek!!!what+have+we+done%3F

The message is BE BRAVE, NO HARM BEING CHEEKY :rotfl:

Davesnave

going2die_rich wrote: »

I personally can't see why anyone who doesn't have to sell is selling in the market right now. Far better to just put up with what you have for the next few years and then sell later when things pick up.

I can.

I'll sell my nice house in a desirable location if the price is right and someone makes it worth my while to go into rented. My place is priced competitively for the current market and I will keep it that way, but chancers need not apply. Simple as that.

I'd rather sell now and rent because I'll have time to consider the next move carefully, rather than rush at it, as I might be tempted to do in a more buoyant market. It's my opinion that prices have a long way to fall yet, so there's no urgency. Meanwhile, I enjoy living here, so I'm not 'putting up with' anything.

going2die_rich

Davesnave wrote: »

I can.

I'll sell my nice house in a desirable location if the price is right and someone makes it worth my while to go into rented. My place is priced competitively for the current market and I will keep it that way, but chancers need not apply. Simple as that.

I'd rather sell now and rent because I'll have time to consider the next move carefully, rather than rush at it, as I might be tempted to do in a more buoyant market. It's my opinion that prices have a long way to fall yet, so there's no urgency. Meanwhile, I enjoy living here, so I'm not 'putting up with' anything.

Competive price doesn't get sales in a declining market, low prices get sales. You are likely to be waiting a while for a buyer even if your house is in desirable location. If it's the more deseriable locations then your prices wont be falling as much anyway as demand remains high for "must live" areas. Which do in the end tend to be the more wealth off areas which are always going to do well as the rich are always best placed for a recession and high inflation times.

When I said "putting up with", I meant putting their reasons for selling a side. Many people selling do so out of desire rather than true need. They want to be closer to a particular school, job or family, not because they have to move.

snoopy78

kennyboy66 wrote: »

For all those putting a scattergun of "cheeky offers" in and who seen a bit obsessed about bagging a bargain rather than a home, why not just buy at auction ?

I think this approach is a fantastic idea, lets face it most houses in an area are similar so if you want to live around 1/2 mile of an area there will be a load of houses for sale. Why not put a few cheeky offers in and you may get 20K off what is the normal for that area, £20k off results in around £130 extra in you family's back pocket every month, not to be smiffed at in the current market.

And if the cheeky offers don't come through then who cares prices are going down anyways so you may get the £20k plus off soon enough.

Auctions are a little on the risky side as the rules are a little more stricked and if you can't move as fast as that then auctions are a no go area.

Davesnave

going2die_rich wrote: »

Competive price doesn't get sales in a declining market, low prices get sales. You are likely to be waiting a while for a buyer even if your house is in desirable location. If it's the more deseriable locations then your prices wont be falling as much anyway as demand remains high for "must live" areas. Which do in the end tend to be the more wealth off areas which are always going to do well as the rich are always best placed for a recession and high inflation times.

When I said "putting up with", I meant putting their reasons for selling a side. Many people selling do so out of desire rather than true need. They want to be closer to a particular school, job or family, not because they have to move.

I think I understand you. My problem isn't getting a buyer, but a proceedable buyer _ I have 3 of the other kind. However, the FTBs are not coming into the market (and I don't blame them!) so the people who want to move up to my house can't sell. I could sell at a fire-sale price to one or two people who have been sniffing around for a potential student let, but that isn't something I'd consider at the moment.
I'm just explaining why I'm on the market at this time, but not stressing too much about the lack of a sale. As someone else pointed out, if you are trading-up, hanging on before buying in a downturn is advantageous, so properties which I could only dream about last year look distinctly possible by say, the end of next year.