Are prices really going down?

sneakyg

Hello

Im trying to purchase a place and have recently pulled out of a spacious 2 bed converted character house after seeking advice on this very forum.

However im currently having doubts and need some re-assuring. I belived that i would be able to purchase a place that is up for more money for around £170,000 where it is advertised at apporx £200,000/210,000.

This isnt happening, does anyone have any real examples of when this has worked, ideally in the north london, enfield, cheshunt, chingford,southgate,palmers green areas.

Regards

stevetodd

sneakyg wrote: »

Hello

Im trying to purchase a place and have recently pulled out of a spacious 2 bed converted character house after seeking advice on this very forum.

However im currently having doubts and need some re-assuring. I belived that i would be able to purchase a place that is up for more money for around £170,000 where it is advertised at apporx £200,000/210,000.

This isnt happening, does anyone have any real examples of when this has worked, ideally in the north london, enfield, cheshunt, chingford,southgate,palmers green areas.

Regards

Yes prices are dropping, I can't see how you could have failed to notice that prices have dropped in North London by approx 13% in the last 12 months. Maybe in the particular example that you are quoting the house was realistically priced to rfelect the current market? If so you are asking a lot to drop by 17% (not that there is any harm in trying of course, just that it would have to be a motivated seller).

pickledpink

sneakyg wrote: »

Hello

Im trying to purchase a place and have recently pulled out of a spacious 2 bed converted character house after seeking advice on this very forum.

However im currently having doubts and need some re-assuring. I belived that i would be able to purchase a place that is up for more money for around £170,000 where it is advertised at apporx £200,000/210,000.

This isnt happening, does anyone have any real examples of when this has worked, ideally in the north london, enfield, cheshunt, chingford,southgate,palmers green areas.

Regards

Sneaky,

Some properties have dropped by as much as anything between 5 and 45% - but it's mainly those that were very overpriced to begin with; or the undesirable properties (in a bad state/area.... blah.. blah... blah....).

The reduced properties which come up due to the the present buyers no longer being able to afford the mortgage repayments are probably the best bargains. But they'll get snapped up quicker than the all the rubbish will.

The maisonette you recently pulled out of is now under offer - and it did look very nice. Why did you pull out of that? You could end up regretting that!:p

pinkshoes

It really depends on the specific area/street you're buying in.

Some areas are very over-priced, where the mortgage is way higher than what it would cost to rent in the area. These will potentially drop further in price. Other areas are more reasonably priced in comparison to rental costs (where demand to live in the specific area is very high), so prices might not drop so much, or might not drop at all.

Just do your research, don't overstretch yourself financially, and only buy if you're planning to stay there for a long time i.e. would 2 beds be sufficient for the next 5 or 10 years? By all means read the news, and listen what people have to say, but make your own decision based on what YOU think. After all, no one has a crystal ball...

andrewmp

My house I just bought. On market for £120,000 at peak (overpriced for sure). Got it for £75,000 last month. It'll probably fall quite a bit further but I intend living there long term.

hethmar

Have a look at property snake for the area you are interested in.

sneakyg

pickledpink wrote: »

Sneaky,

Some properties have dropped by as much as anything between 5 and 45% - but it's mainly those that were very overpriced to begin with; or the undesirable properties (in a bad state/area.... blah.. blah... blah....).

The reduced properties which come up due to the the present buyers no longer being able to afford the mortgage repayments are probably the best bargains. But they'll get snapped up quicker than the all the rubbish will.

The maisonette you recently pulled out of is now under offer - and it did look very nice. Why did you pull out of that? You could end up regretting that!:p

I pulled out as i though it would loose value and i would be in negtive equity, although now im not sure as it was very spacious.

I contacted the vendors estate agent to try and re-purchase but they seem uninterested in speaking to the sellers for me and said that they have now recived £5,000 more than i was willing to pay.

Would it be unethical or breaking any laws if i contacted the seller directly or through their solicitors to ask to re-purchase if poss?

sneaky

hethmar

It would be unethical but the agent is required to pass on any offers, so I guess they would be looking for above the one they have already received.

pawpurrs

If they have got a higher offer, then I could see why they would not want to reaccept your offer, as you have allready messed them about.
All you can do is ask your offer to be resubmitted with a copy in writing which is what they are supposed to do.

Pennywise

Don't forget that some enlightened sellers have put their houses on the market at a realistic price - i.e. already maybe 25% below the price they'd have asked a year ago. You aren't realistically going to get them to accept another 25% below their current asking price - that would take you to about 40% below the 2007 value, which may ultimately be what happens, but not yet!

We have done exactly that. A house we are selling was valued at £175k in early 2007 and similar properties on the same street were selling at around £170k (according to land registry records). We put it on the market a couple of months ago with an asking price of £140k and have had 17 viewings and 2 offers of over £130k (none of which are proceedable as they have houses to sell of their own!). Another house down the road is still on at £175k - it was put on the market a year ago and has not been reduced at all.

Running_Horse

sneakyg wrote: »

im currently having doubts and need some re-assuring

If you need reassurance from a bunch of strangers on the Internet, you really should not be buying something as important as a house that is likely to drop in value. You may be right about prices though. We offered in Feb last year and moved in June. Right now asking prices for similar houses are between £5,000 and £25,000 more than we paid. Having said that very little is actually selling here unless priced very competitively.