Advice needed

jackkelly

Hi all,
Looking for advice from you wise people We bought our house in may 07 (full asking price £186995 I know I know we were fools) Anyway this house hasn't turned out to be the home we wanted. Once I'm inside my front door it's fine, but neighbours (not awful just not my cup of tea IYSWIM and parking are more of an issue than we thought)

Anyway we have decided to sell been on the market 4 weeks 6 viewing's. 1 couple viewed twice this weekend and said they will contact EA tomorrow. So looks hopeful its on at £162500 so I feel realistically priced for the falling market EA said the same (he would!) we really can't take much below this as we put £430000 down as deposit, with fees etc out we would like £15000 as near as dam it.

Now we have said all along we would take what we could get out of this house and then if couldn't find anything rent and save like mad while waiting for the right house. I stupidly started to look on rightmove and have found a house 4 bed semi in the nicest part of town, drive, 3 reception rooms, garage everything we want. In 2007 these houses sold for £340000 it has been on the market for 6-9mths started at £289999 now this week guide price £225000 :eek: and no onward chain, not a repo as drived by today and people inside.

What would you offer? Because we have lost money in this current house we feel to buy a house around £200000 imediately we would need to borrow from family to make our deposit upto around 10% and cover fees. Affordability is okay we earn between £55000- 60000 pa approx. It's the falling market that has eaten away at our deposit which we used 1st time.
Long post I know, I have a feeling this new house won't be around long at that price as it is the most desirable area in town, and that price is unbelievable compared to other ones on the market in that area and checking current values online.
It's not ideal to have 90% LTV, mortgage broker felt he could source a deal given that affordability and credit history are fine. This new house would be a forever house, this current house was never going to be, but we had no idea what was going to happen.
Thanks for reading this long post any advice gratefully received
:beer:

QTPie

Errrrr, what's your question? You want advice, but it really isn't clear on what...

QT

jackkelly

Sorry to have rambled, Is it worth taking a risk on this new house. Considering in a booming market we would never of had a chance of purchasing it.
And do people think that house on the market for 6-9 mths dropped asking price by £60000 take a £85000 drop to get a sale.
HTH

Savvy_amateur

Difficult to say, but if you get the offer on your house and there is no downwards chain, then you have nothing to lose by offering £205k. If you do then I would make it very clear to the EA that this is your one and only offer and you are having to borrow from a family member to meet this price. If you don't make that very clear then the EA and consequently the seller may think that £205k is your opening offer and not your FINAL offer. Good luck.

QTPie

jackkelly wrote: »

Sorry to have rambled, Is it worth taking a risk on this new house. Considering in a booming market we would never of had a chance of purchasing it.
And do people think that house on the market for 6-9 mths dropped asking price by £60000 take a £85000 drop to get a sale.
HTH

It depends on how much you like the house, what else you could get for your money, how long you intend to stay etc...

A lot of people will say "don't buy at all in this falling market!". BUT it sounds as though this house has had a considerable price drop. Question what is it really worth (look at things like houseprices.co.uk) and what similar houses in your area have sold for recently...?

Buying a house is a mixture of head and heart. If you find THE ideal house, that will last you 10+ years, that you can COMFORTABLY afford (and are secure in your jobs), then it isn't a BAD time to buy (buying a year or two ago would have ben a lot worse...). BUT it is a VERY personal decision

Good luck, whatever you decide
QT

jackkelly

Hi
The couple that viewed Friday and again today are in rented accomodation and are ready to go apparently, so no big chain either way.
The online property values came out between £240000 - 269000 on Halifax and Nationwide which makes me feel happier about having a 90% LTV on a £205000 offer.
I know no one knows whats best, but if you all shot me down in flames I would listen and rethink. our aim was to have £20000 deposit saved by the end of the year if we sold now, but can't see this house being there then.

jackkelly

Hi,
I would say yes I could see us there 10+ years. On housepricenetwork they paid £165000 in 2001. Houses in 2007 in that road sold for £340000 and end of 2008 for £249999.
My job is definately secure which is half our income, my hubby has a guaranteed military pension and a reasonably secure job which makes up the other half, and very little other debt's.

kunekune

My experience, fwiw, is that what they expect has not changed much when they reduce the price. I would doubt, unless there is something 'special' in the background, that they will accept anything less the 5000 from asking price. The price is reduced to haul you in, but they still have the same expectations of selling price. And if I'm wrong, I'll just say "may be it's a yorkshire (west yorks?) thing".

jackkelly

What I'm curious about, is unless you are in dire times financially or upping sticks to move abroad why would you be selling now at such a reduction.
This house in a stable market not even booming is worth more than what it is up for, unless every other house in town is overpriced! (maybe)

protractor

Seems like a good deal - if the house is a 'keeper' - there has never been a better time to buy than now (why everyone buys at the peak of a market is beyond me - I include myself in this criticism!:p).

Besides - prices are all relative anyway.

Thing to remember is that unless sea levels drop, there are more deaths than births per year, immigration drops, emigration increases, and divorce becomes outlawed - there will always be an increased demand for land within this little island we call home. QED - property prices will always 'go up' in the long term!

jackkelly

I keep thinking we can't mess it up twice, can we?
We bought in the peak of 2007 at full asking price , but if we could buy now a potentially unacheiveable house in any other climate, but this mess we the world are in now it might come good and over the long term (10 -15 yrs) we might get back that £43000 we put down as a deposit in 2007
Any way could be pie in the sky I might get offered £140000 tomorrow and my bubble will burst.