Offer Strategy

ess0two

poppysarah wrote: »

I just read this

QUOTE
Having viewed (address) for the second time on Saturday we are prepared to make an offer on the property, albeit with due consideration to prevailing market conditions.

The original asking price for the property last July was £245,000, since reduced to £239,950 ie a reduction of 2%. The peak price achieved for a property on Blah Road (according to Land Registry figures) was £247,500 in October 2007, which represented the very top of the market nationally. Since then all the major house price indices, including those of the well regarded Halifax and Nationwide, have shown significant reductions, with most experts agreeing that a drop of 20% from peak has already occurred.

Most economists, including those affiliated to the major lenders, are also agreed that there are further significant falls, of the order of 15-20%, likely during the course of 2009 and into 2010, with a recovery in property prices not likely for a number of years.

It is against this background, and the current difficulties in arranging financing, that we have to try and calculate what is “fair value” and hence what to offer. If we assume (generously) that a peak value for (address) was £250,000 then the 20% reduction that has already occurred gives a figure of £200,000. If we then assume a further 15% reduction for 2009 we arrive at a figure of £170,000, ie a further £30,000 loss of equity. These figures are set against a mainstream expectation of potentially 40% reductions peak to trough, ie (address) could bottom out at £150,000. (NB – in the last few days one well-respected economist has predicted falls of up to 55%.) As our intention is to buy a home, not make an investment, we accept that, by buying now, we will likely suffer a significant loss of equity over the short to medium term.

With the above analysis taken into account we wish to make an offer on (address) (inclusive of carpets, fixtures and fittings) of £180,000.

We request that you pass this letter on to the vendors.

Yours Sincerely

BP

What was the outcome to this?suspect !!!!ing in the wind,to get £70k off.

lisa-loves-cats

i put in an offer of 250k on a property which was on market for 290k (originally on 325k, then 308k)

Explained that it was based on the current prediction of house prices dropping an average of whatever percentage it is, and then the risk of them dropping even more in 6-12months time, we were (at the time) good to go, and the offer was accepted, so definately right to put in that offer of 250k.

Good luck, don't let the EA bully you, stand your ground for a few days as he may try to worry you to make you offer more.

chickmug

lisa-loves-cats wrote: »

don't let the EA bully you, stand your ground for a few days as he may try to worry you to make you offer more.

But wouldn't you want this sort of agent if they were selling for you

poppysarah

chickmug wrote: »

But wouldn't you want this sort of agent if they were selling for you

In a falling market with fewer buyers you should have good advice from an EA. And that might be taking a much lower offer.

If the EA can't magic up a buyer with more money after 12 months then people need to seriously lower the asking price.

chickmug

poppysarah wrote: »

In a falling market with fewer buyers you should have good advice from an EA. And that might be taking a much lower offer.

If the EA can't magic up a buyer with more money after 12 months then people need to seriously lower the asking price.

Good point! Despite what they tell you NO EA can magic up a buyer. However some would make you think they have a magic wand. The funny thing is that the real Bullsh*tting type of agents even try and Bullsh*t other agents when they meet. So never happy at having to meet most of them let alone deal with them:D

poppysarah

Indeed. So when they can't magic up a buyer prepared to pay £X then they need to say £X-Y is the best offer you're likely to get.

QTPie

The problem is finding those few good agents, really... seems like pot luck and I would think that "most are as bad as each other, with a few notable exceptions" (i.e. you).

Our agent was a pain the two times that we REALLY needed her:
- when we received our first offer, she was away ill. Got handed onto her boss who knew nothing about us, the property, the buyers or any of the history. He was, quite honestly, useless! We did negotiate a deal, but with absolutely no insight or help from him. I know that people can get ill, but it wasn't serious and she was back at work a few days later. IF I was an estate agent and I was ill (unless I was having an operation, on my death bed or similar), I would handlng the negotiation of any deal from home (especially on £420k house).
- after accepting that first offer, we were trying to rush it through quickly (buyers wanted to complete within 6 weeks of the offer and we wanted to get out, rent and on with our lives). We were out of the country when the buyers were supposed to be having the survey done, BUT I emailed the agent later that day and asked if the survey had been done ok. Of course! She said. She was away skiing, but her office were looking after it all: if anything didn't go to plan, she would know about it! Don't worry about it! Nine days later (she had been back from her trip and been in the office for a week) it "came to her attention" that the survey hadn't happened! (Actually I think it was more something to do with me emailing my Solicitor - to ask if exchange had happened yet - who then went on to kick the estate agent). The EA got in touch with the buyer and they said that they would reschedule the survey the following week. Three days later, the buyer gazundered us (pre-survey) and the sale fell through.... It probably would have happened anyway, but the EA not being "on top of things" (and not leaving her colleagues "on top of things") certainly didn't help...

We have now (10 weeks on) finally exchanged contracts with another buyer. So ok in the end, but I wouldn't recommend that EA (and their firm) to anyone else...

As a seller, you really want to know that your EA is on top of things (even if they are ill or away - that things are left in someone's CAPABLE hands...).

QT

chickmug wrote: »

Well thank you we did try and because I was from a different background in the early days I had NO preconceptions. When posters say ALL EA's are carp it annoys me as there are some good ones but do take a bit of finding. I doubt many would give their time to helping others on this forum as it is not earning them money. They would rather spend their time playing golf.

Incidently I always said if I were prepared to lie more I would of got more new instructions. Tell them, at valuation their house was worth more than it was and tell them we could sell it in five minutes. I can sleep as I dealt with people as if I was doing it for myself.

chickmug

QTPie wrote: »

The problem is finding those few good agents, really... seems like pot luck and I would think that "most are as bad as each other, with a few notable exceptions" (i.e. you).

Our agent was a pain the two times that we REALLY needed her:
- when we received our first offer, she was away ill. Got handed onto her boss who knew nothing about us, the property, the buyers or any of the history. He was, quite honestly, useless! We did negotiate a deal, but with absolutely no insight or help from him. I know that people can get ill, but it wasn't serious and she was back at work a few days later. IF I was an estate agent and I was ill (unless I was having an operation, on my death bed or similar), I would handlng the negotiation of any deal from home (especially on £420k house).
- after accepting that first offer, we were trying to rush it through quickly (buyers wanted to complete within 6 weeks of the offer and we wanted to get out, rent and on with our lives). We were out of the country when the buyers were supposed to be having the survey done, BUT I emailed the agent later that day and asked if the survey had been done ok. Of course! She said. She was away skiing, but her office were looking after it all: if anything didn't go to plan, she would know about it! Don't worry about it! Nine days later (she had been back from her trip and been in the office for a week) it "came to her attention" that the survey hadn't happened! (Actually I think it was more something to do with me emailing my Solicitor - to ask if exchange had happened yet - who then went on to kick the estate agent). The EA got in touch with the buyer and they said that they would reschedule the survey the following week. Three days later, the buyer gazundered us (pre-survey) and the sale fell through.... It probably would have happened anyway, but the EA not being "on top of things" (and not leaving her colleagues "on top of things") certainly didn't help...

We have now (10 weeks on) finally exchanged contracts with another buyer. So ok in the end, but I wouldn't recommend that EA (and their firm) to anyone else...

As a seller, you really want to know that your EA is on top of things (even if they are ill or away - that things are left in someone's CAPABLE hands...).

QT

We operated in our way which was only the partners (husband and wife mainly), or family members that worked in the business, haggled when offers made, only the partners made viewings to make sure the request were really serious.

There was always a partner in the office at all times and yes I was ill sometimes but my wife was able to do anything I could - so no problems.

Some on the board seem to hate the agents saying money for old rope. They ought to spend some time with a good agent to see how frustrating it is day to day and remember to write the cheques for the overheads at the end of that day.

QTPie

Don't have a problem with people being ill or away on holiday IF they can leave the sales in good, knowledgeable hands (and obviously there are occassions/emergencies that no-one can foresee).

Some people just don't like parting with money (and it is their option to sell themselves - i.e. without an agent - if they want).

Personally I think that a GOOD agent is worth the money.... Just wish that there was an easy way to find a good agent!

QT

chickmug wrote: »

We operated in our way which was only the partners (husband and wife mainly), or family members that worked in the business, haggled when offers made, only the partners made viewings to make sure the request were really serious.

There was always a partner in the office at all times and yes I was ill sometimes but my wife was able to do anything I could - so no problems.

Some on the board seem to hate the agents saying money for old rope. They ought to spend some time with a good agent to see how frustrating it is day to day and remember to write the cheques for the overheads at the end of that day.

chickmug

QTPie wrote: »

Just wish that there was an easy way to find a good agent!

QT

Not sure if you saw another thread of mine?

http://forums.moneysavingexpert.com/showthread.html?t=1567371

All fairly basic though

Plan B is to buy a good lie detector..................:D