is now a good time to buy?? ftb

thegrimreaper

hi everyone,

just looking into buying a house, looking at an average 2 to 3 bedroomed house locally and although i can see that the prices have dropped considerably is now a good time to be buying or maybe hang on a bit longer... not sure what for though, just want to make sure im making the right decision, also if it should be that i decide to buy now, how low compared to the asking price should i be offering?

pinkshoes

That's a question that requires a crystal ball...

Why don't you do some research on houseprices.co.uk to find out what similar properties have sold for, then make an offer on what you feel is a fair price?

Ephemera

Yup, indeed, pinkshoes, although personally I'm waiting, nobody really knows for sure when the bottom of the market will come.

BUT:

Redundancies are continuing
The economy is still in contraction

so for those prepared to wait and increase their deposit there are potential tens of thousands to save off a mortgage...

BUT again..

if you find the right home now, and can afford it... do what you think is right!

thegrimreaper

i dont know why im still trying to convince myself, probably cos its the most amount of money i will ever spend in my life, plus after all the grief i had in my past with debts last thing i want to do is mess this up! i want to get the best deal , also i dont want to look like an idiot infront of an estate agent by putting in a stupidly low offer! in the area i am looking on house prices.co.uk nothing much in size or type of the house im looking at has sold in the last 2 years hence a bit stuck

Fire_Fox

How p***d off would you be if prices rose steadily and you missed the bottom VERSUS how p***d off would you be if you bought now and prices dropped further?

Do you have sufficient money saved for a substantial deposit, solicitors fees etc.? How ready are you to move - were you always intending to buy this year or are you letting the current financial climate sway you?

thegrimreaper

Fire_Fox wrote: »

How p***d off would you be if prices rose steadily and you missed the bottom VERSUS how p***d off would you be if you bought now and prices dropped further?

Do you have sufficient money saved for a substantial deposit, solicitors fees etc.? How ready are you to move - were you always intending to buy this year or are you letting the current financial climate sway you?

hi firefox, no wasnt always planning to buy this year but due to both the financial situation for me and the economy has swayed my decision, yeah i have the deposit, fees etc all sorted but i want to prove to my family i can do this without making a hash of it !

Fire_Fox

thegrimreaper wrote: »

i dont know why im still trying to convince myself, probably cos its the most amount of money i will ever spend in my life, plus after all the grief i had in my past with debts last thing i want to do is mess this up! i want to get the best deal , also i dont want to look like an idiot infront of an estate agent by putting in a stupidly low offer!

You won't if you do it right, and you shouldn't let an estate agent dictate one of the most important financial decisions of your life. They are paid on comission so it's in their interests to screw you for the highest price.

Put any offer into writing, setting out your position (FTB, finances in place) the terms and conditions (timescale, property off the market) and any burning questions (what is included, cost of service charges etc). Then sit back and don't let yourself be rushed or conned into budging. It's a buyers market, whether or not estate agents will admit it.

Ephemera

It's not the estate agent that accepts your offer, it's the vendor...

The estate agent only acts as a go-between.

The vendor has other things to consider as well as the amount of your offer...is it better to accept a lower offer now from someone with a good deposit and can get a mortgage no problem, and really wants the house, or hold out for more in a falling market and get a couple of offers that are higher that ultimately fall through?? That is assuming the vendor can think logically and isn't married to the idea that their property is worth more than their neighbour's....just because it's theirs!

Good luck no matter what YOU CHOOSE to do.

superfran_uk

A house is only worth what someone will pay for it. Unfortunately not all vendors see it that was and so I personally wouldn't offer too far under the asking price, as it's extremely unlikely the they will be willing to, or can even afford to sell their £200,000 house for £160grand.

As long as you know what you can get for your money and you aren't being unrealistic, they can only say no! If you don't know what you can afford, go to zoopla.co.uk and you can see all sales since 1995. It's invaluable. Remember that althought prices have dropped this varies wildly by area - where I am the market doesn't seem to have been that affected, except that sellers are holding out on putting properties on the market much to our disappointment! The prices however have remained almost stable and there have been plenty of offers on the properties we have seen so far.

You say you've had trouble with debts? I would have a chat with an IFA as it's nigh on impossible to get a mortgage at the moment, and a good credit rating is essential.

pinkshoes

The estimates on Zoopla are rubbish, so I wouldn't use it for that!

If you're buying a home for life (or at least for many years to come), you have a good deposit (at least 10%, preferably more), and have back up money (boilers dying etc...), then providing you can find what you like, then go for it.

How much is renting something vs buying something? Compare mortgage interest to rental cost.

cepheus