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How low would you go?
Comments
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I was told by someone in the know that in my part of the World there are plenty of people with six figure sums of non-mortgage debt.
They are lumping these on top of their house price to get their asking price and are refusing to sell for less as they need this sum to break even on their debt and mortgage.
In other words, they want someone stupid to bail them out after they have whizzed it up against the wall for a decade.
I have looked at houses that are have an asking price of 150K to 200K more than they sold in 2006/07 - checked the land registry - and this is in South Wales where virtually all the jobs are public sector.
One EA I spoke to told me that her boss refused to negotiate on the asking price even though I am about the only person they see in their offices.
IMPO a crash is coming.
This is not financial advice.This is not financial nor legal nor property advice. Consult a paid professional if in doubt.0 -
IMPO you have to start 20% below their asking price today and I am not comfortable about that as 30% is probably more sensible in this bubble market on the verge of collpase.
This is just my opinion and not meant to be financial advice.
Ack, thanked instead of quoted and didn't mean to.
This kind of broad brush advice irritates me because the simple answer is, it ENTIRELY depends on what the asking price is in the first place.
We have just bought (completed an hour ago!!) and paid just £2k less than asking. Why? Because the asking price was around 15% less than the unrealistic asking prices of all other similar properties, and was entirely fair based on recent selling data. Despite the current market, we snapped our place up the weekend it came on the market because after a year of looking, these were finally sellers with a realistic view of what their house was worth and who were keen to move.
We're paying £231k and it was advertised at £233k. There are currently near-identical properties on the market (and have been on for a long time) at £249,995, £270k and offers over £290k (that last one taking delusion to a new level).
With any house, you have to look at recent sales data in the area to get a feel for what it's worth. And at the position and motivation level of the sellers to get a feel for what they'll take. A 'fair' offer might be asking price or 30% less depending on what the asking price is.
As for whether it's a bubble on the verge of collapse, we don't care at all. We got married in June, have thoroughly outgrown our flat already and plan some additions to the family in the next couple of years.We're planning on it being a 3-5 year house but it's big enough (4 bed detached) that we could live there for the long term if a further crash makes it financially unviable to move. If people are buying an investment property then it's all about the price. If you're buying a home, there's more to consider than price and timing the market. We're not putting our lives on hold for the sake of a crash that may or may not come.
EDIT: Having said all that, best I've heard of is my friend who got a new build for £168k when it's original marketing price had been £250k:
https://forums.moneysavingexpert.com/discussion/12199810 -
You can buy a home and lose your job tomorrow and then the price you paid for it becomes of vital importance.
You can a buy a home and interest rates could soar - then the price you paid for... yadda, yadda.
You can buy a home and the housing prices can crash, interest rates soar and you end up with a huge debt on an asset worth much less than the debt... which is what happened in the early 90s which resulted in people handing back their house keys to the mortgage lenders.
Jingle mail it was called.
Some people have bought into Brown's nonsense about an end to boom and bust. LMAO!
This is not financial advice.This is not financial nor legal nor property advice. Consult a paid professional if in doubt.0 -
I put an offer in a property this morning 11% under the asking price. The EA has requested that I speak to their financial adviser who will decide wheter I am a reliable buyer. Am I olbiged to disclose details regarding my salary, deposit, etc?
Prior to making the offer, I informed the EA that I have an Agreement in Principle and a 25% deposit.0 -
Recently bought a house with an AP of £163,000
First offer was £149,999 - rejected immediately.
Second offer was £152,000 - rejected after "sleeping on it" over night
Third offer ("best and final") was £154,495 but only if it included a specified list of fixtures and fittings. The sellers went away for two days then accepted it. If that hadn't been accepted I would have probably walked away.
So, that was 5% below asking price. I don't think I would have the nerve to start at 20% below but, hey, it's a buyer's market at the moment so be prepared to walk away if you cannot get a deal.
Remember also, if you have got your finance in place no chain behind you (e.g. a FTB) then you are in a better negotiating position than someone with a house to sell. The prospect of a quick deal has got to be worth a couple of grand.0 -
We offered on 4 houses. I'd have happily offered much lower without being embarrassed about it but the fact is that the housing market here is doing okay and you will get outbid if you try 10% off.
House 1, asking £160k. Offered £143k and was told an offer of £150k had already been rejected. Couldn't afford that so didn't offer again. House later sold for asking price but fell through after a couple of months. Price was put up to £162k but apparently no takers because was taken off market. We'd gone off it so didn't offer again.
House 2, asking £173k. Agent kept banging on about how they'd accept an offer so offered £136k. Rejected and told that offer of £159k had been accepted. Note that this house was identical to house 1 except hadn't been decorated since 1970s. House 1 was newly decorated.
House 3, asking £140k. Told that offer of early 130s had been rejected. Went to offer £133k with our no-chain status but offer of high 130s already accepted.
House 4, asking £140k. Offered £133k, rejected so upped to £136k and was accepted.0 -
I put an offer in a property this morning 11% under the asking price. The EA has requested that I speak to their financial adviser who will decide wheter I am a reliable buyer. Am I olbiged to disclose details regarding my salary, deposit, etc?
Prior to making the offer, I informed the EA that I have an Agreement in Principle and a 25% deposit.
No you are under no obligation to disclose any further information.
Has your offer even been accepted? Or are they asking you to do these things prior to giving you a yes / no.
C*F0 -
I put an offer in a property this morning 11% under the asking price. The EA has requested that I speak to their financial adviser who will decide wheter I am a reliable buyer. Am I olbiged to disclose details regarding my salary, deposit, etc?
Prior to making the offer, I informed the EA that I have an Agreement in Principle and a 25% deposit.0 -
I offered on a house with a £165k asking price I offered 145k, 150k, 155k all rejected. That was 6 months ago the asking price was reduced to OIRO 155k last month.
I'm not prepared to pay anywhere near that now though.Debt Is Slavery.0 -
Henry_P_Chester wrote: »I offered 165 asking price I offered 145k, 150k, 155k all rejected. That was 6 months ago the asking price was reduced to OIRO 155k last month. :d
I'm not prepared to pay anywhere near that now though.
Oh the irony! I hope you find something even nicer!!
C*F0
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