To those BUYING in these difficult times....

shupufski_2

Many vendors have the problem known as "anchoring" whereby their price expectations are set by either the highest price on the street or the highest valuation they have had (ever).

Any climb down from this price is regarded as a "loss" irrespective of the amount. Of course, a small "loss" is tolerated by most vendors to make a sale.

However, the great problem is that the anchor price may be completely out of step with the actual market. This means that sensible offers will be so far below the vendor sees them as insulting.

Also, from a potential buyer's perspective if a property is priced too high, many won’t bother seeing it as the vendor is signalling that their expectations are unrealistic. Thus you actually dissuade viewings even though you may actually be willing to take a price cut.

Further, in a falling market, vendors become reluctant to lower prices to nearer their threshold for fear of buyers offering even less!

This ridiculous situation is self feeding and is currently reflected in the differences between different house prices surveys. To me it is indicative of a market in turmoil.

LilacPixie

redstararnie76 wrote: »

Hi LilacPixie - just wanted to wish you good luck. I know that paranoia very well....
In my more paranoid moments, I sometimes feel that there are so many variables involved in buying and selling that it's a miracle that anyone ever moves!

My exact thoughts. we have heard precisly nothing today. Now I am guessing thats a good thing because surely a call now would indicate a problem but i'm still worried. :eek:

dizziblonde

LilacPixie wrote: »

My exact thoughts. we have heard precisly nothing today. Now I am guessing thats a good thing because surely a call now would indicate a problem but i'm still worried. :eek:

Yep the waiting thing sucks. Not much here today apart from the officialness that the revised loan figure's gone through fine (was a formality but I won't believe this mortgage won't go wonky until it's all signed off on all ends).

Looks like the local tram extension's survived the budget hatchet so hopefully in a couple of years we'll be 10 mins walk away from a direct tram link into the city centre which should do nice shiny things to house prices in the long-term future (not why we're buying here mind you - but nice to have it going back ahead).

redstararnie76

Well, the bank's surveyor was meant to see the property on Tues pm, I'm hoping that they've ok'd the value as I've received a letter from my solicitor today saying that the bank's contacted them to confirm the mortgage advance and it's the right amount.
Our surveyor was looking at the place this morning, so I arranged to meet him at the property at the end just to go over his findings. He was fairly positive about the place, however apparently the 'outbuilding' attached to the back of the house containing the utility, wc, cupboard and hall, has an asbestos roof. The property shares two chimneys, and these will apparently need repointing in the next 2-3 years, and the loft has woodworm in it, which according to the surveyor should be ok if we spray it. Just waiting now for the full official report which he hopes to get to me by the weekend, with his final thoughts and valuation (though he did say he felt it seemed a good price).

LilacPixie

ooo small heart attack just had email pop up form solicitors but it was just a quick everything is going normally, here are fees estimate and the shortfall between equity in current house and deposit needed and how to pay it. eeekkkk

azkaban420

Hi all, hope you don't mind me joining...I feel neither here nor there in the buying and selling game of houses due to some major disappointments (sellers pulled out of house sale on the day we were due to exchange on our dream property) and allsorts...this one's a bit long so bear with me.

We are currently renting in the hope that the right property turns up. At the moment the choice is very limited. A lot of houses are very overpriced and just sitting on the market for months and months. I got a call from an EA begging me to see one such house, 4 bed detached up for £289k, been on the market since Jan with zero interest or offers. He suggested making ANY offer on it, as they'd had none in the past and were desperate to sell. I went and saw it, we did like it but it needs a fair bit of work (new kitchen/bathrooms/carpets). Before I even saw it I told him there was no way I'd be prepared to pay over the stamp duty threshold as the house was well overpriced in my opinion. I actually saw and offered on the house next door to it back in Jan (£245k) but missed out on it by £5k, and it sold for £250k making it the most expensive property sold in that cul-de-sac. That was in a better condition, slightly better layout etc imo. So I offered £230k on this one just before I went away on hol...the EA seemed grateful.

I heard nothing back so rung him asking if he'd left any messages whilst I was on hol, he said he did but I didn't get anything. He said the sellers were looking for over £250k, so I said fair enough I'm not prepared to go that high, so we'll leave it as it is.

I've seen a few other houses and nothing is suitable and I'm keen on this house, but I'm not prepared to pay over the odds for it. I don't mind negotiating but am surprised that the EA didn't even try or bother to ask me if we'd go any higher (we probably could budge a bit, but not a huge amount).

How would you play it? I called him yesterday to ask him if there were any other houses coming up in the area and he said there's nothing except the one I saw and another (too small) and I was hoping he'd ask me if I'd had any more thoughts on this house so that we could try and kick start a negotiating conversation. On one hand I would like to close the deal, on the other hand I don't want to seem desperate, as we're renting, with an AIP ready etc so ideal buyers - they should be chasing us! We could just sit tight and wait for the sellers to come back to us (although it's unlikely if they are deluded about the value of their house) or we could just bite the bullet and ask the EA if the sellers would consider £5k more?

It's so frustrating - I keep hearing it's a buyer's market and was so glad to be in a strong position, but it doesn't seem to be helping

Any thoughts are appreciated..

Az

milliebear00001

Nothing happening here either. All down to the solicitor's now. Mine is still waiting for completed draft contract and other paperwork from vendor's solicitor - despite vendor getting everything to them on Monday. I find it hard to understand why solicitors seem to move at snail's pace and have to do everything via snailmail!

Frustrating when you hace a rapidly approaching mortgage cut-off.

azkaban420

azkaban420 wrote: »

Hi all, hope you don't mind me joining...I feel neither here nor there in the buying and selling game of houses due to some major disappointments (sellers pulled out of house sale on the day we were due to exchange on our dream property) and allsorts...this one's a bit long so bear with me.

We are currently renting in the hope that the right property turns up. At the moment the choice is very limited. A lot of houses are very overpriced and just sitting on the market for months and months. I got a call from an EA begging me to see one such house, 4 bed detached up for £289k, been on the market since Jan with zero interest or offers. He suggested making ANY offer on it, as they'd had none in the past and were desperate to sell. I went and saw it, we did like it but it needs a fair bit of work (new kitchen/bathrooms/carpets). Before I even saw it I told him there was no way I'd be prepared to pay over the stamp duty threshold as the house was well overpriced in my opinion. I actually saw and offered on the house next door to it back in Jan (£245k) but missed out on it by £5k, and it sold for £250k making it the most expensive property sold in that cul-de-sac. That was in a better condition, slightly better layout etc imo. So I offered £230k on this one just before I went away on hol...the EA seemed grateful.

I heard nothing back so rung him asking if he'd left any messages whilst I was on hol, he said he did but I didn't get anything. He said the sellers were looking for over £250k, so I said fair enough I'm not prepared to go that high, so we'll leave it as it is.

I've seen a few other houses and nothing is suitable and I'm keen on this house, but I'm not prepared to pay over the odds for it. I don't mind negotiating but am surprised that the EA didn't even try or bother to ask me if we'd go any higher (we probably could budge a bit, but not a huge amount).

How would you play it? I called him yesterday to ask him if there were any other houses coming up in the area and he said there's nothing except the one I saw and another (too small) and I was hoping he'd ask me if I'd had any more thoughts on this house so that we could try and kick start a negotiating conversation. On one hand I would like to close the deal, on the other hand I don't want to seem desperate, as we're renting, with an AIP ready etc so ideal buyers - they should be chasing us! We could just sit tight and wait for the sellers to come back to us (although it's unlikely if they are deluded about the value of their house) or we could just bite the bullet and ask the EA if the sellers would consider £5k more?

It's so frustrating - I keep hearing it's a buyer's market and was so glad to be in a strong position, but it doesn't seem to be helping

Any thoughts are appreciated..

Az

Hi all, had a difficult night going over all our options etc, it's so frustrating sometimes. We saw another house yesterday which is empty, needs a lot of work, but is further away than we'd like and not as nice an area, but we'd probably get it cheaper than the one above. I'm not overly keen on it, but am thinking of calling the EA for the one we like to say we're thinking of putting an offer on this second property, but our offer still stands for the first one? If they could let us know if they sellers are willing to budge, then fine, if not we'll move on?

Can someone please give me their thoughts, I'm going round in circles on this one!!

Az

lucielle

Anyway you can speak to the sellers directly?
L

emilia15

I'd go back to the Ea with my final offer, i.e £5k more, explain that this is as far as I can go, explain that I'm not in a chain, have an AIP in place etc etc, and then wait. Chances are, yours is the only offer they've had, and with it on the table, plus the added benefit of you being chain free, it may tip the balance.

Of course, it could go the other way! If they're adamant they want asking price, then they're obviously in for the long haul and happy with that!