Is it really a buyers market now?

neas

Its a buyers market but the market still moves and the good houses in good areas... will always sell.

We bought at 163.5k after much negotiation in sw 8 months ago.. exactly the same house has come on market now at 165k asking price and got full asking price and 2-3 other buyers interested in a bidding war...

Basically in 8 months no houses in this area have come up so it depends on where you live and if its a desirable area... desirable areas will fall but will always be sellable.

K_and_N

We found another property we like on the weekend (weren't expecting that we'll like it) and most likely to put an offer in after second viewing.

But we're not that hopeful this time since we'll be offering around 9% less than asking price (again). Well...we'll see.

BTW, we are buying in Greater London (South, Zone 4).

K & N

Running_Horse

Why 9%? Most 1st offers are rejected for negotiation.

If you have decided 9% below asking price is correct, you need to be starting lower.

Running_Horse

lightwiththebox wrote: »

thank you for your post, its really trouble us sometimes,like you ,soooogo.

Again, in English?

Jenniefour

Rautavaara wrote: »

Would you say it's easier to buy below the asked price on chain free properties, or the other way around?

Not really. Some folks have enough money to buy next one without selling - happening where I live and the next thing you know it's on the rental market and gone. Some are repo's and they don't always sell for a much lower price anyway, although some might. And with repo's (look out for the tell tale tape all over the place) you run the risk of getting the survey done and then someone else gazumping, the lenders trying to get back as much of thier money as possible. And some are probate sales - depends how desparately the heirs want their money out and how many others are interested. You are just as likely to get good deals on properties where the vendors have already had an offer accepted on their next home because they want to get things moving and can negotiate similar discount on what they're buying.

It comes down to whether the vendors are willing/able to accept a chunky discount. Try and get as much onfo out of the agent as possible - like why are vendors selling, have they got their next property lined up and so on. Might help a bit with judging whether a discount would be accepted. And some agents will indicate that a much lower offer would be acceptable.

shockingmoment

The housing market is in such a mess at the moment its an acceptable strategy to cast your net far and wide and make lots of very, very low offers.
We've just viewed 6 acceptable properties, offered 80% on the ones we were keen on, one vendor accepted.

Horizon81

tyllwyd wrote: »

I think the fact that it is considered to be a buyers market, but at the same time there are relatively few houses actually on the market, means that buyers are becoming paralysed by indecision. The buyers who are proceedable are so hung up on the fact that they can take their pick of the houses that are available, and terrified of making a mistake and paying too much or missing out on the perfect house, that they can't bring themselves to actually make an offer, or to consider any property that might have the slightest question mark about it.

As a FTB, I have to say that this poster has got it absolutely spot on. Nobody has a crystal ball so all you can do is go with what you think is going to happen to house prices. I think there will be further correction in prices, perhaps not the 20% in 2 years I read one analyst quoted on Monday but still some downward movement. 'Paralysed by indecision' puts it beautifully. I think there's very much the sentiment that if sellers don't want to negotiate then sod them, a different house and a better deal will soon be along. We can't all wait forever but nor should we artificially keep prices high.

I have actually made fair offers on houses and been rejected but am insistent on not being bullied by estate agents (who let's admit it live in their own dream world) to up my price beyond what I consider to be fair. For example, I don't think offering 11% less than an asking price which has remained unchanged for 8 months is being unreasonable. As I see it, the problem with many sellers is they're thinking of what their house was (potentially) worth in the absolute peak, and are so fixated on getting as close to that price as possible they're being unrealistic. Most sellers are of course buyers as well so what they need to understand is that if they then negotiate a similar reduction on the house that they are purchasing then they're not actually losing out. It's all about the 'cost to change'. Yes I know that's overly simplistic, but it would go some way to correcting the disparity between wages and house prices.

Thankfully some sellers are being realistic and these are the houses that are selling. I would say it's definitely a buyers market, so keep looking until you find a deal you're happy with and don't pay over what you consider to be a fair price.

lilham

No one seems to have pointed out the fact that house prices actually haven't dropped in some parts of the country at all. This is true for London and the SE. The average of the whole country have dropped only because the drop from midlands and north is larger than the rise in the south.

Check the land registry house price index in your area before you wonder why the sellers aren't accepting low offers

http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/

I'm in quieter corner of the SE, and the average has actually risen 4% last year. I can only imagine London and the home counties have risen even more. With this, of course house sellers will sit tight until they notice a real fall in their areas.

Horizon81

Don't worry, they're very much on a downward spiral near me - the grim North of England!
I'd say this post has sufficient relevance and is true in the majority of cases, despite your SE and London bubble. And Aberdeen.... yawn.

dander

lilham wrote: »

No one seems to have pointed out the fact that house prices actually haven't dropped in some parts of the country at all. This is true for London and the SE. The average of the whole country have dropped only because the drop from midlands and north is larger than the rise in the south.

This is true - have a friend who bought a house in Ealing in the 'peak' of 2007 and recently sold at a decent profit, after doing nothing to the house other than just live in it for a few years.

Also, you have to remember that not everyone who's selling a house actually *needs* to move - there are plenty of people out there who just fancy a change, or want to downsize after the kids leave home or something like that where they're actually in no great hurry - they might just have a price in mind where it's not that they need to get it, they just aren't bothered enough to move for less than that - people like that are more likely to just take the house off the market and keep living there than take a low offer.