Seller just won't budge

Henry_P_Chester

darrensen wrote: »

Hi guys,

Just wanted to share our experience with you.

We've been to look at lots of 3 bed properties. New build and old.

The one that keeps jumping out at us is one that we've made 2 offers on. It went on the market at the very beginning of April 2011. We saw the property after just a couple of days and made a prompt offer of 249,950. (on the market for 279,950). It was declined, probably because we were one of the first to see it.

Anyway, a few months went by so i called the EA and said, we're still looking, we're in a position to move immediately, my offer of 249,950 still stands. Again declined.

Today it's been over 3 months and still no price drop. We really like this property but refuse to go over the 250k stamp duty threshold.

With my last offer i said it would be their last chance from us and then we'd would go else where. But i was thinking of maybe waiting until late July before contacting the EA again with same offer. Also that might give them enough time to readjust the price.

I was also thinking of getting a mate of mine to take a look and maybe offer 5k less than us? See if that gives them a kick up the backside!?

All the reports say the market is slipping, i guess it's just a case of waiting unti they realise that their price is unrealistic. Or maybe they aren't really that committed to selling?

I think the best thing you can do is forget about this house and find seller who is not a time waster. There are plenty of properties coming to market in most areas at the moment so just bide your time. There's no need to rush into buying in a falling market.

missile

Seller wants more than your offer and will wait for a better offer. It is that simple.

Le_Chuck

kingstreet wrote: »

What do you think the property is worth?

If the stamp duty thing is the only thing putting you off, why not make them an offer which removes the problem?

If you think it's worth £270k, offer them £270k, subject to them paying the extra £5k stamp duty.

They get £265k net and you get the house and don't pay the extra stamp duty.

When your surveyor goes to value it, if he doesn't think it's worth what you've agreed, he'll say so and you'll have to renegotiate or walk away.

Is the extra SD not £8,400? They're FTB so won't pay any under £250k

kingstreet

Le_Chuck wrote: »

Is the extra SD not £8,400? They're FTB so won't pay any under £250k

Aye. It was more of an "in general" kind of comment, rather than specific advice to this particular OP. No reason the OP couldn't ask them to pay his stamp duty altogether if he would have paid none.

As a vendor, I'd rather have a chance of an extra £12k than the world and his brother all pitch up and offer the same £250k or just under.

john_white

hazyjo wrote: »

Not a case of selling it. It's under the presumption that whoever's buying will have a mortgage. If the price is going to be dragged down by say £30-40k in six months because of the stamp duty threshold, why would they buy it for £280k? £30k (prob more as it'd end up being offers under the threshold) on a mortgage is rather a large sum, especially at that level.

If a buyer didn't need a mortgage, it's not like they'd be paying interest on that money to borrow so fair enough - only a problem if they have to sell at a loss.

Jx

who says the SD limit will pull the value down? It may be well priced at 280k? If this property drops by 30k because of the SD then, other properties in the area on for 250k will have to take a hit as well so in effect anything the OP buys in this area will therefore drop and lose the OP money.

I was told in 2001 it was a bad time to buy as prices were going to drop soon, and bang, 7 years later they fell 10%, of course they went up 30% in the 7 years.

I'm not suggesting the OP should rush out buy this house, but, seems clear they can't find what they are looking for under the SD limit so they will either have to stump up the SD as the vendors are unwilling to move down 30k or, compromise on what they want from their home.

Not knowing the area, properties etc. It's foolhardy to simply say wait 6 months and see if it drops 30k.

firsttimebuyer2011

The problem with these types of threads is that they're charged with emotion.

The best advice I can give the OP is to stop being ruled by their head and be dispassionate about it all. And the best way to do this is to find at least another property they like at a similar price, and offer on both.

If the OP isn't able to do this and only likes the one on at 280K, then they either negotiate properly (going back with the same offer is pointless) or they wait until the seller starts to question that 280K valuation.

Please try to be ruled by your head not your heart. And there will always be new properties coming on the market, or ones that have fallen through, where the seller NEEDS to sell.

undetterred

Or find properties that meet your budget.

firsttimebuyer2011

undetterred wrote: »

Or find properties that meet your budget.

That's very true.

I can only speak for myself, but I do have a habit of looking at properties slightly out of my price range, thinking that - if I can get it for X, then I'll have got a "bargain".

Meanwhile I tend to ignore those that *are* within my price range, cos I feel I can do better, or try to get myself a property at a "sale" price.

Maybe I'm strange, but I think a lot of people are the same - hence the psychology of high street sales.

davilown

I'm a FTB searching for a similar property in the South East England and there is currently some major movement of those properties put up for sale between £250k and £300k - one way and that's down.

We've gone from being able to look at 3 bed semis to 3 and 4 bed detached because the market is not moving and the vendors are getting a bit 'desperate' (for want of a better word!)

As others have pointed out, it's a minimum of £7.5k stamp duty for a penny over £250k.

Others have also pointed out that why should the seller accept offers at £250k - basically, those who have the highest probability to complete are those not in chains. FTB and Cash buyers offer that extra level of 'comfort' to the vendor. The vendor is therefore having to pay for the 'privilige' provided by the buyer's position.

Good luck to the op, keep in there and bug the EA every few weeks as something will eventually come along - patience is the best card you can play in this game. Oh, I've just accepted a counter offer from a vendor below the STPD threshold for a 4 bed detached down from £299,995 - in five months

davilown

firsttimebuyer2011 wrote: »

That's very true.

I can only speak for myself, but I do have a habit of looking at properties slightly out of my price range, thinking that - if I can get it for X, then I'll have got a "bargain".

Meanwhile I tend to ignore those that *are* within my price range, cos I feel I can do better, or try to get myself a property at a "sale" price.

Maybe I'm strange, but I think a lot of people are the same - hence the psychology of high street sales.

That's the way to buy a house in this market - it works (I hope!;))

I think that the 'bargain' isnt necessarily a bargain, but the ability to sell the house on in the future without a higher risk of being in negative equity.