why a fixed price?

sveedy

Hi folks

i've seen an interesting house, almost the right area but the old spider sense is tingling. it is a three bed house on for a fixed price, it says it has been reduced from just under 300k to 257,950.

why would an agent put it in at a fixed price? also, the agent is based in hertfordshire but the property is in west london...that feels a bit wierd to me.

i've requested a viewing so i'll have a closer look but would appreciate any thoughts on properties marketed this way.

princeofpounds

Agents are full of all sorts of weird and wonderful ideas when it comes to marketing the price of a property.

Sometimes fixed price means that the mortgage company won't let it be sold unless the sale covers the outstanding debt, but given this has been reduced it seems less likely.

Sometimes vendors say they won't accept offers under £x to avoid timewasting with negotiations.

Normally it would be worth speaking to an agent to see if fixed really means fixed - sometimes an offer brings more flexibility than might be advertised.

tbs624

As PoP says, its usually the vendor saying " this is the lowest I will accept - don't even think of offering a lower figure"

As for location of agency/property - it may be that the vendor now lives in Herts/works in Herts/knows and trusts the EA who is a mate/ feels that there are those in Herts who are currently commuting & for whom this property would be attractive.It's not really weird.

somethingcorporate

Given the stamp duty threshold you'd have to be a few pence short of a shilling to pay £258k for a property. The EA cannot seriously expect an asking price of that would not get offers below £250k.

sirmosh

Sometimes people are desperate to sell but there's a certain amount they need to get to cover debts/pay off mortgage etc so they'll put it up at the amount they have to get.

skinnyman9000

There are 2 identical properties in Derby that originally went on for £150k FIXED PRICE, certainly did the trick as 2yrs later they're both still for sale for £110k

Yorkie1

somethingcorporate wrote: »

Given the stamp duty threshold you'd have to be a few pence short of a shilling to pay £258k for a property. The EA cannot seriously expect an asking price of that would not get offers below £250k.

Indeed. If the sale price was £250K, stamp duty of £2500. If the sale price was £258K, the buyer is paying £7740 plus an additional £8K for the property, i.e. a total of over £13K more.

pimento

A fixed price wouldn't stop me from making an offer.

Horizon81

It's all estate agent mumbo jumbo. Nobody would ever reveal their lowest price in an advert.

The latest tactic I've seen is a well overpriced house which has been for sale at £140K for forever and a day, now being advertised as £133K (Price Reduced For A Limited Time). What kind of BS is that?! The house is still overpriced and won't sell for £133K so we're going to threaten you to buy it before we put it back up to £140K and it won't sell then either. These agents are just a bunch of muppets and deserve all the bad press they get.

Henry_P_Chester

Phone the agent back and ask if the fixed priced means they are not willing to negotiate. If no then cancel the viewing. £7951 off that price will save you 2% in stamp duty.

tbs624

Horizon81 wrote: »

. Nobody would ever reveal their lowest price in an advert.

Yes, some would and some do.

Can you really speak for every vendor across the country?