Offer advice on 300K..can I get under 250?

noddynoo

As i have said lets come back here next year and see. Prices have been artificially sustained by hair brained govt schemes and ridiculous IRs plus lax lending. I don't hear any of that this time. I am in a hotspot this is just the beginning. I have bought sold and renovated 13 houses since 2001 so am not plucking figures from air. We are 1hr from london and the estate agents who usually deal with me are all saying prices have to fall as nothing selling.

marshall666

Hi All

Follow up time - we didn't put an offer in as we've found somewhere more appealing at a lower price - not sure if we'll offer on it yet though. It's been fun though, thanks!
The question was quite general so hopefully it'll help someone. For those who don't want to read the whole thread: some people said yes, some people said no, most agree why not try.

Terry_Bam

Good luck. I presume you will knock the same 20% off the asking price with your next offer if you go through with it.

harz99

marshall666 wrote: »

Hi All

Follow up time - we didn't put an offer in as we've found somewhere more appealing at a lower price - not sure if we'll offer on it yet though. It's been fun though, thanks!
The question was quite general so hopefully it'll help someone. For those who don't want to read the whole thread: some people said yes, some people said no, most agree why not try.

Well that was a waste of everyone's time.

WibbleSnarf

ukcarper wrote: »

Whose houses were they Big Ears or one of the naughty goblins.

Not so much of a hot hot spot then because houses are selling fairly well where I am.

Contessa wrote: »

Would you mind telling us whereabouts this is please?

ukcarper wrote: »

Surrey

Houses are selling fairly well in Surrey? Are you sure about that?

Straight from the "Surrey Houses" website at this link: "Land Registry figures for June show sales completions down 20% on the same month for the previous year and down about 50% for the number of completions usually achieved in June prior to the 2008/09 property crash."

Of course, there's a case to be made that 20% down on last year (and 50% down on 304 years ago) actually *is* 'selling fairly well' but the context is key. There's a world of difference between 'good' and 'least worst' in a market that is tumbling.

WibbleSnarf

missile wrote: »

Could it be you are deluded?
It seems these vendors are not desperate to sell at what they believe to be below market value.

How is it the 'market' value if nobody on the market is willing to meet that valuation? It's the vendor's valuation, which is fine and it's their prerogative to choose not the accept an offer below that valuation just as it's any prospective buyer's prerogative not to offer more than they believe the house to be worth. In that event, the house doesn't move but don't make the mistake, in that instance of believe that a house that doesn't sell has a vendor who is willing to only accept the 'market' value.:)

WibbleSnarf

ukcarper wrote: »

Personally I don't think there will be a crash I just see them stagnating or maybe falling slightly, some people on this site have been saying what you are for the last 5 years.

Property prices are high but in relation toearnings they are only about 10% above long term average.

I don’t think where you live is much of a hotspot as a relation of mine sold his house in less than 2 weeks and the house he bought had not been on the market much longer .

Those people who have been saying it for the last 5 years have been proven correct to the tune of 20%. And it hasn't finished yet.

According to the data used to produce the graph on this page, the ratio currently sits at 4.3 - about 23% above the love term average of 3.5. And what's to say, in a market where house prices are falling, that the ratio will hit the historical average of 3.5 and level off? By its very nature, it's an average because prices are historically sometimes both above and below it, and the historic precedent is for the ratio to drop below 3.5 before eventually swinging back in the other direction again.

HAMISH_MCTAVISH

WibbleSnarf wrote: »

Those people who have been saying it for the last 5 years have been proven correct to the tune of 20%.

Oh dear....

According to Nationwide, house prices are down 10.6% from peak. According to Land Registry it's less than 12%. ONS and Acadametrics have it more like 5% below peak.

You'd have to cherry pick Halifax data to show a 20% fall, and even then you'd be ignoring the fact that Halifax shows a similar price today as Land Registry and Nationwide. And the difference is not the falls since 2007, but rather that Halifax showed a higher peak than the other two.

Also worth noting that rents have been soaring to new record highs, while homeowners have been enjoying record low rates, so even someone that bought at peak is now more or less even with renters since then.

And it hasn't finished yet

A matter of opinion.

Land Registry shows prices have risen and are now year on year positive, as does ONS and Acadametrics.

Haliwide show a slight dip year on year.

All of them show prices remain substantially higher than they were in early 2009 when the market bottomed out.

So at best you could claim prices are stagnant, with a mixed picture currently among the key indices.

The reality would be to say prices have risen a fair bit since the market bottom in most places, and those who advocated waiting for cheaper prices since then have been wrong.

the ratio currently sits at 4.3 - about 23% above the love term average of 3.5. .

Wrong again.

According to Halifax the long term average is 4.0. And the current average is 4.3.

But also according to Halifax the percentage of after tax income for new buyers used to pay a mortgage is just 26%, which is far below the long term average of 37%.

Buying a house has rarely been cheaper than it is today, when all costs such as mortgage interest are taken into account.:cool:

DiscoCat54

I bought my house in Bedford in 2007 for 292k. I spent 30k on it and it was valued in May at 310 with a marketing price of 299. If anyone were to offer me 250 I would snap their hand off!! I dream of an offer of 250 but am now reluctantly going down the part ex route

Loopgames

DiscoCat54 wrote: »

I bought my house in Bedford in 2007 for 292k. I spent 30k on it and it was valued in May at 310 with a marketing price of 299. If anyone were to offer me 250 I would snap their hand off!! I dream of an offer of 250 but am now reluctantly going down the part ex route

Why not wait until markets recover? Sad to read your predicament.