Advice on what to bid on 'offers over £190k' + pics!

harrup

kaylz39 wrote: »

Just to let you know my Hubby called the EA yesterday just to test the water. He said we know what they're looking for but domt think its worth that & we can't afford that (we can go to £190k max). The EA said to offer what we think the house is worth as 'you never know'. This instilled a bit of confidence as its now obvious people who look for 'offers in the excess of' don't always get them, was expecting the EA to say they won't consider anything below.

Ha....how interesting.

Looks like I was dead wrong. Sure shows that one never stops learning AND that " offers above" truly are meaningless terms.

Good for you!

harrup

sinbad182 wrote: »

Does WibbleSnarf suffer from some kind of mental defect?

This cannot be ruled out.

All the same, I am hellishly tempted to employ his negotiation & appraisal services the next time I am tempted to put in an offer for a property. The man HAS balls...

harrup

WibbleSnarf wrote: »

How do you come to that conclusion? Given its condition, how does it appear to be "worth" a minimum of that?

£190,000 is an *asking* price. Nothing more, nothing less.

I'm *asking* £25,000 for the 13-year old BMW on my drive with 169,000 miles on the clock. Given its condition (it only has a few stone chips on the bonnet and a little ding on one wing), do you agree that it's "worth" a minimum of £25,000?

I don't wish to hijack the OP thread so I shall bow out after this....but to answer your question:

It "appeared" to be worth it because, in comparison, for more than TWICE the price I could buy this:

http://www.rightmove.co.uk/property-for-sale/property-22337433.html

Or this
http://www.rightmove.co.uk/property-for-sale/property-35489224.html

Or this

http://www.rightmove.co.uk/property-for-sale/property-35309014.html

Evidently, my perception of what properties are "worth" has been severely skewed by a decade of looking at listings like the above.

I applaud you and your generation for being less foolish than ours and to say "no, not at that price".

Either way, it explains why I thought the AP wasn't unreasonable.

ukcarper

WibbleSnarf wrote: »

Eh? How about *you* get something straight? The RightMove index is a monthly average of asking prices according to the biggest property listings website in the country. The Nationwide index is a monthly average of selling prices according to a lender which has a third of the mortgage market. The reason they bear little resemblance is that vendors are asking for, on average, more than 35% more than houses are selling for.



How is it too low? Is it too low if the vendor accepts it?

You are wrong and I suggest you do some research at how they all get to the figures they use.

If the vendor accepts it but they are unlikely to accept an offer of 15% below what it is actually worth.

dinofabio

ukcarper wrote: »

I also don’t think 15% below is ridicules but what dinofabio is saying you offer 15% than you think it’s worth

Correct. I wouldn't want to pay anyone what it was worth - can't see the point. Why would I want to offer someone £100K for a house which I think is worth £100k? Every one wants a bargain, and that wouldn't be a bargain.

ukcarper wrote: »

so if you thought that house was worth £160k you would offer £126k. That’s not to say you shouldn’t offer less than you think its worth but I just think 15% is a bit to much.

A 15% reduction on a £160K house would mean offering £136K.

ukcarper wrote: »

If that house was mine I personally wouldn’t feel insulted if you offered me £126 but I certainly wouldn’t accept the offer.

To be fair, I expect a high rejection rate making offers of 15% of what I think it's worth. A lot of vendors are in no hurry or financial pressure to move. Interest rates are historically low for many people. A lot of people I know have more disposable income than they have ever had. But there will always be a few people who want a quick sale for whatever reason.

dinofabio

kaylz39 wrote: »

Can anyone who can access property bee give me more info on 5 Brotherston Drive, Blackburn?

This house is also for sale for £199,950 but I would like to know how long it has been for sale for for/if it's been lowered etc. may give me some ammunition when negotiating on this one

Thank you!

Came on the market on 17th April 2012 for £199,950. Price has remained unchanged.

So not a lot ammunition (imo) if you are using this property as a reference for negotiation. The vendor of this property may have totally different circumstances to the vendors of the property you are interested in eg. No rush to sell? Quite happy to stay where they are in the short/medium term, Overvalued by the Estate Agents etc. Hence no price reduction

Just concentrate on the property you are interested in.

dinofabio

sinbad182 wrote: »

Does WibbleSnarf suffer from some kind of mental defect?

Why? Some of his/her arguments are quite reasonable (to me anyway). He/she has certainly put some thought into the matter, and has made some valid points.

ukcarper

dinofabio wrote: »

Why? Some of his/her arguments are quite reasonable (to me anyway). He/she has certainly put some thought into the matter, and has made some valid points.

Anyone who compares Rightmove asking prices to Land Reg etc sold prices and comes to conclusion that the difference is the average reduction hasn't thought enough.

ukcarper

dinofabio wrote: »

Correct. I wouldn't want to pay anyone what it was worth - can't see the point. Why would I want to offer someone £100K for a house which I think is worth £100k? Every one wants a bargain, and that wouldn't be a bargain.



A 15% reduction on a £160K house would mean offering £136K.




To be fair, I expect a high rejection rate making offers of 15% of what I think it's worth. A lot of vendors are in no hurry or financial pressure to move. Interest rates are historically low for many people. A lot of people I know have more disposable income than they have ever had. But there will always be a few people who want a quick sale for whatever reason.

Yes £136k you are right

I think when you do start offering you will find you will not get any takers unless there is something seriously wrong with the property people might want a quick sale but they won‘t want to give it away.

Your best bet might be to go to auctions.

　

neas

I think there is a lot of delusion on both sides... from sellers and buyers it seems.

Can I ask a serious question of those who 'would offer' significantly less are you guys FTbers waiting for a bargain?

I ask because a seller putting 20k on what other houses are 'asking' in the local area is 'nuts'.

But in the same light a buyer taking 20k off the price the market dictates is also 'nuts'. If the market dictates 100k and you offered 80k... yes you would get rejected as quite clearly you want something for nothing. BY the sheer nature of the 'true' market price then someone would snap it up for 100k.

Whats obvious in addition to the figures bounded around is a bias towards lower prices. The house is up for 190k and people are talking they'd be happy with 136k... so how do you start that negotiation? start at 50% off asking price i.e. 95k and work up?

Just saying you guys seem bonkers too . And i was in the crash squad for 3 years on here.. once my deposit had rose and prices dropped 15% i bought in 2010. I got a nice discount and am now selling i 2012 for the roughly the same I paid in 2010 (thats my market stagnation for 2 years). Anyways hope you bonkers guys get on the property ladder soon If you arent already.