How to make an offer in a buyers market!

pault123

http://www.newsletter-s.propertyfinder.com/2/pf/articles/makeAnOfferInABuyersMarket.do

Think this will be of help to some people on here

Paul

meanmachine_2

"Remember that most properties are sold for between 95% and 98% of the asking price."


Well that's not true for a start. Currently, properties are selling for around 93% of the asking price.

These are my tips in a buyers' market:

Never give the impression that you like, or are interested in a property while viewing it.
Make various negative noises while viewing (sucking air in through teeth, tutting, shaking head, etc)
Suggest that you don't have much time to view as there are around a dozen other properties you are viewing that morning.
Leave it three days, at least, until you put in an offer.
Never offer more than 70% of the asking price.
If they refuse, walk away and come back in 6 months when the same property is still on the market, and has dropped in value by 70%
Offer 90% of the asking price.
The sellers won't refuse, and will be practically biting your hand off.

nelly_2

excellent advice^

Woby_Tide

meanmachine wrote:

Never offer more than 70% of the asking price.
If they refuse, walk away and come back in 6 months when the same property is still on the market, and has dropped in value by 70%
Offer 90% of the asking price.
The sellers won't refuse, and will be practically biting your hand off.

I know you're desperate for the market to crash and think everything is against you but theres still no reason to be so silly.

If you believe the second point I've quoted aswell, I'm guessing if thats your view of things you will never own a property. Try and find some creidble figures about how many properties remain on the market for 6 months or more. If it's an average property, i.e. not a one off, and not stupidly overpriced(in comparison to the market in general in that area as opposed to stupidly overpriced in your own personal opinion) I would say the chances of a house being on the market for 6 months is close to nil

dougk_2

If you offer 70% you won't even get past the estate agent - they won't pass the offer on!

Although they are leagally required to let the vendor know of all reasonable offers many EA's ask if there would be a minimum offer you would consider and won't contact you unless the offer is that or better and as this is your wish they comply with the legal aspect.

If everyone believed they could get the property at 70% of the value then watch the asking prices increase 130% overnight and you won't be talking up a crash just creating ficticious figures.

nelly_2

^ wright it on a fag packet and post it through the door

deemy2004

I would say you need to get on with the vendor, so be friendly, comment on how good the property is, though don't go overboard, but make positive comments.

Make a good impression, so that you come across as a serious buyer that is seriously interested in buying their home ! Remember your talking about their home so if you start slagging it off, then they will be less reluctant to do a deal with you then if they enjoyed your company... offcourse the price matters ! But be polite, friendly and positive at viewings !

You can put in the negative reasons with the estate agent when you put your low offer in.

theGrinch

a house is only worth what you are prepared to pay for it. if you think the asking price is bang on, then offer close to it and close the deal. likewise if you think its too high, then offer a reasonable amount. no medals for bravado or playing silly buggers.

if you want to be a serious buyer you need to present yourself as such. if you start clowning about with offers, how long will it be before estate agents write you off as such?

finally show a bit of respect in someone's home.

meanmachine_2

Woby_Tide wrote:

I know you're desperate for the market to crash and think everything is against you but theres still no reason to be so silly.

If you believe the second point I've quoted aswell, I'm guessing if thats your view of things you will never own a property. Try and find some creidble figures about how many properties remain on the market for 6 months or more. If it's an average property, i.e. not a one off, and not stupidly overpriced(in comparison to the market in general in that area as opposed to stupidly overpriced in your own personal opinion) I would say the chances of a house being on the market for 6 months is close to nil

The house oppsite me has been on the market for NINE MONTHS. Oh, and last month, do you know what the vendors did? Put the price up.

We're living in an age of unparalleled greed. Thankfully, it's all starting to unravel.

deemy2004

meanmachine wrote:

The house oppsite me has been on the market for NINE MONTHS. Oh, and last month, do you know what the vendors did? Put the price up.

We're living in an age of unparalleled greed. Thankfully, it's all starting to unravel.

Its the same with any speculation... remember the tec stocks, people saw 100%+ gains but did they sell ? Most not.. down the road the held on whilst prices collapsed and they ended up with 90% losses !

House owners have become so conditioned to year on year gains, that as with most gamblers there is a mental block in realising that your luck has changed and to take stock.

But no, as you say they are lost with heads above the clouds....

When they do wakeup ! They willl likely chase the market lower, by not accepting offers, but every 6 months having to cut the price...

FJSRiDER

dougk wrote:

If you offer 70% you won't even get past the estate agent - they won't pass the offer on!

You can make a 70% of the asking price offer and get it accepted. This is where talking to the vendor and telling them you are considering making an offer can be a good idea.

Estate agents simply feed off sellers (and buyers) - there is no reason why you shouldn't communicate with the vendor. If they agree in principle to your offer then the agent will look a bit stupid if they don't pass it on. It would give a good excuse to remove the house from their agency and sell direct (saving the agents fee %) wouldn't it?