Cashback.

telfordwhite

advantages of cashback as I see it:

It would get noticed on the property pages in what is a pretty stagnant market.
It marks it out as having had the price reduced.
May tempt someone who is uncomfortable with putting in low offers who can afford 175k.
May attract a FTB at the top of their price range... who is skint...;) are there any other kind? (we had a cash buyer viewer last week with a family soon to leave the forces who could afford it)

disadvantages:

Potential buyers will negotiate down from 175k rather than 180k and we can't afford to sell for much less than this.

May incur a few extra quid cost for solicitor letters.

Doozergirl

A lower price is always more attractive than incentives. When the price flashes up on rightmove, with a pic of the house, you can't get it across that you are actually selling it for £175,000.

My overwhelming impression of you so far is that you don't really understand the psychology of house buying. Or perhaps you are a little too affected by the HPCers on this board? It isn't just you as a vendor that is vulnerable, buyers are too. Even me, I've done it so many times but I am always fraught with worry when I sell, even after all my homework, and a little less so when I buy because I am always prepared to walk away, but only because it's business for me and I need the price to be right. Most peope are not like that and you can read that every day in most of the posts on here. People are insecure about buying and selling but you must learn to negotiate well and stand your ground in either situation.

If the price is £175k, which it is, even with cashback, then put it on at £175k and stand your ground when the negotiations start. If someone wants your house and can afford to pay or thinks it is worth the asking price, they will pay. Four out of the last five houses I have sold at full asking price. The only one that didn't was when my husband did the negotiating :wall:

If you know it is cheap for what it is, other people will know that too - they're out viewing.

How long have you been on the market? How many viewings have you had? What is the feedback? Are you going through this price worry prematurely?

telfordwhite

Doozergirl, We spent a lot of time and money in "buying" an empty property in our preferred location only for our buyers to pull out of the sale at the last minute. If we sell before the vendor does then we can resurrect the sale so perhaps my actions are affected by this.

There is also a financial factor, we have a fixed rate mortgage offer which expires in October, if this deadline expires, due to the interest rate rises we could be paying 0.75% plus more which equates to about 6k on the mortgage we may subsequently be able to take out hence my haste in trying to think of ways to potentially sell more quickly.

Nothing in our price range is moving round here, we have had viewers since going back on none of whom have sold their own properties. We are already competitively priced in relation to similar properties and I am simply exploring options. Cashback is one of these options and although I realise potential buyers won't be fooled by a price drop in another form, it may attract a certain type of buyer without adversely affecting our house's saleability.

Now on to your point about psychology. It is far easier to negotiate firmly if you are doing it for business purposes rather than for your own home and I find it rather patronising of you to suggest that I dont understand the psychology of housebuying just because house selling means more to me in finding a home for my family than it does for you as a business transaction when you can afford to wait for alternative buyers to come along.
I think you fail to appreciate that not all buyers are in the position you are as a businessperson and some people have different motivations and additional agendas when buying houses than you do.

Doozergirl

Right. So what you're telling me is that you need to sell your house as quickly as possible? I'd already worked that one out and that is why I am still telling to to drop your price and stop pansying around thinking that a higher asking price and cashback is a good idea. If it was, then everyone would be doing it.

I spend my time here advising people how to negotiate with the right head on because not only do I have the experience of having done it many more times than the average person, I want to see people get the best deal and to see them sell their houses as quickly as possible. I don't sit here dishing out rubbish advice that doesn't apply to the average vendor. It just so happens that I've already made all the mistakes and I can offer the benefit of my experience to try and steer people away from doing the same.

I am quite insulted that somehow what I say doesn't count. I put virtually all the money I have into my business, and a lot of money that I don't have to boot. I have children to feed and a roof to keep over our heads. I am not a salaried individual who still has money put in the bank at the end of every month, regardless of a 'bad month'. The way I market my houses directly affects how quickly I can get money back out to pay for life. If I don't sell, I could be in serious financial poo.

So of course, I do have worries like every other vendor, in fact, moreso. I am in no better position than anyone else when buying or selling property, I have simply had to learn how to get it right by realising that how I felt back when I was buying and selling my first few places is exactly how the majority of vendors/buyers feel. I can use that knowledge to my advantage.

I can research and know whether my asking price is reasonable. If it is, I can pay for extra marketing, I can use an agent like House Network to keep my costs down - maybe for my pocket but maybe to pass on to a buyer if I am having trouble selling. I can listen to the feedback, makes changes and ultimately, I can hold out, explain how wonderful my house is each time I have to reject an offer and hope that they will offer more. If they don't then I can still accept their last offer if I need to.

Just because I have learned to manage situations, doesn't mean that I operate in a different way. I still have strong principles, I don't screw people and no, I don't feel 100% sure of myself when I'm holding out for what I know is a reasonable asking price. I wouldn't be human if I did and I probably wouldn't be the type that enjoyed trying to help people.

So if you think the benefit of your little experience is better than mine that's fine, but don't insult me by suggesting that I don't understand or have your best interests at heart when I reply to a question that you asked.

telfordwhite

Doozergirl wrote: »

So if you think the benefit of your little experience is better than mine that's fine, but don't insult me by suggesting that I don't understand or have your best interests at heart when I reply to a question that you asked.

You really are quite arrogant aren't you? I respect your opinion, it's the patronising nature I object to.

PasturesNew

lynzpower wrote: »

Ok well I just looked on RM, and you can get 3 bed semis in tr3 for 90k and around.

Now if I was a FTb, Id be looking at these sort of places- surely?

I know the area, having just moved from about 20 miles away.
Not sure how you managed to get £90k out of RM.

I just pushed the options to TR3 + 5 miles and cheapest 4 bed house was Camborne at £144k. Traditionally a mining area, this has a high level of poverty - and even the picture was grim. It was terraced too.

TR3 on the other hand, has some quite posh bits in it.

Although I can't find the property we are discussing here as none is showing for me at £180k.

Looking through, the first house that appealed to me was this at £199k:
http://www.rightmove.co.uk/viewdetails-8716884.rsp?pa_n=2&tr_t=buy
Where "appealed" meant - really not in a crap/poverty stricken area with nothing going for it.

Difficult to know what to advise as I can't find the OPs house to compare directly (with my local knowledge).

However, the market HAS turned - and each day will bring new revelations to the media/press that will scare off potential buyers. So I think she needs to look at how much she paid, why she's selling, how much she needs, how quickly she wants to sell. Then price it accordingly.

Give us the link to the house.... maybe it is priced too low for the area - and perhaps people are assuming there is something wrong with it:
- mundic
- mines under it
- radon

Might be worth mentioning it's free of these in the particulars to stop the wary being put off

Doozergirl

telfordwhite wrote: »

You really are quite arrogant aren't you? I respect your opinion, it's the patronising nature I object to.

I think they call your probelm self-projection. My last sentence - I take it the rest hit home - was actually

I'm not arrogant at all, I can admit when I'm wrong and when I ask for advice I will take it graciously. I'll give people the benefit of the doubt but I do not suffer fools gladly.

Doozergirl

telfordwhite wrote: »

You really are quite arrogant aren't you? I respect your opinion, it's the patronising nature I object to.

I think they call your problem self-projection.

I know that I am not arrogant at all. I can admit when I am wrong and when I ask for advice I receive it graciously. I won't suffer fools gladly however and you appear to be on the receiving end of that.

I said that I had the impression that you don't understand that psychology of house buying. It's not patronising, it's an observation. I speak straight.

That last comment that you picked up on was supposed to be a direct reflection of the catty comment that you made at the end of your previous post. Shame it was that one you chose to pick up on. :rolleyes:

telfordwhite

Doozergirl wrote: »

I know that I am not arrogant at all. I can admit when I am wrong and when I ask for advice I receive it graciously. I won't suffer fools gladly however and you appear to be on the receiving end of that.

:rotfl:
You really can't help yourself can you?

jonewer

lynzpower wrote: »

woud a ftb really buy a 4 bed detached?

If there was a 4-bed detached in the areas I am looking, it would be worth £180k for more than a couple of hours. In other words, yes an FTB would LOVE a 4-bed detached but probably cant afford it.