Offer rejected - advice please

cashbackproblems

I disagree with the above, with this new stamp duty charge any property in a city or near a good station now has less people competing for it due to a slowing down of BTL. So you can make offers 20-30k less and there is a chance it will get accepted, currently sellers have not realised this and are still pricing for the market which was pre-April. It will take weeks/months for this to feed down.

But in this case if he is adamant he wants 325k and is playing games with his divorce, he wont accept yet.

I am looking in London in commuter areas which are the highest demand and was shocked this weekend when I viewed 7 places some excellent flats have been on the markets for weeks/months and earlier on in the year the place would have sold immediately (as iv been looking for 4/5 months)

AnotherJoe

Tygermoth wrote: »

We were rather rudely told to shove it and they were only going to consider very significant offers over asking price

Thats annoying. Why not raise their AP in the first price then?
I guess you can (silently) tell then to shove their house and find a more rational seller.

Tygermoth

Its a shame - everyone is offering silly money over the asking price if its new on the market- last weekend we went to see a nice enough house. It was just worth the asking price (it had some issues) it went for 45K over. I was looking at properties that had been around a bit longer to stay away from the frenzy with 'open day' bidding wars.

We cant compete with that, if we go 45K down we are looking at flats, less salubrious areas or even further out... which is what everyone else is doing. Or houses that require a serious amount of refurb (which, as we would be at the top of our budget would be stupid)

i thought house hunting was supposed to be fun lol

AnotherJoe

This has all the signs of a bubble. Which is usually followed by a "pop". Its unsustainable.
I'm not suggesting a house price crash but it is literally impossible for prices to keep rising like this especially with the affordability restrictions. Hopefully that will let prices level out rather than the usual steep decline.
Its mad where I live near Reading, daughters house £334k 18 months ago, neighbours exactly the same layout, just gone for probably £425k or so. (advertised at that and sold board appeared in less than a week)

Tygermoth

Another Joe - i am looking in the Reading region (though across three counties)

Its mad at the moment - as I said to the EA re the 'odd gallery house' i said - how can that be right!?! that's a two bed house, marketed and priced as a four - she said - you put an offer in didnt you?

Point made.

*in our defence the odd layout actually works for us - but i don't think we are the norm.

Cakeguts

http://www.rightmove.co.uk/property-for-sale/property-58992209.html Someone many years ago had to buy an ex council house in Reading. It was the best they could do.

jaspreetp

house few doors away which is in immaculate condition is sold for £325. Hence I believe the owner will not sell it for £310. I think if you love the house, an offer of £320 with benefit of first time buyer buying etc may close the deal!.

Sitting tight may not help as the owner has already reduced the price by 20K. Hence either offer higher say £320 or find another..

nubbins

AnotherJoe wrote: »

This has all the signs of a bubble. Which is usually followed by a "pop". Its unsustainable.
I'm not suggesting a house price crash but it is literally impossible for prices to keep rising like this especially with the affordability restrictions. Hopefully that will let prices level out rather than the usual steep decline.
Its mad where I live near Reading, daughters house £334k 18 months ago, neighbours exactly the same layout, just gone for probably £425k or so. (advertised at that and sold board appeared in less than a week)

Look at what happened after the last pop of 2007/2008, prices have gone up 70% plus, even during 2008-2013 prices did not really seem to drop here they just took longer to sell.
I agree the price rises cannot continue like this, in fact I am seeing small drops on RM albeit from stupid prices but with Crossrail coming along in a few years, Londoners finding "good value" lots of work, good schools, transport links etc I really cannot see a massive correction but who knows.

AnotherJoe

nubbins wrote: »

Look at what happened after the last pop of 2007/2008, prices have gone up 70% plus, even during 2008-2013 prices did not really seem to drop here they just took longer to sell.
I agree the price rises cannot continue like this, in fact I am seeing small drops on RM albeit from stupid prices but with Crossrail coming along in a few years, Londoners finding "good value" lots of work, good schools, transport links etc I really cannot see a massive correction but who knows.

The news that Barclays are now doing 100% mortgages filled me with horror on the news this morning. I'd like to see government action of at least 95% maximum.
I bought a house near Reading for £200k in 2007. By 2011 I reckon it would have been valued at £150k.I sold it very late 2014 for 250, i reckon it would easily be £300 now.So that 2x in 5 years.

I suppose Crossrail is pushing up prices in the Reading area.

ElsieMonkey

I think if you've done your homework, know what comparable properties have sold for recently etc. then stick by what you feel it is worth. The only time I would think about offering a bit higher than this is if it ticks all of my boxes and I'm looking for a very long term family home, in which case a house can be worth more to you than its real market value.

The fact that he's going through a divorce and wants as much money as possible to share between him and his ex possibly (another responder alluded to this) doesn't play into its value. I'd like a million pounds, but I don't expect buyers to take that into consideration when I sell!

I agree that divorcing couples selling often do make the buying/selling process more difficult than it has to be, so I would be a little cautious. I've known people that have been through it and, if I knew the couple in question weren't on talking terms, it would be enough to put me off wanting the property tbh!

As someone said already, there are ALWAYS other houses. I know it's easy to say, but I speak from experience. You want to hope for a seller who is reasonable and open to negotiation. This seller doesn't sound like either tbh. I would leave it, move on. Keep looking for other properties, soon you will see something you like just as much, it may be next week, it may be in 3 months, but you WILL. If in a few weeks time this house still isn't sold, then maybe go back to the estate agent and say "I notice the property is still unsold, so would like to ask if the vendor is now open to negotiation and put forward again my previous offer of 300k".

Overall, just remember, a sellers personal wants, or situation, has no bearing on the market value of their property. Often an advertised asking price is a stronger indication of the seller's greed/desire combined with the estate agents inflated valuation to win the vendor's instruction...NOT the market value!