Is it worth viewing houses 30k above max budget?

cashbackproblems

Hi

I have been looking to buy properties for a while now and last year when I started there were a few on the market at the top end of my budget (350k) but I was unsuccessful due to one reason or another such as being outbid, cash buyer etc. My area is quite wide covering the Bromley/Beckenham area. since the stamp duty rise the market has slowed down and things are not selling as quickly, BUT EA's are now marketing the same 2 beds at 400k+ ...most staying unsold

There are some on at 380k which is 25k more than I can offer, is it worth the effort of viewing these considering this fact? Most at this price are unsold but I have seen a few sell in the last month (not sure if at asking or just below but id guess not too below)

If anyone has experience of these areas etc let me know.

eddddy

Say to the EA "I'm interested in this property, but my max budget is £x. Is it even worth me going to view it?"

If they say "No" - you walk away.

If they say "Yes", either...
- they think the seller might be open to a low offer, or...
- they hope you will love it, and try to find the extra money from somewhere

But if they've said "Yes" - at least they can't call you a time-waster, if you decide to offer £x.


Edit to add...
And obviously, £x can be less than your real max budget...
... but the EA might be assuming that anyway.

kilby_007

eddddy wrote: »

Say to the EA "I'm interested in this property, but my max budget is £x. Is it even worth me going to view it?"

If they say "No" - you walk away.

If they say "Yes", either...
- they think the seller might be open to a low offer, or...
- they hope you will love it, and try to find the extra money from somewhere

But if they've said "Yes" - at least they can't call you a time-waster, if you decide to offer £x.


Edit to add...
And obviously, £x can be less than your real max budget...
... but the EA might be assuming that anyway.

I've found this the most common scenario when looking over-budget. Often you get the response "perhaps if you really love it you will meet the seller in the middle" and I've had to say something along the lines of "look when I'm telling you X is my budget I do actually mean that" which usually ends in an abrupt finish to the phone call. [Edit] SOME Estate Agents don't like people who tell them the truth, it unsettles them...

eddddy

kilby_007 wrote: »

I've found this the most common scenario ...

Yep - it's all part of the game. And the better you understand the game, the better you can play it.

kilby_007

eddddy wrote: »

Yep - it's all part of the game. And the better you understand the game, the better you can play it.

Unfortunately though it's a game of poker, and you don't know the truth. I've tried playing the game in the past, but now I'm at the point where I just make one offer for what I think the property is worth and walk away if it's not accepted (which a first offer rarely is). Silence speaks volumes, and it's worked for me a few times. 2-3 weeks later if the property hasn't sold or they've had no offers above yours the EA will then try and talk the vendor around to get it sold. Yes they work for the seller but ultimately they want payment and you'll usually find that they end up more on your side than they would have if you'd upped your offer originally. Any upward movement on your side and they'll always keep pushing for more.

Samsonite1

Definitely view them to give you some perspective on what more you get and also you may be able to make an offer. I offered £35k below the asking price on my current house, admittedly I only got it for £10k less, but actually it had already been reduced by £50k before I had viewed it (a previous sale had fallen through so they lowered it for a quicker sale).

You do not need to ask permission from the EA - just ask to view it. They will all mess you around plenty enough - it is not for them to decide what you can view.

danslenoir

Depends what kind of market it is I guess.

If places in your area of interest are selling quickly at asking price or more, then a bid at 30k under is highly unlikely to come to fruition, so I personally wouldn't bother in this situation.

eddddy

Samsonite1 wrote: »

You do not need to ask permission from the EA - just ask to view it. They will all mess you around plenty enough - it is not for them to decide what you can view.

I think you're misunderstanding an EAs goals. They want to sell houses. EAs won't refuse viewings if they think there's even the remotest chance of a sale. Why would they?

If a house is hanging at £380k, the EA would love to be able to sell it at £350k or even £320k.

It might sell with one phone call at £320k - instead of weeks/months of effort trying to achieve £380k - and maybe not getting a sale at all. (£3200 in fees for an hour's work is much better than £3800 in fees for a month's work.)

But if the EA knows the vendor won't accept less than £380k, and a buyer says their absolute max budget is £350k - why waste people's time?

hazyjo

I remember getting into a ruck with an EA once when I viewed something up for I think around £400k and said I literally had £375k max and was it worth viewing. They apparently spoke with vendor and said yes - when we put an offer in at that price, they said they wanted closer to the asking price. I remember telling them I wasn't happy at having wasted my time and theirs when I'd specifically asked if they'd accept at that level.


Eventually they did come back and accept, but they messed us around something terrible and eventually the chain collapsed.


What I am doing this time (looking again lol) is seeing which ones are hanging around as they are more likely to drop soon, plus I'm ringing to get the background on those I like. Two have been rented out after someone died and they now want to get rid. Depending on how many fingers are in the pie, I'm guessing they may be open to offers. I'm not at viewing stage yet as prob won't go 'til next year, but keeping an eagle-eye on the market!


Just keep a very close eye on the market and don't always believe the date on the EA's particulars. One house I've followed keeps going on with new agents every month or two. Most are snapped up in a week or two but this has been on for over 6 months.


Jx

elverson

This happened with our purchase.

Advertised at 'offers in excess of £X'.
Viewed the property, liked it, made an offer of £X exactly.
EA emailed back a few times to say the seller was looking for more (but suggesting progressively lower figures).
Each time we (politely) said £X is our limit, take it or leave it. I think one time we threw in a vague comment about how high the stamp duty would be.
2 weeks later seller accepted and we bought it for £X.

kathrynha

It very much depends on the market in your area at the moment, and the position of the sellers.


In my area at the moment it wouldn't be worth it as property is being snapped up in days.
Rightmove tells you when a property went on the market. If it has been on for a while I would say it is more worth a visit, than if it is new to the market.
Also houses where it is family selling for an elderly relative, either due to death or moving in to a home are probably more willing to except less to get the property off their hands and money where they want it.