What to offer post-referendum?

guestiee

Hi all,


Sorry for another post brexit house price question. However mine is slightly different.


We placed a bid on a home in March for 202k, we hadn't sold ours so they declined. The Estate Agents were a little naughty and implied that if we upped are bid they might accept even though we weren't procedable. My Fiancee took that call and excitedly jumped the price up to 210. They still declined.


The house is now back on market. I heard advise yesterday that offers should drop 5% because of Brexit. Is this fair as I already offered 210? We want the house but are concerned of the risk

cashbackproblems

5%? While no guarantee I think offers will be a lot less and already people are pulling out or offering 15% less etc. Also March was the peak of the market after the stamp duty increases prices already came down

If depends how much you want it, alternatives in the area etc. I would start much lower, seller also sounds deluded as we didn't accept in the first place

TrickyTree83

Be prepared for others to do the same to other properties in your area and to you if you ever come to sell while the market is falling due to buyers chancing on the back of a Brexit that hasn't even happened yet.

A falling market is bad for everyone, including you.

Slinky

Have you sold?

guestiee

Sorry I totally missed that part out. Yes we have. And I am moving into my parents in the interim till we find somewhere. To allow our sale to complete

cashbackproblems

TrickyTree83 wrote: »

Be prepared for others to do the same to other properties in your area and to you if you ever come to sell while the market is falling due to buyers chancing on the back of a Brexit that hasn't even happened yet.

A falling market is bad for everyone, including you.

Most people don't come to sell within 5 years by which time the market will have stabilised (one way or another), which is why you comment is pointless

phatbear

Guestiee wrote: »

Sorry I totally missed that part out. Yes we have. And I am moving into my parents in the interim till we find somewhere. To allow our sale to complete

Tad confused you say you have sold then you state you are moving into your parents so your sale can complete so that means you havent sold.

Have you exchanged contracts and have a completion date?

TrickyTree83

cashbackproblems wrote: »

Most people don't come to sell within 5 years by which time the market will have stabilised (one way or another), which is why you comment is pointless

It doesn't make it pointless does it.

You're assuming 5 years. Personal circumstances may require you need to move within 6 months of purchase for example, you cannot tell what the future might hold.

Unemployment
Death
Divorce (split up if you're not married)
Terminal illness
Suffering disability as a result of an accident

etc...

So actually I'm quite right in what I'm saying, rather than view of pull out/drop your offer which pushes down the market for short term gain.

For example:

If you push the asking price down now, confidence erodes and generally the market continues to fall. You experience one of the above issues and the sale of the house is required. During the time you've stayed in the house the price has dropped even more, possibly pushing you into negative equity. So a widower or carer may end up owing money to the bank with no means to purchase another home moving forward. You're now locked into debt.

At the same time someone wealthy swoops in, buys up the property and rents it out with the reduction in price and SDLT.

BJV

guestiee wrote: »

Hi all,


Sorry for another post brexit house price question. However mine is slightly different.


We placed a bid on a home in March for 202k, we hadn't sold ours so they declined. The Estate Agents were a little naughty and implied that if we upped are bid they might accept even though we weren't procedable. My Fiancee took that call and excitedly jumped the price up to 210. They still declined.


The house is now back on market. I heard advise yesterday that offers should drop 5% because of Brexit. Is this fair as I already offered 210? We want the house but are concerned of the risk

I think you should always start low, Brexit or not cheeky offers are always a good start. After all the worst they can do is say is no. As for the risk? There is always a risk, vote or no vote. Personally if it is the house you want and you can afford it? Why not you have to live somewhere? We loved out house and there was nothing even close to it in our area but we started over 25% lower. ( We completed in May ) In the end we only got 10% less but 10% is still a big chunk of money?

guestiee

phatbear wrote: »

Tad confused you say you have sold then you state you are moving into your parents so your sale can complete so that means you havent sold.

Have you exchanged contracts and have a completion date?

Sorry, I have a completion date in 2 weeks.

guestiee

BJV wrote: »

I think you should always start low, Brexit or not cheeky offers are always a good start. After all the worst they can do is say is no. As for the risk? There is always a risk, vote or no vote. Personally if it is the house you want and you can afford it? Why not you have to live somewhere? We loved out house and there was nothing even close to it in our area but we started over 25% lower. ( We completed in May ) In the end we only got 10% less but 10% is still a big chunk of money?

Thank you for this. I wonder they may hold out for the 210k as that is what I offered before. Situations (a stronger buying position and brexit) have changed though I suppose.