Negotiating for a flat in this turbulent market

master_ian

Taking into account the low season and current market conditions, how would I negotiate a 2 bed flat in East London down from asking price of £183K? Start from 10% below ok?Am a FTB with a budget of £175K have a 15% deposit with a 5.19% tracker reserved. All suggestions welcomed!

carpetbelly

If that was me, I'd start 20% below asking for a flat. What's the worst that can happen, they can say no.

*disclaimer, there might be more that they can say but I have no idea what that would be and in my limited experience no would be the worst thing

SquatNow

Start 50% below. At least. Then point out that they haven't had any other offers.

Don't be supprised to see people dropping prices by 40% by christmas.

master_ian

SquatNow, thats some drop! Thing is, I have to find a ground to make it clear to the EA's that I'm a serious buyer - coming in at 50% below £183K and they'll think I'm wasting their time...anyone agree?

carpetbelly

you could always say that it is a serious offer and you have everything in place ready to go on such an offer. You could just say you dont think the market for flats especially is sound so obviously covering yourself. No harm in upping it a little if they say no is there. Bit ballsier than what I would do but as Del Boy would say, he who dares...

pinkshoes

How long has the flat been on the market for? How quickly have other flats in the area sold for? Which area/postcode? If it's only just come on, and there are other people interested, then if you offer 50% as SquatNow suggests you'll get laughed at then ignored as a non-serious buyer.

Do your homework and make a judgement based on that. The worst they can say is no, but don't take the p*ss! If it's been on a while, then maybe £165k would be a good starting point.

Badger_Lady

The level of offer should depend on similar property sale prices in the area, length of time on the market, seller's position etc etc...

However, just looking at the figures you gave with no other information: I'd offer £165k and guage reaction from there.

SquatNow

Go around offering 50% on a lot of different flats. One of them will take your offer.

Nothing is selling. Estate Agents are bricking it. While people may talk it up on here, in reality estate agents are desperate to sell something. Anything. At any price. zero sales means zero commision.

Personally if you can, I'de rent for a few months/years to see how bad the market gets. Just enjoy the view happy that your not in negative equity.

Or better still, try squatting sociably for a few years. The money you will be able to save up will mean you will be able to buy a house outright after the crash.

Badger_Lady

SquatNow wrote: »

Go around offering 50% on a lot of different flats. One of them will take your offer.

I doubt it. Darling, I know you're pro-HPC and that's great for you, really, but if a "crash" is imminent it hasn't happened yet. We talking about the real world of selling and buying here (yes, it is still happening) and:

a) No serious buyer is going to expect to get a half-price house.
b) No serious seller is going to be able to afford to fund their onward plans based on a half-price sale.

Yes, there are some people that need to sell in order to avoid reposession, but you'd be surprised how few :cool: . Some of us are still genuinely moving into larger houses / relocating for work etc. And plenty of us can still afford to do so.

Now, sweetie, be quiet - you're not helping.

SquatNow

Badger_Lady wrote: »

I doubt it. Darling, I know you're pro-HPC and that's great for you, really, but if a "crash" is imminent it hasn't happened yet. We talking about the real world of selling and buying here

Correct, something can't be "imminent" if it has already "happened". Those terms are mutually exclusive. Stating the obvious does not win you respect

Badger_Lady wrote: »

Now, sweetie, be quiet - you're not helping.

Neither does telling other people to shut up because you don't like what they are saying

So no I wont be quiet. If you insist on talking up the market then that is your choice and you are free to express your opinions, as am I.

As are most of the national press who have finally admitted prices are going to drop and have started talking about it after years of denying it could ever happen.

SquatNow

Badger_Lady wrote: »

a) No serious buyer is going to expect to get a half-price house.
b) No serious seller is going to be able to afford to fund their onward plans based on a half-price sale.

If they want to sell, they'll take the offer, if they don't want to sell, then they wont.

Badger_Lady wrote: »

Yes, there are some people that need to sell in order to avoid reposession, but you'd be surprised how few :cool: . Some of us are still genuinely moving into larger houses / relocating for work etc. And plenty of us can still afford to do so.

You're ovbiously someone who has a lot of "wealth" in the equity in their house and is VERY scared of the possibility that their "wealth" could be reduced by house values dropping.