Negotiating for a flat in this turbulent market

Generali

1. Go to your local Alliance and Leicester.
2. Tell anyone that will listen that you heard that they're running out of cash and are closing the doors forever in 1 hour.
3. Call the BBC.
4. Make an offer 25% below asking price.*












*Just to make it perfectly clear, don't actually do this.

pinkshoes

Unless the flat needs to be sold for repossession, it's unlikely that someone will accept such a low offer! List all the reasons someone might sell a house, then put yourself in their shoes, and for each situation, decide if you would sell at 50% less or not!! I think you'll find that the only people who will sell are those who are being forced to. The rest will either stay put, or rent it out and buy something else.

pamaris

Depending on the situation of the seller and how many other similar properties are for sale at or around the same price, I would go in at 15-20% under asking price. I actually might do that for several properties. Chances are that someone will negotiate from there.

19% off of 183k is 148,230. I'd start with that number and work up to whatever your magic number is. For me it would be about 90% of the asking price.

Repeat until someone bites.

That said, I don't know the London market and I don't know which way London is going at the moment. So, I am not sure if the market in London is ready for this kind of negotiating.

Libra1975

SquatNow wrote: »

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

erm even tho you probably have a lot of supporters who say there is going to be a house crash I doubt you will find many that say it has already happened. A small drop in house prices does not a crash make.

master_ian

Thanks for the posts everyone...A bit more info on the flat: It's been on the market for 6 weeks and according to the estate agents ASTON FOX, can generate monthly rent of £850. Here's the property: http://www.rightmove.co.uk/viewdetails-15637429.rsp?pa_n=2&tr_t=buyOther 2 beds in the area are prioced at £170K - £210K depending on location and condition. It may take a few months before vendors accept they may have to lower their asking prices.No worries, I won't be coming in at less 50%. The consensus so far seems to be 10% - 20% below asking price. 2 East London EA's thought 10% below was too much to start with!

barrymoney

In my (totally uninformed) opinion 20% runs the risk of looking too cheeky, if you are very keen on the flat. I'd say 12-15% tops. Else, you're offering less than many 1 bedroom flats in same area? OTOH, bedroom 2 is very small.

movilogo

Whatever you do, ultimately don't buy it unless you get at least 10% off from asking price.

If the sellers don't budge, just sit tight. In this bearish market, any sensible seller should accept 90% of asking price very happily!

master_ian

With its central location and east london's 'booming' status and potential, a 10% drop from asking price would be a result even in the current market. I think, but definately a possibility.Are there any websites that show both the initial asking price of a property, and the final agreed price?

PasturesNew

Talking of "cheeky offers", I bet the estate agent said to them "well, it's worth £170k ... let's try it at £183, we can always drop it down" ... and the seller might be thinking "£170k???? I'd go for £164k"

Who knows.

PasturesNew

master_ian wrote: »

Are there any websites that show both the initial asking price of a property, and the final agreed price?

1] initial - no - unless you can find it on www.propertysnake.co.uk
2] sold - yes - go to http://www.nethouseprices.com - it lags by about 2 months, but you'll see every sale since April 2000 until about July 2007