Asking price offer is not accepted!!

ahsanjalil

To be honest, it doesn’t look market prices are going down at least in my area Slough, Berkshire. There was another flat which sold at asking price. As a FTB I am desperate to own property. Because I am being tired of paying more rent than what I would have been paying monthly mortgage.

I believe most of FTBs don’t negotiate much or reluctant to offer full price, at least in my case, if I like it I will pay full asking price at least from now on. But my question is still there, what is the best time to shop around in a year? When normally property market is slow and there are not many buyers around.

Another reason for me to rush for a property is that my mortgage offer is expiring next month and if that happened everything shall starts from scratch again, if I am not wrong.

Debt_Free_Chick

ahsanjalil wrote: »

Thanks guys for your valuable feedback, yes I have decided to move on, as a first time buyer I was not sure how things work in property market.

One of the things to bear in mind is that if you make a formal offer, the EA MUST let the seller know. It's a good idea to put your offer in writing, but make it subject to contract. In addition, you can make your offer conditional upon the seller taking the house off the market and allowing no further viewings. This doesn't stop offers from those who have already viewed, but it "shuts the stable door" if you see what I mean.

May be seller prefer someone else or whatever. However in case if they come back to me before I found something else, I really like the idea to drop the offer.

Even when you make a formal offer, the seller is likely to evaluate each buyer so make sure you are in a strong position e.g. be prepared to show the EA that you have a mortgage offer "in principle", that you are chain-free and that you can be flexible about how long the process will take (if all these things are true, of course).

At the end of the day, the seller can simply choose "the buyer with the nice smile" though

Another quick question, is it good time to buy house or shall I wait until after Christmas? What is the best time of year to buy property?

Many thanks

No time in particular, although Easter is pretty popular. Popular times may mean more choice as there are more sellers, but potentially there are more buyers too.

Quiet times might bag you a bargain (kind of) if sellers are desperate to sell and move on.

Swings & roundabouts .....

Rowan1946

I think you have it easy, at least you know what your paying and you may get the mortgage you need,, i have made offers on a few properties the most was £20k offers over price, a whoppng 21% over market value but that was not enough :mad:

I eventually bought new with a rather larger mortgage (50% more )

ivegotabig1

http://news.bbc.co.uk/1/hi/business/7037962.stm

This is the link you may be looking for !!!...Prices in retreat & with the economy set to slow down significantly nxt yr this is only going to accelerate..A friend of mine has reduced his house from 350 k to 299k recently..Still not a sniff !!! ......

mm93fm

I think we are in a very funny situation where there is so much uncertainty with the economy that noone wants to buy a house. There is uncertainty about interest rates, jobs, looming recession, house prices going further down etc. so noone wants to buy a house. Not even FTBs. It doesn't matter how much you drop the price - noone wants to buy! Things have not been helped by a damp summer and all this nonsense about HIPs.

ahsanjalil

mm93fm wrote: »

I think we are in a very funny situation where there is so much uncertainty with the economy that noone wants to buy a house. There is uncertainty about interest rates, jobs, looming recession, house prices going further down etc. so noone wants to buy a house. Not even FTBs. It doesn't matter how much you drop the price - noone wants to buy! Things have not been helped by a damp summer and all this nonsense about HIPs.

Well I am not completely agree with this. As far as flats concerns in my area people are in waiting lists. Even which I am renting went on sale and there are 5 viewing within a week… 2 of them put an offer already. There is definitely uncertainty but I think seller is taking advantage of this.

movilogo

Buyers are still very reluctant to reduce price even by 5%. No one is willing to accept that price is really coming down

I made a typo in the post. Actually I meant Sellers are still very reluctant to reduce price even by 5%. In yesterday's BBC news, someone was moaning that his house is not selling, even after reducing asking price from £180k to £175k. Well, that's a mere 3%. That doesn't count as reducing price. He already overpriced it at least 10%.

Cissi

ahsanjalil wrote: »

Because I am being tired of paying more rent than what I would have been paying monthly mortgage.

Are you absolutely sure of this? My DH and I have found renting cheaper than owning (square foot for square foot), and recently there have been a number of articles confirming this. Our rent only corresponds to a return of about 4% when looking at the average sale price of similar houses on the road in the past year, so our landlord is losing money every month. And that's in addition to maintenance costs, replacing broken appliances etc.

Don't forget that in addition to your monthly mortgage payments you have to count lost interest on your deposit (at the moment you should get at least 5%).

ahsanjalil

Cissi wrote: »

Are you absolutely sure of this? My DH and I have found renting cheaper than owning (square foot for square foot), and recently there have been a number of articles confirming this. Our rent only corresponds to a return of about 4% when looking at the average sale price of similar houses on the road in the past year, so our landlord is losing money every month. And that's in addition to maintenance costs, replacing broken appliances etc.

Don't forget that in addition to your monthly mortgage payments you have to count lost interest on your deposit (at the moment you should get at least 5%).

I am renting studio flat and paying £550 rent, as my landlord is selling this flat his asking price is £96K. I went for 1 bed flat with own garden £122K, mortgage broker worked out my monthly interest only mortgage shall not exceed £515 in any case. And even if I buy the flat I am renting on asking price my mortgage would be way below £500. Unless I am missing something here.

DawnW

Whether buying or renting is currently cheaper probably depends on whereabouts you live. Don't forget that, with an IO mortgage you also need to set up some sort of repayment vehicle. Also factor in repair costs, buildings insurance cover etc. If you simply compare straight monthly mortgage and renting costs you are oversimplifying the situation.