House Price Crash Discussion Thread

merlinthehappypig

mr.broderick wrote: »

why dont you offer £380k now.

Very tempted if we weren't already in the process of buying elsewhere, though that is definitely going pear-shaped after the discovery that the broker lied about our income.

We are still waiting for a revised offer figure from the lender after supplying our genuine income details and for the outcome of their investigations into the broker, but it looks highly unlikely that we will be able to go ahead. The lender is talking about criminal prosecution ( of the broker that is, not us)

£380000 would be £124000 less than the one we are buying. We could almost get that without a mortgage.

That would be a result.

nelly_2

merlinthehappypig wrote: »

Back on topic - I had to laugh earlier this evening.

We made an offer on a house a few months back. It was on at 'offers over £450000'. We offered £440000 and the vendor told us to get stuffed (in so many words - she was very rude according to the agent).

A couple of weeks after that she rang the agent and demanded to know why we hadn't come back with a higher offer. The agent told her and took great pleasure in doing so...........

The price changed to 'offers around £450000' about 6 weeks ago and I looked tonight and noticed that it was now 'offers around £430000'.

She will be lucky to get £400000 now. Talk about cutting off your nose to spite your face.

Something that is going to repeated more and more as people face up to reality, I think. First genuine reduction we have seen from someone who isn't a forced seller (as far as we can tell)

Phone them back up and offer £440000 again and crack on you dont know its on at less.

Then lead her on for a bit.

If you too scared let me know the EA and I'll do it

mr.broderick

nelly wrote: »

Phone them back up and offer £440000 again and crack on you dont know its on at less.

Then lead her on for a bit.

If you too scared let me know the EA and I'll do it

more quality from nelly:j

merlinthehappypig

nelly wrote: »

Phone them back up and offer £440000 again and crack on you dont know its on at less.

Then lead her on for a bit.

If you too scared let me know the EA and I'll do it

Not too scared at all.

Thing is we really quite liked the house so if we could get it for £400000 or so I think we would go for it.

Getting the house for tens of thousands less than we originally offered would be far more satisfying than mucking her about.

WTF?_2

merlinthehappypig wrote: »

Back on topic - I had to laugh earlier this evening.

We made an offer on a house a few months back. It was on at 'offers over £450000'. We offered £440000 and the vendor told us to get stuffed (in so many words - she was very rude according to the agent).

A couple of weeks after that she rang the agent and demanded to know why we hadn't come back with a higher offer. The agent told her and took great pleasure in doing so...........

The price changed to 'offers around £450000' about 6 weeks ago and I looked tonight and noticed that it was now 'offers around £430000'.

She will be lucky to get £400000 now. Talk about cutting off your nose to spite your face.

Something that is going to repeated more and more as people face up to reality, I think. First genuine reduction we have seen from someone who isn't a forced seller (as far as we can tell)

Yep - and facing the reality of what is happening in the market is what this thread is about. Though the fact that all house price depreciation talk is confined here rather points to some people on the board not wanting to face reality.

It's amazing the personal feeling of worth that people invest in property ownership. Paying a shedload of borrowed cash for a rabbit hutch seems to imbue people with the will to defend out of control house prices at all costs.

jamtart6

ooh we're still umming and ahhing about what to do with regards to buying a house. We were looking for ones at about £130k, but have seen one we might be able to get for £100k and do up (cost about £20k). I wonder if the latter option is more stable as we would have lower monthly mortgage repayments, and yes we would need the cash upfront to do it up, but if the market wobbles any more, and variable mortgages are the norm and the interest rates go up, at least we'd be able to make the monthly repayments on £100k, rather than £130k.

Is that good logic or have I missed something?

merlinthehappypig

Excellent logic and something that many buyers in the last 24 months or so would have been sensible to consider instead of piling into the market with a mortgage that was clearly going to become unaffordable once the introductory rate ended.

The only thing you need to to consider is which option offers best value for money. It might be that you could get a house on at £130000 for less than the cost of the house on at £100000 that needs doing up, when the cost of the renovation is taken into account. It's easy to under-estimate the cost of a renovation if you aren't experienced.

Of course, doing things yourself means that it can be done to your taste, rather then someone else's.

There are certain to be a good number of forced sellers in your price range over the coming months, if not already. If you aren't in a hurry and there are plenty of houses you like, just keeping making low offers until someone bites.

merlinthehappypig

!!!!!!? wrote: »

Yep - and facing the reality of what is happening in the market is what this thread is about. Though the fact that all house price depreciation talk is confined here rather points to some people on the board not wanting to face reality.

It's amazing the personal feeling of worth that people invest in property ownership. Paying a shedload of borrowed cash for a rabbit hutch seems to imbue people with the will to defend out of control house prices at all costs.

What we found particularly illuminating about this one was the fact that she isn't being forced to sell (or at least wasn't when we viewed).

We have seen a good number of big reductions (20% or so) from clearly optimistic asking prices, but these have all been from people who were emigrating or moving jobs.

When we made the offer she was very quick to reject it. The agent said that she (the seller) was expecting at least £470000 and dismissed our offer as an insult.

That insult is going to look very good indeed as she chases down a falling market. She must be absolutely kicking herself.

I'm not usually smug, but I allowed myself a day off yesterday..............

I'll ring the agent this morning and see what's up.

WTF?_2

merlinthehappypig wrote: »

What we found particularly illuminating about this one was the fact that she isn't being forced to sell (or at least wasn't when we viewed).

We have seen a good number of big reductions (20% or so) from clearly optimistic asking prices, but these have all been from people who were emigrating or moving jobs.

When we made the offer she was very quick to reject it. The agent said that she (the seller) was expecting at least £470000 and dismissed our offer as an insult.

That insult is going to look very good indeed as she chases down a falling market. She must be absolutely kicking herself.

I'm not usually smug, but I allowed myself a day off yesterday..............

I'll ring the agent this morning and see what's up.

That's the thing though - when people don't have to sell they can be very irrational about asking prices. In the current market, you made a damn good offer but that didn't matter.

The thing is that pretty soon a lot of people who previously didn't have to sell will find themselves having to sell as the economy goes into recession. And a lot more who could still subsidise their BTLs from their wages will think twice about the wisdom of effectively paying for someone to live in their rapidly depreciating asset.

If your current bid falls through, I'd consider going back and making a much lower offer on this one if I were you

Snafflepants

Hiya,

I just wanted to confirm that when we have the price crash it'll will be on current values?

I want to get it straight in my head thats all.

So if we bought our house in 2004 for 72k and have a mortgage of around 58k, one terrace along the road which is not as nice as mine sold for 99k last month (was on the market for 104k) so taking the current value of mine at about 100k at the moment it would be worth about 70k if we had a 30% drop? Is that right?????

TIA

Just wanted to add that we arent looking to sell any time soon. We want to expand our family next year but wouldnt need to move anytime soon.