House Price Crash Discussion Thread

bkerai81

IveSeenTheLight wrote: »

I put an offer in for a four bedroomed house 17 days ago.
The offer was rejected.
I've waited as I know the market, know the sellers situation and know that as yet there are no other interested parties.
giving the seller time is allowing him to re-consider his options as the property sits on the market longer and is running up to christmas time (not a good time to sell or try to rent out).

I am going to raise my offer by 2.5% this week. It's still a cheeky offer but as they have no other interests and I'm ready with finance in place and no need to sell, I'm in a pretty strong position.

If it's not accepted, I'll leave it a little longer before raising one final time by 2.5% and advising to withdraw my noted interest if not accepted.

This is a Strategy i have not used,,
may test it on a flat i am about to put an offer.

bkerai81

BTW, coming up to winter, the prices are the best, less people looking FACT!, and you also see the worst side of the house

IveSeenTheLight

bkerai81 wrote: »

This is a Strategy i have not used,,
may test it on a flat i am about to put an offer.

Of course it is a risk, especially if there are other interested partied (fortunately not at the moment in my case), but if your willing to lose the property, it is generally a buyers market at the moment.

Best of luck

bkerai81

it sure is a buyers market, really good/bad interest rates means good time for mortgages and second mortgages but bad for savings,,

Reactor_2

I think you all mean put in a 'bid', as you are buying, as the 'offer' is the price of the seller.

Putting in a fake 'bid' and then removing it might tempt the seller to hit the next 'bid', but given people are loathe to take losses, especially leveraged ones, they will more than likely hold onto their offer until it's hit.

harryhound

Reactor wrote: »

I think you all mean put in a 'bid', as you are buying, as the 'offer' is the price of the seller.

Putting in a fake 'bid' and then removing it might tempt the seller to hit the next 'bid', but given people are loathe to take losses, especially leveraged ones, they will more than likely hold onto their offer until it's hit.

..............or until their executors sell, which ever comes first.

MrRee_2

Interesting turn of events with me.

Put an offer in on a flat in June - it was rejected and a counter offer made by the vendor .... I said that I may return in Autumn and repeat my offer when they may be more willing to consider it more seriously.

The flat has been for sale since April 2010 - yes, 18 months ago! And it has chased the market down, always being 'just' too expensive and not selling because of it.

Well, surprise, surprise, the vendors EA has contacted me and said that the vendor is very keen to sell .... would I like to repeat my offer of June and we could now haggle around that figure!

My sentiment has changed somewhat now towards the greedy vendor (it's their second property bought in 1962!) - that I'm now firm that my June offer will only be revised downwards.

But, do I want a place which has had no offer other than mine in 18 months? I'm not sure! What I am sure of is that I don't want cash in the Bank ...... would rather buy something I can touch than savings which will disappear!

My point being that buyers have disappeared, the world crisis is worrying everyone - most are not prepared to spend anything at the moment ..... it's becoming an excellent time to offer 25% OFF on properties you may fancy - the offers may well get accepted!!

Reactor_2

MrRee wrote: »

Interesting turn of events with me.

Put an offer in on a flat in June - it was rejected and a counter offer made by the vendor .... I said that I may return in Autumn and repeat my offer when they may be more willing to consider it more seriously.

The flat has been for sale since April 2010 - yes, 18 months ago! And it has chased the market down, always being 'just' too expensive and not selling because of it.

Well, surprise, surprise, the vendors EA has contacted me and said that the vendor is very keen to sell .... would I like to repeat my offer of June and we could now haggle around that figure!

My sentiment has changed somewhat now towards the greedy vendor (it's their second property bought in 1962!) - that I'm now firm that my June offer will only be revised downwards.

But, do I want a place which has had no offer other than mine in 18 months? I'm not sure! What I am sure of is that I don't want cash in the Bank ...... would rather buy something I can touch than savings which will disappear!

My point being that buyers have disappeared, the world crisis is worrying everyone - most are not prepared to spend anything at the moment ..... it's becoming an excellent time to offer 25% OFF on properties you may fancy - the offers may well get accepted!!

Optimism bias on your behalf may make you think you can put in a price 25% below and it will get dealt, but endowment bias from the seller means it's unlikely to be dealt.

You've raised an important question indirectly, if you believe property is an investment, and that is: 'how long should it take to get your money back?' If you think property will rise in the future, then you'd buy now, as the risk you run by trying to catch the bottom, is that you end up chasing it all the way back up again, when everyone hits the 'offers', as they have the same conclusion as you. The last time people were in negative equity, it took them a decade before they were able to get out of it. I don't think it will be any quicker this time around. Personally, I'm realistic, and see property as a depreciating asset.

And it's a 'bid' when a buyer puts in a price not an 'offer'.

John_Pierpoint

Unfortunately there is a government policy now to make money a depreciating asset too (5% inflation and 2% interest or less) in a desperate attempt to keep its economic balls in the air.

What would you suggest as an "investment".

Reactor_2

I'd go one step further and not only give you a fish, but teach you how to fish. Ask what people are doing with their investments and do the opposite of what the majority are doing.