House Prices - paying close to asking price realistic now?

KatieDee

lookstraightahead wrote: »

I walk away if someone doesn't accept 10% below asking. I assume that vendors add at least that. Then there's the issue with the actual valuation - vendors can do what they like but it's up to the valuation for most people. No point wasting everyone's time.

But that is just me. I'm very cynical

I think I should take you along on my house buying travels, as I simply don't have the nerve!

Just had a call from the EA - the vendor who is happy to negotiate has finally given us a figure which is £10k off the original listing price, and £5k off the current. Works out at about 4.4% for the first price and 2.3% from the current :eek:

Worth it for peace of mind, I guess?

Finchy2018

We paid asking price for our property. We liked it, we wanted it, and we were felt the asking price was a fair one.

User1066

KatieDee wrote: »

I've viewed quite a few properties over the past six months of my life, and I'm really starting to doubt my judgment.

We've had to pull out of one purchase, we've been beaten to another property and to top this off, we're buying in an area with very few houses coming up for sale. With a population of around 35000, there are probably 5 properties coming up each month that fall into our criteria.

I've always been told that when making an offer, you should start from a position with a good scope for negotiation - usually at 10% less than asking price. Every single time I have done this, I have been met by an absolute refusal from the vendor and it seems as though everybody is holding out for asking price or more. And looking at sold prices in the area...are houses really that much more expensive than 2017?

Am I just being unrealistic?
I appreciate it's a buyers market (or getting to that point) but I genuinely don't feel like I have any advantage. I suppose I'm reluctant to pay top whack for something if house prices in general are likely to stagnate! Also...I'm a Yorkshire lass, so I love a bargain :rotfl:

Hi Katie

I am in a similar situation, but my target area is London Zone 6. We have lost out on 3-4 houses so far. one because the owners decided not to divorce, another one because we lost our buyer but the others we lost becauset the agents are manipulating everyone so they get the best deal for themselves - I think.

Despite what the papers may say, I really do not see 'brexit bargains' happening at all. Quite the contrary: agents are simply saying that the asking price (or guide price) is the absolute minimum and non-negotiable (so much so that they wouldn't go £5k lower than the 'guide price'. Another reason is that the downward spiral haven't reached all areas yet (and no doubt some areas won't suffer as much as others) and the area you want to buy in may not have had a bad month so there is no reason for the vendor to reduce the price.

Have you got a buyer for your property?

Sachs

I really don't understand your reasoning KatieDee. If the house was on for a guide price 20% more than it was worth but they accepted your offer of 10% less than guide price you would be happy? What about if the guide price was already 10% less than it was worth and they weren't prepared to negotiate, you'd walk away?

KatieDee

Sachs wrote: »

I really don't understand your reasoning KatieDee. If the house was on for a guide price 20% more than it was worth but they accepted your offer of 10% less than guide price you would be happy? What about if the guide price was already 10% less than it was worth and they weren't prepared to negotiate, you'd walk away?

Sachs, I honestly don't blame you for not understanding my reasoning. I am under no illusion that it's all a bit backwards! :rotfl:

I think this has been a learning experience for me - the housing market is dictated by the prices that people will pay for property and I'm not buying a property as an investment, so I need to stop viewing it as something I can get a bargain on.

User1066 wrote: »

Hi Katie

I am in a similar situation, but my target area is London Zone 6. We have lost out on 3-4 houses so far. one because the owners decided not to divorce, another one because we lost our buyer but the others we lost becauset the agents are manipulating everyone so they get the best deal for themselves - I think.

Despite what the papers may say, I really do not see 'brexit bargains' happening at all. Quite the contrary: agents are simply saying that the asking price (or guide price) is the absolute minimum and non-negotiable (so much so that they wouldn't go £5k lower than the 'guide price'. Another reason is that the downward spiral haven't reached all areas yet (and no doubt some areas won't suffer as much as others) and the area you want to buy in may not have had a bad month so there is no reason for the vendor to reduce the price.

Have you got a buyer for your property?

Fortunately, we have nothing to sell and are chain free. We've just been waiting for the right house to come along!

ReadingTim

lookstraightahead wrote: »

I walk away if someone doesn't accept 10% below asking. I assume that vendors add at least that. Then there's the issue with the actual valuation - vendors can do what they like but it's up to the valuation for most people. No point wasting everyone's time.

But that is just me. I'm very cynical

Foolish is another word for it - if you're unable to determine value relative to other comparable properties on the market and your desire to live there/ own it; instead pigheadedly insisting on a formulaic reduction then you're little different from the much derided zoopla keyboard warrior, banging on about what 'the internet' says it's worth....

Still, if you're happy with a 10% discount off a 20% inflated price, be as "cynical" as you like...

lookstraightahead

ReadingTim wrote: »

Foolish is another word for it - if you're unable to determine value relative to other comparable properties on the market and your desire to live there/ own it; instead pigheadedly insisting on a formulaic reduction then you're little different from the much derided zoopla keyboard warrior, banging on about what 'the internet' says it's worth....

Still, if you're happy with a 10% discount off a 20% inflated price, be as "cynical" as you like...

Ah no sorry I meant at least 10% - happy to pay less if I feel it's worth less.

AdrianC

lookstraightahead wrote: »

Ah no sorry I meant at least 10% - happy to pay less if I feel it's worth less.

So why does this blanket figure only vary one way?

Cakeguts

Anywhere in a nice location within commuting distance of Manchester seems to be selling in days. If they sell that quickly then the vendors are getting very close to the asking price.



3 bed houses with gardens and offstreet parking in nice locations seem to be selling the fastest.

ReadingTim

lookstraightahead wrote: »

Ah no sorry I meant at least 10% - happy to pay less if I feel it's worth less.

I'm sure you would. But's the steadfast refusal to pay more than 90% of the asking that isn't cynicism - it's stupidity.