House Prices - paying close to asking price realistic now?

hazyjo

ReadingTim wrote: »

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.

Must surely be looking in some 'less popular' areas, or at properties at the bottom of the list which need to sell for financial reasons.


I was offering around less than 1% on a house which they didn't accept in Leigh-on-Sea. Sat it out for weeks, but they wouldn't budge. Got mine for around 3% under. Sold my last one for around 1% under asking price. If someone had offered 10% under, I'd have told them where to stick it LOL. Was a pricey popular area and I certainly wasn't 10% overpriced.


Best I got was 8%-ish under. And that's me being stubborn!


But then I know the markets inside out where I buy and know what things are worth. Some sellers have been deluded and I would have offered under (up to say 10%) if I'd have liked them, but most certainly wouldn't apply that rule to everything :eek:

Exodi

hazyjo wrote: »

but most certainly wouldn't apply that rule to everything :eek:

[lookstraightahead]: Hi, I viewed a property with John at the weekend and would like to make an offer of £180,000.

[Estate Agent]: Sorry, we're under instruction to not consider any offers below the asking price of £200,000.

[lookstraightahead]: Huff, very well, good bye!

[Estate Agent]: Hold on, I've just got an email from the seller... regarding our property... changes in circumstances... amend the asking price... oh. It would seem the seller wants us to change the asking price to £220,000!

[lookstraightahead]: ........... Hi, I viewed a property with John at the weekend and would like to make an offer of £200,000.

[Estate Agent]: Very good, we'll send the sales memorandum out straight away.

markin

Well that area is meant to be up 3.4%

https://www.dailymail.co.uk/money/mortgageshome/article-6813505/March-sees-slowest-asking-house-prices-rise-eight-years-says-Rightmove.html

True or not i bet the seller is reading the constant stream of good news.

The 10% rule was started when the average price was what 150K??? with 200+K homes i wonder if its more of a £10K rule now.

Slithery

User1066 wrote: »

...but the others we lost becauset the agents are manipulating everyone so they get the best deal for themselves - I think.

You're just being paranoid, this really doesn't happen. An EA would prefer an easy sale over spending hours haggling for an extra few pounds commission any day of the week.

lookstraightahead

Exodi wrote: »

[lookstraightahead]: Hi, I viewed a property with John at the weekend and would like to make an offer of £180,000.

[Estate Agent]: Sorry, we're under instruction to not consider any offers below the asking price of £200,000.

[lookstraightahead]: Huff, very well, good bye!

[Estate Agent]: Hold on, I've just got an email from the seller... regarding our property... changes in circumstances... amend the asking price... oh. It would seem the seller wants us to change the asking price to £220,000!

[lookstraightahead]: ........... Hi, I viewed a property with John at the weekend and would like to make an offer of £200,000.

[Estate Agent]: Very good, we'll send the sales memorandum out straight away.

What a lot of effort to try to prove that your opinion is right. All you're doing here is proving that agents and sellers are fickle. As I said, I take 10% off (in case John has been pulling a fast one) and then I will negotiate based on what I think it's worth.

comeandgo

lookstraightahead wrote: »

What a lot of effort to try to prove that your opinion is right. . Until a house *has* to sell at an asking price why would I pay it? I would love valuations to be carried out before negotiations take place.

Why are valuations not carried out prior to offering anything?

Yellow_mango

I think at some point you’ve got to take a view yourself on what a house is worth (based on what you know about other houses sold / selling in the area, your “feel” for what the market is doing) and combine that with how much you like the house / want to live there, and just go for it. There are no blanket rules, and no guarantees. There is always a risk you’ll make the wrong decision, no matter how much you research. If you want to buy a house, you’re gonna have to take a risk.

I have just bought a house for £20k (3%) under the listing price, which had already been reduced by £20k. Our first offer was £30k under, which was not accepted. This was our final offer, and we would have had to walk away if it hadn’t been accepted.

I still have doubts over whether it was the “right” price. But at the end of the day we’re hoping to live there for a long time, and what will be will be with property prices in the future.

The right price is one that you are willing to pay, and the seller is willing to accept.

lookstraightahead

ReadingTim wrote: »

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.

I don't think I'm stupid thanks. I might look at 6 houses, all of which I calculate a 10 reduction. One might be happy to reduce by 10%. I suppose you need a clear head for it, not fall in love with the wallpaper, or the duvet covers, or the size of the bath. I live in the Home Counties and I do see houses going for at least 10% less, or they fester on the market for months and months, until vendors stop their greed (and naivety) and sell for a lot less (or waste time becoming accidental landlords and the houses stay empty). The house next to me has been on the market since last summer. It was on for £700,000 and had just been reduced to £625000. It's overgrown now as the owners moved so they will be lucky to get £600000. I paid £300,000 for a house that was on the market for £340000 and I have never ever paid asking price.

As I say, it's just how I buy, it doesn't make me stupid.

_CC_

Cakeguts wrote: »

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.

^ This.

I'm sure things are slowing down in London and SE but a lot of areas in the NW seem to be ramping up.

A nice area but close to Manchester is going to be in high demand.

babyblade41

Whenever I am looking at moving house and in my lifetime it's been many (4 time in just the last 4 years) before I even receive an offer, in fact before I even go to market I look at houses which would be remotely suitable.

I keep them on my RM fave list and look on a daily basis. I then put mine up and I determine the price .. I know the area I want to be in and I know what has sold in the last 12 months with what my priorities are .. I have an EA who doesn't even live in the area .. I choose him because it's the after offer service he provides on many of my moves, and he has proved to be such a godsend

After I think the price is about right as I don't want to be hanging around for 12 months I then go to market.. I then have to wait until I get an offer , once an offer has been accepted then my fave list is whittled down to approx 4-5 properties

This is when "how much to offer" comes in, in my head I've probably got a favourite but I view if poss on the same day, this way I can rely on how I feel when walking in the door, but for me I get that feeling

I always ask before viewing what the vendors position is and if I feel the EA is not giving much away I will probably leave that one until last as they are probably not in a great hurry

I am then left with hopefully 2 (fingers crossed ) and then offer .. I want this particular property and want the vendors to see I am a serious buyer so not too low to offend but a price that can be negotiated but which both parties feel they have come out of it well

The next bit is making sure through my solicitor that chain is complete ( see first part of enquiries about what position vendors and my buyers are in )

It's a tough game buying and selling but I feel you have to do your own due diligence to even get to the point of marketing which means being ready to go if necessary but sometimes that may take a few months if your property doesn't come under the bog standard property

I see so many people who put an offer in then after feel it's not the right one, if you spend time looking many months beforehand then you should have a fair few on your list

I think it's to do some homework before, get a feel of what has sold recently in comparison and also how much you are willing/ can go to .

When committing to such a big purchase it's frightening how so few just stab at figures in the dark without knowing anything about what's gone on previously.. info is so easy to gain now

To the OP maybe look at what's sold in the vicinity recently with comparables, then you might get a figure that's a bit better than a straight forward 10 percent below ..plus how much do you want to live there

A house is a home first and foremost