Is it reasonable for us to drop our asking price given current climate?

[Deleted User]

markin said:

Buyers are demanding huge discounts up to 20% as housing market bursts back into life following coronavirus lockdown

People that read it will be more brave on asking for discounts, So it becomes true.

I struggle to see how this can be realistic (yet) as a buyer who wants it to be true. So I agree a price of 300k pre covid. My next step is to offer 240k...Wow! I would suggest my chance of stepping foot in that property again would be between 0% and 5% at best. The mind becomes far more focus on these matters as a practicality when it's real.

dani17

edward2113 said:

Just wanted to give my two cents as someone who has tried to ask for a price reduction recently.

We were in the process of purchasing a house in a very desirable area in the SE (started the process back when the coronavirus was considered something that'll never reach Europe). Back then we agreed for a price which was 20% more than the owners had purchased it for in 2017 and started the process.

After a bad survey, a lot of contemplating and reading the news, and with the current situation it mind, we decided to ask for a 4% price reduction, which still meant that in these uncertain times they will be getting 16% more than they've paid for it, which for this house was a considerable sum. 

They came back almost immediately and they said that they'd rather re-list the property as they've had interest from other buyers willing to buy at an even higher price than us, and they are in no rush to sell. The estate agent then said that since the lockdown he's had only 1 purchase fall through due to the buyer being furloughed and he has something like 80 viewings scheduled for when the lockdown is lifted. 

We decided to go ahead with it as we really love the property and we are planning to live there for the foreseeable future so hoping to ride out any price drops. On top of that, it seems like sellers which have "good" properties like this one aren't going to sell at the moment, meaning that if there are any bargains, they will be either for really bad properties or for forced sellers. In turn, this might create a demand for good properties, increasing the amount of bidders for 1 house, thus driving up the price. Many of our friends are currently looking for a house as their jobs haven't been affected by the situation, and they are currently renting so losing money anyway. Of course, this is our logic and it may be wrong, but at the moment it's all very unclear anyways and you have to make a decision either way.

the reaction of the seller is normal IMO. If i were him, i would do the same . I just pulled out from a purchase recently without even trying to negotiate because i don't know for how much and i was quite sure that the seller will refuse. if the seller was receiving a lot of interest for his property before the lockdown, he will try to send the property back to the market again and see if the interests still there. if there is no demand like before, or all the people keep offering reduced price then he will start considering the situation: reduce the price or pull out and wait until prices recover.

Crashy_Time

markin said:

Buyers are demanding huge discounts up to 20% as housing market bursts back into life following coronavirus lockdown

People that read it will be more brave on asking for discounts, So it becomes true.

True, I wouldn`t call 20% a "massive" discount though, more a "sensible" one given the current situation.

Crashy_Time

brett19852010 said:

markin said:

Buyers are demanding huge discounts up to 20% as housing market bursts back into life following coronavirus lockdown

People that read it will be more brave on asking for discounts, So it becomes true.

I struggle to see how this can be realistic (yet) as a buyer who wants it to be true. So I agree a price of 300k pre covid. My next step is to offer 240k...Wow! I would suggest my chance of stepping foot in that property again would be between 0% and 5% at best. The mind becomes far more focus on these matters as a practicality when it's real.

Only sounds "Unreal" if you believe that the house was ever worth anywhere near 300k, most asking that are probably just kite flyers TBH, say you believed that the house was only really worth 200k, how does it feel now?

[Deleted User]

Crashy_Time said:

brett19852010 said:

markin said:

Buyers are demanding huge discounts up to 20% as housing market bursts back into life following coronavirus lockdown

People that read it will be more brave on asking for discounts, So it becomes true.

I struggle to see how this can be realistic (yet) as a buyer who wants it to be true. So I agree a price of 300k pre covid. My next step is to offer 240k...Wow! I would suggest my chance of stepping foot in that property again would be between 0% and 5% at best. The mind becomes far more focus on these matters as a practicality when it's real.

Only sounds "Unreal" if you believe that the house was ever worth anywhere near 300k, most asking that are probably just kite flyers TBH, say you believed that the house was only really worth 200k, how does it feel now?

I'm actually with you. Back in 2015/16 240000 was probably a fine value and it's unclear to me what's happened since then for house prices to spike in some parts of Manchester. However our theories don't make the practicality of real world decision making any easier.

Crashy_Time

brett19852010 said:

Crashy_Time said:

brett19852010 said:

markin said:

Buyers are demanding huge discounts up to 20% as housing market bursts back into life following coronavirus lockdown

People that read it will be more brave on asking for discounts, So it becomes true.

I struggle to see how this can be realistic (yet) as a buyer who wants it to be true. So I agree a price of 300k pre covid. My next step is to offer 240k...Wow! I would suggest my chance of stepping foot in that property again would be between 0% and 5% at best. The mind becomes far more focus on these matters as a practicality when it's real.

Only sounds "Unreal" if you believe that the house was ever worth anywhere near 300k, most asking that are probably just kite flyers TBH, say you believed that the house was only really worth 200k, how does it feel now?

I'm actually with you. Back in 2015/16 240000 was probably a fine value and it's unclear to me what's happened since then for house prices to spike in some parts of Manchester. However our theories don't make the practicality of real world decision making any easier.

No, but a massive economic shock doesn`t make sustaining unreal values any easier either.

blue_max_3

Realistic is what property sells for, like anything else. Offers or asking are just that.
Sentiment may be down, but asking is just as important. If you made an allowance for a quick sale, you probably are not in the mood for a negotiation.

Crashy_Time

brett19852010 said:

markin said:

Buyers are demanding huge discounts up to 20% as housing market bursts back into life following coronavirus lockdown

People that read it will be more brave on asking for discounts, So it becomes true.

I struggle to see how this can be realistic (yet) as a buyer who wants it to be true. So I agree a price of 300k pre covid. My next step is to offer 240k...Wow! I would suggest my chance of stepping foot in that property again would be between 0% and 5% at best. The mind becomes far more focus on these matters as a practicality when it's real.

Use PropertyLog and get a feel for discounting in your area of interest, see if the seller is out of step with the prevailing reality.

blue_max_3

Crashy_Time said:

Use PropertyLog and get a feel for discounting in your area of interest, see if the seller is out of step with the prevailing reality.

That might identify those who have listed at a premium and reduced. Or those who are desperate for a sale. Both would ring alarm bells for me. The chances of a smooth sale are very limited.

Crashy_Time

blue_max_3 said:

Crashy_Time said:

Use PropertyLog and get a feel for discounting in your area of interest, see if the seller is out of step with the prevailing reality.

That might identify those who have listed at a premium and reduced. Or those who are desperate for a sale. Both would ring alarm bells for me. The chances of a smooth sale are very limited.

I get the first one, dealing with kite flyers in the process of sniffing the coffee beans would be a waste of time for most people, but why does a desperate seller ring alarm bells, something wrong with the house maybe?