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

tom9980

The "Market" is full of people including at present my 4 viewings and another booked in all of them were positive and I have had 3 offers so far all acceptable to me 168k, 173k and the asking price of 175k. This is above and beyond what I personally would want to pay and I have been very surprised at the level of interest given the doom and gloom of the past 2-3 months. I thought the market was dead? or maybe its just a dead cat bouncing, I can only relay what is happening with my sale.

leftism

Linton said:

leftism said:

I was pleased today (as someone hoping prices will become a bit more affordable) to see 2 houses we loved but were out of our price range be relisted cheaper. 

One was 295 when we viewed. It got sold the day after. It’s now on for 275. Almost the same (but +5k) on the other. Hopefully this kind of discount will come for some others. 

Houses are always priced at the edge of affordabililty.  They would only get cheaper if economic circumstances changed so that fewer people could afford them at the then current price.  Are you confident that if the houses you loved dropped in price those changed economic circumstances would not also affect you?

No, quite the opposite. My economic circumstances have already got much worse, but I’m on the verge of buying, so if those houses are cheaper, it makes a terrible situation a lot better. 

Thrugelmir

tom9980 said:

The "Market" is full of people including at present my 4 viewings and another booked in all of them were positive and I have had 3 offers so far all acceptable to me 168k, 173k and the asking price of 175k. This is above and beyond what I personally would want to pay and I have been very surprised at the level of interest given the doom and gloom of the past 2-3 months. I thought the market was dead? or maybe its just a dead cat bouncing, I can only relay what is happening with my sale.

People still need to live somewhere, relocate for work etc. Markets still function. Location, location, location will still apply. The longer term economic damage has yet to filter through. Likewise the extent to which banks will tighten their lending criteria. 

scrola

tom9980 said:

The "Market" is full of people including at present my 4 viewings and another booked in all of them were positive and I have had 3 offers so far all acceptable to me 168k, 173k and the asking price of 175k. This is above and beyond what I personally would want to pay and I have been very surprised at the level of interest given the doom and gloom of the past 2-3 months. I thought the market was dead? or maybe its just a dead cat bouncing, I can only relay what is happening with my sale.

Not a dead cat bounce as the prices had not fallen so nothing to bounce back from.

Asking prices and offers are still being based on Febuary market prices. What is happening now, will only become clear in December once the ONS has had 3 months of sales from the Land Registry to show a trend.

Concensus from the "experts" is that there will be a fall, but they have never been wrong before have they.

jaks101

I’m due to complete on Friday, I’m a bit of a tight git and tried to renegotiate.
i was unsuccessful but I’m going ahead with the purchase anyway as we don’t want to loose the home.

i think people’s expectations of discounts will be short lived. 

Aberdeenangarse

jaks101 said:

I’m due to complete on Friday, I’m a bit of a tight git and tried to renegotiate.
i was unsuccessful but I’m going ahead with the purchase anyway as we don’t want to loose the home.

i think people’s expectations of discounts will be short lived. 

Yes, they will for the time being. Come August when those furloughed start being made redundant, because Companies will have to stump up another 20% contribution towards their salaries, things might start to change. If only 25% of those furloughed are eventually made redundant (many think it could be nearer 50%) that’s another 2m unemployed! I imagine house prices will be the least of their problems!

https://www.theguardian.com/business/2020/may/24/most-ingredients-are-in-place-for-a-property-crash-later-this-year

blue_max_3

jaks101 said:

I’m due to complete on Friday, I’m a bit of a tight git and tried to renegotiate.
i was unsuccessful but I’m going ahead with the purchase anyway as we don’t want to loose the home.

i think people’s expectations of discounts will be short lived. 

Rule #1 in negotiation - be prepared to walk away. You were just a chancer.

jimbog

jaks101 said:

I’m due to complete on Friday, I’m a bit of a tight git and tried to renegotiate.
i was unsuccessful but I’m going ahead with the purchase anyway as we don’t want to loose the home.

i think people’s expectations of discounts will be short lived. 

Thanks for coming back to tell us. Those who were unsuccessful seem reluctant to admit that they failed

Crashy_Time

Great article from the Guardian, last paragraph says it all really.

Crashy_Time

Thrugelmir said:

tom9980 said:

The "Market" is full of people including at present my 4 viewings and another booked in all of them were positive and I have had 3 offers so far all acceptable to me 168k, 173k and the asking price of 175k. This is above and beyond what I personally would want to pay and I have been very surprised at the level of interest given the doom and gloom of the past 2-3 months. I thought the market was dead? or maybe its just a dead cat bouncing, I can only relay what is happening with my sale.

People still need to live somewhere, relocate for work etc. Markets still function. Location, location, location will still apply. The longer term economic damage has yet to filter through. Likewise the extent to which banks will tighten their lending criteria. 

That will be the one to watch IMO.