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

Aberdeenangarse

Bossypants said:

Crashy_Time said:

Bossypants said:

Aberdeenangarse said:

Bossypants said:

tatartan said:

Crashy_Time said:

Semple said:

jbsn said:

given prices are going to plummet...

Can i borrow your crystal ball, seeing as you clearly know what's going to happen before numerous economic experts.

"Expert" (banker) view on Bloomberg just now is that most "economic experts" are predicting "extremely high" unemployment, maybe the OP should just step back for a while?

Crashy_Time said:

Semple said:

jbsn said:

given prices are going to plummet...

Can i borrow your crystal ball, seeing as you clearly know what's going to happen before numerous economic experts.

"Expert" (banker) view on Bloomberg just now is that most "economic experts" are predicting "extremely high" unemployment, maybe the OP should just step back for a while?

Don’t forget the 5% house price drop now predicted by the industry and the bank of England’s ‘worst downturn since 1706’ predictions.  

Just going to leave this here in case people would like to read the rest of what the BoE had to say. Context is everything, after all! https://www.bbc.co.uk/news/business-52566030

Bank of England also predicted a 16% drop in house prices in today’s announcement.

Indeed it did, and also that they would recover along with the wider economy by summer 2021.

Not possible to predict, there could be continuing health scares we don`t know yet, and no one really believes that their predictions are accurate anyway?

I assume the person who was quoting the 16% drop prediction believed it. As I said, I'm just supplying the other half. Predictions aren't very reliable but half a prediction is worse.

I’m usually pretty bullish on Property, but not now! I own several BTL’s, luckily no mortgages, and I’ve owned them over 25 years. My prediction? 10% drop this year followed by another 10% next year. Probably more if we haven’t found a vaccine in the next 12 months.

scrola

Should you lower your offer? Who knows, every situation is different.

My situation, which I emphasize only applies to me.

Neighbour purchased identical new build house in late 2007 for £405K. We were in rented and started looking to buy Feb 2008 and offered on several houses but sellers didn't accept. Estate Agents kept saying that the area was "different" and was not seeing the nationwide falls reported. By late summer the house we ended up with had been reduced several times and was now in our price range at £345K. We offered £300K,  the sales negotiator said that there was no way the developer would accept it, but we said put it to them anyway. A week later thay rang to ask why we had not been in to sign the paperwork!

Another property of the same design along the street sold for £285K 2 moths later, so you could say we over payed by £15K.

Last year we sold up, 4 Estate Agents came around, all traditional agents who gave their "professional" valuations based on their in-depth knowledge of the area. So then, based on the professionals we then knew our house was "worth" either 475K, 515-525K, 525-550K or up to 600K. So what do you think we listed it for and what did we end up getting?

We had an offer accepted on a new build late last year and would have been in a position to exchange possibly in the first week of April. Will I be making a reduced offer when the market reopens, you bet I will. If even Estate Agents are saying short term drops of 5-10% then that is a "material change" in the market, not just me as a buyer trying it on. No I don't want to lose the house but for £25-50K or possibly even more, I'm prepared to let the seller walk out on the deal.

Several analogies have been given about petrol etc so here's mine.

I was in the car showroom in March and was negotiating on a new car, we had agreed a £35K price but the sales person had to "run it past his manager" as it was such a large discount. Lockdown hit before I signed, if when things open again special discounts are being offered and the price is now £30K and £5K scrapage on the old car, Should I be insisting that the dealer takes my original £35K and I will sell the old car for 2K.

Crashy_Time

[DELETED USER] said:

A lot of people are down to 80% pay so that's 20% off for a start. And then deposit requirements are way up for mortgages too.

If you want to sell any time soon you need to slash the price, at least 20%.

A lot of people will be getting nothing probably, looks like it is being scaled back anyway...
https://www.thesun.co.uk/news/11557327/furlough-help-only-poorest-workers/
Looks like we can`t have ordinary workers getting addicted to free money, that is obviously only for bankers and big market players, and while the bottle of free money has been guzzled on by the bankers for 12 years, looks like it is being ripped away from the ordinary punters much earlier, they must have highly addictive tendencies!

purple_ck

jimbog said:

If you end up losing the house because they wouldn't accept your new offer please do come back and tell us as most who had this happen to them seem reluctant to do so

I was in a similar situation here, offer was accepted pre covid and we offered 3k more than the home report value (Scotland) mortgage offer accepted etc, then lockdown happened and few weeks went by - the seller tried to move the date forward because they were keen to get the sale complete, so I asked if they would accept the home report value (advised by the bank too) however they were not willing to accept this. It was basically a 3% reduction overall and I thought that it was reasonable, the seller was still making money on what they paid for the property too.

I then pulled out because I don't want to risk being in negative equity because it was a 2 year fixed rate and loan to value was about 94.5%. As much as we loved the property, it was a flat and me and my partner eventually want to be in a house so I felt that it wouldn't have been a long term place to stay, otherwise we would have went ahead because we would have no desire to move in the near future so negative equity wouldn't be as much of an issue over time. (if this makes sense). 

abanksee

The 'expert' doing q&a on financial times website claims all of his clients have negotiated or tried to in price. People are in total denial on here mind.

MysteryMe

Is negotiating on price something new then?  The things you learn from experts.........

abanksee

MysteryMe said:

Is negotiating on price something new then?  The things you learn from experts.........

It's more in regards to people on here saying you're immoral etc for having doubts over your financial decisions 

blue_max_3

I am selling my late mothers place and after a number of viewings, got only one offer. It was for 15k less. The place was very tired and needed new kitchen, bathroom and complete refurb. We countered with 10k less and the deal was done. We're at the point of exchanging contracts, but they won't be getting any more off if they come back to us. Give and take I guess.
I also asked about a discount on a new conversion and the developers agent point blank refused. I'm watching to see if the asking shifts going forward. I see a couple have come back to market after presumably losing their £5k holding deposit, so maybe things are not all well in the garden.

Splatfoot

Crashy_Time said:

[DELETED USER] said:

A lot of people are down to 80% pay so that's 20% off for a start. And then deposit requirements are way up for mortgages too.

If you want to sell any time soon you need to slash the price, at least 20%.

A lot of people will be getting nothing probably, looks like it is being scaled back anyway...
https://www.thesun.co.uk/news/11557327/furlough-help-only-poorest-workers/
Looks like we can`t have ordinary workers getting addicted to free money, that is obviously only for bankers and big market players, and while the bottle of free money has been guzzled on by the bankers for 12 years, looks like it is being ripped away from the ordinary punters much earlier, they must have highly addictive tendencies!

Did you just seriously quote the Sun and believe it?

jimbog

abanksee said:

The 'expert' doing q&a on financial times website claims all of his clients have negotiated or tried to in price. People are in total denial on here mind.

Glad you put 'expert' in quotes