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

Crashy_Time

Splatfoot said:

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?

So you think it isn`t being scaled back? 

Peony2016

We’ve just had our second buyer pull out citing the impact of coronavirus on the property market as the reason. They both think that house values are going to drop (though I’m not proposing to debate that here). One was an investor and the other a FTB. We need close to our asking price to afford our onward purchase so we’ve given our vendor the option: she can reduce our agreed purchase price by 2.5% to allow us to reduce our asking price and get a quick sale, or we’ll proceed at our current price but have to wait for an asking price offer after lockdown.
2.5% isn’t a huge reduction (£10k) but that’s all we think we’ll need to reduce ours by to find a new buyer. We’re now 6 months into the process and just want to get it done. Our first buyer pulled out on the day of simultaneous exchange/completion and our vendor had already moved out of the house (no onward chain) so we think she’ll want to get things finalised quickly.

dani17

Peony2016 said:

We’ve just had our second buyer pull out citing the impact of coronavirus on the property market as the reason. They both think that house values are going to drop (though I’m not proposing to debate that here). One was an investor and the other a FTB. We need close to our asking price to afford our onward purchase so we’ve given our vendor the option: she can reduce our agreed purchase price by 2.5% to allow us to reduce our asking price and get a quick sale, or we’ll proceed at our current price but have to wait for an asking price offer after lockdown.
2.5% isn’t a huge reduction (£10k) but that’s all we think we’ll need to reduce ours by to find a new buyer. We’re now 6 months into the process and just want to get it done. Our first buyer pulled out on the day of simultaneous exchange/completion and our vendor had already moved out of the house (no onward chain) so we think she’ll want to get things finalised quickly.

Are you sure that 2.5% will be enough? Do you think that you can have one of the two buyers back witj this reduction?

Crashy_Time

jimbog said:

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

Yes, the real experts always say to send people packing if they try to negotiate on price.

csgohan4

Crashy_Time said:

jimbog said:

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

Yes, the real experts always say to send people packing if they try to negotiate on price.

But you've been saying it for years on here, Covid 19 is not caused by the economy, it is a once in a lifetime event that no economists could  predict.

Your undoubtedly going to take credit for something that is unrelated to the housing/economy industry. Now 2008 was a different matter, economy caused the crash and the writing was on the wall for sometime. 

Crashy_Time

csgohan4 said:

Crashy_Time said:

jimbog said:

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

Yes, the real experts always say to send people packing if they try to negotiate on price.

But you've been saying it for years on here, Covid 19 is not caused by the economy, it is a once in a lifetime event that no economists could  predict.

Your undoubtedly going to take credit for something that is unrelated to the housing/economy industry. Now 2008 was a different matter, economy caused the crash and the writing was on the wall for sometime. 

No, but it is a shock TO the economy, and the present economy isn`t designed to cope well with such shocks (it is designed to shovel as much debt onto consumers as possible and boost profits for shareholders) plus many people HAVE predicted that something like this could happen (as they did with the 2008 economic shock) and it seems we were not properly prepared on many levels? My basic point is that an economy that allows people to save a few months expenses and buy basic property cheaply would be much better placed to weather the coming storm, and cope with Lock-down/Curfew type scenarios.

Peony2016

dani17 said:

Peony2016 said:

We’ve just had our second buyer pull out citing the impact of coronavirus on the property market as the reason. They both think that house values are going to drop (though I’m not proposing to debate that here). One was an investor and the other a FTB. We need close to our asking price to afford our onward purchase so we’ve given our vendor the option: she can reduce our agreed purchase price by 2.5% to allow us to reduce our asking price and get a quick sale, or we’ll proceed at our current price but have to wait for an asking price offer after lockdown.
2.5% isn’t a huge reduction (£10k) but that’s all we think we’ll need to reduce ours by to find a new buyer. We’re now 6 months into the process and just want to get it done. Our first buyer pulled out on the day of simultaneous exchange/completion and our vendor had already moved out of the house (no onward chain) so we think she’ll want to get things finalised quickly.

Are you sure that 2.5% will be enough? Do you think that you can have one of the two buyers back witj this reduction?

£10k off our asking price on the property we’re selling represents just over 4%. We think one of our previous buyers might be swayed by it but of course we’ll have to wait and see. If we can’t sell it even with a £10k reduction (to a previous buyer or a new viewer after lockdown) then we’ll simply remove it from the market and stay put until the market picks up again. We don’t need to move and we’re still happy living in our property. The extra space would be nice but it’s not an essential move for us.

vitaweat

My $0.02 is that there is likely to be a big inflationary burst due to supply chains being cut by CV19 while governments are pumping money into the system.  That would mean house prices (and the price of bacon) would rise substantially but incomes would too.  

If I'm right it would be a good time to have a fixed rate mortgage but then there's nothing harder to predict than the future.  Time will tell as always.
 
FWIW about 90% of my mortgage is on a fixed rate and 10% variable, all is 100% offsetable by my savings account.  I'm on an LTV of perhaps 60%, or was before Covid.  Goodness only knows what my house is worth now.

abanksee

vitaweat said:

My $0.02 is that there is likely to be a big inflationary burst due to supply chains being cut by CV19 while governments are pumping money into the system.  That would mean house prices (and the price of bacon) would rise substantially but incomes would too.  

If I'm right it would be a good time to have a fixed rate mortgage but then there's nothing harder to predict than the future.  Time will tell as always.
 
FWIW about 90% of my mortgage is on a fixed rate and 10% variable, all is 100% offsetable by my savings account.  I'm on an LTV of perhaps 60%, or was before Covid.  Goodness only knows what my house is worth now.

House prices are not going up anytime soon

graphs

Completely reasonable.

What you are hearing on here is selfish home-owners and landlords with portfolios telling you to overpay. They are desperate for house prices not to fall.

They have zero interest in giving you money saving advice on this money saving website. Bear this in mind. This is your money going down the drain, not theirs.