Starting point for offer price below the seller's asking price in Berkshire in seller's market 2021

steve866

anonvtic said:

RelievedSheff said:

How is the property priced compared to recent sales in the area? That is the important question. 

Zoopla estimates are very rarely accurate so can be dismissed.

If the property is priced keenly compared to other sales in the area then you have little to no chance of getting it for under the asking price. If the property is valued at the high end of what others have achieved then there is probably more chance of getting an offer accepted below asking price.

Being a first time buyer really isn't anything of an advantage, in fact some would say it is a disadvantage!!

Based on data from HM Land Registry viewed through Zoopla/RightMove, 3-bed terraced property in that area (within 0.5 mile radius) has been sold for 20k to 100k higher in the last 1 year, than the current asking price for this property.

What does this indicate? That the seller is undervaluing their property? Buyers are getting a steal?

If all the houses are identical then it sounds very good value. Where I am in London similar properties can be treble the value within 0.5km of each other.

Is the house freehold? Is it near any ‘dodgy’ areas? Does it back onto a train track? These are just some of the things that could affect the value. 

NameUnavailable

If it's been on the market for a month in an area of high demand then there must be a reason why, which will be price, location, condition or maybe something to do with the vendors.

Go and see it and then if you are keen to buy offer what you think it's worth, they can only say no.

Crashy_Time

https://www.reuters.com/world/uk/uk-mortgage-lending-slumps-april-over-stamp-duty-uncertainty-2021-06-02/

Thrugelmir

NameUnavailable said:

If it's been on the market for a month in an area of high demand then there must be a reason why, which will be price, location, condition or maybe something to do with the vendors.

The higher the price the smaller the pool of prospective buyers. 

verytired11

Don't even consider this question until you have seen it. Once you have viewed it, you will understand why it is not selling quickly (if it isn't) and whether that reason also puts you off. Ask the agent why it isn't selling. If it doesn't put you off and you like the house, make a reasonable offer.  In my own experience, once you have done 4 or 5 viewings in your target area you will have a better understanding of the market, what kinds of property are available, what makes some more desirable than others, what those slight differences translate to in terms of value, how quickly you need to act to secure a property, what kind of offer is needed to be in with a chance, what your own priorities are, what the property is worth to you  and therefore finally what kind of offer to make.  Good luck!

Crashy_Time

Thrugelmir said:

NameUnavailable said:

If it's been on the market for a month in an area of high demand then there must be a reason why, which will be price, location, condition or maybe something to do with the vendors.

The higher the price the smaller the pool of prospective buyers. 

Very true, that`s why all housing bubbles eventually burst.

steve866

Crashy_Time said:

https://www.reuters.com/world/uk/uk-mortgage-lending-slumps-april-over-stamp-duty-uncertainty-2021-06-02/

According to that article lending is likely to rebound according to the Bank of England so the OP needs to get in quick and offer asking price?

Crashy_Time

steve866 said:

Crashy_Time said:

https://www.reuters.com/world/uk/uk-mortgage-lending-slumps-april-over-stamp-duty-uncertainty-2021-06-02/

According to that article lending is likely to rebound according to the Bank of England so the OP needs to get in quick and offer asking price?

Rebound to where though, and can you trust any of their predictions anyway?

"Net mortgage lending by British lenders slumped in April to 3.3 billion pounds ($4.7 billion) from a record 11.5 billion pounds the month before, an even sharper drop than the fall to 6.6 billion pounds forecast by economists in a Reuters poll."

If we are heading for more lockdown I can`t see lending re-bounding very far can you?

steve866

Crashy_Time said:

steve866 said:

Crashy_Time said:

https://www.reuters.com/world/uk/uk-mortgage-lending-slumps-april-over-stamp-duty-uncertainty-2021-06-02/

According to that article lending is likely to rebound according to the Bank of England so the OP needs to get in quick and offer asking price?

Rebound to where though, and can you trust any of their predictions anyway?

"Net mortgage lending by British lenders slumped in April to 3.3 billion pounds ($4.7 billion) from a record 11.5 billion pounds the month before, an even sharper drop than the fall to 6.6 billion pounds forecast by economists in a Reuters poll."

If we are heading for more lockdown I can`t see lending re-bounding very far can you?

Rebound to the 11.5 billion March level? The article states applications are up so make sense that actual lending will also go up?

I am always skeptical about their predictions but I’m just quoted the article you posted?

Crashy_Time

steve866 said:

Crashy_Time said:

steve866 said:

Crashy_Time said:

https://www.reuters.com/world/uk/uk-mortgage-lending-slumps-april-over-stamp-duty-uncertainty-2021-06-02/

According to that article lending is likely to rebound according to the Bank of England so the OP needs to get in quick and offer asking price?

Rebound to where though, and can you trust any of their predictions anyway?

"Net mortgage lending by British lenders slumped in April to 3.3 billion pounds ($4.7 billion) from a record 11.5 billion pounds the month before, an even sharper drop than the fall to 6.6 billion pounds forecast by economists in a Reuters poll."

If we are heading for more lockdown I can`t see lending re-bounding very far can you?

Rebound to the 11.5 billion March level? The article states applications are up so make sense that actual lending will also go up?

I am always skeptical about their predictions but I’m just quoted the article you posted?

The lending slumped to half their predictions, which were about half of the SDH "boom" level! It seems to tie in very well with people realising they won`t make the deadline but the jump and corresponding slump were massive? Will they extend SDH, will they make sellers pay it, will more lockdown make people wary of borrowing large in an unpredictable environment?