Offering under asking price

peterhjohnson

Snookie12cat said:

17% is a bit too low. 

Once when I was selling a house, I had a couple of offers that were aout 25% under the "guide price". My EA still passed them on to me and that's correct behaviour. (I eventually accepted 3% under guide)

TheJP

peterhjohnson said:

Snookie12cat said:

17% is a bit too low. 

Once when I was selling a house, I had a couple of offers that were aout 25% under the "guide price". My EA still passed them on to me and that's correct behaviour. (I eventually accepted 3% under guide)

Yes but we don't know what instructions the vendor has given to the EA. They may have specifically asked for no offers that don't meet the guide price. When i sold my house i asked that i only wanted offers from people who could first prove they were proceedable (ether cash or have house on market or under offer).

Crashy_Time

Thrugelmir said:

Crashy_Time said:

MobileSaver said:

lookstraightahead said:

I think the market of potential buyers will dry up a bit because of this. I think interest rate rises will make some difference. I think people will concentrate on "getting back to normal" rather than moving home (perhaps). We are already seeing lenders "down" value properties. 

I don't see how any of those things will result in much better deals by the New Year but time will tell.

Lenders have always down-valued properties and always will; extrapolating that into some sort of prelude to a substantial price drop is just wishful thinking unless there's evidence of a significant increase in down-values? (But even then if more people are kite-flying then there could be more down-values but prices could still rise so basically asking prices and down-values are probably irrelevant in the grand scheme of things.)

lookstraightahead said:

I wouldn't buy a dishwasher for £3k nor would I believe someone who said it was the only one that would make me happy and that there were no more anywhere to be found.

I agree regarding dishwashers but regarding houses there are countless threads on here from buyers complaining there's nothing out there suitable for them to buy. It's the fundamental reason that things are the way they are: there simply aren't enough houses that people want to satisfy demand

rigolith said:

People get very frustrated because housing is too unaffordable

If housing is "too unaffordable" then how do roughly 100,000 properties get bought and sold month after month, year after year and those numbers have been consistent for years? Clearly for millions of people houses are affordable.

I think the "100,000" figure that you like to quote is being tested now and will be more so in future, but I think it is more likely that for millions of people the monthly payments on a large mortgage debt are affordable........ if rates stay super low.

Mortgage market review (of some years back) dealt with affordability issues.  Over time the issues of the past before then will wash through the system. 

Highly unlikely to have much relevance to today`s economic environment IMO.

Crashy_Time

peterhjohnson said:

Snookie12cat said:

17% is a bit too low. 

Once when I was selling a house, I had a couple of offers that were aout 25% under the "guide price". My EA still passed them on to me and that's correct behaviour. (I eventually accepted 3% under guide)

How long ago was that, and what reason did they give?