Offering under asking price

Crashy_Time

aoleks said:

as a first time buyer who completed 3 weeks back, I can only say:

1. being a FTB doesn't mean you're quicker, you have no clue about the process. I would be much quicker now, having gone through the process, as opposed to you, despite needing to sell my house first.

2. in the current market, you must be happy not to pay OVER asking price. discounts are possible if you're flexible and looking at the right property, but even then, 10% would be the max, unless the property is stupidly priced.

2) changes in a heartbeat if mortgage rates move, 70% of today`s prices would be sensible as a hedge if that happens.

Crashy_Time

TheJP said:

kisaki757 said:

TheJP said:

From looking at your previous posts you state you wont pay more than 70% on the asking price. Going to be a long slogg for you i think.

No, sorry, never said that or never meant to if that's what it came across as. What I said is for that one particular property I wouldn't offer more that 70% of MY TOTAL possible borrowing amount. I.e. my maximum budget is X and for that one house I wouldn't pay more than 70% of X.That's not 70% of their asking price.

Even I am not crazy enough to think I can get a house at 30% off in this market And I think even the 17% off is a stretch but like I said, in that case I think their asking price is way over others in the area...

I am currently looking at properties but I am not necessarily willing to pay the whole amount of X for all of them. For some, I would pay no more than 70% of x for example.

Pretty clear cut to me that you would only pay 70% of what the house is marketed at. Maybe you need to reflect your search in line with your budget or what your willing to pay.

Yes, but they clearly said "some" houses, if you use PropertyLog regularly you will see that some houses have starting prices that were just really silly (there is another thread about a seller knocking 225k off the price for example)

Getting_greyer

I'd hate it if someone accepted my first offer tbh.  Always go low, you might get lucky or be written off it's all a game.

nicknameless

Crashy_Time said:

Hedgepigs said:

Crashy_Time said:

kisaki757 said:

pinkshoes said:

Regarding the second property, then at 17% below it might mean the vendors couldn't afford their onward property with a price that much lower, so wouldn't be able to afford to accept. 

If you go throwing around low offers on properties that you're not all that interested in then the EA will start to think you're a time waster and you won't be on their list of people they call when something good comes on the market.

We had some people look round our previous property who offered £180k (asking price £220k) and came across as arrogant and they were doing us a favour! They then "upped" it to £190k. We sold it for £220k (3 offers at asking price) and then these low offer people offered £222k, but we turned them down as if they that badly wanted the property they would have offered something more sensible to begin with.

Thanks, that makes sense and I hadn't considered that too low of an offer would be unacceptable simply because it would  break the upper chain...

The two EA's involved are really small ones, I've not seen any other properties of interest from them since I started looking 6 months ago so I am not too worried if I get a bad reputation. Plus, regardless what they think of me, I am still the one that has the money and time on my side. But I do get there is a potential emotional element to all of this.

PS: love your signature!

Exactly LOL, it is not your job to bail sellers out of their bad borrowing decisions or help them create "chains", your job is to secure the house as cheaply as possible.

Assuming they are buying to live in, I'd have said OP's job is actually to secure a house they are going to enjoy long term, at a price that is affordable to them.

It's a home first and foremost. If it turns out to be a good investment too, then great. But I'd rather pay a little too much on a place that makes me happy, than saving a few thousand buying a house just because I thought it was cheap.

That sounds fair in a market that represents some value, not in the biggest property bubble in history though, people buying now have to try and offset potential rate rise effects if they can IMO.

So Crashy - can you tell the forum in your opinion when the housing market last represented some value and therefore when you would be willing to enter into it?  1860s?

Yes there are properties that are overpriced and unpopular because of it at the moment, that will be reduced.  However, that is not evidence that everything is overpriced.  It is still my observation that anything we have considered as reasonably priced in the current market has gone under offer / SSTC in a matter of days.

You will continue to repeat the same mantra ad nauseum I know, but please do consider that some posters won't actually know your modus operandi and may actually take something you say seriously.

Now please carry on as you were.

aoleks

Crashy_Time said:

aoleks said:

as a first time buyer who completed 3 weeks back, I can only say:

1. being a FTB doesn't mean you're quicker, you have no clue about the process. I would be much quicker now, having gone through the process, as opposed to you, despite needing to sell my house first.

2. in the current market, you must be happy not to pay OVER asking price. discounts are possible if you're flexible and looking at the right property, but even then, 10% would be the max, unless the property is stupidly priced.

2) changes in a heartbeat if mortgage rates move, 70% of today`s prices would be sensible as a hedge if that happens.

the only way mortgage rates are going is down. if they ever went up and prices would "drop", I would hold on to my house, profit from the inflation created and pay off as much of the mortgage as possible. when rates go back down again, I'll profit massively.

from where this thinking that if prices were to "crash", people would jump to sell their homes at a loss? I'd probably buy 2-3 more...

nicknameless

aoleks said:

Crashy_Time said:

aoleks said:

as a first time buyer who completed 3 weeks back, I can only say:

1. being a FTB doesn't mean you're quicker, you have no clue about the process. I would be much quicker now, having gone through the process, as opposed to you, despite needing to sell my house first.

2. in the current market, you must be happy not to pay OVER asking price. discounts are possible if you're flexible and looking at the right property, but even then, 10% would be the max, unless the property is stupidly priced.

2) changes in a heartbeat if mortgage rates move, 70% of today`s prices would be sensible as a hedge if that happens.

the only way mortgage rates are going is down. if they ever went up and prices would "drop", I would hold on to my house, profit from the inflation created and pay off as much of the mortgage as possible. when rates go back down again, I'll profit massively.

from where this thinking that if prices were to "crash", people would jump to sell their homes at a loss? I'd probably buy 2-3 more...

Almost as deluded as crashy.  The only way mortgage rates can go is down?  Please do not make any financial decision on that basis.

aoleks

nicknameless said:

aoleks said:

Crashy_Time said:

aoleks said:

as a first time buyer who completed 3 weeks back, I can only say:

1. being a FTB doesn't mean you're quicker, you have no clue about the process. I would be much quicker now, having gone through the process, as opposed to you, despite needing to sell my house first.

2. in the current market, you must be happy not to pay OVER asking price. discounts are possible if you're flexible and looking at the right property, but even then, 10% would be the max, unless the property is stupidly priced.

2) changes in a heartbeat if mortgage rates move, 70% of today`s prices would be sensible as a hedge if that happens.

the only way mortgage rates are going is down. if they ever went up and prices would "drop", I would hold on to my house, profit from the inflation created and pay off as much of the mortgage as possible. when rates go back down again, I'll profit massively.

from where this thinking that if prices were to "crash", people would jump to sell their homes at a loss? I'd probably buy 2-3 more...

Almost as deluded as crashy.  The only way mortgage rates can go is down?  Please do not make any financial decision on that basis.

I said the only way rates ARE going, not COULD be going is down. Major difference. We haven’t seen the best rates yet, competition is fierce in this market. The odd upward blip is not really worrying, mortgages will still be cheaper than mortgages.

nicknameless

aoleks said:

nicknameless said:

aoleks said:

Crashy_Time said:

aoleks said:

as a first time buyer who completed 3 weeks back, I can only say:

1. being a FTB doesn't mean you're quicker, you have no clue about the process. I would be much quicker now, having gone through the process, as opposed to you, despite needing to sell my house first.

2. in the current market, you must be happy not to pay OVER asking price. discounts are possible if you're flexible and looking at the right property, but even then, 10% would be the max, unless the property is stupidly priced.

2) changes in a heartbeat if mortgage rates move, 70% of today`s prices would be sensible as a hedge if that happens.

the only way mortgage rates are going is down. if they ever went up and prices would "drop", I would hold on to my house, profit from the inflation created and pay off as much of the mortgage as possible. when rates go back down again, I'll profit massively.

from where this thinking that if prices were to "crash", people would jump to sell their homes at a loss? I'd probably buy 2-3 more...

Almost as deluded as crashy.  The only way mortgage rates can go is down?  Please do not make any financial decision on that basis.

I said the only way rates ARE going, not COULD be going is down. Major difference. We haven’t seen the best rates yet, competition is fierce in this market. The odd upward blip is not really worrying, mortgages will still be cheaper than mortgages.

Sorry I obviously missed that impeccable logic.  So they can definitely only go down and mortgages will still be cheaper than mortgages.

Gotcha now!

Call the nurse.

MysteryMe

My advice OP is to stop wasting your time making scattergun offers on properties you are not particularly interested in and focus on finding a property that suits you best as a home.  There will be no peace in your life sat in a property you grow to hate. Having £X amount of cash sat in your bank account wont change that because £X in the bank does not change the location or size of garden or parking provisions, whatever, of a property bought based solely on which provided the biggest discount rather than actual suitability.

When you do find a property you are actually keen on, make an informed offer. Don't just throw a number at the wall seeing if it will stick. You are not buying a sack of spuds down the local fruit and veg market. You need to do your research and come in with an offer that is credible.  Good luck with your search.

lookstraightahead

MysteryMe said:

My advice OP is to stop wasting your time making scattergun offers on properties you are not particularly interested in and focus on finding a property that suits you best as a home.  There will be no peace in your life sat in a property you grow to hate. Having £X amount of cash sat in your bank account wont change that because £X in the bank does not change the location or size of garden or parking provisions, whatever, of a property bought based solely on which provided the biggest discount rather than actual suitability.

When you do find a property you are actually keen on, make an informed offer. Don't just throw a number at the wall seeing if it will stick. You are not buying a sack of spuds down the local fruit and veg market. You need to do your research and come in with an offer that is credible.  Good luck with your search.

The problem is, house prices are currently scattergun prices, based on a sack of spuds in the first place.

I don't disagree with what you are saying, but you can't trust any house price at the moment as they're built on hysteria.