Did I just miss out on a bargain or dodge a bullet?

mi-key

jonnydeppiwish! said:

mi-key said:

jonnydeppiwish! said:

The peak of the market was probably actually Jun/Jul. Interest rates had already started to increase by October. This, coupled with the traditional slow down prior to Xmas,  means that is was quite possibly over valued when you made an offer.

Dependent of area, how much you like the house, I would definitely go back with another offer in the region of £475k and then see what response you get.

I can imagine what response dropping an offer by £45K for no reason a few days later would get... 

Then that would be the vendor’s decision and make the Ops choice for them. Sometimes things are not worth the price - no point saying just go in at asking as that is not what the property market is at the present time. Whether it will be in 6 months, who knows.

My point was that the OP had already made an offer at £520K on a £550K house, so he felt it was worth that to him. He wasn't paying the asking price, he was already accepted at 5.5% less than asking

Going back to the seller a few days later and saying you want to offer £45K less than the offer you have already had accepted ( so 14% below asking ) definitely marks you down as either a fantasist, a time waster or someone who is going to be more trouble than it's worth to deal with.

mi-key

jonnydeppiwish! said:

mi-key said:

jonnydeppiwish! said:

The peak of the market was probably actually Jun/Jul. Interest rates had already started to increase by October. This, coupled with the traditional slow down prior to Xmas,  means that is was quite possibly over valued when you made an offer.

Dependent of area, how much you like the house, I would definitely go back with another offer in the region of £475k and then see what response you get.

I can imagine what response dropping an offer by £45K for no reason a few days later would get... 

Then that would be the vendor’s decision and make the Ops choice for them. Sometimes things are not worth the price - no point saying just go in at asking as that is not what the property market is at the present time. Whether it will be in 6 months, who knows.

Also, if you were selling, would you consider an offer of 14% below asking to be reasonable? I don't imagine so...

Sunsaru

mi-key said:

jonnydeppiwish! said:

mi-key said:

jonnydeppiwish! said:

The peak of the market was probably actually Jun/Jul. Interest rates had already started to increase by October. This, coupled with the traditional slow down prior to Xmas,  means that is was quite possibly over valued when you made an offer.

Dependent of area, how much you like the house, I would definitely go back with another offer in the region of £475k and then see what response you get.

I can imagine what response dropping an offer by £45K for no reason a few days later would get... 

Then that would be the vendor’s decision and make the Ops choice for them. Sometimes things are not worth the price - no point saying just go in at asking as that is not what the property market is at the present time. Whether it will be in 6 months, who knows.

Also, if you were selling, would you consider an offer of 14% below asking to be reasonable? I don't imagine so...

If the opening offer was 14% then maybe, but it's not which is why (if I was the seller) I'd think that the OP is not someone I'd want to do business with.

Now if the OP had had a survey or a reasonable issue occurred then that is something else....

If you really wanted this house OP then I think you've played it wrong.

jimbog

Sunsaru said:

mi-key said:

jonnydeppiwish! said:

mi-key said:

jonnydeppiwish! said:

The peak of the market was probably actually Jun/Jul. Interest rates had already started to increase by October. This, coupled with the traditional slow down prior to Xmas,  means that is was quite possibly over valued when you made an offer.

Dependent of area, how much you like the house, I would definitely go back with another offer in the region of £475k and then see what response you get.

I can imagine what response dropping an offer by £45K for no reason a few days later would get... 

Then that would be the vendor’s decision and make the Ops choice for them. Sometimes things are not worth the price - no point saying just go in at asking as that is not what the property market is at the present time. Whether it will be in 6 months, who knows.

Also, if you were selling, would you consider an offer of 14% below asking to be reasonable? I don't imagine so...

If you really wanted this house OP then I think you've played it wrong.

Once, when haggling in a market in Asia, I was told that we in the West negotiate as if it is a battle whereas they see it as a dance 

theoretica

"Did I just miss out on a bargain or dodge a bullet?"

Probably not - seems much more likely you proposed and then pulled out of a deal that didn't merit dramatics in either direction.

mi-key

Sunsaru said:

mi-key said:

jonnydeppiwish! said:

mi-key said:

jonnydeppiwish! said:

The peak of the market was probably actually Jun/Jul. Interest rates had already started to increase by October. This, coupled with the traditional slow down prior to Xmas,  means that is was quite possibly over valued when you made an offer.

Dependent of area, how much you like the house, I would definitely go back with another offer in the region of £475k and then see what response you get.

I can imagine what response dropping an offer by £45K for no reason a few days later would get... 

Then that would be the vendor’s decision and make the Ops choice for them. Sometimes things are not worth the price - no point saying just go in at asking as that is not what the property market is at the present time. Whether it will be in 6 months, who knows.

Also, if you were selling, would you consider an offer of 14% below asking to be reasonable? I don't imagine so...

If the opening offer was 14% then maybe, but it's not which is why (if I was the seller) I'd think that the OP is not someone I'd want to do business with.

Now if the OP had had a survey or a reasonable issue occurred then that is something else....

If you really wanted this house OP then I think you've played it wrong.

I agree totally. Personally I think 14% is too low an offer to go in with anyway unless its one of those houses that has sat around for a year with no offers.

Despite the doom mongers I'm not seeing any evidence of sellers generally accepting offers that low. 

If I was selling and someone started at 14% off then I would reject it out of hand and assume the person either can't afford the house anyway, or is going to offer more and then try and reduce their offer later in the process. 

mi-key

If the opening offer was 14% then maybe, but it's not which is why (if I was the seller) I'd think that the OP is not someone I'd want to do business with.

Now if the OP had had a survey or a reasonable issue occurred then that is something else....

If you really wanted this house OP then I think you've played it wrong.

I don't think the OP cares about what we think anyway. He is much more astute than us mere mortals and is making so much money from his interest while he rents anyway...

Sarah1Mitty2

mi-key said:

Fair question. I guess it's personal reasons - renting limits what you can do with a place - pets, children, development.

I have seen some people in rental call their home their "forever home". There's no such thing when it comes to rental I'm sorry to say. It's very sad to hear when these people get handed their notice

You're not wrong though - the rosiness of our current situation did factor into the decision - if we were suffering as many renters in urban areas sound like they are, perhaps our decision would have been different.

Agreed, there is a LOT more to owning your own home than just financial considerations. I also bet that whatever 'profit' you are making at the moment from your interest minus rent costs, if you owned a house you would make more over the next 5 years once interest rates drop, rents increase etc...

That is what people said two years ago, when they thought interest rates would never go up.

Sarah1Mitty2

Thomas12346 said:

mi-key said:

Yes Crashy, of course they will knock £150K off a £550K house   

  ...why not.. afterall, they added on £120,000 last year! I could build you a house for that

Not with buying the land as well and not for anything decent.

Typical build costs are £1000 - £2000 per square metre... so easily a 100m2 house on a £20,000 plot... which is possible in Scotland and some other areas of the UK... 

The plot on a house I sold for £325,000 was valued by a surveyor at £30,000 - it was 5miles outside a major cultural/economic city

Essentially though, the notion that £150k up is realistic and £120k down isn't, is not a sane one.

Exactly, but it still gets trotted out time and time again.

jimbog

Sarah1Mitty2 said:

mi-key said:

Agreed, there is a LOT more to owning your own home than just financial considerations. I also bet that whatever 'profit' you are making at the moment from your interest minus rent costs, if you owned a house you would make more over the next 5 years once interest rates drop, rents increase etc...

That is what people said two years ago, when they thought interest rates would never go up.

But things are looking better now for buyers:

Sarah1Mitty2 said:

I think mortgage rates may have dipped slightly recently.