Can anyone help re: house price increases please?

newsgroupmonkey_

lookstraightahead said:

mi-key said:

lookstraightahead said:

TheJP said:

lookstraightahead said:

I totally ignore offers over and offer what I can afford. If they don't accept I walk away, leaving the offer on the table.

It's pointless trying to speculate (especially when houses are put on for whatever the vendor fancies) so just offer what you're happy with.

This process gives you an idea in terms of the thought process of a seller. If you aren't going to offer over then look at a different property. This is the equivalent of a tire kicker looking to buy a car that they don't have the funds/wont pay the asking price for. The headers are there for a reason, they highlight who you are dealing with, the value they feel the house is absolute and gives you an idea as to how you structure your offer based on how much you want the house and what you can afford.

Well it's always worked for me. Offers over is made up nonsense in my experience. And buyers know that. 

If the buyer thinks the seller is a tire kicker, though, they don't have to view if they don't want. 

It's a marketing ploy by the estate agent. It's so obvious. And laughable. And the seller misses out if naive buyers don't take a look. 

So do you always pay forecourt price for a secondhand car? What do you think a sales team is for? 

A second hand car isn't a very good comparison as it's not going to go up in value if the seller doesn't sell it...

I was responding to someone else who used it as an example 

It's a terrible example for a number of reasons.

1. Regular (not classic) cars depreciate

2. Car "supermarkets" are a fixed price, with an additional admin charge. They are not negotiable (try it and see)

But your argument about "I'll only buy a house if I get a discount" means that you're not really serious about the place as a home. You just want to buy some bricks and mortar.

Ultimately, "offers over" worked last year and the year before very nicely when the housing market had a huge shortage of stock.
Many areas had anything up to 10 people bidding on each house. I'd rather have "offers over" and the offers out in the open, rather than "sealed bids" which is frankly a lottery.

I don't think it's appropriate for the market right now though, unless you're in a buoyant area (and despite what Fackers and others might say, there are still some very buoyant areas).

born_again

LicoriceStick said:

Hello,

New to the forum and looking for some advice if anyone can help?  We've seen a house we like (East Midlands).  It is on at offers over £450k.  A very similar house in the same road sold last August for £427k but since then there has been so little activity in our particular area I have nothing else to compare it with.  How could I find out how much house prices have increased (or not) on average since September?  ONS data suggests percentage increase in the East Midlands was 8.6% to January 2023 but I'm assuming that most of this increase was in the first eight months of the year and it has slowed since then.  So difficult to decide where to pitch an offer (if we decide to). 

Thanks in advance for any advice.

"Very Similar" is not the "Same as" though.

Our home is the same as neighbours (same size & design), but will be worth less, as they have just had a new kitchen & bathroom put in, same with one further down the street with a bigger garden. 
But one right at the end of the street will never be worth as much as they have very restricted parking, no on street only on drive, as they are on a junction.

End of the day it is going to be worth what you are prepared to pay, & what the seller will accept for it.

lookstraightahead

newsgroupmonkey_ said:

lookstraightahead said:

mi-key said:

lookstraightahead said:

TheJP said:

lookstraightahead said:

I totally ignore offers over and offer what I can afford. If they don't accept I walk away, leaving the offer on the table.

It's pointless trying to speculate (especially when houses are put on for whatever the vendor fancies) so just offer what you're happy with.

This process gives you an idea in terms of the thought process of a seller. If you aren't going to offer over then look at a different property. This is the equivalent of a tire kicker looking to buy a car that they don't have the funds/wont pay the asking price for. The headers are there for a reason, they highlight who you are dealing with, the value they feel the house is absolute and gives you an idea as to how you structure your offer based on how much you want the house and what you can afford.

Well it's always worked for me. Offers over is made up nonsense in my experience. And buyers know that. 

If the buyer thinks the seller is a tire kicker, though, they don't have to view if they don't want. 

It's a marketing ploy by the estate agent. It's so obvious. And laughable. And the seller misses out if naive buyers don't take a look. 

So do you always pay forecourt price for a secondhand car? What do you think a sales team is for? 

A second hand car isn't a very good comparison as it's not going to go up in value if the seller doesn't sell it...

I was responding to someone else who used it as an example 

It's a terrible example for a number of reasons.

1. Regular (not classic) cars depreciate

2. Car "supermarkets" are a fixed price, with an additional admin charge. They are not negotiable (try it and see)

But your argument about "I'll only buy a house if I get a discount" means that you're not really serious about the place as a home. You just want to buy some bricks and mortar.

Ultimately, "offers over" worked last year and the year before very nicely when the housing market had a huge shortage of stock.
Many areas had anything up to 10 people bidding on each house. I'd rather have "offers over" and the offers out in the open, rather than "sealed bids" which is frankly a lottery.

I don't think it's appropriate for the market right now though, unless you're in a buoyant area (and despite what Fackers and others might say, there are still some very buoyant areas).

I'm not arguing that I want to buy at a discount. I want to pay what it's worth to me. And as we all know house prices  aren't an exact science, I'm not going to use a price picked on what the seller needs to fund whatever.
I might be laughed out of the door, but it works both ways.

Why do sellers reduce their "offers over" prices, eventually?

I do see your argument that it worked last year though for some. But it's not now. Which is where the op is. 

TheJP

lookstraightahead said:

TheJP said:

lookstraightahead said:

I totally ignore offers over and offer what I can afford. If they don't accept I walk away, leaving the offer on the table.

It's pointless trying to speculate (especially when houses are put on for whatever the vendor fancies) so just offer what you're happy with.

This process gives you an idea in terms of the thought process of a seller. If you aren't going to offer over then look at a different property. This is the equivalent of a tire kicker looking to buy a car that they don't have the funds/wont pay the asking price for. The headers are there for a reason, they highlight who you are dealing with, the value they feel the house is absolute and gives you an idea as to how you structure your offer based on how much you want the house and what you can afford.

Well it's always worked for me. Offers over is made up nonsense in my experience. And buyers know that. 

If the buyer thinks the seller is a tire kicker, though, they don't have to view if they don't want. 

It's a marketing ploy by the estate agent. It's so obvious. And laughable. And the seller misses out if naive buyers don't take a look. 

So do you always pay forecourt price for a secondhand car? What do you think a sales team is for? 

I asked the EA to market my house 2 years ago at £290k OIRO based on comparable (EA wanted to go in lower) but knowing my house was one of the best plots in the area due to the driveway and privacy. To make my onward sale viable i knew i could accept £285k. I had to offers the day after it went live, both at asking. We told each bidder there was even offers on the table and if they would like to submit a best and final offer, It sold for £500 over the next day, as i was happy with that. The EA asked the buyer why they went in straight at asking and not lower, the seller said it was a good price and i wanted the house. 

When i buy a car i research the price and value of the model to see if its worth it, if i feel its way over priced i wont bother looking at it as the seller is unlikely to drop it to what i feel its valued at. If the price had ONO aside it then i know there is room to try and get it to the value i researched. 

When i see offers over and I've seen some comparable house slightly lower i then know the seller is going to be difficult, especially if i have to negotiate further after survey

LicoriceStick

I appreciate all your comments, thank you.  It's only been on the market a week so it's early days.  Think I'll wait a few days and mull it over some more before booking a second viewing.

LicoriceStick

There seems to be a bit more coming on the market this week too so, fingers crossed, there'll be more houses to view soon.

lookstraightahead

TheJP said:

lookstraightahead said:

TheJP said:

lookstraightahead said:

I totally ignore offers over and offer what I can afford. If they don't accept I walk away, leaving the offer on the table.

It's pointless trying to speculate (especially when houses are put on for whatever the vendor fancies) so just offer what you're happy with.

This process gives you an idea in terms of the thought process of a seller. If you aren't going to offer over then look at a different property. This is the equivalent of a tire kicker looking to buy a car that they don't have the funds/wont pay the asking price for. The headers are there for a reason, they highlight who you are dealing with, the value they feel the house is absolute and gives you an idea as to how you structure your offer based on how much you want the house and what you can afford.

Well it's always worked for me. Offers over is made up nonsense in my experience. And buyers know that. 

If the buyer thinks the seller is a tire kicker, though, they don't have to view if they don't want. 

It's a marketing ploy by the estate agent. It's so obvious. And laughable. And the seller misses out if naive buyers don't take a look. 

So do you always pay forecourt price for a secondhand car? What do you think a sales team is for? 

I asked the EA to market my house 2 years ago at £290k OIRO based on comparable (EA wanted to go in lower) but knowing my house was one of the best plots in the area due to the driveway and privacy. To make my onward sale viable i knew i could accept £285k. I had to offers the day after it went live, both at asking. We told each bidder there was even offers on the table and if they would like to submit a best and final offer, It sold for £500 over the next day, as i was happy with that. The EA asked the buyer why they went in straight at asking and not lower, the seller said it was a good price and i wanted the house. 

When i buy a car i research the price and value of the model to see if its worth it, if i feel its way over priced i wont bother looking at it as the seller is unlikely to drop it to what i feel its valued at. If the price had ONO aside it then i know there is room to try and get it to the value i researched. 

When i see offers over and I've seen some comparable house slightly lower i then know the seller is going to be difficult, especially if i have to negotiate further after survey

When I've put a house in the market I always have 10% at least leeway.
when I buy a house I always expect others to have also done that. Of course they have!
When I buy a car I always buy for lower than what they're on the market at.

I don't get this link with a buyer having to pay what the seller needs to buy their onward purchase. That's like me putting my £450000 house on for £1m so that I can buy the house I would really like. 

I do my research as well, but I will go and look at houses that are on the market for more than I'm willing to pay.

fackers_2

LicoriceStick said:

Hello,

New to the forum and looking for some advice if anyone can help?  We've seen a house we like (East Midlands).  It is on at offers over £450k.  A very similar house in the same road sold last August for £427k but since then there has been so little activity in our particular area I have nothing else to compare it with.  How could I find out how much house prices have increased (or not) on average since September?  ONS data suggests percentage increase in the East Midlands was 8.6% to January 2023 but I'm assuming that most of this increase was in the first eight months of the year and it has slowed since then.  So difficult to decide where to pitch an offer (if we decide to). 

Thanks in advance for any advice.

Almost all Estate Agents are pricing in a buffer. So that when you offer a ‘reduced price’ they are then actually getting their real asking price. This because they know people are offering lower on all properties. This is coming from an EA too! 

As per my footer… “offers over” usually I don’t even bother with these sellers since they are often difficult to deal with. That being said, they can ask for whatever they want but if it’s still sat on the market 2 months later with no offers, they’ll likely need to reduce since the market is falling away from them and they’ll end up chasing it down. 

TheJP

lookstraightahead said:

TheJP said:

lookstraightahead said:

TheJP said:

lookstraightahead said:

I totally ignore offers over and offer what I can afford. If they don't accept I walk away, leaving the offer on the table.

It's pointless trying to speculate (especially when houses are put on for whatever the vendor fancies) so just offer what you're happy with.

This process gives you an idea in terms of the thought process of a seller. If you aren't going to offer over then look at a different property. This is the equivalent of a tire kicker looking to buy a car that they don't have the funds/wont pay the asking price for. The headers are there for a reason, they highlight who you are dealing with, the value they feel the house is absolute and gives you an idea as to how you structure your offer based on how much you want the house and what you can afford.

Well it's always worked for me. Offers over is made up nonsense in my experience. And buyers know that. 

If the buyer thinks the seller is a tire kicker, though, they don't have to view if they don't want. 

It's a marketing ploy by the estate agent. It's so obvious. And laughable. And the seller misses out if naive buyers don't take a look. 

So do you always pay forecourt price for a secondhand car? What do you think a sales team is for? 

I asked the EA to market my house 2 years ago at £290k OIRO based on comparable (EA wanted to go in lower) but knowing my house was one of the best plots in the area due to the driveway and privacy. To make my onward sale viable i knew i could accept £285k. I had to offers the day after it went live, both at asking. We told each bidder there was even offers on the table and if they would like to submit a best and final offer, It sold for £500 over the next day, as i was happy with that. The EA asked the buyer why they went in straight at asking and not lower, the seller said it was a good price and i wanted the house. 

When i buy a car i research the price and value of the model to see if its worth it, if i feel its way over priced i wont bother looking at it as the seller is unlikely to drop it to what i feel its valued at. If the price had ONO aside it then i know there is room to try and get it to the value i researched. 

When i see offers over and I've seen some comparable house slightly lower i then know the seller is going to be difficult, especially if i have to negotiate further after survey

When I've put a house in the market I always have 10% at least leeway.
when I buy a house I always expect others to have also done that. Of course they have!
When I buy a car I always buy for lower than what they're on the market at.

I don't get this link with a buyer having to pay what the seller needs to buy their onward purchase. That's like me putting my £450000 house on for £1m so that I can buy the house I would really like. 

I do my research as well, but I will go and look at houses that are on the market for more than I'm willing to pay.

As usual you've missed the point by miles.

The terminology that some sellers use can be a great tool in how someone can decide whether they actually offer on a property and for the seller whether that person is serious. 

My house was priced right for the market at top end but this is the point you missed in order to still make my onward sale work i could accept £xxxxk lower than the guide price. The buyer paid over the guide price as they really wanted the house and so did someone else. 

lookstraightahead

TheJP said:

lookstraightahead said:

TheJP said:

lookstraightahead said:

TheJP said:

lookstraightahead said:

I totally ignore offers over and offer what I can afford. If they don't accept I walk away, leaving the offer on the table.

It's pointless trying to speculate (especially when houses are put on for whatever the vendor fancies) so just offer what you're happy with.

This process gives you an idea in terms of the thought process of a seller. If you aren't going to offer over then look at a different property. This is the equivalent of a tire kicker looking to buy a car that they don't have the funds/wont pay the asking price for. The headers are there for a reason, they highlight who you are dealing with, the value they feel the house is absolute and gives you an idea as to how you structure your offer based on how much you want the house and what you can afford.

Well it's always worked for me. Offers over is made up nonsense in my experience. And buyers know that. 

If the buyer thinks the seller is a tire kicker, though, they don't have to view if they don't want. 

It's a marketing ploy by the estate agent. It's so obvious. And laughable. And the seller misses out if naive buyers don't take a look. 

So do you always pay forecourt price for a secondhand car? What do you think a sales team is for? 

I asked the EA to market my house 2 years ago at £290k OIRO based on comparable (EA wanted to go in lower) but knowing my house was one of the best plots in the area due to the driveway and privacy. To make my onward sale viable i knew i could accept £285k. I had to offers the day after it went live, both at asking. We told each bidder there was even offers on the table and if they would like to submit a best and final offer, It sold for £500 over the next day, as i was happy with that. The EA asked the buyer why they went in straight at asking and not lower, the seller said it was a good price and i wanted the house. 

When i buy a car i research the price and value of the model to see if its worth it, if i feel its way over priced i wont bother looking at it as the seller is unlikely to drop it to what i feel its valued at. If the price had ONO aside it then i know there is room to try and get it to the value i researched. 

When i see offers over and I've seen some comparable house slightly lower i then know the seller is going to be difficult, especially if i have to negotiate further after survey

When I've put a house in the market I always have 10% at least leeway.
when I buy a house I always expect others to have also done that. Of course they have!
When I buy a car I always buy for lower than what they're on the market at.

I don't get this link with a buyer having to pay what the seller needs to buy their onward purchase. That's like me putting my £450000 house on for £1m so that I can buy the house I would really like. 

I do my research as well, but I will go and look at houses that are on the market for more than I'm willing to pay.

As usual you've missed the point by miles.

The terminology that some sellers use can be a great tool in how someone can decide whether they actually offer on a property and for the seller whether that person is serious. 

My house was priced right for the market at top end but this is the point you missed in order to still make my onward sale work i could accept £xxxxk lower than the guide price. The buyer paid over the guide price as they really wanted the house and so did someone else. 

I'm not missing the point at all. Your theory is different from mine. That's ok.