Dilemma!

leftieM

macaque wrote: »

I think you need to wake up to what is really happening. The price of £170k sounds like a great offer in current market conditions. I am puzzled by your perverse decision to put an artificial limit of £175K.

I know how the market is. However the EA is muttering about us selling too low (he recommended not accepting below 177k) and that is something we will have to live with if it turns out to be true. My instinct is that 170k is a realistic price based on current market conditions. 175k was based on what the couple offered in October.
On balance I think that a bird in the hand is worth two in the bush, to coin a phrase, and we'll accept the current offer if it's still there rather than hold out for a higher offer that may never materialise.

ragdoll

Would have thought the EA would be pleased for the sale, is he giving a reason why he thinks you are selling too low, can he provide evidence of what prices other similar properties have gone for? Maybe, to see just how confident your agent is on getting you more, ask him, if you reject the offer and he can't get you a better price in the next 2 months would he be prepared to discount your fee by 50%. Money where his mouth is and all that!

leftieM

The EA has agreed a 2 bed with a conservatory and attic conversion (without building control approval) in our estate for 175k which was the asking price. Our's is a 4 bed without conservatory and with a downstairs bathroom. I think our neighbour did very well getting asking price. I'm only aware of two houses that have actually sold in our estate in the last 6 months. One went for 175k at the end of the boom (early summer) and one sold for 165k, 20k below asking, about 3 months ago. A 2 bed flat behind us was agreed at 165k but the surveyor gave a valuation under 160k (the EA wouldn't say exactly how much under.) Most houses for sale here have no offers on them and aren't getting viewers either.
It's really difficult to value houses in my part of Belfast at the moment. We had 50% rises in a 12 month period and this was preceeded by a few years of double digit growth. The market here is falling but it's unclear what stage we're at - whether we're at the bottom or is this just a taste of things to come. The top sale price in this estate was 212k about 9 months ago. We bought for 80k in 2001.

Melissa177

The buyers are trying to find your "break point", which is 175K. They have "opened extreme" with a bid of 170K. I would counter with another offer - maybe 182K. They'll refuse, and go to 175K with any luck.

Ideally, however, you don't want to hit your break point - you want to hit *their* break point. This will hopefully be higher than 175K.

MissMoneypenny

Melissa177 wrote: »

The buyers are trying to find your "break point", which is 175K. They have "opened extreme" with a bid of 170K. I would counter with another offer - maybe 182K. They'll refuse, and go to 175K with any luck.

Ideally, however, you don't want to hit your break point - you want to hit *their* break point. This will hopefully be higher than 175K.

Have you just been on a course?

Melissa177

Yes (see other thread) - it was a very good one by the Gap Partnership.

This might sound like theory, but it works in practice.

leftieM

We took the 170k and the sale has been progressing. Now our buyers want to drop to 164k. What a dilemma. Heart says yes, brain says no. We're not buying another house just yet so we've no chain to break. We'll have to pay off the solicitor and start again. The market here is about to go through the bull trap phase I suspect before it tanks. We might just bag a buyer but, more likely, we'll be here longer term as we will find it difficult to sell.
I'm really annoyed. This is the second price drop they've come in with. We've wasted the last month on them. The 'house price crash' indoctrinated part of my brain tells me to just take it. Another part of me thinks that if we bow to this then they will try another drop and who knows where it will end. I don't want my desire to leave this house to overwhelm my sensible head. The reasons that I'm not happy here are personal and nothing to do with bad neighbours or crime or anything else. It's affordable, it's convenient and it'll do for now if it has to, I just don't love it.
What a pain! Has anyone been in this boat? What did you do?

wriggly

Have they given a reason for wanting to lower the price?

I would tell them you no longer consider them serious buyers and put the house straight back onto the market.

Don't let them come back in until they offer at least $175k.

If they are serious buyers, they will pay to get back on track.

In the meantime, you might just catch a bull in your trap.

pinkshoes

leftieM wrote: »

I've never loved this area and would love to live somewhere that felt more 'me'.

Did you know the area well before you bought?
Is the area one of the factors for wanting to sell?
When did you buy, and how much did you pay for this property? (I presume selling at £164k will still be a hefty profit?)

Don't forget that if you're renting, you might have to move a few times until house prices settle down, as future landlords might decide to sell up.

It's a difficult call. I personally wouldn't have bought in an area I didn't like.

I guess your options are:

1) Tell the buyer to bog off and stay put, and ride out this "fluctuation". When prices settle down (at whatever price), people will start buying and selling again. Can you see yourself staying there a few more years?
2) Tell the buyer it's £170k or nothing (be prepared to stay put then goto 1)
3) Accept £164k and move into rented.
4) Rent the property out and move into rented. (Is the mortgage interest less than the rent?)
5) Sell for £164k and buy something in the location you DO want to live in, making sure you get an equally good discount on the place you're buying.

Personally I'd do option 5, but if I couldn't get a suitable discount on the property I wanted to buy then I'd go for 2.

leftieM

Did you know the area well before you bought?
Is the area one of the factors for wanting to sell?

We didn't know the area well. We wanted to be close to the pubs and work really, that was the main incentive. Now we have children and being close to the pubs doesn't matter. I want a bigger place and we can only afford to rent it, not buy it.

When did you buy, and how much did you pay for this property? (I presume selling at £164k will still be a hefty profit?)

We bought in 2001. We'll take 84k away if we take this new offer. It would take a long time to earn that but in housing terms it's a drop in the ocean.

I guess your options are:

1) Tell the buyer to bog off and stay put, and ride out this "fluctuation". When prices settle down (at whatever price), people will start buying and selling again. Can you see yourself staying there a few more years?
2) Tell the buyer it's £170k or nothing (be prepared to stay put then goto 1)
3) Accept £164k and move into rented.
4) Rent the property out and move into rented. (Is the mortgage interest less than the rent?)
5) Sell for £164k and buy something in the location you DO want to live in, making sure you get an equally good discount on the place you're buying.

Personally I'd do option 5, but if I couldn't get a suitable discount on the property I wanted to buy then I'd go for 2.

I think we'll have to try option 2 and be prepared to go back on the market.