Low offers is the way to go

yvonnechristina

House prices are currently ridiculously overpriced in this country. One possible solution for want to be first time buyers is to put in low offers (in terms of what you are prepared to spend and think is reasonable) or to wait out and rent (or even better stay with friends and family where you aren't giving anything to greedy landlords) until prices come back to the land of reality.

Personally I would consider buying something at 30-40% below current prices. I can't see that paying anything above this amount is reasonable. Putting in low offers all puts pressure on the market. Sure, the offers may not be accepted at first, but keep trying and you're bound to find someone who really really needs to sell....eventually

The other thing that want to be first time buyers can do is just sit back and wait (it may take years) but then again waiting years is probably better than taking on a mortgage that you can just about afford but never actually pay off....The current state of affairs is just nuts.

Also see https://www.housepricecrash.co.uk for details of house price trends in the UK

Reaper

Personally I would consider buying something at 30-40% below current prices. I can't see that paying anything above this amount is reasonable. Putting in low offers all puts pressure on the market. Sure, the offers may not be accepted at first, but keep trying and you're bound to find someone who really really needs to sell....eventually

I'm not sure if this is what you are suggesting, but if so you are going to be wasting a lot of time (yours and theirs) if you tour houses only to put in offers of 30-40% below asking prices. Nobody would ever accept. If they were that desperate to sell they would lower their asking price.

Furthermore there is no certainty of a crash. If you look towards the end of the "House prices about to crash" thread you will see me arguing why there won't be one, just a small settling followed by stagnation. Of course not everybody agrees with me as you will see!

Also see https://www.housepricecrash.co.uk for details of house price trends in the UK

Despite the natural bias of a site called HousePriceCrash I was amused to see the most recent house price figures are those from the Halifax reporting a 1.4% RISE in September!

Han_naH

I'm sure the that person did not mean offers 30-40% below asing price because as you say, that would never wash...!

Offering 5% less is quite common now... the risk for you the buyer being this: Seller pulls out, landing you with fees.

The answer? Try Joslin Rhoes solicitors - you pay £35 insurance against this, so that's all you will pay in the event of a pullout....

http://www.joslinrhodes.co.uk/conveyancing.html

Thanks

Leejp.

Reaper

Ah, that makes sense then. Yes I read somewhere that the average deal is currently running at 95% of the asking price. That sounds about right to me. It got silly before when the market was overheated and people were outbidding each other and often going above the asking price!

yvonnechristina

On the contrary if everyone was to put in offers of 30-40% below current prices they would soon have to come back down to earth. The only people this wouldn't suit are people wanting to cash in on their property. Whereas it would be much better for first time buyers and people wanting to move up.

Prices may be high but they aren't really selling at these prices...or if they are selling they are taking a long time to sell and then selling below the average price so whats the harm on putting on some pressure to make prices go downwards? A friend of mine had a property for sale at 250k for one year in north London, nice property near the station. It took a year to sell it, and he eventually sold it for around 215k I believe. This was around 6 months ago, I imagine very little is shifting in the current climate.

I don't believe house prices will just level off. House prices seem to be going more and more the way of shares and one thing you can be guaranteed with economics is that nothing stays the same. They have reached their peak and the only way now is down. First time buyers now have the ball more in their court and if they want to buy somewhere should think about offering 40% below the asking price - eventually this pressure will give estate agents a reality check. As for wasting peoples time, who cares...receiving low offers will start sellers panicking that all they can get is low offers...and then when they don't get another offer through for 6 months or so they may start thinking they should have taken the low offer to start with....and be more willing to accept the next low offer...depends how long they can afford to hold out....

dirtbag_2

I've got a house on the market (inherited) and if I dont get the asking price I am going to rent it out for a while rather that accept something like 20-30% below the asking price.

wlfc1

Its my opinion that constant offers of 30-40% below asking price would leave estate agents thinking that you are some sort of pratt and they would treat your offers with contempt, they may even not bother putting your offer forward (regardless of the fact that they must), I also think that it wouldn't be too long before they decide your not a serious buyer and decline showing you properties...........imho

Bilk

Its my opinion that constant offers of 30-40% below asking price would leave estate agents thinking that  you are some sort of pratt and they would treat your offers with contempt,

My house is on the market for £330k, I would at a push if it was not selling accept £315k, but if some one was to offer 30% below at £231 I would laugh them of the plot

Bilk

yvonnechristina

It all depends on how much you need to sell...when people are desperate enough to sell, and all they get is low offers then they may just have to accept. Also if lots of people put in low offers and thats all the offers that are given, then people can hope for high offers all they want but they may have to wait years and years to sell, if they get the offer they want at all.

As for getting contempt from estate agents etc etc who cares? The only people who would really lose out from house prices coming back to reality are those who want to cash in on high property prices and those who have remortgaged. Whereas it would suit first time buyers and those wanting to move up. Some might say it wouldn't suit estate agents but estate agents have now shot themselves in the foot when really very little is selling and its now taking a long time to shift property so more realistic property prices would probably be better for them as they would actually start getting some business again.

I think first time buyers are currently best staying out of the market, watching it drop and then going in with low offers, paying any thing more than 30 or 40% below current prices is just not feasible for most people to actually pay off the mortgage - so whats the point "owning" a house when it's never really going to be yours anyway with current prices and all you are really doing is servicing a debt?

Woby_Tide

On the contrary if everyone was to put in offers of 30-40% below current prices they would soon have to come back down to earth.  The only people this wouldn't suit are people wanting to cash in on their property.  Whereas it would be much better for first time buyers and people wanting to move up.

Erm how would it be better for people trying to move up the ladder exactly?

Reaper

Erm how would it be better for people trying to move up the ladder exactly?

I think she is saying that if all prices fell by it would make it cheaper to move up.

eg a move from a £100,000 to a £200,000 house would cost you £100,000 extra.
But if both prices fell 10% (to £90,000 and £180,000) then it would only cost you £90,000.