House buying advice please

lush_walrus

towseriv wrote:

"Do some research around your area and see what prices simular properties are going for, speak to the agent as they will know what the vendors are looking for pricewise and make a judgement based on the information you have collected. Be very careful making judgements like that based on opinions on here as we all live in different areas where local markets are doing very different thing"

I know to only take this advice as general. I base my price on the fact that I know through research they paid just over 80k for the house three years ago. Have house prices really gone up 21% in the last two years? Also surley if I ask the estate agant acting on thier behalf what kind of price they are looking for they are going to tell me 97k?

What the vendors have paid for the house is completely irrelevant, the property is worth what it is worth at todays prices.

The EA will tell you, as although they work on behalf of the vendor they ultimately want a sale and will guide you in the region of what offer may be acceptable.

towseriv

lush_walrus wrote:

What the vendors have paid for the house is completely irrelevant, the property is worth what it is worth at todays prices.

I know that the house is worth whatever in todays market but thats why I am trying to track down a little general info on % increase's 21% seems a bit steep.

So are you saying I should pay whatever the EA suggests is a good price because that just seems like madness.

HGLTsuperstar

The EA will tell you, as although they work on behalf of the vendor they ultimately want a sale and will guide you in the region of what offer may be acceptable.[/QUOTE]

Well I don't know which EA's you've dealt with but they want the best price for the sale, yes sure they want it sold rather than sitting there but they will always "guide you in the region" and then add a couple of K for good measure. They wouldn't be serving their employer (the vendor) if they didn't.

towseriv

HGLTsuperstar wrote:

Well I don't know which EA's you've dealt with but they want the best price for the sale, yes sure they want it sold rather than sitting there but they will always "guide you in the region" and then add a couple of K for good measure. They wouldn't be serving their employer (the vendor) if they didn't.

I agree. I am not being critical Lush but asking for guidance from someone with a vested instrest seems like giving the canibal the cook book before they ask you nicley to step into the pot. :eek:

lush_walrus

HGLTsuperstar wrote:

Well I don't know which EA's you've dealt with but they want the best price for the sale, yes sure they want it sold rather than sitting there but they will always "guide you in the region" and then add a couple of K for good measure. They wouldn't be serving their employer (the vendor) if they didn't.

The EAs I have dealt with are the ones that I employ (I own a few agencies) so I think I have a little bit of experience in these things!.

The process is simple really when a house is valued, it is valued by the EA. Both the EA and the vendor have the same goal, to sell the house enabling the vendor to move to a property and the EA to receive a fee for their service. During the process of valuing, marketing and then selling the property the EAs have many conversations with the vendor and between the EAs knowledge of what is happening in the local area (note local and not national as glib figures formulated of patterns nationwide are of NO consequence to anything) the EA advises their client of what type of movement/offers they should expect on their property. Of course they will not give you as the buyer an exact figure and tie the whole thing up there and then, which is why I used the phrase guide. What they are likely to do is suggest you try offering x and seeing what the vendors say.

The EA will then go to the vendor and tell them that person y has offered x amount and discuss with the vendor what price they think they would like to acheive and discuss how to negotiate on from that point and whether the EA thinks that the person is a serious buyer as apose to a complete messer (which is why I am advising to be cautious on what is initially offered). The agent is very unlikely to add thousands onto the initial starting point, as what the hell is gained by that, the final selling price will come out of discussions between the EA and the vendor, this being relayed to the buyer and a middle ground being found through negotiation between buyer and vendor via the EA, simple process!

lush_walrus

towseriv wrote:

I agree. I am not being critical Lush but asking for guidance from someone with a vested instrest seems like giving the canibal the cook book before they ask you nicley to step into the pot. :eek:

Hey I don't mind any critics Im just trying to put you in what I think is the right direction!

towseriv

I understand Lush. From your point of view the EA is a go beween. One that gets paid a commision. Not exactly impartial. But as you say you own agencies so you are impartial. (pitty you cant read sarcasm) Also I doubt they would view it as being a "messer" when all my ducks are in a row so to speak I have a solicitor on habd ready to recieve a draft contract when thier solicitor is ready to be followed by a survey, to be followed by exchange and completion. Yeah could me seen as a real messer I am sure. They could even just say "look pal, dont bother offering on any of our houses we dont think you will buy"

Yeah right

towseriv

Also I know this is a stupid question but would the fact that a new high speed rail line to London being built affect prices in the locality?

lush_walrus

towseriv wrote:

Also I know this is a stupid question but would the fact that a new high speed rail line to London being built affect prices in the locality?

Yes it would, positively if the high speed rail line will have a local station, negatively if it is just going to be speeding past your window without any local benefit.

When trying to assess the reaction of something on price, just ask yourself would you prefer the area as a result of x, if you would prefer it, chances are many others will too and chances are it will have a positive effect on price and visa versa.

lush_walrus

towseriv wrote:

I understand Lush. From your point of view the EA is a go beween. One that gets paid a commision. Not exactly impartial. But as you say you own agencies so you are impartial. (pitty you cant read sarcasm) Also I doubt they would view it as being a "messer" when all my ducks are in a row so to speak I have a solicitor on habd ready to recieve a draft contract when thier solicitor is ready to be followed by a survey, to be followed by exchange and completion. Yeah could me seen as a real messer I am sure. They could even just say "look pal, dont bother offering on any of our houses we dont think you will buy"

Yeah right

Im a bit confussed as to what you think my gain is in giving you a bum stear on this? I of course am impartial on here, as unless you are potentially buying through one of my agencies Im not getting much of a gain from advising you am I?

Anyway you win I'm going to tell you what you want to hear, offer really low and cross your fingers!