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How much below asking price is realistic now?

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Comments

  • BettiePage
    BettiePage Posts: 4,627 Forumite
    gemima wrote: »
    Utter rubbish. Would you pay an extra 6K in stamp duty for a house?? No-one would! If Stamp duty wasn't there at 250K then it would sell for more. Indeed the first buyer offered an extra 5K for F&F on top of the £250K.
    A house is only 'worth' what someone is willing to pay. If it was 'worth' more, they would pay more.
    Illegitimi non carborundum.
  • snarffie
    snarffie Posts: 464 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    brit1234 wrote: »
    I would say 30% is about right at the moment, any more would be too much.
    dolcevita wrote: »
    .....back on topic you should be offering no more than 75% of asking price.

    Take this advice if you DON'T actually want the house.:rolleyes:
  • from experience i know that people have been dropping there prices by around 10-15,000 it still doesnt hurt to go in with a lower offer they can only say no. Be careful though as some people can get insulted if the price is a lot below their asking price. Saying that though some houses are still going for full asking price so it really does depend on the situation
    Proud to be Dealing with my Debts

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  • going2die_rich
    going2die_rich Posts: 1,378 Forumite
    I went to see a 4 bed detatched the other day at the same price and put a offer in of £218,500 and it was flatly refused and I was told the builder wanted an offer of asking price or close to it as he had already had to knock £20,000 off the price.
    What a waste of peoples time if he hasn't written off in his mind the previous money he knocked off.

    So if you put the price down one week you are meant to forget about it and continue putting it down every week then?

    This builder obviously saw he had put a higher price on the property than was realistic so reduced it, and thats a bad thing to you because he should reduce it some more so it becomes affordable to you?

    Don't you think, maybe you just aren't the buyer for this property?
  • BettiePage
    BettiePage Posts: 4,627 Forumite
    snarffie wrote: »
    Take this advice if you DON'T actually want the house.:rolleyes:
    No reason why they can't start here and work up though....
    Illegitimi non carborundum.
  • going2die_rich
    going2die_rich Posts: 1,378 Forumite
    Given today's economy, are you sure getting something you can just about afford is a wise move?

    This is after all how most of the problems started, of people not living within their means. If your budget isn't a 3 bedroom house in that area, either go for less bedrooms or look in a different area.

    Anyone buying today should be looking to afford repayments, bills and all other outgoings easily, before buying. That way if things do get bad, they simply tighten their belt and still are able to afford it without going under. No point in hitting your top end of your budget to get a house you want, just to end up in debt a year or two down the line.
  • snoopy78
    snoopy78 Posts: 128 Forumite
    According to recent statistics houses are going for just over 7% reduction on asking price, obviously this is nation wide and without knowing your local market, an asking price of around 10% less is probably realistic at the moment. But it depends on the vendors attitude, if they are willing to take the risk that sitting around for 3 more months could see a market shift of upto 5% downwards, or some stability.

    I know from where I am looking that Kingston upon thames area that vendors up until recently have been very confident that they would sell there properties at the asking prices or near. EA keep telling everyone that the credit crunch is not effecting them and they have just sold a house at near asking price just last week, strange how this story comes out of every EA mouth.

    If you are willing to sit back and let the vendor panic then you can potentially bag yourself a deal, best thing to do (if you are not afraid to lose the property) is to put in an offer, potentially increase that offer a little more then tell the EA thats your lot keep the offer open and then walk away, may take a month or two they my come back to you.

    I have stopped looking at houses for the time as mortgage rates are a little high at the moment and until they come down, or houses go down 10% plus, any benefits of reductions are lost by due to interest rates. But this trick worked for me as last Friday someone got back to me and asked if my offer (3 months before) was still on the table, due to the EA hassling me a put an offer of 18% below asking price, it has taken them 3 months of few viewings and another lost buyer though.
  • snarffie
    snarffie Posts: 464 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    BettiePage wrote: »
    No reason why they can't start here and work up though....

    Why not start at £1 then? Ridiculous.

    The OP asked for asking prices which are realistic NOW. 30% is based on an assumption that prices may drop by SOME point in the future by 30% or so. That point is not NOW, and you must be sensible enough :rolleyes: to realise that the vast majority of sellers will NOT drop their price by that much!

    I bought in 2002 and went for a 7% reduction at the time and the offer was accepted, so I agree that a decent reduction might be possible. It just depends on the circumstances (We were FTBs at the time, and the seller was moving to Spain). To say you should start at 30% below asking price is nonsense, unless there is a legitimate reason in the vendor's eyes (serious structural problems, major household crisis requiring a quick sale etc.)
  • brit1234
    brit1234 Posts: 5,385 Forumite
    snarffie wrote: »
    Take this advice if you DON'T actually want the house.:rolleyes:


    You may not realise that prices are falling back to normal values. If you pay a higher price your certainly going into negative equity.

    Where I am in West London prices have fallen 30% (Luxury flats, Brentford Dock) already in 4 months and there are no signs of the falls cooling off.

    It's time to use a little common sense but I guarantee you will lose a lot of money if you pay full value.

    istockphoto_184793_wise_monkeys.jpg
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

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  • sdooley
    sdooley Posts: 918 Forumite
    One option, if you can afford £249,999 is to look at houses on the market around the £275K/£285K mark and find somewhere really amazing - the sellers are almost bound to be having trouble selling at those prices at the moment and may well sell quite quickly at below the stamp duty mark.

    That would give you a house you could live in for the next 5 years - which you may need to as there is so much uncertainty as to what is happening in the future.
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