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How much below asking price is realistic now?

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Comments

  • RMP_2
    RMP_2 Posts: 39 Forumite
    Prices are relatively stable I think. It will be the government that makes the shift because sellers will refuse to drop what would be considered more than a sensible amount. Simply due to the reason below.
    People no longer have savings or any "slack" in their finances
    And if you get 10 offers of £150k, and not one a penny higher, do you hold out for a decade?

    Well yes actually.
  • gemima
    gemima Posts: 86 Forumite
    I have to say I was only trying to help the OP and got a load of abuse from some of you. Regardless of what I said about my property (incidentally that wasn't what I was trying to discuss), I was trying to help the OP in what might be a realistic offer.

    I can only assume that those of you who were quite rude to me without knowing the area I live in and what my house was have no property or have a property and have no reason to sell at the moment.

    Silly offers in my are are NOT working (we are doing it ourselves) and houses are still selling if priced realistically.

    In future, I will keep any personal information about my circumstances under wraps if it leaves me open for nasty spiteful comments.

    Edited to say: I think lower house prices are a good thing if only it would happen across the country.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    RMP wrote: »
    Well yes actually.

    So if you think your house is worth £200k, and it isn't because no-one will pay it, you will continue to think, come hell or high water, that it really is worth £200k?


    <boggles>
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • snoopy78
    snoopy78 Posts: 128 Forumite
    It's also worth noting EA trickery at this point, they know that someone is going to offer a higher % off the asking price so they just raise the asking price, you think you're getting a good deal at 10% off but actually they have screwed you over again. Hopefully your valuer will catch on to this but don't hold your breath, these guys are as rotten as EA.

    In the area I am looking EA seem to put on houses well above what something similar sold at last year, we all know Year-on-year it has remained the same (and recently fallen).
  • SerenaGoode
    SerenaGoode Posts: 131 Forumite
    gemima wrote: »
    I have to say I was only trying to help the OP and got a load of abuse from some of you. Regardless of what I said about my property (incidentally that wasn't what I was trying to discuss), I was trying to help the OP in what might be a realistic offer.

    Apologies if it seemed rude, but I think there's probably a divide on the thread, with some thinking the best plan is to offer low because, if it doesn't work now, at least you haven't overpaid in a falling market.

    Of course some properties are still going at close to asking in many areas. In a buyers market, the market doesn't grind to a total halt. But if you believe the bottom could be another 20% or more from here, then it doesn't make much sense to see 10% off current asking prices as a good deal.

    Incidentally, there is of course a problem with pricing around the SD limit. If you can't quite get to about £280K, then it is very hard to sell for over £250K - people are reluctant to take the step up. But it still makes sense to say that a house that under current conditions won't breach the SD limit isn't 'worth' any more than that limit. It might however affect how far that property falls.

    If it is in that grey area, where you think it would get £265-270K without the SD limit, then it may also stick at around £245-250K in a situation where prices in general fall 10%.
    gemima wrote: »
    Edited to say: I think lower house prices are a good thing if only it would happen across the country.

    It's likely to happen more or less everywhere, but it won't be uniform, as we can already see from the significant falls in the city new-builds etc.
  • SerenaGoode
    SerenaGoode Posts: 131 Forumite
    RMP wrote: »
    Prices are relatively stable I think. It will be the government that makes the shift because sellers will refuse to drop what would be considered more than a sensible amount. Simply due to the reason below.

    Yes but those reasons don't prevent forced sales due to bankruptcy, margin calls and so on. And it is the forced sales that push the market price down eventually, whatever the government wants to do to prevent that.
  • SerenaGoode
    SerenaGoode Posts: 131 Forumite
    gemima wrote: »
    Hi,
    It does depend on sellers circumstances but I would say at this price houses are normally priced just below what they are worth because of the stamp duty so vendors may well be looking for around that figure.

    I know this because our house is worth above this figure but we know we have to accept £250k because of SD.

    Incidentally just to clarify this, imagine two houses. Last year, house A was worth £220K, House B was worth £250K. Then prices go up 10%.

    Now house A is marketed at £250K, though they might accept £240K or so.
    House B might be marketed at £275K, but the agent and vendor know they might have to accept £250K. So the comparative value of the two houses has changed, A will only fetch a bit more than B.

    Now prices fall back to the level they started at - House A falls back to £225K, but House B doesn't fall back as far, it will still sell at about £250K.

    That's the distortion in the market. When considering a house at this price, you need to carefully consider comparable properties and what the agent and vendor say to work out which kind of house you are considering. Gemima's may well be a House A kind, but that doesn't mean the house the OP was considering is too.
  • gingin_2
    gingin_2 Posts: 2,992 Forumite
    Friend put his north London Flat on at £395k, has just accepted an offer of £315k. Has achieved a similar reduction on a house out in the burbs that he hopes to buy.
  • SerenaGoode
    SerenaGoode Posts: 131 Forumite
    gingin wrote: »
    Friend put his north London Flat on at £395k, has just accepted an offer of £315k. Has achieved a similar reduction on a house out in the burbs that he hopes to buy.

    OK, so that's 20% off.

    Also he hasn't actually lost any money if he achieves the same discount. IN fact if he's buying a more expensive property, he will actully be better off if he can achieve the same %age discount.
  • dolcevita wrote: »
    Can't move is the problem here.

    People no longer have savings or any "slack" in their finances. All the money they have is tied up in their house in the form of "equity"

    And this perceived equity (which is not really money) is all they have to spend on their next house (which they are too stupid to realise should also be cheaper).

    Or they need the extra to repay the debt on their existing house which has been spent through MEWing. So there is no room to manoevre. And without massive HPI they have nothing.

    It's pathetic.

    So, they (and HPI cheerleaders) expect buyers have to pay inflated prices and get into massive debt because sellers have overstretched themselves and now expect buyers to pay for it.



    F*ck off is what I say. Why should I and other sensible, prudent, financially discilplined people have to pay the price for your greed and stupidity.




    (excuse my language, I don't mean to be offensive, but this type of thing annoys me because it is symptomatic of the attitudes that have got us to this situation)

    Well actually we are in a financially stable position. We have no debt apart from the mortgage which, by the way we are not financially stretched to cover. We have four children and provide for them, we do not drink, smoke, gamble, waste money etc, but also do not have a spare 50k in the bank.

    However, I do agree that house prices are falling but that will not happen overnight. Our house is worth 215k but are putting it on the market for 200k. We are reducing it by 15k before we even start and obviously we will offer lower than the asking price for our next house.

    But also what happens if you offer 75% 10 times and you get refused, then do you never buy!
    :confused::confused::confused: :mad: :confused::confused: :A
    I know what I am talking about.........it's just that nobody else does!
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