How much below asking price is realistic now?

apuleius

which london post code are we talking about with the price drop? I'm looking at n -n.w london flats and have seen 10-20%dropsinthe past couple of week. Also agents who were talking up the market are nowbeingmore realistic.

PeteW

Well thanks for all the replies, a great response and much appreciated.

I'll have a proper read through later and may have some more comments!

For what it's worth, the prospective house would be in Guildford or possibly Woking - anyone have any recent experience of this area?

snoopy78

PeteW wrote: »

Well thanks for all the replies, a great response and much appreciated.

I'll have a proper read through later and may have some more comments!

For what it's worth, the prospective house would be in Guildford or possibly Woking - anyone have any recent experience of this area?

I'd stay with Guildford, amazing place Woking isn't!
Price wise Guildford will be less likely to go down then Woking, not really looking there so not sure.

BettiePage

panichousebuyer wrote: »

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!

You never said what you bought it for though, so how can you 'lose' £50k?

snarffie

brit1234 wrote: »

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.

Why do people use bigger and BIGGER icons to shouts down other posters. The net equivalent of the baby throwing the dummy out of the pram.

I am fully aware of the current confused situation, thank you very much, and would never advocate paying the asking price (I didn't in the rising market). I'm just saying that the OP should expect to be told where to go if an offer of 30% below asking is being considered.

I don't need any big monkeys to put the point over, do I?

brit1234

snarffie wrote: »

Why do people use bigger and BIGGER icons to shouts down other posters. The net equivalent of the baby throwing the dummy out of the pram.

I am fully aware of the current confused situation, thank you very much, and would never advocate paying the asking price (I didn't in the rising market). I'm just saying that the OP should expect to be told where to go if an offer of 30% below asking is being considered.

I don't need any big monkeys to put the point over, do I?

The monkeys symbalise denial of reality

PeteW

snoopy78 wrote: »

I'd stay with Guildford, amazing place Woking isn't!
Price wise Guildford will be less likely to go down then Woking, not really looking there so not sure.

Yeah Guildford is certainly nicer, but as such its more expensive!

happywarmgun

PeteW wrote: »

I know it really depends on the circumstances of the seller, but roughly how much do you think most people would accept on a £250k house given the current climate? This seems to be the very minimum 3 bed houses go for in my area, and is slightly above our budget, so I'm trying to work out if its worth looking at them in the hope that they'd accept an offer that we can afford.

Cheers

Pete

If they're asking 250 for it, offer 225. They will refuse. Leave it a week, send your mate round, get him to offer 218. They'll refuse. Leave it another week, send your mother in law around. Offer 200. They'll refuse, but will be bricking the 'reality' of the falling market. Then, a day later, Ring up the EA and raise your original offer to 227. Congrats - You just got your house.

PRINCESSKERRY

pinkshoes wrote: »

Chances are that it's priced at £250k because they're aware of the stigma about the 3% stamp duty bracket, so have put it on at a lower price to fall below the 3% bracket.

There's no harm in putting a lower offer in, but just don't get upset if it's turned down.



It's not wasting people's time. If he was desperate to sell then he'd accept the lower offer, but not everyone puts a house on the market because they're desperate to sell. A colleague of mine is selling his house and leaving it to fate. He won't accept much less than the asking price as he's already priced it reasonably, and if they sell, they can buy something bigger, and if they don't, it's not the end of the world and they'll stay put. They might accept a lower offer if they could then get more money off a house that they'd like to buy, but would just pull out if they couldn't.

When I said wasting peoples time I meant the fact that he hasn't already written off the original price drop. He told the estate agent he had to reduce by £20,000 earlier in the year so he was looking for asking price offers as people have already had a reduction.
I too have had to reduce my house by £5,000 but when someone is negotiating with me I dont say to them you have already had £5,00 discount as in my mind that person may have not looked at my house when it was £5,000 higher.
This is a new build I am talking about also that has been up for sale now for over four months and of eight only 3 have sold hence my lower price.

panichousebuyer

BettiePage wrote: »

You never said what you bought it for though, so how can you 'lose' £50k?

I stand corrected!:rolleyes:

I didn't mean 'lose' 50k, we can't afford to reduce the asking price by 50k as we will be buying at around 200k, which means if we don't want to increase the mortgage by that amount we would have to have that in the bank to make up the difference!

I am correct now?