How much below asking price is realistic now?

lisal0u

Hi,

I just wanted to say that I have just had an offer accepted today for 15% less than the asking price. The house is in North Lincolnshire.

I think 15-20% below the asking price is perfectly reasonable. We originally offered 20% lower and worked our way up.

Good luck with your house buying!
Lisa x

dopester

trulysaintly wrote: »

physco-babble denial

Where do you think the banks got the money to lend such vast sums for x8 mortgages and self-cert rubbish at increasing orbital levels these past few years? From the money markets, which in turn were riding high cause they were selling exotic investment instruments graded AAA which were actually subprime rubbish.

Banks can't lend 6, 7 an 8 times salary now cause the money markets are closed, seeing how it's been exposed the investment instruments are very toxic and worth only cents/pennies in the dollar/pound.... and forcing major losses on banks. That's why lending is restricted... not out of banks' choice alone to do it out of meanness.

Lending is restricted to very good credit risks at the moment... but don't you get it? The crash has only just really begun. You can brag how things are still this and still that... but things are changing rapidly - just look at the last 3 months. Your 300% gains are not locked in. It's illiquid fantasy profits and the property market is becoming ever more frozen..... people with cash and access to funding can wait for it to play out. Buyers decide what you house is worth now.

dopester

jamtart6 wrote: »

I've found an amazing house (rest of houses in that road are going for £240k), this one is £190k as it needs modernising but could be lived in. I'm a FTB, this is in a fabulous area, I could stay in this house for life, but it would mean using all of my savings and having a large mortgage. I want to offer £170k but the estate agents dont think the vendors will go for it, as they have reduced it from £200k. I dont know whether buying at £170k in todays current climate will be a stupid thing to do, but would it matter if I didn't ever need to move again????

Only you can decide... i have my eyes on a number of perfect homes as well... but all too expensive at the moment. I could buy now... but I'm waiting in the full knowledge they are over-valued..... and by waiting I can deploy the capital saved to early retirement, luxury holidays, cars, and all manner of things.

snoopy78

trulysaintly wrote: »

Sorry but I think you're wrong on this one.

Lenders are lending to clients, just not to anyone with a pulse any more....

What you are seeing now is a small blip - since the NRock debarcle, lenders are already lending more than they did when that hit....

Mind you what do I know eh???

Did I imagine reading something about mortgages being 40% plus down YoY?

Not only are they not lending as much the rates are higher than they have been for a while, and they are lending lower multiples so this means less money is available to purchase houses. It's all about supply and demand, but not of property but supply and demand of money.

Last year I was being offered 4.5 times my salary at 4.99% this year I am luck if I can get 3.5 times at 5.59%. So even if I could borrow similar amounts then my monthly payments would increase by £200 ish, I will not be willing to have an extra £200 per month outgoings so I would simply reduce the price range I look at or drive a harder bargain.

jamtart6

ahh I wish I had a crystal ball"

[Deleted User]

snoopy78 wrote: »

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).

That's what happening in my area too. Two houses went up for sale at £100K more than they were sold 2 years ago and sold within days Can't wait to find out how much for.

trulysaintly

snoopy78 wrote: »

Did I imagine reading something about mortgages being 40% plus down YoY?

Not only are they not lending as much the rates are higher than they have been for a while, and they are lending lower multiples so this means less money is available to purchase houses. It's all about supply and demand, but not of property but supply and demand of money.

Last year I was being offered 4.5 times my salary at 4.99% this year I am luck if I can get 3.5 times at 5.59%. So even if I could borrow similar amounts then my monthly payments would increase by £200 ish, I will not be willing to have an extra £200 per month outgoings so I would simply reduce the price range I look at or drive a harder bargain.

TBH it depends what your deposit is/was.

Those now with 25% deposit get the best deals, although you can still get a reasonable one at 90%. The greater your deposit, the more they'll lend.

As I stated before, lenders ARE STILL LENDING - but hey according to some on here who obviously know more than me.....everyone's an expert eh??:rotfl:

Some just haven't been an adviser for over 12 years.....;)

trulysaintly

dopester wrote: »

Where do you think the banks got the money to lend such vast sums for x8 mortgages and self-cert rubbish at increasing orbital levels these past few years? From the money markets, which in turn were riding high cause they were selling exotic investment instruments graded AAA which were actually subprime rubbish.

Banks can't lend 6, 7 an 8 times salary now cause the money markets are closed, seeing how it's been exposed the investment instruments are very toxic and worth only cents/pennies in the dollar/pound.... and forcing major losses on banks. That's why lending is restricted... not out of banks' choice alone to do it out of meanness.

Lending is restricted to very good credit risks at the moment... but don't you get it? The crash has only just really begun. You can brag how things are still this and still that... but things are changing rapidly - just look at the last 3 months. Your 300% gains are not locked in. It's illiquid fantasy profits and the property market is becoming ever more frozen..... people with cash and access to funding can wait for it to play out. Buyers decide what you house is worth now.

Dopester, can I ask you one thing?

If you're going to re-key something 'supposedly' written by me, can you at least type 'psycho' properly???! :rotfl:

Crash??? You must read the Daily Mail.....like I said before if you'd bothered to think about it was concerning the biggest losses being in the areas where the biggest gains have been in the last 5 years.

e.g North East - Terraced Properties worth £45k then, £85k now. You are completely right when you talk about properties only being worth what someone will pay, but there are regional differences.

Down South, it will take much longer to hit.

trulysaintly

chappers wrote: »

Putting a finite figure on what to offer is not possible without knowing what is going on in that area.
Where I live in oxford there is a school catchment area which was probably one of the hardest places in the area to sell a house. Last year they announced that the schools structure was going to be completley revamped to create a centre of excellence, now you can guess the rest, houses are flying off the shelves in this area.

Exactly Chappers, if you know your area and the benefits of it, you price accordingly.

And you then won't get chancers offering 20% below asking price because they think they're clever...

neverdespairgirl

trulysaintly wrote: »

Down South, it will take much longer to hit.

Tell that to the sellers in WC1, some of whom are knocking £100k off asking prices.