I can finally see... prices are dropping all around me.

phil_b_2

This house which I viewed about 4 weeks ago was on at £186k:

http://www.rightmove.co.uk/viewdetails-20088578.rsp?pa_n=2&tr_t=buy

Several others I viewed around the same time are on at 5-10k lower on rightmove.

I'm in the process of proceeding with a purchase of a house at £160k (half way there - survey done etc). The offer was made 4-5 weeks ago and since that very day the market seems to have slumped quite badly. What to do? adjust the offer accordingly? £150k?

b*gger..

PasturesNew

Yes, prices are dropping.

Is this house "the one"? Really?

I'd go for a reduction... having said that I put my house up for sale in June 2006 as I could see this coming so I won't be buying a house for a few years yet! So I'd not be offering a reduction as I'd have not been out looking!

What do you really feel inside? Love or fear?

If it's love for the house, then try for a reduction
If it's fear, then feel the fear and put in a lower offer

Rover

I'm in a similar position to you Pastures. But this renting 'lark' is really pee'ing my family and I off..
Financial common sense dictates holding off on an outright house purchase until 2011/2 - but there ain't a cat in hells' chance of me lasting that long!!!!

PasturesNew

Rover wrote: »

I'm in a similar position to you Pastures. But this renting 'lark' is really pee'ing my family and I off..
Financial common sense dictates holding off on an outright house purchase until 2011/2 - but there ain't a cat in hells' chance of me lasting that long!!!!

I don't have a choice. Until I have a job I could end up anywhere.
I can't buy here in case I end up 100 miles away.

To feel like buying again I will have to be in one of two positions:
- happy in a job/area that looks like they are both good for me
- when house prices are going up in a year more than I am saving, which will partly depend on what I am earning at the point where they turn.

As a rule of thumb, house prices would need an HPI of greater than 4-5% per year before I feel my arm is being twisted.

merlinthehappypig

Rover wrote: »

I'm in a similar position to you Pastures. But this renting 'lark' is really pee'ing my family and I off..
Financial common sense dictates holding off on an outright house purchase until 2011/2 - but there ain't a cat in hells' chance of me lasting that long!!!!

We are in exactly the same position.

I'd love to wait, but no chance either. Best we can do is use the worries out there to get the best price possible.

It will take some shopping around, though, from our experience. Despite all the doom and gloom most sellers think that it is something that is only happening to others.

Davesnave

Despite all the doom and gloom most sellers think that it is something that is only happening to others.

Most, but not all. I think some have no choice now but to go at a fire-sale price.

How's this for irony? We missed a house in 2006 because we still had two to sell, one of them only half done. The same property came back on the market early last week and we missed it again.....this time because it was too cheap! It went under our Rightmove radar @ 18% below the April 2006 asking price. By the time we woke up, someone else was in there first.

Regarding the circumstances, 'Credit crunch' was all the agent would say.

Have now revised Rightmove threshold downwards!

pickles110564

phil_b wrote: »

I'm in the process of proceeding with a purchase of a house at £160k (half way there - survey done etc). The offer was made 4-5 weeks ago and since that very day the market seems to have slumped quite badly. What to do? adjust the offer accordingly? £150k?

b*gger..

Why stop at £150k, I would offer around £140k explaining that if sellar waits market price will be falling down to at least £130k.

WTF?_2

Rover wrote: »

I'm in a similar position to you Pastures. But this renting 'lark' is really pee'ing my family and I off..
Financial common sense dictates holding off on an outright house purchase until 2011/2 - but there ain't a cat in hells' chance of me lasting that long!!!!

What's more of a hassle for you as a family guy- renting, or struggling to pay a mortgage as the value of the house deteriorates below what you borrowed to buy it and your job looks shaky?

Of course, your financial circumstances may be different and maybe you don't need to take out a crippling mortgage even to buy at current prices in which case I would understand if you decided to just buy now - even though you'd likely be able to get a substantial discount in a year or two.

Personally, renting suits me perfectly given the current conditions in the market. I spend something like 22% of my after-tax income on rent, my house is within a mile of work, it will be available for me to rent into the foreseeable future and I'm adding to my already considerable savings every month even as house prices tumble around me (value of current place has fallen approx 15% in a year, hard to tell as nothing local is selling). I could buy now with quite a manageable mortgage thanks to the savings but why borrow more money than I need to when the current accommodation situation is so sweet?

moanymoany

phil_b wrote: »

This house which I viewed about 4 weeks ago was on at £186k:

http://www.rightmove.co.uk/viewdetails-20088578.rsp?pa_n=2&tr_t=buy

Several others I viewed around the same time are on at 5-10k lower on rightmove.

I'm in the process of proceeding with a purchase of a house at £160k (half way there - survey done etc). The offer was made 4-5 weeks ago and since that very day the market seems to have slumped quite badly. What to do? adjust the offer accordingly? £150k?

b*gger..

We've just sold our house and had said that if the purchasers tried to 'guzunder' us that we would say no. They didn't (the house was VERY well priced for a quick sale) but we changed our minds as exchange day got near, we would have done it.

Ask your surveyer what they think. Could you simply pull out and sit and wait for further falls? If you are in the processing of selling, your purchasers might do the same to you.

Whatever you do, I think you should give the people you are buying from as much notice as you can.

mr.broderick

Rover wrote: »

I'm in a similar position to you Pastures. But this renting 'lark' is really pee'ing my family and I off..
Financial common sense dictates holding off on an outright house purchase until 2011/2 - but there ain't a cat in hells' chance of me lasting that long!!!!

I can sense your desperation rover i did the same thing sold up in fear of a crash dragged my family out of the home we all loved and rented..lasted 12 months...bought again....!!!!!! it if it goes t.its up ..we're happy...good luck.

Rover

Just for the record guys.
Pickles, you can spout this ' it'll never happen, depseration rubbish until the cows come home ' - do yourself a favour. Month on month falls for a long time. The die is cast.
!!!!!! - thanks for your concern, but I would be buying with my eyes wide open. No mortgage, but circumstances dictate and all that.