Gazunder or not?

arthur_dent_2

I don't disagree with what you have just said, I too would buy another house if the prices plumetted enough. However people appear to want a house for half of what it is worth rather than as you say, what it is worth. On my old house we were offered £55000 by one potential buyer. (The house sold quickly for £95,000)

pinkshoes

arthur_dent wrote: »

I don't disagree with what you have just said, I too would buy another house if the prices plumetted enough. However people appear to want a house for half of what it is worth rather than as you say, what it is worth. On my old house we were offered £55000 by one potential buyer. (The house sold quickly for £95,000)

A colleague of mine was offered £130k on his house that was on the market for £180k. The EA said no straight away (then informed my colleague of the silly offer), which apparently upset this buyer, as they had read (MSE???) that they should offer as low as 30% less than the asking price, as apparently that was all it was worth, and they seemed to think that my colleage should be grateful for such an offer. Needless to say a few days later they accepted an offer of 4% below the asking price, and turned down the other offer 5% below.

To the OP - if this is a home you're planning on staying in for some time, then when you agreed the first price, you obviously thought it was worth it. Is it a home you want, or an investment?? Are these other "cheaper" houses exactly the same?

I think you just have cold feet.

dopester

arthur_dent wrote: »

If we ever got to a stage where my house was in negative equity half the country would have had theirs taken away. I don't see why we should all seem to be wanting others to get into difficulty or encouraging offers on houses which quite simply most sellers even in the current climate would laugh at.

That's your look out then isn't it and best get a tent ready or move back in with family. Not out fault you've gotten in to difficulties. This is after all moneysavingexpert isn't it? I will always be on the side of saving money, and not encouraging people to make offers to meet the unrealistic demands of sellers in a market which has bubbled 180% whilst Labour has been in power.

arthur_dent wrote: »

I don't disagree with what you have just said, I too would buy another house if the prices plumetted enough.

Get real. You got liquidity to buy in a crash? By the sounds of it you'd be struggling if house prices crash on your main property. Banks won't be offering you big remortgage on your main house which has plummeted in value so you can take advantage of buying a second property - and without cash liquidity you'd be dangerously stretched anyway to buy a second property. House price crash is for people who have cash liquidity or FTB with a reasonable position to get in - not for people whose wealth is battered and locked in to bricks and mortar, cause they are the people that take the hammering.

MissMoneypenny

ginvzt wrote: »

- would you be prepared for seller to come to you and say 'hey, prices are rising, I want £10k for my house'?

That happened to my mother. Just before exchange the seller said that he wanted more as the prices had risen.

Don't let a bully of an estate agent make you pay more than you feel the house is worth/will be worth soon. You are the ones who will be paying the interest on that extra money for the next x number of years.

arthur_dent_2

I am not in any sort of difficulty! There is no way I would ever not be able to afford my mortgage. I am a tight cow who spends as little as I can on anything and my property was the same. However I don't wish ill on those who are not so lucky. You have no idea of my financial situation and I can assure you that if prices in my area were to fall in my area by as much as some are predicting, I could probably afford to buy another almost outright. A tent will not be necessary thankyou.

Captain_Mainwaring_2

dopester wrote: »

That's your look out then isn't it and best get a tent ready or move back in with family. Not out fault you've gotten in to difficulties. This is after all moneysavingexpert isn't it? I will always be on the side of saving money, and not encouraging people to make offers to meet the unrealistic demands of sellers in a market which has bubbled 180% whilst Labour has been in power.



Get real. You got liquidity to buy in a crash? By the sounds of it you'd be struggling if house prices crash on your main property. Banks won't be offering you big remortgage on your main house which has plummeted in value so you can take advantage of buying a second property - and without cash liquidity you'd be dangerously stretched anyway to buy a second property. House price crash is for people who have cash liquidity or FTB with a reasonable position to get in - not for people whose wealth is battered and locked in to bricks and mortar, cause they are the people that take the hammering.

Pretty "to the point", but not really far from the truth.

We have three sorts of people.

1) Joe Soap who has one property which he has owned for some time, he has bought property as natural progressions in the past based upon need. He doesn't have an unrealistic mortgage.

2) Our next guy has bought a property/ies based upon low interest rates, intent on making a killing out of rising house prices. Mostly the property wasn't chosen out of need, but rather greed. I can hear his ring fluctuating at this very moment, and the interest rates haven't gone up yet.

3) Our final guy was battered last time with a crash and crazy interest rates, he got through it by the skin of his teeth and suffered a bit, when the last boom occured he was a bit frightened and either kept his purchasing and finances at a sensible level, or just waited. This guy may well have save up a substantial amount of cash now that he plans to use to buy the property off of (2), and he doesn't plan on paying what (2) paid for it.

arthur_dent_2

4) The person who was fortunate to get on the housing ladder at the right time and moved recently out of need. Has a very realistic mortgage.

MissMoneypenny

arthur_dent wrote: »

4) The person who was fortunate to get on the housing ladder at the right time and moved recently out of need. Has a very realistic mortgage.

When was the right time?

arthur_dent_2

MissMoneypenny wrote: »

When was the right time?

I bought my first house in october 1998.

TTMCMschine

I think the op is quite right to offer lower. Although he/she should be aware that if prices are dropping, it would have been more sensible to offer one big drop in the first place - allowing for price drops which are and will continue to happen. At the end of the day, they're still not going to get a good price in the short term, and they will be out of pocket, and they may well be more likely to lose the house. Even if the sellers accept they'll still be getting a good price, that's a very little drop.

People are moaning about how unfair on the seller it is. Ok it's too late to turn back the clock and do it the right way for the seller. However, they'd be asking for roughly a 1% drop, in % terms of prices dropping - that's not exactly huge. I've dropped my Grandma's by 15%. Secondly why should they be gentlemanly about it. Lets get this straight - what are the consequences in terms of them not asking - a bigger mortgage and more interest. If someone is good at maths perhaps they could let the other posters see what this could be. Being English and polite about this is not going to do them any personal favours, they'll be paying thousands more. This website is not called money saving expert for nothing. In terms of annoying the sellers, and saving a lot of money, i think i would be willing to sacrifice the few days of guilt. You may think that's cruel or unsportmanlike, but i certainly wouldn't be willing to fork out thousands just to keep someone else happy and not upset them. It's not healthy, and the reason why people pay more - is because they're too polite to do anything about it and don't want to be hassled.