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Beardmidget
Posts: 156 Forumite
Hi, probably looking mainly for moral support... but any advice appreciated.
If you can’t be bothered reading on, basically the question is when do you get worried that you’re going to get nowhere near what you “need” to move? How much/ how many viewings do you expect to turn into offers?
We’re in South West London- so the market here is a bit nervy at the minute given houses are all a lot of money.
Had our house on the market since the Christmas holiday (so available properly since beginning of jan.) with a proper EA who is relatively higher end but is quite south London centric and at least isn’t f***tons.
We’re on the market at 600k, which was the middling valuation we had. I don’t believe the price is specifically offputting because we’ve had probably 20 viewings in the last 4 weeks.
Relative to the area, the lowest priced comparable property not too far from us is priced at 565k but that is certainly not the same standard of finish (some very expensive to replicate) we’re offering. Most near comparables are also 595k-600k. Most recent sale on this street (where sales are not frequent) was 560k in October 2017, which is 2 doors down but lacks side access (mid terrace. We’re mid-road but end of our bit of terrace), and is about a million miles away in terms of finish, appliances etc. You can pick up an un-renovated, un-loft-converted, and unextended place on the road for 450k but the cost of doing the work to make 4 beds, 2baths and big kitchen etc makes the difference marginal (I.e. have to spend around 130-140k)
Feedback from EA has consistently been “buyers love the house and finish, right size/ space for them” etc. But “not sure about the area”. I roughly interpret this to mean they would like my house but 0.3miles not 0.7 miles from the station- and they don’t yet know that they’re unlikely to find that, or that they need to forget the extra space moving further out buys you. I’ve asked the EA to specify what the ratio of direct enquiries to tag-on viewings is but am waiting to hear.8
I do realise that most buyers in this market are going to offer under asking. I had an offer last week for 500k which the EA was essentially annoyed about. I’m basically expecting another offer this week from a couple who second viewed quickly and are very keen but they felt the estate agent out with a “maybe it’s with more
Like 525k”. He pushed back on that without prompting, and I think their viewings of other places this week will bring them to the conclusion that even at a fair chunk more than that, we’re still front running. (I know everything else on the market locally).
Overall, I don’t think there’s much mileage in dropping asking price as we’ve had plenty of viewings, and as you can see people aren’t afraid to offer a hefty amount under the asking.
Am I way off, or should I sit tight and hold my nerve?
(N.b. Like all fools, i’ve Found the place I want and every second that ticks by without being able to make a deal on it takes a lot of time of my life expectancy).
If you can’t be bothered reading on, basically the question is when do you get worried that you’re going to get nowhere near what you “need” to move? How much/ how many viewings do you expect to turn into offers?
We’re in South West London- so the market here is a bit nervy at the minute given houses are all a lot of money.
Had our house on the market since the Christmas holiday (so available properly since beginning of jan.) with a proper EA who is relatively higher end but is quite south London centric and at least isn’t f***tons.
We’re on the market at 600k, which was the middling valuation we had. I don’t believe the price is specifically offputting because we’ve had probably 20 viewings in the last 4 weeks.
Relative to the area, the lowest priced comparable property not too far from us is priced at 565k but that is certainly not the same standard of finish (some very expensive to replicate) we’re offering. Most near comparables are also 595k-600k. Most recent sale on this street (where sales are not frequent) was 560k in October 2017, which is 2 doors down but lacks side access (mid terrace. We’re mid-road but end of our bit of terrace), and is about a million miles away in terms of finish, appliances etc. You can pick up an un-renovated, un-loft-converted, and unextended place on the road for 450k but the cost of doing the work to make 4 beds, 2baths and big kitchen etc makes the difference marginal (I.e. have to spend around 130-140k)
Feedback from EA has consistently been “buyers love the house and finish, right size/ space for them” etc. But “not sure about the area”. I roughly interpret this to mean they would like my house but 0.3miles not 0.7 miles from the station- and they don’t yet know that they’re unlikely to find that, or that they need to forget the extra space moving further out buys you. I’ve asked the EA to specify what the ratio of direct enquiries to tag-on viewings is but am waiting to hear.8
I do realise that most buyers in this market are going to offer under asking. I had an offer last week for 500k which the EA was essentially annoyed about. I’m basically expecting another offer this week from a couple who second viewed quickly and are very keen but they felt the estate agent out with a “maybe it’s with more
Like 525k”. He pushed back on that without prompting, and I think their viewings of other places this week will bring them to the conclusion that even at a fair chunk more than that, we’re still front running. (I know everything else on the market locally).
Overall, I don’t think there’s much mileage in dropping asking price as we’ve had plenty of viewings, and as you can see people aren’t afraid to offer a hefty amount under the asking.
Am I way off, or should I sit tight and hold my nerve?
(N.b. Like all fools, i’ve Found the place I want and every second that ticks by without being able to make a deal on it takes a lot of time of my life expectancy).
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Comments
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Beardmidget wrote: »Hi, probably looking mainly for moral support... but any advice appreciated.
If you can’t be bothered reading on, basically the question is when do you get worried that you’re going to get nowhere near what you “need” to move? How much/ how many viewings do you expect to turn into offers?
We’re in South West London- so the market here is a bit nervy at the minute given houses are all a lot of money.
Had our house on the market since the Christmas holiday (so available properly since beginning of jan.) with a proper EA who is relatively higher end but is quite south London centric and at least isn’t f***tons.
We’re on the market at 600k, which was the middling valuation we had. I don’t believe the price is specifically offputting because we’ve had probably 20 viewings in the last 4 weeks.
Relative to the area, the lowest priced comparable property not too far from us is priced at 565k but that is certainly not the same standard of finish (some very expensive to replicate) we’re offering. Most near comparables are also 595k-600k. Most recent sale on this street (where sales are not frequent) was 560k in October 2017, which is 2 doors down but lacks side access (mid terrace. We’re mid-road but end of our bit of terrace), and is about a million miles away in terms of finish, appliances etc. You can pick up an un-renovated, un-loft-converted, and unextended place on the road for 450k but the cost of doing the work to make 4 beds, 2baths and big kitchen etc makes the difference marginal (I.e. have to spend around 130-140k)
Feedback from EA has consistently been “buyers love the house and finish, right size/ space for them” etc. But “not sure about the area”. I roughly interpret this to mean they would like my house but 0.3miles not 0.7 miles from the station- and they don’t yet know that they’re unlikely to find that, or that they need to forget the extra space moving further out buys you. I’ve asked the EA to specify what the ratio of direct enquiries to tag-on viewings is but am waiting to hear.8
I do realise that most buyers in this market are going to offer under asking. I had an offer last week for 500k which the EA was essentially annoyed about. I’m basically expecting another offer this week from a couple who second viewed quickly and are very keen but they felt the estate agent out with a “maybe it’s with more
Like 525k”. He pushed back on that without prompting, and I think their viewings of other places this week will bring them to the conclusion that even at a fair chunk more than that, we’re still front running. (I know everything else on the market locally).
Overall, I don’t think there’s much mileage in dropping asking price as we’ve had plenty of viewings, and as you can see people aren’t afraid to offer a hefty amount under the asking.
Am I way off, or should I sit tight and hold my nerve?
(N.b. Like all fools, i’ve Found the place I want and every second that ticks by without being able to make a deal on it takes a lot of time of my life expectancy).
You do realise that the "finish" is to your taste? It may not suit anyone else and if it doesn't they won't pay extra for it.
If you have had 20 viewings and no offers it does tend to suggest that no one wants to pay your idea of a price for your house. A house is worth what someone will pay you for it. It isn't worth what an estate agent says it is. That is only a guide.0 -
You do realise that the "finish" is to your taste? It may not suit anyone else and if it doesn't they won't pay extra for it.
If you have had 20 viewings and no offers it does tend to suggest that no one wants to pay your idea of a price for your house. A house is worth what someone will pay you for it. It isn't worth what an estate agent says it is. That is only a guide.
Yes I appreciate that- by finish I should correct myself and say i’m Taking rewiring, replaster, new central heating/boiler/rads, wet underfloor heating downstairs, new kitchen, bathrooms, flooring. I’m not particularly suggesting I wouldn’t take what the two doors down went for either...
I think i’ve clearly explained why i’m not thinking to change asking price at present (not that ea has even suggested it), because getting people interested at that price doesn’t seem to have been too tricky. It is a buyers market, though, and everyone wants a keen deal.
What I’m asking is to what extent people ride through lowball offers.0 -
If the house you've fallen for requires all the proceeds from your sale then you'll have to wait it out. Could be a few weeks, could be months or years.
We put a 3 bed ex LA semi on the market last May. SE London 450-475 guide price. 12 weeks, 8 booked viewings, 6 turned up but 2 didn't. No offers. Local area lead EA. Sacked the agents.
Second agent, challengers in the area (started in yours and now opening offices in SE due to higher demand from price sensitive buyers after more affordable space.) 1 week, 4 viewings, 3 offers. EA bid them all up to within 3% of asking, which we adjusted down to 425.
In one way or another the reason is price. Either per square foot or for the area, you'll also be competing at that price bracket with a buying group who may consider larger properties outside London and a longer commute.
But a month on is not long, especially in the quietest months of the year. Hang tight or use the only lever you have, price.0 -
If people are offering, or just mentioning in this case really?, that the price is about 100k too much, then you need to have a re-think about pricing IMO.0
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I’m definitely realistic in seeing that the market isn’t right to achieve top money, but i’m unconvinced the bottom really has fallen out.
Anyway, I’m less nervous today- had an offer of 560k today but buyers position is tricky. Should give agent a bit more leverage to get what we need from (likely) offerors at end of the week. Even if 560is the level (and i’m Open to that as the possibility) then that represents a flat market which is probably what the banks and websites are saying.
(FWIW- i’m Completely confident bank val will back up sale price- we had val at 600 in August, given conservative positioning of banks)0 -
Beardmidget wrote: »I’m definitely realistic in seeing that the market isn’t right to achieve top money, but i’m unconvinced the bottom really has fallen out.
Anyway, I’m less nervous today- had an offer of 560k today but buyers position is tricky. Should give agent a bit more leverage to get what we need from (likely) offerors at end of the week. Even if 560is the level (and i’m Open to that as the possibility) then that represents a flat market which is probably what the banks and websites are saying.
(FWIW- i’m Completely confident bank val will back up sale price- we had val at 600 in August, given conservative positioning of banks)
The bottom hasn`t fallen out of your market...yet, it probably has for other parts of the market though....
http://www.propertyindustryeye.com/dramatic-slump-in-buy-to-let-lending-blamed-on-government-intervention/
..but prices will start to drop for all parts of the market if rate rises start happening, so best not to scare too many buyers away, take realistic but lower offers seriously IMO. :money:0 -
Crashy_Time wrote: »The bottom hasn`t fallen out of your market...yet, it probably has for other parts of the market though....
http://www.propertyindustryeye.com/dramatic-slump-in-buy-to-let-lending-blamed-on-government-intervention/
..but prices will start to drop for all parts of the market if rate rises start happening, so best not to scare too many buyers away, take realistic but lower offers seriously IMO. :money:
Remember Crashy has been saying the same stuff for years... Not saying prices wont drop just ignore this jester...
http://www.cityam.com/279865/nationwide-house-price-index-annual-rate-house-price-growth0 -
Yes, well, you don!!!8217;t get to be !!!8216;crashytime!!!8217; without being saltier than a salty thing in Salt Lake City.
I remember I joined MSE forum when we first bought just at the nadir of the modest house price correction in 2009 (which has since been totally tsunami!!!8217;d by inflation). At that time much of the advice I received warned of a thousand years of doom...0 -
Remember Crashy has been saying the same stuff for years... Not saying prices wont drop just ignore this jester...
http://www.cityam.com/279865/nationwide-house-price-index-annual-rate-house-price-growth
Halifax has a slightly different spin, and of course if your business model is based on lending people money to buy houses you are going to spin it the best you can? BTL figures hard to spin though, did that get a mention on the BBC yet? :rotfl:0 -
Crashy_Time wrote: »Halifax has a slightly different spin, and of course if your business model is based on lending people money to buy houses you are going to spin it the best you can? BTL figures hard to spin though, did that get a mention on the BBC yet? :rotfl:
Halifax say house prices are 2.2% higher than in the same three months last year? Yes there was a monthly change of -0.6% but its the time of the year, if you actually look at last years monthly change for January it was -1.6%. Yes stats can be spun, the best stat is Land registry, as that is based on sale prices which although a little lagging is reporting house prices up 5.1% (Likely to be reduced by the time it catches up because of the winter slowdown but still expect a positive figure)
BTL figures have gone down but its hard to understand as BTL has switched to being in Limited companies... BTL will be a slow sell of from those that the new tax will affect the most, those that are not highly leveraged like myself actually see a way to grow, im currently looking for another BTL but will buy in a limited company structure.0
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