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jmzr

Started To Look For Houses - And I'm Staggered

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One of my thoughts about why asking prices can remain so high is that in an illiquid marked such as housing it only takes one buyer to pay the asking price in order to set the "going rate".

Our last house was in a new-build estate, with lots and lots of virtually identical just-about-detached 3 & 4 bed houses. If Mr & Mrs Smith sold theirs last week for £260k, then this information will be relayed to Mr 7 Mrs Jones by their Estate Agent if they put theirs on the market next week.

Where it would get interesting is if all of a sudden 5 or 6 similar houses went up for sale, and one or two of the sellers really had to move quick, i.e. forced sale.

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I understand the pain of trying the buy in the SE.

We got well and truly stung on our first home. Just sold it for £20k less than we paid... in 2003! Admittedly it was overpriced back then but we were desperate for a home and naive.

Anyway, we're chain free now, and only have a small depost so need to come in under £250k to avoid the higher stamp duty. Found somewhere we love in south herts and put an offer in of £249,999 today for an asking price of £279,999. It was refused, and the agent asked whether we could afford more, when I'd already told her it was our first and final as we aren't in the habit of mucking someone around.

We'll see if anything happens, but I thought it a fair offer and we were upfront about it being our limit. Perhaps they're testing us, but we'll see. As we all know, 10% is the average accepted offer reduction.

There's many more fish in the sea! Trying to not let my heart rule my head and use the leverage of a falling market and chain free status, but the SE does seem pretty immune. Issue of lack of stock on the market is artificially inflating things too.

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I understand the pain of trying the buy in the SE.

We got well and truly stung on our first home. Just sold it for £20k less than we paid... in 2003! Admittedly it was overpriced back then but we were desperate for a home and naive.

Anyway, we're chain free now, and only have a small depost so need to come in under £250k to avoid the higher stamp duty. Found somewhere we love in south herts and put an offer in of £249,999 today for an asking price of £279,999. It was refused, and the agent asked whether we could afford more, when I'd already told her it was our first and final as we aren't in the habit of mucking someone around.

We'll see if anything happens, but I thought it a fair offer and we were upfront about it being our limit. Perhaps they're testing us, but we'll see. As we all know, 10% is the average accepted offer reduction.

There's many more fish in the sea! Trying to not let my heart rule my head and use the leverage of a falling market and chain free status, but the SE does seem pretty immune. Issue of lack of stock on the market is artificially inflating things too.

As you (and hopefully the vendor) probably know very well, due to the badly thought out way in which stamp duty works, any thing with an asking price close to the stamp duty threshold is asking for an offer just beneath the threshold. I think you've done the right thing by putting in a single offer right at the limit, as it shows you're keen but also not likely to make any counter offer if it's rejected (simply because you can't "afford" to, based on the extra £5k stamp duty it would cost).

I would just tell the estate agent that you will leave the offer on the table, but will continue to view other houses - possibly even view another one he has up for sale. The hope is that a) you find somewhere better / cheaper, or B) the vendor realises (or is told by the EA) that he risks missing out on a buyer in a great position and comes back to you to accept.

Where and what exactly are you looking to buy?

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Well, that house we liked has now been snapped up by someone who offered in the 270's according to the agent. Was more than we were prepared to offer if we'd gone back so will keep looking. Shocked people are getting so close to asking!

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Well, that house we liked has now been snapped up by someone who offered in the 270's according to the agent. Was more than we were prepared to offer if we'd gone back so will keep looking. Shocked people are getting so close to asking!

Well, they could be telling the truth - but fwiw last yr I was looking at houses as well as flats. Got the same sort of knock-back after I offered. But surprise surprise the property wasn't sold at that higher price after all and is unsold months later, guess they'd probably jump at my offer now if I got back in touch with them

Edited by inflating

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