Jump to content
House Price Crash Forum

luigi

Members
  • Content Count

    196
  • Joined

  • Last visited

About luigi

  • Rank
    HPC Poster
  1. luigi

    Are These Discounts Real?

    If your doing a complete re-thatch, the ridge gets done at the same time, but then the ridge would need looking at in 10-15 yrs time as that's what deteriorates first. 'The seller is sticking to his guns' is EAspeak for don't give me a lowball offer I can't sell to my client. Remember, he's probably flattered the client about the price that can be achieved to get the instruction. If it's new to the market, the vendor will be full of hope. If it sits around for a few months, that will change, but again, if the vendor doesn't have a compelling reason to sell, he won't. A lot of potential buyers will be put off by the work needed. Go in low, you can always increase, but be prepared to walk. The problem sometimes occurs that you or a partner falls in love with it, then the EA will be pulling those strings...
  2. luigi

    Are These Discounts Real?

    Ah I see what you did...but comparing the average asking price with the average sale price in an area isn't going to tell you what each house is selling for in relation to it's asking price, all it tells you is how many deluded sellers are kite-flying at the upper end of the market and this Spring seems to have produced a lot of them and there aren't enough buyers around. The houses that sell with greatest frequency are at the lower end of the market, so will pull the average sale price down. Do get some prices for re-thatching before you leap into that, the typical Suffolk longstraw thatch only lasts 25-30yrs and it can easily be £20-30k for a cottage roof. Re-ridging needs doing after 10-15 yrs and can be a £5-10k job
  3. luigi

    Are These Discounts Real?

    I suspect that 68% figure is either inaccurate or based on a very small sample. I live not far from that area on Norfolk/Suffolk borders where the market is broadly similar. Things move slower in rural Suffolk, but 5-10% discount off the most recent asking price is typical for standard houses, unless you come across a forced sale that just won't shift then maybe up to 20-25% is possible. Check out the sold prices on Rightmove...http://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=OUTCODE^1177&searchLocation=IP19 I got 20% off a reduced asking price (33% off the original asking price) 2 years ago on a place that needed improvement, was a forced bereavement sale and had been on the market over 6 months. They rejected the offer initially to see if we would increase, then came back about a week later once they realised we weren't bluffing. The market doesn't seem any healthier now, but be prepared for all sorts of EA shenanigans to get you to pay more than you want, they are working for the vendors. Things have stuck over the winter and lots of reductions appeared, quite a bit of the cheapest stock has gone SSTC in this Spring bounce, but plenty more is coming on at kite-flying prices to replace it. Stock is at record levels, so bar a few lucky sales, these won't get sold, unless they are reduced. If you're after a character cottage in the middle of nowhere that needs a lot of expensive work, like re-thatching and goodness knows what else, my advice would be to go in low, you can always increase. £250k is plenty to be paying, but unless the owner needs to sell and it appears there's no-one else on the horizon, it might not happen for you. Be firm and polite and stick to your guns to achieve the best deal, but it does depend on how desperate the vendor is and how long it's been languishing. Check out the Nationwide House Price Calculator and Zoopla which do price extrapolations based on average market data. Period property (because they aren't making it any more) has performed better than the rest of the market, both in the boom years it rose quicker and since 2007 it's held on better, so the whole-of-market averages may not fully apply. £145k in 2000 probably equates to more than £250k now, but they may have overpaid back then and that's also assuming the present owners haven't done lots of expensive improvement work or extended in any way since they've been there. Nevertheless, that £250k is a real psychological barrier as that's when the 3% Stamp Duty kicks in. In a slow market, everything up to mid-£300s is fair game for a £250k offer, after all it's only worth what someone will pay! Hope that helps...happy hunting!
  4. I was able to purchase at 20% off a reduced asking price last year (first advertised at £175k, reduced to £162k, bought for £130k, 2002 price for the area), again a deceased estate property in need of cosmetic modernisation (decor, floorcoverings, kitchen, bathroom) that was due to be split 3 ways between siblings. But it had been marketed for 6 months, so they were getting fed up by the point I made my offer. Even then I had to leave the offer with them for two weeks making it plain to the agent that there wasn't any more to come, they finally caved in to my non-chain offer. The agents were quite surprised, but obviously glad to earn most of their commission. By all means show that you are an informed buyer, but there's no point antagonising them with your market perspectives, just be plain and matter-of-fact and keep them onside, show that you're serious and won't be swayed. Expect to get some hard-ball, emotional blackmail and shenanigans back from some agents, but they will be doing the same to the vendors desperately trying to close the gap between their expectations and your offer, but ultimately if the vendors are still hopeful and aren't ready to cave in, it won't happen. I offered low on quite a few places before this one came up trumps, so be patient. I'm now almost there with the modernisation, just some internal doors to fit, I hope to exchange this 3 bed det bungalow for a 4 bed det house to get a bit more space for a growing family some time in the near future as they seem to fetch similar values in this area. Bungalows are rarely being built now and there are lots of boomers in big houses hitting retirement age now where they would like to downsize and stairs are becoming a problem, so I'm hopeful that I've positioned myself well.
  5. luigi

    £165,000

    This is a semi!! I'm assuming the bit that hasn't been demolished and half rebuilt is housing another family! Talk about neighbours from hell!!
  6. Thanks for being so gentle! You're right, it is a home to live in. Still, I hope I've done my bit for the HPC, as I think I've set a new low price for the type of property I bought. Around here 3 bed det bungalows generally have fetched a similar price to the larger 4 bed det houses, so I hope to trade it for one in a few years time as the kids get bigger and we need a bit more space. They're not building hardly any bungalows anymore, so the supply is tighter and I'm hoping demand will rise as the baby boomer generation get less mobile and want to downsize to a single storey dwelling.
  7. There is a postscript to this story....houses are selling for 2002 prices...I've proved it!!! I've just completed on a new pad, a 3 bed det bungalow with garage and a 50ft garden for £130k. This one hasn't been sold since it was built in 1985 for £39,950, but I've been looking at comparables on the same estate: In 2003 an identical one sold for £150k In 2007 a slightly smaller design on a smaller plot sold for £210k (I would consider this somewhere around peak price) In May 2009 two of a slightly smaller design completed for £148k & £150k (this was the recent low point when the market collapsed post-Lehmans) In Dec 2009 an identical design with a garden room addition and similar large plot sold in the recovered market for £205k I think I've achieved enough discount to call it a 2002 price, which may turn out to be close to the nominal low. It's certainly around 30-35% off the peak price, which is good enough for me as I need to get the family settled after being STR for 18 months now. This winter's ailing market really did throw up quite a few opportunities in this area to pull in a hefty discount ( I got 20% off an asking price that had been reduced once already) that will hopefully soften the blow of a falling market for the next few years!! Just need to do something about that cool 1980's decor!!! .....now ducks for cover, I'm expecting some incoming fire for caving in too soon..........!!!
  8. They are upsetting the applecart in my area on Norfolk/Suffolk borders, chopping 25% off previous (optimistic) asking prices. I reported it here: http://www.housepricecrash.co.uk/forum/index.php?showtopic=162083&st=0 As I said there, they are forcing some price revelation on the local cartel of denial!! Bring it on!!
  9. I had a large STR fund, so the mortgage interest on this one is a lot smaller than the rental cost minus the interest earnt on investing the STR fund. You underestimate the amount of ear-bending you get from a significant other with a nesting instinct and a desire to have a garden and house that she can model to her own tastes. As a male, I also find this desirable. The uncertainty of what you'll end up with and whether you've done the right thing can also be draining. I think I've done enough price-wise on this deal to be not far off the nominal low, which may be years away yet. Most of the price advantage can be achieved soon after the market switches from a seller's to a buyer's market, by making low offers on something that is lingering because there aren't enough buyers about. In this case the sellers had less inclination to hold out any longer as it was free money as an inheritance to be split 3 ways, so each party took a hit just to get hold of the money quickly. It makes sense financially and emotionally, both are important considerations IMHO. On balance for us it seems the right decision.
  10. Brandon is really good value, it's different over there with lots of pine plantation forest and brick and flint houses, I have been tempted as I've got friends over there, it must be one of the cheapest places that close to London, which is pretty accessible via the A11/M11, you could probably be at the Olympic site in about an hour. It's on the Norwich-Cambrige train line, so you would have to change at Cambridge for a London train. It's a bit close to Thetford which drags it down as it is a bit rough, and to the noisy American air bases at Lakenheath/Mildenhall.
  11. There's plenty who commute every day from Diss, it's on the main Norwich to London-Liverpool St line, journey time is about 80 mins on fast trains twice every hour. Town is pleasant, nice villages and pretty countryside along the Waveney Valley. Norwich, Ipswich and Bury St Edmunds are about 30mins away. Coast at Southwold is about 30 miles and within about an hour you can get to anywhere on the East Anglian coast from Hunstanton right round to Felixstowe. It would be pretty quiet compared to Brighton though.
  12. No mate, I knew the exchange of contracts was on the cards, but didn't want to jump the gun because the vendor's solicitors have been delaying since last week and I was starting to get suspicious. The offer went in back in February, the place had been for sale since Sept, they rejected it at first, but when they realised we weren't going to up it, they came back to us about a week later.
  13. I said there may be a development soon.... Well, I've just exchanged contracts on a new pad, a 3 bed det bungalow with garage and a 50ft garden at £130k. This one hasn't been sold since it was built in 1985 for £39,950, but I've been looking at comparables on the same estate: In 2003 an identical one sold for £150k In 2007 a slightly smaller design on a smaller plot sold for £210k (I would consider this somewhere around peak price) In May 2009 two of a slightly smaller design completed for £148k & £150k (this was the recent low point before the dead cat bounce) In Dec 2009 an identical design with a garden room addition and similar large plot sold in the recovered market for £205k I think I've achieved enough discount to call it a 2002 price, which as you say may turn out to be close to the nominal low. It's certainly around 30-35% off the peak price, which is good enough for me as I need to get the family settled after being STR for nearly 2 years now. This winter's ailing market really did throw up quite a few opportunities in this area to pull in a hefty discount ( I got 20% off an asking price that had been reduced once already) that will hopefully soften the blow of a falling market for the next few years!! .....now ducks for cover, I'm expecting some incoming fire for caving in too soon..........!!!
  14. Just a little update on what I've been observing locally over the last 6 months, maybe it'll give some hope to all you HPC bears. I posted it on the East Anglia thread, but thought it was worthy of a wider audience on the main board. The market on the Norfolk/Suffolk borders has really struggled over the Winter, the Spring has brought a few more sales but also a lot more instructions, we're almost at record levels of listings again in my local area. Various sales have gone through over the winter at 2002 prices (around 30% off peak price locally). Agents will dismiss these as people needing a quick sale, because others have achieved sales at what I would term 'lucky' prices (around 10% off peak), perhaps to people from areas closer to London who aren't so clued up with local prices and think they've got a bargain because it seems cheap compared to where they've come from. Loads remain unsold awaiting one of these 'lucky' sales that is looking increasingly unlikely to happen. Here's an example of a house that sold this winter at a 2002 price: http://www.houseprices.co.uk/e.php?q=kepplegate+shelfanger&n=10 A new phenomenon in the area which looks like it could further upset the applecart is the Express Estate Agency of Bury, Lancs., this outfit has been discussed on HPC on another thread, whether their service is worthwhile or not I don't know, but they are forcing some price revelation on the cartel of denial. They have been taking 25% off previous asking prices. Unsurprisingly, they have achieved quick sales. This looks to be setting a new lower price level for anyone seriously wishing to sell and must be giving sleepless nights to the local agents with windows full of overpriced houses. Here's an example of one now Sold STC, a newish 3 bed semi for a pricepoint usually reserved for a 2 bed terrace, would have been bought new in 2007/8 for around £160k, ouch!!!: http://www.rightmove.co.uk/property-for-sale/property-29183086.html Here's one recently reduced, 3 bed detached at what is usually a semi price: http://www.rightmove.co.uk/property-for-sale/property-32892566.html It looks like it's going to be an interesting year, the cuts and hikes in interest rates can only push the market further downwards. A house at 2002 prices would do me though!! I'll keep you posted as there may be a development soon!!
  15. Hmmm, you can thank Persimmon homes for that rabbit hutch, I bet it looked OK as a show home with 3/4 size furniture!?! That estate is truly crammed in with not enough pavements, road width or parking.
×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.