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House Price Crash Forum


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About TheEA

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  1. I am an estate agent. This sort of situation is always very difficult for all parties involved. My advice; firstly, be certain you want to buy the property, if so make an offer you are prepared and able to pay. Be honest about your position and provide full details of your chain and confirmation that your finances are in place. If the situation turns into a 'bidding war' only improve your offer to a level you are comfortable with - if succesful, great! - if not - you did your best... However.... remember.... it is not the greed of the estate agent or necessarily the vendor that will push the price up... but the greed of the bidders to own the property in question. The duty of an EA is to secure the best possible outcome for their client not for a buyer... and aslong as the EA acts professionally... don't blame them if you are unsuccessful. And before making your offer.... do only unto others as you would have them do to you! Good Luck
  2. Surprisingly realistic approach actually but looking at the quote after your comment I can understand why you would struggle to understand!
  3. Ok…. This chap has paid out somewhere in the region of 100k in rent over the last 17 years and has missed out on 135k of HPI….. Not to mention either the missed interest on saving rather than spending his rent money or the opportunity to move upmarket and benefit further from the HPI of last 15 years. Interestingly we manage the property he rents – His landlord paid £37,000 cash for it in Jan 1992 – The tenant has not only paid for the property nearly 3x over during the last 15 years but the landlord over the last 15 years and funded by a mixture of income and btl mortgages now has 10 similar properties that he rents out. Guess which one is bitter and wishes he has the lifestyle of the other?!
  4. I thought this might be an interesting anecdote… When I began my career in 1992 we had a gentleman on our mailing list – He was renting and looking to buy a 3-bed semi – he had £30,000 cash and did not want a mortgage. 3-bed semis were selling in our area for around £35,000. He was convinced house price’s were going to fall further and would only buy for £30,000. Over the next 18 months – prices continued to fall and he could have bought a 3 bed semi for £30,000. He was convinced prices would fall further. Over the next 18 Months prices started to rise – he was convinced it was a short term blip and prices would fall again very soon………….. During the last 15 years or so he slowly upped his budget but always beneath where the market was and was convinced at every point that prices were about to crash! The value of property continued to increase and by 2007 3 bed- semis were selling for around £200,000. Over the last 18 Months, he was finally proved right, prices have fallen and 3-bed semis are now selling for £165,000…… The same gentleman called in at the weekend – he now has £90,000 in savings and would have a mortgage of £50,000!………. and wants a 3-bed semi for £140,000….. not a penny more! In the meantime he has been renting a property….. rent 1992 £350.00pcm…. rent now £675.00 pcm. I am sure there will still be some of you that claim he is still better off ‘in real terms’ not having bought… but surely not! I guess my point is that – although property prices have fallen considerably over the last 18 months and may well fall further over the next 18 months – it does not feel, at least in our area that they will fall much more than another 10%....... and although I am crystal ball gazing I would be stunned if prices were not significantly higher in 15 years time…. When I first began my career the ‘media’ were reporting that we would not see prices as high as 1989 for…. Wait for it…… a generation! ( 3-bed semis in my area were selling in 1989 for £65,000) Finally some wisdom! My Grandfather told me, when I was 18, buy your first house young, always buy something you can’t really afford that you can add value to and move every 3-5 years until you have a house that you want to see out your days in. But never borrow against your property for new cars/holidays etc! I have followed that advice pretty closely and it has done me well. I guess I was lucky to not find myself in negative equity at any stage but the old codger had an answer for that as well!... ride it out – work hard - keep paying the mortgage - even if it means you have to forego any luxuries including fags and beer and it will come right! His one last piece of advice – Never rent long term – you are only lining someone else’s pocket!
  5. I have not posted since sometime before Christmas. If I am honest, although I wouldn't claim to be as honest as the HEA!, I was extremely concerned for our prospects during 09 but we have witnessed much the same as the HEA. January and February have been pretty good with 25 sales agreed - 2 since fallen through but 7 completed already. We are achieving within approx 15%-20% off peak prices and are seeing activity on most types of property from 1/2 bed houses at around 120k right upto the 600k mark. It is fair to say that there is a strong element of cash rich buyers looking for what they consider to be a 'good deal' but we are also seeing a good number of FTB's and STR's who are just looking to settle and although they mostly feel that price's could fall further they are not particularly concerned. This activity is enabling chains to build and although vendors are having to be flexible than they would perhaps like they are able to pass their perceived loss up 'the chain'. The rental market has also remained pretty strong although there has been an increased supply which seems to have edged rental values down by approx 10% since last autumn. In all I am feeling cautiously optimistic for the spring but we do need more realistically priced property coming onto the market as levels of new instructions are low - down from about 20-25 pcm to 10-12 pcm. I appreciate this post is not as eloquent as HEA's but I thought it may help provide some further evidence of what is happening now. TheEA
  6. I have been watching this site for a few weeks -us ea's have a bit more time on our hands now! It seems to me that most of you actually have genuinely felt that property had become too expensive during the last decade and that at some point prices would have to fall. I agree. But equally they will at some point rise again... maybe not as dramatically but 25/30 years from now whatever happens houses will be more expensive. The important thing is that we all need somewhere to live - some people will want to put down roots... some people will be happy to rent and some people will always treat property as a way of making money/a living. The value of our homes only matters if we either need to, or want to sell and if you are moving within the market it doesn't really matter because everything is relative. I feel genuinley sorry for anyone who finds themselves in negative equity or gets repo'd but equally someone else... maybe some of us will benefit from their misfortune/misjudgement. The sad thing is that what is happening in the wider economy will effect all of us and actually high house prices and big mortgages will be missed because although the last 10 years has been reckless it is better than the 10 years we are now facing.
  7. You Loser! It is people with your attitude that have helped cause the problem in the first place. Grow up!
  8. I'd make it 150k... 250k is so last month!
  9. I hoped it would... it was great! and whatever anybody says it will happen again someday just hope i am around to clean up again!
  10. I am..... just not your average white socked ******r!
  11. 20%... 50%... 70% who cares anymore......!
  12. not as much as me - i am aiming for a ryder cup place with all the time i've got! fortunately we ea's made so much money from ramping the prices up this last 10 years or so that it is actually a welcome break!
  13. About 20%/25% less than it was a year ago! and about 20%/25% more than it will be worth at christmas... easy!
  14. A very quiet part! The only good thing to come out of all this misery is that my putting has improved!.... every cloud.....
  15. I am an estate agent..... boo hiss! We have probably just had the quietest fortnight I can remember... almost nodded off at my desk this afternoon! House prices are about 20% down on last year although there is so little activity it is difficult to judge accurately.... the only sellers are forced ones and the only buyers are cash ones, commiting mortgage fraud or a bit daft! F**k christmas its cancelled!
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