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LuckyOne

Does Anyone Have An Idea Whether Agreed Sale

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I recall hearing all sorts of stories about tremendous numbers of mortgage applications being declined.

As mentioned before, a tactic that I am using is to get a professional, independent valuation done before putting in an offer (and then discounting from there). This saves me a lot of time and money as doing this ahead of the offer is less expensive than doing it between "sale agreed" and "exchange". It also lets me weed out the time wasters pretty quickly. Nice to be able to say this about putatitve sellers rather than hearing it used as a derogatory term to describe careful buyers.

Does anyone have a sense of the proportion that are being declined because the agreed selling price is substantially above the valuation put on the house by RICS surveyors?

It could be that the surveyors are our new best friends as they have a lot more legal risk than EAs in setting prices and their valuations (rather than EA valuations) are used by banks to make lending decisions.

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I recall hearing all sorts of stories about tremendous numbers of mortgage applications being declined.

As mentioned before, a tactic that I am using is to get a professional, independent valuation done before putting in an offer (and then discounting from there). This saves me a lot of time and money as doing this ahead of the offer is less expensive than doing it between "sale agreed" and "exchange". It also lets me weed out the time wasters pretty quickly. Nice to be able to say this about putatitve sellers rather than hearing it used as a derogatory term to describe careful buyers.

Does anyone have a sense of the proportion that are being declined because the agreed selling price is substantially above the valuation put on the house by RICS surveyors?

It could be that the surveyors are our new best friends as they have a lot more legal risk than EAs in setting prices and their valuations (rather than EA valuations) are used by banks to make lending decisions.

No.... and I still think your tactic is nuts, a seller is no more likely to buy if the buyer has done a low valuation first, they will think you have more money than sence. You need to find a struggling seller first, and then be cheeky, and and play with there heart cords your a struggling buyer, not much money lowish wage but you have cash a mortgage lined up and can move quickly, tell the EA your right on the limits of what you can afford even with your extra low offer, anything you can think of for them to think poor buyer, when they counter think about it for a couple of weeks, DO NOTE CALL THE EA BACK THEN, when the ea rings back and they ask you if they have thought about it ask them if the seller as thought about your orginal offer..... If they EA gets back to you again you can offer to raise your offer by 1k to 'meet in the middle', as a 'measure of good will'. As my signature says it is possible even whist a market is booming without making much up....

Edited by moosetea

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No.... and I still think your tactic is nuts, a seller is no more likely to buy if the buyer has done a low valuation first. You need to find a struggling seller first, and then be cheeky, and and play with there heart cords (your a struggling buyer, not much money low wage but you have cash a mortgage lined up and can move quickly baby on the way ect etc), anything you can think of for them to think poor buyer. As my signature says it is possible even whist a market is booming without making much up....

My tactic is probably nuts but I cannot find any other way to get to fair market value in this environment.

I am only applying it to vacant houses where I know that death, debt or divorce are an issue.

As many have said before, sellers are still living in dreamland. No more than those who are in dire straits who are hoping that a white knight is going to charge up and save them 2 minutes before the bailiffs arrive.

All that I am trying to do is to help them understand the futility of their fantasy that some mug is going to show up at the last minute and save them, especially as professional, independent surveys are the basis upon which lending decisions are made.

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My tactic is probably nuts but I cannot find any other way to get to fair market value in this environment.

I am only applying it to vacant houses where I know that death, debt or divorce are an issue.

As many have said before, sellers are still living in dreamland. No more than those who are in dire straits who are hoping that a white knight is going to charge up and save them 2 minutes before the bailiffs arrive.

All that I am trying to do is to help them understand the futility of their fantasy that some mug is going to show up at the last minute and save them, especially as professional, independent surveys are the basis upon which lending decisions are made.

Lucky, Ive editted my post explaining a bit how I did it in Nov 06..... I paid the 2002 price just before the market peak, but I still wonder what would have happened if my first offer was even lower. PM me if you want details, postcodes and links..

Edited by moosetea

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My tactic is probably nuts but I cannot find any other way to get to fair market value in this environment.

I am only applying it to vacant houses where I know that death, debt or divorce are an issue.

As many have said before, sellers are still living in dreamland. No more than those who are in dire straits who are hoping that a white knight is going to charge up and save them 2 minutes before the bailiffs arrive.

All that I am trying to do is to help them understand the futility of their fantasy that some mug is going to show up at the last minute and save them, especially as professional, independent surveys are the basis upon which lending decisions are made.

Same situation for me, it's very frustrating. I offered 40% off for a probate property , up for sale for nearly 6 months (they have to pay council tax after that). The sellers have priced at the 2007 peak on the advice of their agents. It's obvious its not going to sell at that and is looking poorly maintained now (waiting for spring to turn it into a jungle).

I thought about getting a building society surveyor to do a survey based on a 30% reduced asking price for mortgage purposes and then expect them to knock another 10% off for me.

However, that is probably just wishful thinking on my part and just a waste of £300 for a valuation, my offer is just too far below their perceived value (supplied by the EA). They will instead think that I am that last mug you mention and hope I bump up the offer.

I'll just wait.

VMR.

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Same situation for me, it's very frustrating. I offered 40% off for a probate property , up for sale for nearly 6 months (they have to pay council tax after that). The sellers have priced at the 2007 peak on the advice of their agents. It's obvious its not going to sell at that and is looking poorly maintained now (waiting for spring to turn it into a jungle).

I thought about getting a building society surveyor to do a survey based on a 30% reduced asking price for mortgage purposes and then expect them to knock another 10% off for me.

However, that is probably just wishful thinking on my part and just a waste of £300 for a valuation, my offer is just too far below their perceived value (supplied by the EA). They will instead think that I am that last mug you mention and hope I bump up the offer.

I'll just wait.

VMR.

Glad to know that I am not alone. There is enough transparency where I am looking with similar houses selling at the abolute peak that I can come up with a valuation on my own but hope (probably not rationally) that a professional confirmation of my view will help move things along.

I work in a world where prices react to new information instantaneously and don't have a personality that likes to wait. That said, I also understand value well enough that I am not going to buy at the wrong price so I know that I have to keep some of my traits in check .......

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I have previously recommended this to a poster. (was it you luckyone with a watery avatar?) We had one case of this last year, an independent survey was instructed by the buyer, on a house that had two interested parties bidding each other up. The surveyor down valued the property (on behalf of his client) by 5% saving his client a fair few thousand pounds. Despite our arguments that 2 people were prepared to pay the price agreed, the surveyor stood firm and the sale went through. I have a further anecdotal showing downvaluations by surveyors, but of course most of what is now selling is the 'cheap' stuff with clued up buyers making up the majority of the purchasers.

Edited by yourfriendlyestateagent

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I have a further anecdotal showing downvaluations by surveyors, but of course most of what is now selling is the 'cheap' stuff with clued up buyers making up the majority of the purchasers.

So what would you do in the case where the only offer was for cash at 40% off?

Would a professional survey at a similar price help you convince your vendor that it was overpriced. I suspect that the EA cannot suggest to the vendor that it is accepted without looking like an idiot for overpricing in the first place.

To avoid blame and losing a sale, I would have thought the EA should be pushing for 10% price reductions every few months, blaming the market at all times rather than himself (sound familiar Gordon).

What typical price reductions are you seeing at the moment ?

VMR.

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I have previously recommended this to a poster. (was it you luckyone with a watery avatar?) We had one case of this last year, an independent survey was instructed by the buyer, on a house that had two interested parties bidding each other up. The surveyor down valued the property (on behalf of his client) by 5% saving his client a fair few thousand pounds. Despite our arguments that 2 people were prepared to pay the price agreed, the surveyor stood firm and the sale went through. I have a further anecdotal showing downvaluations by surveyors, but of course most of what is now selling is the 'cheap' stuff with clued up buyers making up the majority of the purchasers.

This tactic did come from you. Being a novice in this market but pretty good in others, it made sense to me.

So far, I have tried the survey before putting in an offer 15% below the survey valuation. This was rejected.

This time, I have offered well below where I expect to see 85% of the survey valuation so that I can admit that I was wrong and offer more.

In both cases, these are houses where the vendor is under severe financial stress.

Downvaluations are my friend at the moment. The problem that I have is that I am not looking at the "cheap" stuff so 35% peak is a large nominal amount of money.

And yes, I did have a watery grave (dive, dive, dive) avatar for a while as well as "nuclear explosion" avatar. I have settled on a "train smash" for a while .....

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I'm looking at a whole load of properties tomorrow - most vacant possession for one reason or another. I generally ignore the asking price, but check previous sold prices in that road - either working back from the peak, or forward from when the exact property was sold before (if it appears in the list). www.nethouseprices.com is great for this

The problem is properties that have been extensively renovated/extended - or that are in need of massive work - so then have to adjust.

I'm prepared to be flexible so will probably offer 2002-3 price offers on a variety and see who accepts... (There's no point offering 2000 prices if you see that as the bottom, since the seller might as well wait and see what happens - only a proportion of future price falls should be priced in).

The only offer I've put in so far was rejected outright and the seller wants more than the place is worth - and unfortunately he's mortgage free and emigrated so is going to rent it out 'until the market recovers'...

Interestingly property which is priced realistically is selling - we accepted an offer on our property in two days flat for the asking price (and so far their mortgage checks out...!)

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So what would you do in the case where the only offer was for cash at 40% off?

Would a professional survey at a similar price help you convince your vendor that it was overpriced. I suspect that the EA cannot suggest to the vendor that it is accepted without looking like an idiot for overpricing in the first place.

To avoid blame and losing a sale, I would have thought the EA should be pushing for 10% price reductions every few months, blaming the market at all times rather than himself (sound familiar Gordon).

What typical price reductions are you seeing at the moment ?

VMR.

In fairness, it is the vendors who set the price not the EAs. I am starting to find more and more EAs telling me that the price is too high and most are suggesting that fair value is 10% to 20% below the asking price after a little bit of an informal discussion ...... It is amazing what people will tell you if you treat them with respect even if you don't like their industry ......

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What typical price reductions are you seeing at the moment ?

VMR.

I don't know if you saw the December RICS survey yesterday. The realistic comments seem to suggest that transactions are taking place at about 30% off peak and up to 40% off asking. The comments make for interesting reading ....

December RICS survey

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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