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How Do I Make A -40% Offer

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As title really - theres some newbuilds near me that i've taken a shine to, and want to make a (low) offer.

Do i just plonk it down on the table and see what they say, or go through a show me around rigmarole first?

Do i justify it or just say take it or leave it?

I've got reasons (keeping within 25% deposit, 3.5x earnings, stamp duty limit), which make some sense in that the mortgage side of things is likely to be accepted, and also as it's a company rather than an individual they're both less likely to be emotional about it, and have FY end figures to report on soon.

I'm happy enough negotiating a bit once the dialog is started, just want to make sure that the offer is taken seriously to start with really!

If they reject out of hand i'm happy as i know this means they're muppets and i'll be able to buy cheaper later, if they accept then i'm happy as i've got a home that i can afford payments on at a price i like.

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Say it is a cash offer/you have mortage agreed and have the documentary evidence

Tell them you have a big deposit

Dont tell them your salary, but say it is at the edge of your budget

Say you can move quickly

be confident, dont put them down

Leave the offer on the table for a couple of weeks for them to think about.

Have a strategy

Think about what to say first

Think how it will feel from there side

Never raise the offer without sucking in a load of air and saying, "mmm its right at the end of my budget I will have to go away to think"

Never raise/conter the offer within a week of there rejection

Always wait for them to call you

Dont be keen

Never raise an offer by more than 1k at a time :P

Research previous sales, and trends

Dont worry if they say no

You cant offer less, so start lower than you want to pay

start the offer at an insulting level

Be friendly but don't mention your feelings

Keep it strict and business like

Dont back up with 'facts' or rub it in (i.e. dont say I think prices will fall), thats your opionion

Take your time

Edited by moosetea

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Put your offer, and if they refuse, fire-bomb one the empties on a neighbouring road.

Fire-bomb another every week until you are accepted.

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Put your offer, and if they refuse, fire-bomb one the empties on a neighbouring road.

Fire-bomb another every week until you are accepted.

Who cares if you get laughed at.

Let them laugh, because they won't be laughing for much longer.

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As title really - theres some newbuilds near me that i've taken a shine to, and want to make a (low) offer.

Do i just plonk it down on the table and see what they say, or go through a show me around rigmarole first?

Do i justify it or just say take it or leave it?

i wouldnt make any moves or offers in the middle of a crisis fast on its way south.

you DO NOT KNOW ehn the bottom will be reached. it could be up to 50-60% less than its current price by next year.

relax - your earning-saving £1500 pcm by not doing anything.

now thats HPI in reverse. enjoy it for as long as you possibly can.

dont get lumbered with debt.

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i wouldnt make any moves or offers in the middle of a crisis fast on its way south.

you DO NOT KNOW ehn the bottom will be reached. it could be up to 50-60% less than its current price by next year.

My concern now is that when the bottom is reached (IMO 2+ years in the future), no bank will want to lend much, and interest rates will be a lot higher than they are right now, hence the 10 year fix.

In addition i'm living at home which i don't really want to do, especially not for years longer - it would cost less to repay a mortgage than it would to move out and rent, my deposit being pretty irrelevant due to the pittance interest i'm getting on it.

Guess it comes down to the eternal deflation/inflation argument really - i'm guessing inflation because if we do get deflation all round then theres gonna be so many bankruptcies all round that the system will be stuffed anyway.

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Say it is a cash offer/you have mortage agreed and have the documentary evidence

Tell them you have a big deposit

Dont tell them your salary, but say it is at the edge of your budget

Say you can move quickly

be confident, dont put them down

Leave the offer on the table for a couple of weeks for them to think about.

Have a strategy

Think about what to say first

Think how it will feel from there side

Never raise the offer without sucking in a load of air and saying, "mmm its right at the end of my budget I will have to go away to think"

Never raise/conter the offer within a week of there rejection

Always wait for them to call you

Dont be keen

Never raise an offer by more than 1k at a time :P

Research previous sales, and trends

Dont worry if they say no

You cant offer less, so start lower than you want to pay

start the offer at an insulting level

Be friendly but don't mention your feelings

Keep it strict and business like

Dont back up with 'facts' or rub it in (i.e. dont say I think prices will fall), thats your opionion

Take your time

Fantastic advice :rolleyes:

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As title really - theres some newbuilds near me that i've taken a shine to, and want to make a (low) offer.

Do i just plonk it down on the table and see what they say, or go through a show me around rigmarole first?

Do i justify it or just say take it or leave it?

Look at it before you do anything, it costs you nothing.

If you still like it, get someone that knows about bulid quality to go round another week or so later.

If you still like it, put your offer to the agent, I used email for a -41% offer last year on a probate house. I got a polite reply back and they have since indicated they may go to 17% off. We agreed to disagree.

For a -60% offer on some land, I wrote a letter to the owner and we had a chat about it that evening. He thinks "Grand Designs", I think "its still a back garden full of mud".

Both offers refused, the house hasn't sold in 6 months, the land hasn't sold in over a year.

Get some low-offer practice in, it gets easier every time.

VMR.

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My concern now is that when the bottom is reached (IMO 2+ years in the future), no bank will want to lend much, and interest rates will be a lot higher than they are right now, hence the 10 year fix.

In addition i'm living at home which i don't really want to do, especially not for years longer - it would cost less to repay a mortgage than it would to move out and rent, my deposit being pretty irrelevant due to the pittance interest i'm getting on it.

Guess it comes down to the eternal deflation/inflation argument really - i'm guessing inflation because if we do get deflation all round then theres gonna be so many bankruptcies all round that the system will be stuffed anyway.

you are assuming that in an inflationery environment that banks will be in a position to lend again.

They wont.

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My concern now is that when the bottom is reached (IMO 2+ years in the future), no bank will want to lend much, and interest rates will be a lot higher than they are right now, hence the 10 year fix.

In addition i'm living at home which i don't really want to do, especially not for years longer - it would cost less to repay a mortgage than it would to move out and rent, my deposit being pretty irrelevant due to the pittance interest i'm getting on it.

Guess it comes down to the eternal deflation/inflation argument really - i'm guessing inflation because if we do get deflation all round then theres gonna be so many bankruptcies all round that the system will be stuffed anyway.

just stick your cash into gold, enjoy the returns and sit back.

rent for now. haggle a renting deal is just as easy. i got a 30% reduction by haggling on rents.

yes, if the system is tuffed they are badly going to need your gold reserves, which with the £ crashing daily will be a lot of money for a deposit. i doubt you will have any trouble with a mortgage, esp when prices have been at least halved, if not more.

dont blow it now. its in your hands.

have a 3 year plan.

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As title really - theres some newbuilds near me that i've taken a shine to, and want to make a (low) offer.

Do i just plonk it down on the table and see what they say, or go through a show me around rigmarole first?

Do i justify it or just say take it or leave it?

I've got reasons (keeping within 25% deposit, 3.5x earnings, stamp duty limit), which make some sense in that the mortgage side of things is likely to be accepted, and also as it's a company rather than an individual they're both less likely to be emotional about it, and have FY end figures to report on soon.

I'm happy enough negotiating a bit once the dialog is started, just want to make sure that the offer is taken seriously to start with really!

If they reject out of hand i'm happy as i know this means they're muppets and i'll be able to buy cheaper later, if they accept then i'm happy as i've got a home that i can afford payments on at a price i like.

I recently went to view a property because I thought it was a bargain (also a new build). Looked around, was impressed, then the woman said they would also knock just over 20% off the asking price. Took me by surprise, but also sent alarm bells ringing.

Just be aware of them coming back with excuses because they are good at this. Be prepared. Tell them that the market is a total mess and that's how much you think the property is worth at the moment. Tell them to tell you what they can offer you. The ball is in your court remember - they want you to buy.

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Who cares if you get laughed at.

Let them laugh, because they won't be laughing for much longer.

i just offered 75k cash for a 2 bedder up for 113k

there is no chain so its possible its a BTL????

thats around 30% off asking.

the EA did not seem insulted and took the offer seriously.

just waiting to see what happens now.

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you are assuming that in an inflationery environment that banks will be in a position to lend again.

They wont.

Thats why the plan is to get a 10 year fix now while it is still available - then i'm laughing whenever the BOE rate goes up to sensible levels?

I've got an aversion to gold - call it the spidey sense that tingles in my brain, warning me there is a bubble and i'm looking at getting in on it too late.

I see this as very much a win/win at the moment - either they take the offer and i get a place that i like, can afford and will stay in through the next 10 years+, or they don't accept and i stay put/rent, apart from i'll be happier knowing that i tried to get it now and know they're still unrealistic. I'm not happy at the moment not because i'm at home still, but because it feels more like i'm avoiding making the choice to buy/rent, while i'd probably be happier whichever one i choose.

The only way to lose is if they somehow torture me into paying it's advertised price ;)

Thanks VMR/moosetea, some good ideas!

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I recently went to view a property because I thought it was a bargain (also a new build). Looked around, was impressed, then the woman said they would also knock just over 20% off the asking price. Took me by surprise, but also sent alarm bells ringing.

Just be aware of them coming back with excuses because they are good at this. Be prepared. Tell them that the market is a total mess and that's how much you think the property is worth at the moment. Tell them to tell you what they can offer you. The ball is in your court remember - they want you to buy.

Interesting - first on the list is let them talk themselves dry first then ;) Idea at the moment is 40% off rightmove price, but if that price isn't even what they expect then bonus!

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As it's a newbuild find out when the companies tax year ends. Site managers have targets to meet and sometimes get twitchy around then.

Good luck.

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Thats why the plan is to get a 10 year fix now while it is still available - then i'm laughing whenever the BOE rate goes up to sensible levels?

I've got an aversion to gold - call it the spidey sense that tingles in my brain, warning me there is a bubble and i'm looking at getting in on it too late.

I see this as very much a win/win at the moment - either they take the offer and i get a place that i like, can afford and will stay in through the next 10 years+, or they don't accept and i stay put/rent, apart from i'll be happier knowing that i tried to get it now and know they're still unrealistic. I'm not happy at the moment not because i'm at home still, but because it feels more like i'm avoiding making the choice to buy/rent, while i'd probably be happier whichever one i choose.

The only way to lose is if they somehow torture me into paying it's advertised price ;)

Thanks VMR/moosetea, some good ideas!

I would go round my prospective newbuild with a fine toothed comb. The quality of workmanship ive seen around is a disgrace.

Also, when are they planning to finish the Road, street lights etc.

In GC1, we bought a large newbuild.

The 4 years we were there, the rest of the site was stopped. we just about had the road to ourselves, but it was not actually finished for ages. Some of the empty homes attracted druggies.

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in fact, you will probably be laughed at if you make a -40% offer,

by us lot in 16 months time.

I thought once my offer is accepted i get auto redirected to MSE? :P

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Current advertised, which to be honest hasn't dropped by much. Still seems more realistically priced than the other development ~5 mins walk up the road (both 2 bed flats, one ~25% more than the other!)

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I phoned up an EA today to view a house. It is a three bed semi detached, ok part of town, Very cheap at £95k, I wouldn't be suprised to see a place like that on for £150k.

Anyway, phoned up, she told me they had already had 40 viewings and that they had received an offer above the asking price and they were not showing anybody else round.

Shame, it looked a nice place, but it's no suprise as it was a bargain.

Just makes me think though, 40 people viewing, there must be an awful lot of people waiting to buy out there.

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Current advertised, which to be honest hasn't dropped by much. Still seems more realistically priced than the other development ~5 mins walk up the road (both 2 bed flats, one ~25% more than the other!)

my offer was rejected but the EA then pushed a 150k bungalow at me for 100k.

i said no but thought id mention it here.

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Current advertised, which to be honest hasn't dropped by much. Still seems more realistically priced than the other development ~5 mins walk up the road (both 2 bed flats, one ~25% more than the other!)

Well you can put an offer in for whatever amount you like to be fair and even if they do laugh, so what.

Just dont expect an offer like that to be accepted.

Before they accepted your offer they would surely advertise it at 10% off, and if that didnt work, 20% off and so on.

There's no way they are just going to drop everything and accept 40% off.

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  • 285 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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