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Mr Hunt

Making An Offer

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I am considering making an offer for a new turn key property. The builder/estate agent is asking for £130000 for this 3 bed semi. Apparently they only sold 5 houses last year and 16 this year so far. They have come down £25000 from last year.

I was looking some advise on what to offer? I'm very reluctant to offer the full price or anywhere near it as I think house prices are still coming down. Also the development is only about 35-40% complete. So I would be living on a building site for the foreseeable future.

I would be grateful for some input on this matter

Thanks

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3 bed semi? depends, where is it located? postcode area?

I'd chip in a cheeky 106k to start with...you're far enough away from the mindset of 100k, to make it interesting

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offer what you want to offer and leave offer on the table. if you miss out on the property it sounds like hes planning to build plenty more 3 bed semis for you to offer on!

if they genuinely were selling for 250k then 125k would represent a nice 50% off

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offer what you want to offer and leave offer on the table. if you miss out on the property it sounds like hes planning to build plenty more 3 bed semis for you to offer on!

if they genuinely were selling for 250k then 125k would represent a nice 50% off

yeah but they weren't really worth 250k to start with were they? Just goes to show the profits he made selling at 250k :(

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yeah but they weren't really worth 250k to start with were they? Just goes to show the profits he made selling at 250k :(

I think that's Twenty Five Thousand off the peak price, not selling for Two Hundred and Fifty Thousand at peak.

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Hold off, its a false dawn, near where we are is a sign saying

"60 WJ Law homes sold in 70 days - Could prices start to rise???"

I kid you not on the question marks

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I am considering making an offer for a new turn key property. The builder/estate agent is asking for £130000 for this 3 bed semi. Apparently they only sold 5 houses last year and 16 this year so far. They have come down £25000 from last year.

I was looking some advise on what to offer? I'm very reluctant to offer the full price or anywhere near it as I think house prices are still coming down. Also the development is only about 35-40% complete. So I would be living on a building site for the foreseeable future.

I would be grateful for some input on this matter

Thanks

Asking prices are varying wildly at the moment, it is very difficult to know how over priced it is. You need to look at LPSNI and find the rateable value of it or a similar sized property in the same area. Good value at the moment is generally less than rateable value (The estimated value at Jan 2005).

At the end of the day if you like it and the mortgage is <3x your salary its not a big risk, even if prices do drop. If you are paying more than that it maybe going into risky areas of unaffordability. Presumably you also, since you are buying you intend to stay there at least 5-10 years.

The general advice at the moment is to rent.. low risk, lower cost, much better property for your money. Renting could still be regarded as throwing away money and paying a LLs' mortgage, but at the moment most LLs are subsidising their tenants and in comparision to mortgages you are throwing away a lot less money than the mortgage interest going to pay a bankers bonus/gold plated pension. For the same monthly cost the quality of life is much higher renting, although the disadvantage in the UK is with such short term contracts you have no security. Rents are also a much better indication of affordability, when they get closer to mortgages cost will be a better time to buy.

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The house is based in Portadown, BT63. I was thinking of may maybe offering £104000 that would be 20% off the asking price. The house is about 1000 square feet.

Miss understanding earlier, the house was never £250000. It was £155000 last October and now they are £130000.

I think I’m going to be buying it in my own name and it works out about 4-5 times my salary so it’s a bit of a risk. That’s providing I paid full price for it.

I had a look at the rateable value of a few houses a while ago and house prices are still a lot dearer than the rateable value.

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I think that's Twenty Five Thousand off the peak price, not selling for Two Hundred and Fifty Thousand at peak.

dam my eyesight...you're right, 25000 and not 250000 :huh:

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I hope you have a big deposit and a secure job.

I would strongly advise against taking out a mortgage that is more than 3 times your income. It may look very affordable at this moment in time, but think of the future. Remember interest rates have only one way to go, taxation will increase to pay for all the bank bail-outs and the cost of living will increase as sterling gets watered down by quantitative easing (printy, printy :lol:)

Why not offer £90,000? That is the true value of the place when you remove the effects of a credit bubble. Infact it may fall below that.

Anyone in your family or friends circle bought a new 3 bed semi around the year 2002? Ask them what they paid in 2002, before the credit bubble ;)

The longer you wait the more chance of a low offer being accepted. The spring bounce will be over soon. Then the next leg of the crash will begin and we will soon forget about this false bottom that is currently being engineered. We are only 20 months into the crash. The 1990 house price crash took 3 full years to reach it's nominal bottom and 6 years to reach the real bottom. And that was a small blip compared to this bubble.

Disclaimer: I am not a financial advisor. This advice is worth exactly what you paid for it. DYOR

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Cheers,

Yes I'm a first time buyer

I agree with Belfast Boy:

The longer you wait the more chance of a low offer being accepted. The spring bounce will be over soon. Then the next leg of the crash will begin and we will soon forget about this false bottom that is currently being engineered.

Wish you all the best ;)

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I'm a ftb too but am renting for the foreseeable future. Whatever your budget is, you will get a much nicer place for the same money in a year or two. Whatever you do, don't fall for the "houses are selling and prices might rise" line. It's not happening.

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Should have gone to specsavers :P

ended up going to TXMax :P

....Police sunglasses reduced from £110 to £30 :ph34r: ...just because they are last years "collecion" ;)

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I've been looking to buy land for a while but vendors still asking for ridiculous prices so my attention has turned to two houses (New Builds) that have caught my eye (will not cry if I do not get either but they are very good properties). If I can get either house for the right price then I would buy tomorrow. But the question is, is my price anywhere near the estate agents?

I went and seen one of the properties during the week. Looks good outside but inside did not meet all my expectations but nothing that couldn’t be fixed. The man showing us around could not answer most of my questions and had never heard as many negative comments during a viewing about the property (I did not mean them to be negative but constructive for the builder I also give a lot of positives). I was not being critical of everything just being practical. He did say these were the first time that most of these questions had been asked regarding the property and were very relevant but he would not point them out to a viewer unless they did themselves. He got the Estate agent to phone me and they provided me with answers to most questions he could not answer (which were most).

I did ask the estate agent is there any room for negotiation and was informed of some but not much. I made my intentions clear that if I did think about making an offer it would be around Rateable value. On asking them the rateable value of the house, they said 'this could not be known as these are not calculated on new properties that have not been lived in' (is this true? I’ve already found it on http://vlistdcv.lpsni.gov.uk/search.asp?submit=form). I asked them to find out the rateable value of the property beside it then. They also didn’t have at hand the price the property came on the market at, which I found hard to believe. I found this on TDGTTS. They wanted to know did I want to have a meeting with the builder. They still have to ring me regarding some other questions and I said I would give an answer then to do with meeting the builder. Do you think this gives me an advantage or not speaking to him?

If I was going to make an offer it would be at least 70K off the asking price, around rateable value. (Property around 300K)The property has dropped 50K already. Do you think this would be a reasonable offer?

Little question

Any advantages using the same estate agent for the second property (listed with them) or should I go through another estate agent which the property is also listed with?

I’m a FTB but looking to hold onto the property for years if not life.

Thanks in advance of any feedback.

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lol

Poor Subby, wonky hip and wonky eyesight :P

A semi?? Like God knows how you would be sharing this with, ie who is on the other side, for this class of house £75k would be way enough, considering you can buy a deteched house on wilsons auctions for under £100k, dont be duped by the hype!!

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You did well to keep a cool head - what kind of idiot did they ask to show you round? Definitely keep your offer low if you have mortgage approved - if you are not embarassed to offer it then its too high. That way you leave yourself room to go up a little. If that is the standard of salesperson I would definitely go to another EA for the other house. Just tell them straight you have plenty of choice and will be looking at others too. Don't take any nonsense of them they are only sales people after all. I plan to put offers in on at least 4 properties simultaneously and see who meets the price first. The vendors have had their day - now its our turn.

Have set up a viewing for the second property. The viewing is with the different estate agent. The EA seems more promising and was able to answer the questions I asked over the phone which was good because he was not in his office. I found with his answers, they were more positive than negative for me. Just need to see does the inside of the property match up to the outside. I’ll try to keep you informed about the situation. Might not go for any properties for a few months but might use this time to test the water in what they might accept. Not completely sure what I'll do myself.

Doccyboy yet again thanks for the advice

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Have set up a viewing for the second property. The viewing is with the different estate agent. The EA seems more promising and was able to answer the questions I asked over the phone which was good because he was not in his office. I found with his answers, they were more positive than negative for me. Just need to see does the inside of the property match up to the outside. I’ll try to keep you informed about the situation. Might not go for any properties for a few months but might use this time to test the water in what they might accept. Not completely sure what I'll do myself.

Doccyboy yet again thanks for the advice

Just to let you all know how the property viewing of the two houses went.

Property 1

I met the builder, nice man, found out that we knew more about the property than he did. He didn’t even know that the estate agent was telling all prospective buyers that there was an up keep charge with the small cul-de-sac something which he said was not true. It would be up to the occupiers of the development between themselves to manage the up keep. Asked if there was any negotiation with the price which he replied YES……..UP. Well at that point I laughed out loud (recalled a joke earlier that day that property was increasing in price). He holds blame on others on why the properties had not been sold at peak, were he would have made at least another £100K on each property. By the end of the meeting he had turned into a grumpy old man.

Why is the market being so mean to him?????? I nearly shed a tear

Property 2

The Estate agent was good. Knew what he was talking about. He tried in vein to turn our negative comments to positive ones about the state of the housing market. He did give up and confess he had to hype up things because it’s something that comes with his profession (sorry job). The house was excellent, location (beside a main road) not good. He was really pushing for me to make an offer. HE rang me at the beginning of the week to find out where I stood. I informed him if I did make an offer it would be insulting but he said it’s still an offer which would be treated like an offer which was over the asking price. I left it by saying I needed more time to think things over.

Have put no offers in on any of the two properties and have given up the ghost that I will have my own property at the right price before the summer of next year. If prices do start coming down drastically before then, then maybe I will buy but the Politian’s are trying their best to prevent this. But there is only so long they can keep holding the prices up before the foundations crumble and property becomes affordable.

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Have put no offers in on any of the two properties and have given up the ghost that I will have my own property at the right price before the summer of next year. If prices do start coming down drastically before then, then maybe I will buy but the Politian’s are trying their best to prevent this. But there is only so long they can keep holding the prices up before the foundations crumble and property becomes affordable.

It will come as a terrible shock to local government when they wake up to the fact that the market is the real power, and that their fellow politicians in Dublin and London will shaft them in seconds if it means even one vote at home :ph34r:

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It will come as a terrible shock to local government when they wake up to the fact that the market is the real power, and that their fellow politicians in Dublin and London will shaft them in seconds if it means even one vote at home :ph34r:

so true ;)

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Hi everyone, Have been following this forum for about three months now and this is my first posting. I sold my house in January this year and have been renting ever since. Initially, I planned to rent for six months and buy over the summer.

However, what I have come up against recently is people putting in offers who are not subject to sale. I take it this means they can’t sell their own, plan to rent it out and buy. One particular house I looked at about three months ago, had, which I thought, was a very high offer from someone in this position. This has now come back onto the market. (Wasn’t very interested anyway)

Another house I also went to see about a month ago was on at £280,000 and there was an offer of £180,000 cash, which wasn’t acceptable – according to the agent. When I went to view the agent told me another offer had come in of £230,000. When I asked what sort of position they (potential buyers) were in, he said they weren’t subject to sale.

Went to see another house last week which has only just come onto the market for around £300,000. The next day there was an offer of £200,000 from a first time buyer – a few days later another offer of £250,000 from someone not subject to sale.

What are your thoughts on these offers??? As you probably well know agents never check finances, they have never asked to see mine. Any advice would be greatly appreciated???

Another thing I have noticed with one agent in particular, is they have put sale agreed on a property on their own website but not on propertynews – Why would they do this???

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What are your thoughts on these offers??? As you probably well know agents never check finances, they have never asked to see mine. Any advice would be greatly appreciated???

Another thing I have noticed with one agent in particular, is they have put sale agreed on a property on their own website but not on propertynews – Why would they do this???

There has been a bit of activity in the market from those who have saved or sold to rent (STR) but do not know yet the horrors to come. Lots of FTBs in their late 20s with savings suddenly realise that they can do that thing they have desired for the last 10+ years, but really they are buying much lower than they would in a normal market. The spring bounce is now over and it will take a few months for the figures to come through.

Also generally in a price dropping and buyers market environment it makes sense to sell first, which is the hardest part of it. The earlier you sell the more money you make, and the cheaper you new house will be the longer you leave it. This works if you have somewhere to stay and store your contents, usually many rent.

The money and credit is not there to support current prices, England is back to 2004 values, we are still at 2005/2006 values. Hold your ground, do not compete/bid for houses. There are 60,000 empty houses in N.Ireland and people are bidding for houses!!!, and look at peoples wages, these have barely doubled in 20 years, yet houses have increased 10 times!!!! The increase was simply a function of credit.

On the sale agreed, there are lots of houses going sale agreed and then going back on the market, this has been a feature since the start of the crash from people going for a mortgage and finding that its not as easy as it was, usually they just don't have enough deposit to protect the bank from Neg equity, that and all the fees/stamp duty etc.

The next event seems to be interest rates, and these will creep up after the next election or maybe sooner. Other interest rate measures are going up already, petrol, fuel, food etc. Even if you get a nice affordable fixed rate and don't lose your job, other stuff will make it harder to afford.

Edited by Ride_on

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There has been a bit of activity in the market from those who have saved or sold to rent (STR) but do not know yet the horrors to come. Lots of FTBs in their late 20s with savings suddenly realise that they can do that thing they have desired for the last 10+ years, but really they are buying much lower than they would in a normal market. The spring bounce is now over and it will take a few months for the figures to come through.

Also generally in a price dropping and buyers market environment it makes sense to sell first, which is the hardest part of it. The earlier you sell the more money you make, and the cheaper you new house will be the longer you leave it. This works if you have somewhere to stay and store your contents, usually many rent.

The money and credit is not there to support current prices, England is back to 2004 values, we are still at 2005/2006 values. Hold your ground, do not compete/bid for houses. There are 60,000 empty houses in N.Ireland and people are bidding for houses!!!, and look at peoples wages, these have barely doubled in 20 years, yet houses have increased 10 times!!!! The increase was simply a function of credit.

On the sale agreed, there are lots of houses going sale agreed and then going back on the market, this has been a feature since the start of the crash from people going for a mortgage and finding that its not as easy as it was, usually they just don't have enough deposit to protect the bank from Neg equity, that and all the fees/stamp duty etc.

The next event seems to be interest rates, and these will creep up after the next election or maybe sooner. Other interest rate measures are going up already, petrol, fuel, food etc. Even if you get a nice affordable fixed rate and don't lose your job, other stuff will make it harder to afford.

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