Jump to content
House Price Crash Forum
Sign in to follow this  
NuBrit

Considering Putting In An Offer . . .

Recommended Posts

Seen a place that has just been reduced from £100k to £70k. It's decent sized, well built and in a quiet enough area. While it hasn't quite went below rateable value, it's close to it. Have a substantial cash sum - so negative equity or getting a mortgage wouldn't be a problem. I don't think by any stretch we're at the bottom of the market, but the urge to own my own place is starting to become overwhelming!

Am I off my rocker to be thinking of putting a bid in?

Share this post


Link to post
Share on other sites
Seen a place that has just been reduced from £100k to £70k. It's decent sized, well built and in a quiet enough area. While it hasn't quite went below rateable value, it's close to it. Have a substantial cash sum - so negative equity or getting a mortgage wouldn't be a problem. I don't think by any stretch we're at the bottom of the market, but the urge to own my own place is starting to become overwhelming!

Am I off my rocker to be thinking of putting a bid in?

You say that it hasn't quite gone below RV, but you wouldn't be offering the asking price, would you? Offer RV -20% or so and see what they say, if you really want that particular house. The benefit of waiting for a more general return to sanity is choice.

Edited by shipbuilder

Share this post


Link to post
Share on other sites

You say that it hasn't quite gone below RV, but you wouldn't be offering the asking price, would you? Offer RV -20% or so and see what they say, if you really want that particular house. The benefit of waiting for a more general return to sanity is choice.
With the way the market is now, I can see the asking price being met so an offer at 20% beneath RV is pointless.

Share this post


Link to post
Share on other sites
Seen a place that has just been reduced from £100k to £70k. It's decent sized, well built and in a quiet enough area. While it hasn't quite went below rateable value, it's close to it. Have a substantial cash sum - so negative equity or getting a mortgage wouldn't be a problem. I don't think by any stretch we're at the bottom of the market, but the urge to own my own place is starting to become overwhelming!

Am I off my rocker to be thinking of putting a bid in?

Why is the urge to own your own place 'overwhelming'? What is it you actually want to achieve? If you do not already have your own place, renting is a much lower risk and flexible option. If you plan on staying there for 10 years, have good job security and the mortgage will be <3x your salary then it might be ok, but the prevailing view is that mortgages are a bit of a noose.

Although I have to say a place of <£70K RV is out of my knowledge area.

If you are thinking of buying in order to save or make money, then think again unless you are a full time investor.

Share this post


Link to post
Share on other sites
With the way the market is now, I can see the asking price being met so an offer at 20% beneath RV is pointless.

With 60,000 empty houses in N.Ireland why do you think that? If you know the market value then why ask about putting in an offer?

There is nothing wrong with buying a house if it suits you, but for many it just 'seems' better than renting.

Edited by Ride_on

Share this post


Link to post
Share on other sites
Seen a place that has just been reduced from £100k to £70k. It's decent sized, well built and in a quiet enough area. While it hasn't quite went below rateable value, it's close to it. Have a substantial cash sum - so negative equity or getting a mortgage wouldn't be a problem. I don't think by any stretch we're at the bottom of the market, but the urge to own my own place is starting to become overwhelming!

Am I off my rocker to be thinking of putting a bid in?

Hi NuBrit,

From reading some of your earlier posts I know that you have your head screwed on right and if you feel that everything works in your favour then you should go for it. That said though why wouldn't you follow your own advice from back in Feb?

What If Prices Dont Drop Any More?, Is this the time to buy? Discuss http://www.housepricecrash.co.uk/forum/ind...t&p=1680724

The housing market is completely irrelevant.

Look at the wholesale destruction of wealth in the global equity markets. The super rich are being decimated across the world. Deleveraging is rapidly shrinking the money supply, which in turn is impacting on wealth and asset values. Now, we're beginning to see the first of the trickle-down effect from this evaporation of money. 7% unemployment is only very start of how bad things are going to get. Now I'm no apocalyptic, shotgun and bean fanatic; but the economic situation is going to be horrible for the next 3-5 years at least. When the recovery eventually comes, without credit, it's going to be slow, long and drawn-out.

If you want the best time to buy, you need to wait. Assuming you still have your job and some cash, the ideal time to buy when the misery is at its greatest. When repossessions are at record highes, when the dole queues are going out the door and when hairstyles become naff again. That time certainly won't be during this year, or even the next.

Best of luck in whatever you choose.

Edited by paul65

Share this post


Link to post
Share on other sites

Hello chaps,

I've went against your advice :o and went for a viewing at this place. Have a surveyor friend who was also able to accompany us in the viewing. He didn't spot anything that was too amiss with the property, so we decided to throw in a silly £50,000 bid. Surprisingly enough, we weren't laughed at :blink: The estate agent said they would inform the seller of our bid. Anyway, two days later, we got a phone call back with a counter offer of £55,000. At this point, we got a whiff of desperation. We said £52,000 - final offer. A day later, our offer was accepted.

Still a bit in disbelief that I've actually bought. Don't get me wrong, I don't for a second think that I'm getting a bargain. With an angsty partner and having spent half my life in rented accomodation. I could have probably held off buying, but my partner could not. At least with such a cheap property, if prices fall by a further 50% even, the loss is manageable. Also, thanks to a decent deposit and a small loan from my parents, I've bought the house outright, so no chances of negative equity for me.

Don't worry though, I'm not quite out of the game yet! I have one eye on trading up in three or four years!

Share this post


Link to post
Share on other sites

Do you mind me asking, what kind of house are you getting for that kind of money?

Congrats by the way. Getting a house for that much under the asking is excellent. It goes to show that a low offer is worth a punt!

Share this post


Link to post
Share on other sites
We said £52,000 - final offer. A day later, our offer was accepted.

<...>

I don't for a second think that I'm getting a bargain.

Of course, you've got it at or about the right price. Who'd think they'd agree to that offer!

Share this post


Link to post
Share on other sites

Well done, I think I would have backed out on the counter offer, but its still a good deal and you used your buying power and havn't gotten in debt.

I too suffered pressure from my partner. I was convinced property was over priced having seen our FTB flat get out of our range of affordability, but I was getting this 'we just have to accept it, they are never going to crash', but I started researching on the Internet and found this site. It all made sense and backedup what I thought. There have been no arguments on house buying since then.

Share this post


Link to post
Share on other sites

You played a absolute blinder there!

You have achieved what I hope to achieve, which is buy a house outright. You are no longer filling some landlords pockets, and since you have no mortgage, your not paying for some banker's bonus either - good for you.

There is a lesson there for us all, not to be shy in making low offers. If you don't feel embarrased making an offer, it ain't low enough!

Is this house in Belfast?

Share this post


Link to post
Share on other sites
Hello chaps,

I've went against your advice :o and went for a viewing at this place. Have a surveyor friend who was also able to accompany us in the viewing. He didn't spot anything that was too amiss with the property, so we decided to throw in a silly £50,000 bid. Surprisingly enough, we weren't laughed at :blink: The estate agent said they would inform the seller of our bid. Anyway, two days later, we got a phone call back with a counter offer of £55,000. At this point, we got a whiff of desperation. We said £52,000 - final offer. A day later, our offer was accepted.

Still a bit in disbelief that I've actually bought. Don't get me wrong, I don't for a second think that I'm getting a bargain. With an angsty partner and having spent half my life in rented accomodation. I could have probably held off buying, but my partner could not. At least with such a cheap property, if prices fall by a further 50% even, the loss is manageable. Also, thanks to a decent deposit and a small loan from my parents, I've bought the house outright, so no chances of negative equity for me.

Don't worry though, I'm not quite out of the game yet! I have one eye on trading up in three or four years!

Happy days NuBrit! Congrats!

Also pretty curious about what area you managed to buy a place for £52,000.

No mortgage, happy days! ;)

Edited by YoungFTB

Share this post


Link to post
Share on other sites

+1 to all the above, well done in getting a decent price mate, wish you and yours many happy days there :D

Share this post


Link to post
Share on other sites

The house is a three bedroomed terraced that was built in the 50's (so the build quality is decent). Know the area, and for the price it's obviously working class, but most of the neighbours are fairly elderly so I have no worries of skangers doing doughnuts in my front garden. Won't tell you the exact area (still not technically sale agreed!), but it's with a 30 minute drive to Belfast.

The real interesting part though is why the house was so cheap. Estate agent this morning told me that the property was a bank sale. To be honest, I was surprised - I wasn't aware that the banks had repossessed very many properties at all.

Happy enough to live there for the foreseable future, but I am keeping one eye focused on a detached four bedroomed house with a decent parcel of land. If Fred Harrison was anything to go by (and he was frighteningly accurate), then this time three years I shall be back in the market.

Share this post


Link to post
Share on other sites

Interesting, when I first bought in 1990 it was a repo, had been on the market for 1 year. Another couple where leaving when we arrived to view (I think the EA arranged it). We ended up bidding from 28K to 32K (we stopped at 30K) and the other couple 'got it', but a few days later the EA phones back and says the other couple couldn't get finance. If true I knew the bank would be bruised by this and put in a silly bid of 26K (advertised at 28K). The EA laughed and said the bank would not accept it, but phoned back in 30mins to say they would.

Repos with banks should be susceptible to low offers provided there is no buyer competition, as they have to clear it from their desks and get results... and there is a load coming from S.Ireland banks shortly.

Share this post


Link to post
Share on other sites
Interesting, when I first bought in 1990 it was a repo, had been on the market for 1 year. Another couple where leaving when we arrived to view (I think the EA arranged it). We ended up bidding from 28K to 32K (we stopped at 30K) and the other couple 'got it', but a few days later the EA phones back and says the other couple couldn't get finance. If true I knew the bank would be bruised by this and put in a silly bid of 26K (advertised at 28K). The EA laughed and said the bank would not accept it, but phoned back in 30mins to say they would.

Repos with banks should be susceptible to low offers provided there is no buyer competition, as they have to clear it from their desks and get results... and there is a load coming from S.Ireland banks shortly.

superb :D

love hearing that sort of news

Share this post


Link to post
Share on other sites
The house is a three bedroomed terraced that was built in the 50's (so the build quality is decent). Know the area, and for the price it's obviously working class, but most of the neighbours are fairly elderly so I have no worries of skangers doing doughnuts in my front garden. Won't tell you the exact area (still not technically sale agreed!), but it's with a 30 minute drive to Belfast.

The real interesting part though is why the house was so cheap. Estate agent this morning told me that the property was a bank sale. To be honest, I was surprised - I wasn't aware that the banks had repossessed very many properties at all.

Happy enough to live there for the foreseable future, but I am keeping one eye focused on a detached four bedroomed house with a decent parcel of land. If Fred Harrison was anything to go by (and he was frighteningly accurate), then this time three years I shall be back in the market.

A 3 bedroom house for 50,000 - I think you did very well; it only seems like yesterday that Helen Carson was telling us that 2-up-2-downs were going to sell for a quarter of a million. The silly cow.

Interesting about the house being a repo - I'm wondering whether it would be possible to say to an estate agent that your interested in hearing of any repos that they have and then make low offers on any that you would be interested in buying.

Yes, I still do think prices have a good bit to fall, I hear of a few people the same age as me (25) buying/looking to buy at the moment, and I think we are currently in a dead cat bounce, with people still only able to afford because of historically low interest rates.

However, you own outright, and negotiated a large discount, so you'll be fine. Even if your house is worth 50% of what it is now in 5 years time (which I doubt), you would have probably paid the same amount in rent anyway! So well done.

Share this post


Link to post
Share on other sites

Having your own place with no debt hanging over you is an incredible feeling ^_^ Just after clearing all the rubbish out of my new house. Underneath the hideous carpet, we found some lovely hardwood floorboards that only need a bit of sanding and treating to be looking like new. Will have to lay down some insulation in the attic to prevent heat loss through the roof. Also need to have the two of the windows refitted (gaps leaving a draft into your house will crucify you with heating costs). Have a decent sized back garden, so have plans to plant a few rows of potatoes, herbs, some berry bushes and a polytunnel.

Are you lot jealous yet? ;)

Share this post


Link to post
Share on other sites
Having your own place with no debt hanging over you is an incredible feeling ^_^

Are you lot jealous yet? ;)

Nope. :P

Soon I will be buying a house debt free and probably moving up the housing ladder. How will I do this? By waiting until the end of next year (just 14 months away) when prices will be a lot nearer the bottom. In the meantime I am enjoying all the extra disposable income and freedom that comes with not owning a house.

Each to their own. B)

Share this post


Link to post
Share on other sites

I have been back looking at sites again (still cant see the a bargain with houses). I have found two that stand out to me and are in an ideal place. I’m considering making an offer but want to keep the upper hand with the EA. I do have one which I like more than the other. When making an offer can I inform the EA that I will be making a similar offer on another site. Is this allowed? The two sites are with two different EAs. Regarding the one I like most, talking to EA at start of last week about the site I give her a few questions to find the answer for me. She rang 2 days later and give the answers then said that there is an offer already on the site but its below asking price.

Can I believe this?

Any advice how to approach this will be greatly appreciated.

Edited by Barl8

Share this post


Link to post
Share on other sites
She rang 2 days later and give the answers then said that there is an offer already on the site but its below asking price.

Can I believe this?

Any advice how to approach this will be greatly appreciated.

There are a few confirmed reports about EA lying on this forum, certainly in this market (well for me any market) do not get into a bidding war. Simply put ..walk away. If its true you don't want to change your bid, if false they will chase you and make up a 'fell through' story. As I have have suggested earlier, if this happens make a lower offer.

About putting in 2 offers, you can do this and then withdraw one as nothing has been signed, but it maybe illegal on 'verbal contract' law and certainly immoral. When you make an offer it is an offer to buy at a certain price. If you do do this I wouldn't tell the EA.

So by my strategy you don't need to put in 2 offers at the same time, put one on at a time, there is no rush, its not 2007 again.

Share this post


Link to post
Share on other sites
Can't you ask to see the 'offer register' - I think this has been mentioned before... though whether it is accurate of course..

Not sure what this is. Do you ask the EA for this? What prevents the EA from showing you a fake offer?

Share this post


Link to post
Share on other sites
There are a few confirmed reports about EA lying on this forum, certainly in this market (well for me any market) do not get into a bidding war. Simply put ..walk away. If its true you don't want to change your bid, if false they will chase you and make up a 'fell through' story. As I have have suggested earlier, if this happens make a lower offer.

About putting in 2 offers, you can do this and then withdraw one as nothing has been signed, but it maybe illegal on 'verbal contract' law and certainly immoral. When you make an offer it is an offer to buy at a certain price. If you do do this I wouldn't tell the EA.

So by my strategy you don't need to put in 2 offers at the same time, put one on at a time, there is no rush, its not 2007 again.

A verbal contract is binding on every transaction apart from land. This was introduced to prevent men from loosing their house in card games. Strange but true.

Share this post


Link to post
Share on other sites
Not sure what this is. Do you ask the EA for this? What prevents the EA from showing you a fake offer?

I have never done this but if you place an offer on a property I believe you can see the offer book.

First of all your offer must be an improvement offer and there is some rule, which is the same for auctions, where the offer has to be over the reserve or asking price.

In an auction the auctioneer is allowed to take 'bids of the wall' until they reach the reserve price. At this point the auctioneer will announce the land/house is 'on the market' (a legal term) this means they have to accept the highest bid so the auctioneer will never pull a price off the wall as he would loose his current bid. Not a lot of people know this.

With common sale I am not 100% sure if the same applies as your bid is not binding until you sign. At the auction you sign the contract too and in some cases sign a document before hand( I have never done that).

I can never see an EA showing you the name of a bidder who has just topped you

Edited by BelfastVI

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   296 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

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.