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stoneymaloney

What Offer Would You Make? Help Appreciated

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Hi - finally found nice 2 bed house in Bucks where houses still overpriced and sell pretty quickly

New build in '01 - 175k

Current Owners paid 235k in July '06

Asking 249,950

Agent indicating not much below asking price...and won't disclose reason for sale so makes it difficult to gauge whether vendors will accept much less than they paid for it...

We are currently renting at £900 pcm and as we have a five month old just feel we need some stability although my family live in Switzerland and feel buying a house is a crazy thing to do at any time...and I share their opinion to some degree..and am not bothered about in laws who shout buy buy buy at every opportunity

We have 40k in savings and a combined income of 70k however I only want to go back to work PT so additional savings aren't going to be easy to come by. Offer Low? Give it a miss? Stay renting? Aaaaaarghhh!

Edited by stoneymaloney

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Sorry - A Quarter of a Million for a 2 Bedroom House?!!

Thank heavens I don't live in Buckinghamshire! :blink: Same house up here in Shropshire you'd get for £140k or so.

And yes, I too have family in Switzerland and the Swiss know what they're talking about when it comes to finance. There they don't buy a house unless they have the money. Renting is the norm, and it works well. I'm renting here in Shropshire at the moment and I'm saving (and have saved) a fortune. Will buy when I can afford it... thankfully there's a depression on! :P

Edited by Mr Deflation

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Sorry - A Quarter of a Million for a 2 Bedroom House?!!

Thank heavens I don't live in Buckinghamshire! :blink: Same house up here in Shropshire you'd get for £140k or so.

And yes, I too have family in Switzerland and the Swiss know what they're talking about when it comes to finance. There they don't buy a house unless they have the money. Renting is the norm, and it works well. I'm renting here in Shropshire at the moment and I'm saving (and have saved) a fortune. Will buy when I can afford it... thankfully there's a depression on! :P

Thanks for taking the time to reply

The real rub...I don't even want to live in Bucks! Crazy situation. You are right - a quarter of a Million for a two bed is ridiculous and that's cheap round here - two miles away and you are looking at £450k for a two bed flat. Prices seem to hold which is why I don't know whether to bite the bullet. We are buying to live, not to make a profit and having watched the market here for the last 12 months, there seems to be no real reductions - demand still outweighing supply I guess.

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I think it's more the case of sellers not wishing to lower their asking prices as they have large mortgages and would be in negative equity if they sold at (what they regard) a low price. These sellers will either have to eventually lower their prices as time goes by in order to sell, or will wait until the economy recovers properly and sell - though that might be 2 years or so! The only people buying at these (still ridiculously high) prices are cash-rich buyers who think the market has bottomed. Well, I don't think it has and I see some more month-on-month falls this autumn.

So my advice would be: either offer a lower price for this house (£210k or so), wait for the bottom of the market to occur (probably in 9 months' time... though that is purely speculation on my part) and keep renting for now, or find somewhere cheaper to live! If you are able to move to a cheaper county then maybe this is a good time to do so. Some counties are also seeing greater falls than others - it seems the SE has been more resilient to price falls, if only because sellers don't want to sell at lower (more reasonable) prices.

Edited by Mr Deflation

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I think it's more the case of sellers not wishing to lower their asking prices as they have large mortgages and would be in negative equity if they sold at (what they regard) a low price. These sellers will either have to eventually lower their prices as time goes by in order to sell, or will wait until the economy recovers properly and sell - though that might be 2 years or so! The only people buying at these (still ridiculously high) prices are cash-rich buyers who think the market has bottomed. Well, I don't think it has and I see some more month-on-month falls this autumn.

So my advice would be: either offer a lower price for this house (�210k or so), wait for the bottom of the market to occur (probably in 9 months' time... though that is purely speculation on my part) and keep renting for now, or find somewhere cheaper to live! If you are able to move to a cheaper county then maybe this is a good time to do so. Some counties are also seeing greater falls than others - it seems the SE has been more resilient to price falls, if only because sellers don't want to sell at lower (more reasonable) prices.

Just phoned to arrange second viewing and it's gone! Was only on the market on Friday! Ah well, you lose some you lose some...Shropshire here I come!

Thanks and good luck!

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Thanks - I find it amazing how houses are still selling at such high prices in your area. I guess it's the proximity to London and the well paid jobs. Do you know if the house was sold for the £249,950 asking price?

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As for moving to Shropshire - this is what £250k buys you in the glorious south Shropshire countryside!

http://www.rightmove.co.uk/property-for-sa...y-25365401.html

http://www.rightmove.co.uk/property-for-sa...y-25884242.html

Though of course it depends on what you both work in - high paid jobs are not easy to come by in this part of the world... but we value quality of life over quantity of salary here. ;)

Edited by Mr Deflation

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Just phoned to arrange second viewing and it's gone! Was only on the market on Friday! Ah well, you lose some you lose some...Shropshire here I come!

Thanks and good luck!

Count your blessings it's gone! I know you want to buy now, but don't, second bigger round of falls just coming, sit it out, this could take a few years yet.

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Count your blessings it's gone! I know you want to buy now, but don't, second bigger round of falls just coming, sit it out, this could take a few years yet.

Thanks I'm sure you are right - I think we are in for the long haul. It's not a question of affordability anymore - it's a question of sanity and 250k for a two bed is pure madness! (recite to self whilst rocking backard and forward)

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£250K does seem a lot of money for this house, considering the owners only paid £235K in 2006. It depends if the people have done any significant improvements to the place in the last 2 years (eg added a conservatory, new kitchen etc) to justify the price.

My parents live in Bucks (High Wycombe) and they were looking at a detached bungalow there. It was initially on for £280K but was recently reduced to £235K. My parents offered £230K and asked the seller to take it off the market for 1 month to see if they could sell their own house. The vendor agreed and my parents then got a HIP on their house and the agent started advertising it. The agent got 5 people up to view on the 1st day including a 1st time buyer. The FTB had a 25% deposit and a mortgage in principle sorted out. My parent's place is a tidy 1970s 3 bed end terrace and it went on at £219,950 and the FTB made an offer on the 1st day. My folks accepted their offer of £210,950 because they had been watching this other bungalow for months on at £280K and knew it wouldn't hang around long at the newer more realistic price.

Have any similar houses in the street sold in 2007? You might find that this house is still at the 2007 peak price for that street!

Doing the sums, a similar bungalow in the street went for £285K in October 2007. This means my folks got just over 19% off the peak price for the bungalow they want. Nothing similar in their street sold in 2007, so I'm not sure what their terrace was worth at peak. The last terrace house sold in Feb 2006 for £202,500. If the peak price was estimated at £235K then my folks have accepted an offer within 11% of the peak and this was achieved on the first day the house was marketed.

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As for moving to Shropshire - this is what £250k buys you in the glorious south Shropshire countryside!

http://www.rightmove.co.uk/property-for-sa...y-25365401.html

http://www.rightmove.co.uk/property-for-sa...y-25884242.html

Though of course it depends on what you both work in - high paid jobs are not easy to come by in this part of the world... but we value quality of life over quantity of salary here. ;)

Looks absolutely beautiful!

We both work for the NHS in regular nursing jobs but hubby loves his job so much he doesn't want to leave...even with the housing situation here :(

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Just phoned to arrange second viewing and it's gone! Was only on the market on Friday! Ah well, you lose some you lose some...Shropshire here I come!

Thanks and good luck!

Also: we had the same situation (in Berks) ... and the EA said that they new 'Sold - STC' situation that transpired between our 1st and second viewings was 'at the asking price' ...

But this is - at best - disingenuous because the house is still (as good as) 'on the market' (marked STC on Rightmove) at 25k below the asking price we were looking at. OK, that's only 10% less than what *was* the asking price ... but the EA just 're-defined' the asking price to make the statement about how close the offer to asking price was ... to 'make' it true!

*And* the house is still on the market so I do not think that the offer really was at the public-visible price ... because the EA refused (perhaps for legal reasons?) to declare that the offer on the table was.

*sigh* ... EAs ... I just don't know ...

Aidanapword

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if you are looking for stability for your child then shouldn't you be aiming for security, which means not committing yourself to excessive debt as we enter into a recession. Paying over the odds for a house is just that.

Then there is the bigger picture. a mortgage lasts for 25 years. You need to pay for a lot of trainers and school trips in that time. Surely waiting a bit longer to ensure that your mortgage is just that little bit less in 2020 is a good thing for your family stability.

In my opinion buying a house with a mortgage creates only the illusion of stability. Having money in the bank and no financial burdens is the kind of stability I would have thought you would most benefit from.

I'd also suggest that you have until your child starts school before you really need to commit to staying put somewhere. Before that age kids are surprisingly relaxed about moving house.

IMHO resist the temptation and wait.

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