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Cheeky Offers

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I'm a FTB currently renting my ideal house at £950 per month, and would love to buy. I think the prices are ridiculous (£300k ish) at the moment. A mortgage would cost me something like £1500 with my deposit, and I'm not prepared to go to that level.

I have been thinking for a while about mortgage size etc and decided that when I could pick up one of these houses at £200-225k then I would go for it.

I have seen an identical house on the market just round the corner, which has been on for about 6 months. The price has dropped from £305k to £295k and now £285k.

Checking nethouseprices, it would seem that this house was bought for £225k in August 2003, and the owners are trying to cash in. I'm thinking of making a cheeky offer, but I'm not quite sure where to pitch in.

I am sure if I put one in now it would be discounted without question, but in doing so would this help my cause in the long run, by letting the buyers and estate agents know that these properties could be sold at the right price?

I am in no rush to buy, and don't really care if I don't get this one as there are a lot of similar properties in my area, and as more go up for sale, I am happy to keep making cheeky offers until I get one in the right price bracket.

As a FTB, I am not 100% confident in the art of EA haggling. Can anyone advise me of the best ways to work the EA's in my favour, without making a ridiculous offer and losing credibility.

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Send a friend in on a Monday with an offer of £225.

After that is refused, make an offer on Friday afternoon of

£245.

Leave them to refuse that over the weekend.

Monday morning, first thing, offer £255 and say it is your

final offer.

Timing is everything

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I'd go and view it - then I'd do a second viewing to get the vendors excited. Then I'd think of lots of 'negative' points - is it near a road? Is it in a poor school catchment area? Does it need work doing? Find as many real 'negatives' as you can - find a similar property nearby with less faults on at a lower price. Say you love the house BUT all the above plus the fact that you are worried by the current slow market means that you would like to put in an offer but would only be willing to offer £xxx,xxx.

It's worth a try - vendors who have been on the market for ages and need to sell will have become very sensitive to their property's negative aspects as well as the slow market. The property I just sold was on a man road and I became obsessed with the road as a negative as it was all anybody ever said - in the end I grew to resent the house!

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Send a friend in on a Monday with an offer of £225.

After that is refused, make an offer on Friday afternoon of

£245.

Leave them to refuse that over the weekend.

Monday morning, first thing, offer £255 and say it is your

final offer.

Timing is everything

I like your style!

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Send a friend in on a Monday with an offer of £225.

After that is refused, make an offer on Friday afternoon of

£245.

Leave them to refuse that over the weekend.

Monday morning, first thing, offer £255 and say it is your

final offer.

Timing is everything

I wouldn't go to £255k, but would be worth me making on offer of £245k with the expectation of rejection? If they reject, then I can carry on waiting, if they accept then I am quids in.

I guess what I am asking is that if other houses come onto the market from the same EA's, are they then going to start quoting £305k (original price), £285k (price not selling), or somewhere between there and the £245k they know has been offered?

I am happy to wait unless I get the right price, but if I can put some pressure on the prices surely it would be in my favour.

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Don't pay £255K as you will be hit for Stamp Duty

There is a sort os suction force which will suck properties not selling at 285K down below £250K due to stamp duty

Wait till they lower the price first, then go in.

Most EA's will want your 'Friend' to prove they are serious i.e mortgage approval certificate so that may not work.

Don't forget IR are still at a very low level, so the repayments will appear low but when they go up you could easily be back to £1400 per month

Wai a bit more at least till the November Land registry figures these should be negative and will finally change any remaining positive sentiment.

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I've never ever had an EA ask to see a mortgage approval certificate or, indeed, any documentation at all to prove my financial seriousness ..... I've never even been asked who my mortgage offer is through.

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Don't pay £255K as you will be hit for Stamp Duty

There is a sort os suction force which will suck properties not selling at 285K down below £250K due to stamp duty

Wait till they lower the price first, then go in.

Most EA's will want your 'Friend' to prove they are serious i.e mortgage approval certificate so that may not work.

Don't forget IR are still at a very low level, so the repayments will appear low but when they go up you could easily be back to £1400 per month

Wai a bit more at least till the November Land registry figures these should be negative and will finally change any remaining positive sentiment.

Quite right - this is the sort of place that will dip below the stamp duty threshold. GO in low and don't go above 245! Or better still, wait for 18 months and offer 140K ;)

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There is a sort os suction force which will suck properties not selling at 285K down below £250K due to stamp duty

It's funny you should say that, because it never ceases to amaze me when, like today, I visited the terraced house section of rightmove for South Manchester only to discover one or two people have lowered their terrace house asking prices from ~£124,000 to "overs over £120,000". :wacko:

I don't understand what it is that these people don't understand!

:blink:

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I was talking to an estate agent a few months ago who said only that morning someone with a property for sale had come "running" into the office first thing in the morning asking the EA to lower his property to £119,000 ( it still hasn't sold).

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  • 301 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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