Advice Please.

[MUFCOK]

I'm currently looking to put an offer in on a property I have recently viewed (I will be going back again, at least once more before making an offer.) The house is up for £129,950 (it has been recently reduced from £139,950.) The owners are basically desperate to sell as they have already committed to buy a new house in Scotland. The vendor informed me that they have had an offer from a woman (that very day!!!) and the EA confirmed that a man had made an offer on the property the day after I viewed it (the buyer's sex had changed in 24 hrs, hmmm.) The vendor stated that the person putting the bid in has a property of his/her own to sell before he/she could move. I know for a fact that the vendors purchased the property for £66,500 less than four years ago! I am now wondering what I should (initially) bid for the property taking into consideration that the vendors are pretty desperate to sell and that I am in no hurry to move. I would also be very greatful for any information on how much EA's inflate asking prices (in general.)

Any suggestions would be very helpful, thanks in advance.

Paul.

[Beans-on-Toast Britain]

The following thread deals with exactly the same issue. In this case, the poster decided not to buy at all.

http://www.housepricecrash.co.uk/forum/ind...topic=13004&hl=

I'd offer exactly the same advise again, you'd be mad to buy. Continue to save for a deposit and in a few years time, you'll be able to buy somewhere far nicer than the place you're looking at now. The alternative is you'll be stuck for the next decade with negative equity (believe me, I know alot of people that got caught last time and this crash will be much worse).

Just for fun though I'd offer 110,000k, to see if there's any interest from he vendor. Even at that price though, you be crazy as the market is heading back to 1998-1999 prices.

[theChuz]

I'm currently looking to put an offer in on a property I have recently viewed (I will be going back again, at least once more before making an offer.) The house is up for £129,950 (it has been recently reduced from £139,950.) The owners are basically desperate to sell as they have already committed to buy a new house in Scotland. The vendor informed me that they have had an offer from a woman (that very day!!!) and the EA confirmed that  a man had made an offer on the property the day after I viewed it (the buyer's sex had changed in 24 hrs, hmmm.) The vendor stated that the person putting the bid in has a property of his/her own to sell before he/she could move.  I know for a fact that the vendors purchased the property for £66,500 less than four years ago! I am now wondering what I should (initially) bid for the property taking into consideration that the vendors are pretty desperate to sell and that I am in no hurry to move. I would also be very greatful for any information on how much EA's inflate asking prices (in general.)

Any suggestions would be very helpful, thanks in advance.

Paul.

<{POST_SNAPBACK}>

The very fact that you are considering it amazes me, if you dont want to pay double than what the vendor paid 4 years ago thats up to you, I would atleast try to pull them down to 120K below the stamp duty threshold.

Sort ya head out.

[Warwickshire Lad]

Any suggestions would be very helpful, thanks in advance.

<{POST_SNAPBACK}>

Try finding a Buy-To-Let investor who is desperate to get out, and low-ball him an offer. He might bite your hand-off.

Repossessions from BTL investors are rising.

http://www.in2perspective.com/articles/rep...ket-for-b-b.jsp

Also nothing is rosy in the housing market. I wouldn't buy when there is so much uncertainty.

I suggest you read my site (in my sig).

[ril]

Try finding a Buy-To-Let investor who is desperate to get out, and low-ball him an offer. He might bite your hand-off.

Repossessions from BTL investors are rising.

http://www.in2perspective.com/articles/rep...ket-for-b-b.jsp

Also nothing is rosy in the housing market.  I wouldn't buy when there is so much uncertainty.

I suggest you read my site (in my sig).

<{POST_SNAPBACK}>

If you want to and have to buy and it's on for £129,950 offer him -%15 = £110k, you may have to go to £115k if you love the place, but not a penny more ... or wait 6 months and offer 100k

[MUFCOK]

Thanks everybody for your responses. Just reading some of the articles you pointed out. Might sit tight and keep saving!!!!

[gilf]

Thanks everybody for your responses. Just reading some of the articles you pointed out. Might sit tight and keep saving!!!!

<{POST_SNAPBACK}>

I think it might be worth a cheeky £110K offer. The biggest thing in your favour is the property is just above the £120K stamp duty threashold so I don't think they will be able to sell for what more than that.

While I think house prices will go down over the next few years, I think securing a place at what would be a 30% ish discount off the original asking price wouldn't be too bad.

Thing is the great thing from a buyers point of view is that an offer is in now way binding until you sign the contracts (which would be a few months off). So if we see house prices fall further you can always pull out at a later date.

Edited August 12, 2005 by gilf

[Guest]

Don't forget to factor in a "silly" (high) interest rate into your affordability calculations to protect yourself.

You cannot assume that 50-year low IRs are going to be the norm. Look at how the increases to 4.75% stopped everything. This was probably a good measure of how close some people have cut to the bone recently.

[MUFCOK]

I was thinking of offering around £110k just to see what they would say (I know most of you will think I'm mad.) That would still represent a £43,500 profit on their behalf (virtually no other investment would offer a yield of that over 4 years.) I would definately not go over £115k though!

[laurejon]

Good Point you do have to factor in future interest rate rises when considering the options.

Will the ridiculously cheap long term fixed rates we see today be available in 5 yrs or will the rates be back to the good old days when we say 17% base rate.

A cheap longer term 10yrs plus rate today may well be more cost effective than a 25% discount on the price in five years and a mortgage rate of 18%.

Depends on how much you borrow and for how long

[Guest]

Mind if I ask -

How long have you been following house price movement in your local area?

I have been doing this for seven months now.

In my local area, I know what's happening: There is no upward price movement at the bottom end of the market. The same houses keep on coming up over and over again on the EA web sites, unsold. I know of only two sales, one 10% below original asking price, but tens of houses that still haven't sold.

Based on viewings I did a few months back, I know of a couple of houses owned by 'Sarah Beeny' wannabes. These people have dropped their advertised asking prices, say 5 grand, we're talking 140K->135K, 130K -> 125K. These are the people who are seriously going to want to sell, and take that "profit" that Sarah promised them in 2002.

Some people ducked under the 120K stamp duty band, but here we are in August, and they're still For Sale.

I also know of a selection of houses that disappeared from Rightmove, only to re-appear shortly afterwards under a new estate agent accompanied by a lower price.

I did put in an offer of 10% below, back in march, but I got chased almost up to the asking price before backing out. I admit this was due to inexperience. However, I reckon that since the age old 'game' is to offer 5-10% below asking, then anyone who does this will just get chased upwards cos they know you've got the money. I advise putting in significantly lower offers. Make your grandmother blush!

Keep saving, keep an eye on what's happening in the market in the area you wish to buy. There's no such thing as a forced buyer, but there is such a thing as a forced seller! Time can only make it worse for these people.

[ILikeBigBoobs]

You've given us neither the type of property or the area it's in so worthwhile advice may be difficult to offer.

However if it was reasonably priced for the area at £139.950 and has been reduced to £129,950 it may well now be a bargain at around £120K and, as the national average discounts from asking are around 4.5% then expecting to buy at £110K seems rather hopeful to me. And lets face it at £120K ish it's quite affordable for many buyers (including yourself it would appear )..

I'm not sure what the 'profit' the seller has made has got to do with the offer you should make?

Edited August 12, 2005 by ILikeBigBoobs

[Guest]

I'm not sure what the 'profit' the seller has made has got to do with the offer you should make?

<{POST_SNAPBACK}>

It's unrelated. You offer what you think.

However, these people are likely to be getting twitchy. This was their investment exercise. They're not living in the house, it's costing them money to have it hanging around.

[MUFCOK]

You've given us neither the type of property or the area it's in so worthwhile advice may be difficult to offer.

However if it was reasonably priced for the area at £139.950  and has been reduced to £129,950 it may well now be a bargain at around £120K and, as the national average discounts from asking are around 4.5% then expecting to buy at £110K seems rather hopeful to me. And lets face it at £120K ish it's quite affordable for many buyers (including yourself it would appear )..

<{POST_SNAPBACK}>

It's a 2 bedroom semi (in Tameside.) It is a very nice property, far bigger than others that are on the market in that area for more money. The vendors are pretty desperate to sell as they are relocating (north of the border) and have already bought a house up there. I think it would be probably be worth making a cheeky offer of £110k (fully expecting to offer more in the end.)

I have been watching the market for about 5 months now in that area - it's pretty stagnant (hence the drop of £10k in this particular property.)

[Guest]

Stockport here.

Don't let the southerners on this board talk you up in price, chances are they won't have a handle on what North-west prices should be wrt London/South East.

Ok - So I'll get flamed now

far bigger than others that are on the market in that area for more money.

Any reason for Tameside? Have you checked out Bredbury? I did a few months ago. EAs forwarded me some nice 2-bed semis for less than 130K back in March/April time, one was 117K

[MUFCOK]

Stockport here.

Don't let the southerners on this board talk you up in price, chances are they won't have a handle on what North-west prices should be wrt London/South East.

Ok - So I'll get flamed now 

Any reason for Tameside? Have you checked out Bredbury? I did a few months ago. EAs forwarded me some nice 2-bed semis for less than 130K back in March/April time, one was 117K

<{POST_SNAPBACK}>

It's closer to work for me.

[Guest]

Will the ridiculously cheap long term fixed rates we see today be available in 5 yrs or will the rates be back to the good old days when we say 17% base rate.

<{POST_SNAPBACK}>

Blimey Laurejon! I didn't have you down as being the most apocalyptic bear on this web site! 17% base rate would well and truly stuff everyone who's bought in this boom. That would be one helluva crash...

[munimula]

Any suggestions would be very helpful, thanks in advance.

<{POST_SNAPBACK}>

Don't buy now - it will be the biggest mistake of your life

[ILikeBigBoobs]

Stockport here.

Don't let the southerners on this board talk you up in price, chances are they won't have a handle on what North-west prices should be wrt London/South East.

Ok - So I'll get flamed now 

Any reason for Tameside? Have you checked out Bredbury? I did a few months ago. EAs forwarded me some nice 2-bed semis for less than 130K back in March/April time, one was 117K

<{POST_SNAPBACK}>

I'm not a Southerner - Yorkshire in fact. Strangley enough my girlfriend owns a pair of flats in the Bredbury area - not that I'd recommend BTL there.