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

Wee Bit Of Advice

Recommended Posts

(re-edited this) whats the acceptable length of time to wait from when you make a second offer? Is it best to set some time limits?

Sorry if this sounds silly, its just we havent been in the world of price negotiations before:)

Edited by nozzadabest

Share this post


Link to post
Share on other sites

(re-edited this) whats the acceptable length of time to wait from when you make a second offer?  Is it best to set some time limits?

Sorry if this sounds silly, its just we havent been in the world of price negotiations before:)

If you really want the house, when you think you should have received a reply, phone the estate agent, and tell them that you are withdrawing the last offer, and instead you have changed the offer to £1000 less than the previous offer.

This will prove that you are serious, and the vendor will realise that if they continue to procastinate, they will get less than they could accept now.

Try it.

Share this post


Link to post
Share on other sites

While I agree with an aggressive strategy on negotiation when you are in power, make sure there isn't a reasonable explanation first.

IMO you should get a reply with a few days, often within 24hrs, the EA will usually pass on the result immediately. Vendors usually decide quickly or competing offers magically appear. If its longer than a week they are procrastinating or have something else serious in their lives. If a competing offer appears, withdraw. If the competing offer then disappears, again reduce your offer by 5%.

Share this post


Link to post
Share on other sites

I would definitely consider pulling out and waiting on the vendor coming crying back. However there is always the possibility that the EA is a twit (goes with the territory) and never passed the offer on. If so, the vendor will likely never find out about the offer and will not come back crying...

Share this post


Link to post
Share on other sites

Agree with BL here. Some EA's are that bloody dillusional at the the moment that they might not even pass on the offer. I feel this has happened with myself at the moment, for sites rather than property. But then again my offers have always been a lot lower than the asking price. :P

Share this post


Link to post
Share on other sites

Give it some time, if it isn't refused early on then you are in with a shout. Remember that it's the estate agent's job to squeeze you for as much as possible. They might easily say they need £x more or that there's another offer. Call round to the vendor's house if possible and ask them what they thought of the offer. If another offer goes in, ask to see some evidence in the EA's office.

Share this post


Link to post
Share on other sites

dmac, out of interest at what level below asking are you offering on sites?

looking at sites myself, but really not sure what is a 'reasonable' offer.

cheers, John.

Share this post


Link to post
Share on other sites

Is there any way of knowing whether there has been another genuine bid put on the property? Can your solicitor ask to see the bidding log on your behalf? How can they even tell if it is a genuine bid? :blink:

I don't like the idea of shill bidding - but how do you know when it is happening? :huh:

Edited by ravedave

Share this post


Link to post
Share on other sites

dmac, out of interest at what level below asking are you offering on sites?

looking at sites myself, but really not sure what is a 'reasonable' offer.

cheers, John.

I find this an interesting concept.

You, I assume, are assuming that the asking price is in any way relative to the actual price(what ever that may be).

This would translate to a x% below asking price = the correct price.

The problem is the asking price may be as much as 40% above the 'right price' or, in some cases the price may have been adjusted to, or put on at, or even below (rare) the correct price.

If you agree a property at, say 20% below asking price, it is no guarantee of acquiring value as that asking price may have had little bearing to current value. In other cases the asking price itself may be at or below, what could be the correct price.

Share this post


Link to post
Share on other sites

I find this an interesting concept.

You, I assume, are assuming that the asking price is in any way relative to the actual price(what ever that may be).

This would translate to a x% below asking price = the correct price.

The problem is the asking price may be as much as 40% above the 'right price' or, in some cases the price may have been adjusted to, or put on at, or even below (rare) the correct price.

If you agree a property at, say 20% below asking price, it is no guarantee of acquiring value as that asking price may have had little bearing to current value. In other cases the asking price itself may be at or below, what could be the correct price.

BVI, I've seen you make similar comments before but does your train of thinking imply that there is absolutely no logic to the valuation of property?

Share this post


Link to post
Share on other sites

I find this an interesting concept.

You, I assume, are assuming that the asking price is in any way relative to the actual price(what ever that may be).

This would translate to a x% below asking price = the correct price.

The problem is the asking price may be as much as 40% above the 'right price' or, in some cases the price may have been adjusted to, or put on at, or even below (rare) the correct price.

If you agree a property at, say 20% below asking price, it is no guarantee of acquiring value as that asking price may have had little bearing to current value. In other cases the asking price itself may be at or below, what could be the correct price.

I find it interesting to read how many on here are looking to buy or seeking advice on the buying process. Makes me wonder what average Joe on the street is thinking.

Share this post


Link to post
Share on other sites

dmac, out of interest at what level below asking are you offering on sites?

looking at sites myself, but really not sure what is a 'reasonable' offer.

cheers, John.

Near to half of asking price, maybe slightly over it. Never had any takers, however prices are really starting to come home to roost at the moment, just biding my time.

Share this post


Link to post
Share on other sites

So we finally got speaking to the EA on friday...well,coincidently, they had just heard back from the seller.

The offer was turned down as the seller thinks he can get better...and as there were still viewings, he believes that someone will offer him what he wants (the house has been on the market for a year.....i should imagine there arent too many people left to view-oh and the price hasnt been reduced,so there hasnt been any 'incentives' as it were)

The house is in no way what he values it at (in need of overall modernisation,etc) and our offer was very generous. But we are walking away and we know its the right decision. To be honest, if he does come back, we would only probably consider it (and I mean just consider) at a lot less that we offered in our opening bid.

Share this post


Link to post
Share on other sites

So we finally got speaking to the EA on friday...well,coincidently, they had just heard back from the seller.

The offer was turned down as the seller thinks he can get better...and as there were still viewings, he believes that someone will offer him what he wants (the house has been on the market for a year.....i should imagine there arent too many people left to view-oh and the price hasnt been reduced,so there hasnt been any 'incentives' as it were)

The house is in no way what he values it at (in need of overall modernisation,etc) and our offer was very generous. But we are walking away and we know its the right decision. To be honest, if he does come back, we would only probably consider it (and I mean just consider) at a lot less that we offered in our opening bid.

I think you got that right. They don't actually want to sell. Most sellers seem to be in this state of dreaming.

Share this post


Link to post
Share on other sites

So we finally got speaking to the EA on friday...well,coincidently, they had just heard back from the seller.

The offer was turned down as the seller thinks he can get better...and as there were still viewings, he believes that someone will offer him what he wants (the house has been on the market for a year.....i should imagine there arent too many people left to view-oh and the price hasnt been reduced,so there hasnt been any 'incentives' as it were)

The house is in no way what he values it at (in need of overall modernisation,etc) and our offer was very generous. But we are walking away and we know its the right decision. To be honest, if he does come back, we would only probably consider it (and I mean just consider) at a lot less that we offered in our opening bid.

It is very common at present to get an offer refused as there seems to be a new wave of denial regarding asking prices. However it does not make sense to offer a lot less than before just because they refused your initial offer, unless you think that the market has continued to fall and you initial offer is now unrealistic. We have offered on several properties and have been refused, they are all still for sale. We would not offer the same as we did on the houses that we did on a year ago, as prices were higher and choice more limited then. We would still take the recent ones at our original offers. I would suggest that if the house has been on for a year and yours is the highest offer, you should forget about it and look elsewhere, as the vendor will usually be too stubborn to accept.

Share this post


Link to post
Share on other sites

belfastvi

of course the asking price is related to the final selling price.

it will obviously vary as any seller can ask any price.

but, as a broad concept asking prices are a starting point, and if people are routinely achieving (say) 20% less than asking

price it tells you where the market is going in the same way as market makers paying 20% less than the bid price means the price is likely to drop as they don't want stock.

Share this post


Link to post
Share on other sites

I am reminded of another EA tactic to do with multiple viewings. We arranged to see the house at a certain time but when we got there it was an open house viewing, with a few others walking around. The EA thought there was 'quite a bit of interest'. The house was overpriced and needless to say no-one actually made an offer, the house was taken off the market shortly after but reappeared under a new EA a few months later (at the same price).

Share this post


Link to post
Share on other sites

belfastvi

of course the asking price is related to the final selling price.

it will obviously vary as any seller can ask any price.

but, as a broad concept asking prices are a starting point, and if people are routinely achieving (say) 20% less than asking

price it tells you where the market is going in the same way as market makers paying 20% less than the bid price means the price is likely to drop as they don't want stock.

Again I will say you are assuming that every asking price is pitched at 20% above what you consider the right price to be. I don't agree. New Build, for example are achieving the majority of their sales at asking prices.

The resale market will differ. Most, I agree are selling at under asking price but I would be surprised if, on average that figure is 20% asking price. If the house has remained on the market, unadjusted from the boom days then yes significant reduction in price would have to take place to secure a deal.

However, most have been chasing the market down and I imagine final adjustments take place to secure the deal I do not believe that would be 20%.

Share this post


Link to post
Share on other sites

Again I will say you are assuming that every asking price is pitched at 20% above what you consider the right price to be. I don't agree. New Build, for example are achieving the majority of their sales at asking prices.

The resale market will differ. Most, I agree are selling at under asking price but I would be surprised if, on average that figure is 20% asking price. If the house has remained on the market, unadjusted from the boom days then yes significant reduction in price would have to take place to secure a deal.

However, most have been chasing the market down and I imagine final adjustments take place to secure the deal I do not believe that would be 20%.

This I find interesting. Are you saying VI that the majority of new builds are achieving prices as set out in the promotional literature? This must be one of the reason there are still a huge amount of unsold new build stock around my way. In fact I think I have yet to come across any new build stock where I have looked at the literature and thought “oh wait that represents value for money” and if as you say stock is shifting at these levels there truly must be one born everyday.

Share this post


Link to post
Share on other sites

This I find interesting. Are you saying VI that the majority of new builds are achieving prices as set out in the promotional literature? This must be one of the reason there are still a huge amount of unsold new build stock around my way. In fact I think I have yet to come across any new build stock where I have looked at the literature and thought “oh wait that represents value for money” and if as you say stock is shifting at these levels there truly must be one born everyday.

The ones that are selling, that is. I am sure there are many, particularly west of the Bann that will struggle to put it mildly to obtain the prices they are looking.

I watch this market closely and I see what is selling. For well over 12 months the New Build sector has been selling at asking prices. The process of pricing in a £10k discount onto the price simply doesn't work. It has to be priced right or people wont look at it.

Total housing sales volume is well, well down but new build, as a proportion of sales has risen (still down overall). The UUJ reports emphases that new build is taking up a greater volume as that sector was faster to adjust its pricing level.

The newbuild sector is selling, on average 80 to 100 houses per week. Whilst you may not view any of them as value for money clearly many others continue to do. I agree more did when they were almost 70% more expensive.

Share this post


Link to post
Share on other sites

The ones that are selling, that is. I am sure there are many, particularly west of the Bann that will struggle to put it mildly to obtain the prices they are looking.

I watch this market closely and I see what is selling. For well over 12 months the New Build sector has been selling at asking prices. The process of pricing in a £10k discount onto the price simply doesn't work. It has to be priced right or people wont look at it.

Total housing sales volume is well, well down but new build, as a proportion of sales has risen (still down overall). The UUJ reports emphases that new build is taking up a greater volume as that sector was faster to adjust its pricing level.

The newbuild sector is selling, on average 80 to 100 houses per week. Whilst you may not view any of them as value for money clearly many others continue to do. I agree more did when they were almost 70% more expensive.

the majority of which are most likely being bought by government employees

with morgages from government backed banks

so no cause for concern then?

rock on!

Share this post


Link to post
Share on other sites

the majority of which are most likely being bought by government employees

with morgages from government backed banks

so no cause for concern then?

rock on!

the new properties on hyndford street east belfast have been priced the same for the last 2 years, completed 3 years ago.

http://www.propertynews.com/brochure.php?r=1&c=11&s=101017315&i=2&p=1591594859&fp=1&sort=h2l

still asking for £130,000 for a small terrace house

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 145 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%



×
×
  • Create New...

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.