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CHR1SW

Offer Accepted On House

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So I placed an offer on a 2 bed Semi, it's been accepted and I wasn't expecting this. It was originally up for £95k and they've accepted £75k. The house itself needs redecorating throughout and I'd need to install a new kitchen and bathroom.

A house in the same street was sold for £111k in 2005 and some were previously sold in 2002 for £40-50k.

I have a 15% deposit and I found a mortgage (fixed at 5.49% for 3 years) that would cost less than what I pay for my rent. £75k is also 3.5x my salary.

I was just testing the water with the offer. I see this week that the media might be finally turning bear and I'm now unsure what to do.

The house is in the North West. Can we expect more significant falls in the North West or should I go for it considering figures look good?

Edited by CHR1SW

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Not sure how anyone can give an opinion without seeing the property.

Sounds like you got a good deal, at this moment in time.

Do you want to live there, or were you just testing the water? A house is a home.

I don't have a crystal ball and neither does anyone else here.

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Not sure how anyone can give an opinion without seeing the property.

Sounds like you got a good deal, at this moment in time.

Do you want to live there, or were you just testing the water? A house is a home.

I don't have a crystal ball and neither does anyone else here.

This is the house.

house2r.jpg

I could happily live there. I've lived in this area for most of my life and it's close to the local schools and transport networks.

My main concern is the possibility of a huge crash in the North West. Can we expect house price to drop further than this, considering it's at 3.5x my salary already? How much did they fall in the previous crash?

Edited by CHR1SW

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How much did they fall in the previous crash?

In the North - not so much for a decent house. But it may be different this time ;)

We bought a 2-bed semi in Leeds in 1989, pretty-much at the peak, and sold in 94, pretty-much at the trough, for a tad more than we paid for it. But there was reasonable inflation running then, and we tidied it up quite a bit.

We moved to Berkshire, and there the peak had been higher and the trough lower; at that time it had fallen to be cheaper than Leeds - which certainly wasn't the case a few years previously.

Edited by Mal Volio

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Take it, and don't look back. Looks like you've got a decent price from the figures you give and from the photo. The seller appears to have been reasonable (assuming their initial price wasn't outrageously high). Having an offer accepted always means you'll be thinking "should I have gone in lower" but you might just find that was the minimum they would accept and they were keen to move on.

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Thanks for the replies.

The house itself is now owned by a bank. I think the believe the previous owner has passed away and the money from the sale will be going to some sort of charity.

My fear is that in 12-24 months time, I could a similar house at a similar price without any extensive remedial works required. This website has messed with my head. :lol:

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So I placed an offer on a 2 bed Semi, it's been accepted and I wasn't expecting this. It was originally up for £95k and they've accepted £75k. The house itself needs redecorating throughout and I'd need to install a new kitchen and bathroom.

A house in the same street was sold for £111k in 2005 and some were previously sold in 2002 for £40-50k.

I have a 15% deposit and I found a mortgage (fixed at 5.49% for 3 years) that would cost less than what I pay for my rent. £75k is also 3.5x my salary.

I was just testing the water with the offer. I see this week that the media might be finally turning bear and I'm now unsure what to do.

The house is in the North West. Can we expect more significant falls in the North West or should I go for it considering figures look good?

How much did they fall in the previous crash?

At £75K, your downside cannot be too bad. Your worse case scenario would be if prices went down to 2002 levels, and you would have a little negative equity. Of course if you have a repayment mortgage. you may have none.

I bought my first place at £80K in 1992 which was 3.5 times my salary at the time, and its value didn't budge for 5-6 years (may have fallen a bit), but I was happy with what I paid for it, and as my income was rising I was able to make part redemptions. When I sold in 2001, it has gone up to £170K.

Now I did buy post-crash but the crash then was associated with a lot of repossessions which drove prices down by about 30% from the peak. http://www.housepricecrash.co.uk/indices-nationwide-national-inflation.php Would be worth checking 2007 prices and seeing how much off them teh price you are paying is.

Yes, value could fall, but if it you are paying less than rent it sounds OK.

Sounds like seller is a realist.

Edited by arrgee1991

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  • 140 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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