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rex

I Am Finally Purchasing

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Our top budget is 900k.

Two houses have been on market for v long time. One at 1.2mill. The other at 1.15mill. Both houses dropped price a few weeks ago to 975k. We went to see both. I contacted both agents and said whichever house accepted my offer of 900k first, we would go with that seller. One seller tried to haggle but I explained my position again, that it was a take it or leave it offer. Both sellers accepted my offer. We chose one and we are moving forward with sale (we are in rented). The house we are going for has been on market since May; one other house sale they had agreed fell through. I'm comfortable with buying now given that its a 22% drop from their original May price; and an 8% drop from their recently reduced price. Yes, the market will fall further, but I'm comfortable that the reductions I have already negotiated will absorb some of those falls, and we'll be there for a good long time to come (assuming we actually reach completion) ......

One agent was very polite throughout and had no comment on my offer. The other slightly terse, but civil. Again, did not suggest that my offer was unreasonable; he did initially ask me if I realised that the house had already dropped significantly in price. I said yes, and that the other house I was offering on had also just dropped significantly in price. He had nothing to say after that.

The interesting point is that both sets of sellers, of premium houses, were prepared to negotiate that far off their original prices .....

Edited by rex

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Our top budget is 900k.

Two houses have been on market for v long time. One at 1.2mill. The other at 1.15mill. Both houses dropped price a few weeks ago to 975k. We went to see both. I contacted both agents and said whichever house accepted my offer of 900k first, we would go with that seller. One seller tried to haggle but I explained my position again, that it was a take it or leave it offer. Both sellers accepted my offer. We chose one and we are moving forward with sale (we are in rented). The house we are going for has been on market since May; one other house sale they had agreed fell through. I'm comfortable with buying now given that its a 22% drop from their original May price; and an 8% drop from their recently reduced price. Yes, the market will fall further, but I'm comfortable that the reductions I have already negotiated will absorb some of those falls, and we'll be there for a good long time to come (assuming we actually reach completion) ......

One agent was very polite throughout and had no comment on my offer. The other slightly terse, but civil. Again, did not suggest that my offer was unreasonable; he did initially ask me if I realised that the house had already dropped significantly in price. I said yes, and that the other house I was offering on had also just dropped significantly in price. He had nothing to say after that.

The interesting point is that both sets of sellers, of premium houses, were prepared to negotiate that far off their original prices .....

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Good, finally people are waking up to the fact that they will not get top dollar anymore. We are in a similar position STR, top budget £700,000. We were encouraged by the Agent to view a property done up by a builder on at £825,000. Told the Agent it was well over our top line and he said that the seller knew it was way over and was just trying his luck. When we saw the house, it was nicely done, but easy to see it was way over, taking into account location, plot size and square footage we thought it was more of the £700,000 price mark. Because of our position as cash buyers and the way the market is headed we put in an offer of £650,000. Needless to say it was turned down, the Agent was ok about it and sdaid that any offer was better than no offers at all. What I can't understand though is why the Agent valued it at £825,000. As a point of interest, the highest price that has ever been achieved in that Road was £755,000.

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The interesting point is that both sets of sellers, of premium houses, were prepared to negotiate that far off their original prices .....

The thing about premium houses is that it's very easy for the EA to overvalue them by several hundred K. If there are no similar properties that have sold recently they just plump a figure from the air.

This is not (well it ought not be) the case with standard 3 bed boxes.

tim

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Our top budget is 900k.

The interesting point is that both sets of sellers, of premium houses, were prepared to negotiate that far off their original prices .....

These kind of houses come up for wildly different prices with different agents. THEY ARE WORTH WHAT SOMEONE IS PREPARED TO PAY! That was £900k just now. It is easier for Ea's to inflate these and then, in time honoured fashio have the purchaser feel it is a bargain on accepting a lower offer.

There are homes in north Brighton which may alter by even half a million.

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Maybe tomorow?

Spiney.

It must be much harder to sell a top end house at the present time therefore its a good time to buy if you can afford it. When the banks start lending again the market will start rising again and these houses will be outside your range.

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The Masked Tulip, I suppose it does sound like we are lucky that we have a good amount of cash, but sadly we don't have my dear old Mum in Law anymore, and I know what I would rather have...

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It must be much harder to sell a top end house at the present time therefore its a good time to buy if you can afford it. When the banks start lending again the market will start rising again and these houses will be outside your range.

Mmmm...............the banks are lending...............but only amounts that borrowers can afford..............prices will continue to adjust to this new reality..............the unsustainable bubble is collapsing fast.............it'll be a long time before it starts rising again.

Only buy now with a big discount to cushion further falls.

PS Are you an estate agent with time on his hands?

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You get better value for money at the top end of the market becuase fewer and fewer people can afford an expensive property, whilst nearly everyone can afford the cheapest properties so with the greatest demand this will push up the prices of said cheapest properties.

Except that the prices at the lower end are also completely divorced from the reality of lower earners wages and the amounts that lenders are willing to advance them without the bubble-era mentality of self-cert, interest only and 125% mortgages.

All prices will adjust to this new reality, all sectors of the market in all locations will be affected (maybe to varying degrees), just as they were on the way up.

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Becuase of teh demands at the bottom end properties ie everyone or the greatest % of the population can afford the cheapest houses its only natural to skew property prices making them the least value for money properties going. I havent said its right or wrong though only pointed out the obvious (well at least obvious to me). Likewise its also an incentive for people to better themselves but some people are still lazy and follow the crowd as we see with everyone piling into degree studies.

Betterment doesnt have to mean getting teh best education. I ducked out of doing a degree and decided to chance it doing my own thing and I think thats served me better by taking risks with the different jobs in different industries I have worked in before I decided to work for myself writing software. And thats my point people need to take risks if they want to better themselves and if something fails learn from those mistakes, pick yourself up and try again although admittedly it can be hard to pick yourself up again if you think the odds are stacked against you.

Ah right, I thought you were making the case that the cheaper properties would be rising in price while top end of the market was falling................

I agree that at the further up the market you go you get better value, hence the reason it's often profitable to break up large victorians into smaller units.

Edited by luigi

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Have to agree this is a really good thing that people are beginning to realise that prices are having to fall. Prices falling and banks lending and the market will recovered to some semblence of normality. I imagine falling prices might put banks off lending though, if they expect prices to fall in the future this will increase their risk, I guess they need to minimise this with big deposits?

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So. Mortgage valuation was no problem. Valued at 900k. But had a second survey (simply because the mortgage company's surveyor was quoting too high a price for a proper survey, as opposed to a valuation), and the second surveyor gave a valuation as well as a survey. He SEEMS to be indicating that notwithstanding the 250k price drop from initial asking price, we are paying "at the top of the price range" for the property. So I take from that he means he thinks we're paying full whack. Need to call him now to work out what to do. Anyone know anything about "price ranges" - I've heard surveyors talk about that before.

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900K and 700K - wow.

I wish you both the best and hope you get the homes you will be happy with. Best of luck.

If you get the right seller it can be done.  My house was sold for £900k in 2008 and I got it for £750k in 2009.  Meanwhile one of my neighbours is on at £980k in 2010????

Of course my neighbour is a private seller, where as I bought from a developed who got left with the house after a part exchange. My biggest satisfaction though was getting the house for the 2004 sale prices (well within £5k).

Edited by Mikhail Liebenstein

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The Masked Tulip, I suppose it does sound like we are lucky that we have a good amount of cash, but sadly we don't have my dear old Mum in Law anymore, and I know what I would rather have...

you sounds lucky in family and funding!

personally, I'd swap my MiL for an old fiver and a bag of crisps.

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  • 150 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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