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If We All Put In Offers At 20% Below Asking...

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I've been waiting for the proper crash for 12 years (as I left Uni in 1998 house prices start to rise faster than my wage... like a helium baloon that a small child has accidentially let go, and watches rise up into the sky!). I can wait another couple of years or more, but it is so frustrating...

The UK housing market has long since ground to a halt of course, and FTBs especially are not buying. Sellers still seem very reluctant to drop prices... is it possible they just don't know (or refuse to believe) that there are 1000s of people waiting to buy, once prices come down? Could the EAs be protecting them from that truth, by spewing the b******t about the problem being caused by lack of lending?

If enough people put in offers at 20% (or more) below asking price, would the offers start to feed through to sellers? Or would the EAs just keep the bids to themselves?

Or do we just sit and wait for forced sellers to start a trend for lower prices?

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I am not convinced the problem is EAs. A Percentage of a house sale with 25% off is better than no house sale at all.

I hope you have a plan b, as surely your 12 years of waiting was obviously wrong. Just think you'd be about 50% through your mortgage now.

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Neil P

Actually I agree with you. I think EAs are entirely the problem. Whilst JS argues 'A Percentage of a house sale with 25% off is better than no house sale at all' which you'd think is true, the problem in my area (mid-sussex) is that EAs are competing to put houses on their books so they are exaggerating houses prices and distorting vendors view on how much their house is really worth. Result a massive drop in house Sales that can't just be explained by so called lack of credit, especillaywhen there are far more credit products available then there were say in the last housing boom under Thatcher. A to test the theory as to whether EAs will take an offer - even with just 15% off - again not in my area - I've sold and they couldn't be less interested. My second theory is they are all just too thick to do the maths and too arogant to realise that at this rate some more of them will go bust.

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I hope you have a plan b, as surely your 12 years of waiting was obviously wrong. Just think you'd be about 50% through your mortgage now.

Wow what a genius, wish I had your hindsight :rolleyes:

Edited by wealthy

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[quote name='Neilp2000' timestamp='1292825258' post='2828534'

If enough people put in offers at 20% (or more) below asking price, would the offers start to feed through to sellers? Or would the EAs just keep the bids to themselves?

Yes, the offers would get through to the vendor because the EA is legally obliged to pass on all offers, but there is a problem. I've been putting in -20-40% offers for the past couple of years, and a couple of EA's are now reluctant to grant me viewings!

As a cash buyer they don't want to lose me from their books, but I'm getting steered towards the desperate sellers. All well and good you might say, except there's a strong correlation between desperate sellers and blighted, sh1tty properties that I wouldn't bid on at any price!

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There is a danger that EA's will simply increase asking prices in response to this.

I would suggest it would take a lot of offers based on 'local earnings' supporting a given price before any desired effect could infiltrate the minds of vendors and EA's.

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Only put in a low offer if you actually want to buy it. And then only put in low offers.

If you want prices to come down, then don't put in any offers whatsoever.

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I've been waiting for the proper crash for 12 years (as I left Uni in 1998 house prices start to rise faster than my wage... like a helium baloon that a small child has accidentially let go, and watches rise up into the sky!). I can wait another couple of years or more, but it is so frustrating...

The UK housing market has long since ground to a halt of course, and FTBs especially are not buying. Sellers still seem very reluctant to drop prices... is it possible they just don't know (or refuse to believe) that there are 1000s of people waiting to buy, once prices come down? Could the EAs be protecting them from that truth, by spewing the b******t about the problem being caused by lack of lending?

If enough people put in offers at 20% (or more) below asking price, would the offers start to feed through to sellers? Or would the EAs just keep the bids to themselves?

Or do we just sit and wait for forced sellers to start a trend for lower prices?

I graduated in 2000, my wife in 2003. Very similar to your case. And also a bit "Tired of Waiting" for the crash - a correction, actually, just down to decent, honest, fair, post bubble levels. But patience will be rewarded, I am sure of it.

I think yours is a good idea. Agents are obliged by law to inform the seller.

In another thread a buyer said he is putting many offers at 30-40% below, and says the offer will remain open, until he buys a property. He will now just wait. I think there is some similarity there with a Dutch auction.

And welcome to the forum by the way.

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Only put in a low offer if you actually want to buy it. And then only put in low offers.

If you want prices to come down, then don't put in any offers whatsoever.

on the flip side, what would happen if someone with a house that won't sell sees another house, like theirs, sell because they accepted a -20% offer?

Or if the agents keeps telling them that they have received 5+ offers but the best is -20%.

Surely it will get to them eventually. Then the domino effect will benefit others.

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on the flip side, what would happen if someone with a house that won't sell sees another house, like theirs, sell because they accepted a -20% offer?

Or if the agents keeps telling them that they have received 5+ offers but the best is -20%.

Surely it will get to them eventually. Then the domino effect will benefit others.

Redwing has a point. We bears can spend hours in entertaining but ultimately fruitless debate, or we can at least try to have a real influence through action - the militant wing of the HPC if you like. I have made several offers between a quarter and a third below the asking price - sometimes the vendor has angrily described them as 'derisory,' a term I since use ironically to describe this strategy, but more often the price has been dropped significantly, and in one case a 75% offer was accepted before a negative surveyor's report put paid to the deal. I agree with your other comment - we are serious people. Every offer made has been a serious offer - don't confuse derisory with frivolous.

Redwing is absolutely right on the last point - if enough right minded people tell a vendor: nice house but 50% overvalued, their confidence will crumble. There are enough VI's trying to keep the bubble pumped up, it's time to take them on.

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Guest

I keep meaning to actually go into an EA and express my desire to buy a house, once the ludicrous prices come down.... but I'm struggling to build up the energy, because I know it will be a soul destroying experience...

I did email an EA about a mobile home (or park lodge as they call them) which was on for £150k (not showing interest, just expressing concern over the price). The EA agreed that the price was crazy and that the vendor stubbonly refused to drop the price. So there are EAs out there trying to drop some prices, but maybe they needed repeated visits from us lot to drive the message home.

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this particualr thread is just about the biggest load of tosh i've ever heard... it's the same nonsense that kept the bloke who started it waiting for 12 years (12 YEARS, f'chirst's sake) to get on with his life. presumably, in that time he's seen property prices triple so, well done HPC for continuing the propaganda that keeps the hopeless waiting in the wings!

blaming the EAs, or the market or the good weather or Mammon for property being unaffordable for you is the same as waving your fist at the sun for being hot...

a home isn't something you sit around and wait for unless it's your only option... you may as well wait for your life to improve by just lying in bed and hoping it knocks on the door and asks for you.

there's a cosiness in being on this site that does little but insulate you from the realities of doing stuff.

but, of course, you're all right... it's all going to turn to crap and then you'll be able to buy the thing you should have bought 12 years ago!

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I keep meaning to actually go into an EA and express my desire to buy a house, once the ludicrous prices come down.... but I'm struggling to build up the energy, because I know it will be a soul destroying experience...

I did email an EA about a mobile home (or park lodge as they call them) which was on for £150k (not showing interest, just expressing concern over the price). The EA agreed that the price was crazy and that the vendor stubbonly refused to drop the price. So there are EAs out there trying to drop some prices, but maybe they needed repeated visits from us lot to drive the message home.

I think it will help. I don't know how much, but it should help.

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If enough people put in offers at 20% (or more) below asking price, would the offers start to feed through to sellers? Or would the EAs just keep the bids to themselves?

First define 'enough people'. Then decide if that's realistic.

There are too many 'greater fools' willing to pay too much IMHO.

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I've been waiting for the proper crash for 12 years (as I left Uni in 1998 house prices start to rise faster than my wage... like a helium baloon that a small child has accidentially let go, and watches rise up into the sky!). I can wait another couple of years or more, but it is so frustrating...

The UK housing market has long since ground to a halt of course, and FTBs especially are not buying. Sellers still seem very reluctant to drop prices... is it possible they just don't know (or refuse to believe) that there are 1000s of people waiting to buy, once prices come down? Could the EAs be protecting them from that truth, by spewing the b******t about the problem being caused by lack of lending?

If enough people put in offers at 20% (or more) below asking price, would the offers start to feed through to sellers? Or would the EAs just keep the bids to themselves?

Or do we just sit and wait for forced sellers to start a trend for lower prices?

You've hit the nail on the head, this idea is in everybody interest!

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I've been waiting for the proper crash for 12 years (as I left Uni in 1998 house prices start to rise faster than my wage... like a helium baloon that a small child has accidentially let go, and watches rise up into the sky!). I can wait another couple of years or more, but it is so frustrating...

The UK housing market has long since ground to a halt of course, and FTBs especially are not buying. Sellers still seem very reluctant to drop prices... is it possible they just don't know (or refuse to believe) that there are 1000s of people waiting to buy, once prices come down? Could the EAs be protecting them from that truth, by spewing the b******t about the problem being caused by lack of lending?

If enough people put in offers at 20% (or more) below asking price, would the offers start to feed through to sellers? Or would the EAs just keep the bids to themselves?

Or do we just sit and wait for forced sellers to start a trend for lower prices?

Life is unfair. It always will be and always shall be.

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Downtraded, this is so much more than "unfair": the whole housing market is f****d up, and apart from meaning nobody can buy or sell houses any more, the whole fabric of our society is changing as a result. Insanely high house prices are not a good thing, increased debt levels is not a good thing. Banks have lost huge sums of money because they lent too much to people spending too much on houses they couldn't afford. As a result, those very people and the entire country are now seeing public services cut, and taxes rising, so the banks who f****d up can be bailed out. That is not "unfair", that devestation for so many people, whether they all deserved it or not.

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Downtraded, this is so much more than "unfair": the whole housing market is f****d up, and apart from meaning nobody can buy or sell houses any more, the whole fabric of our society is changing as a result. Insanely high house prices are not a good thing, increased debt levels is not a good thing. Banks have lost huge sums of money because they lent too much to people spending too much on houses they couldn't afford. As a result, those very people and the entire country are now seeing public services cut, and taxes rising, so the banks who f****d up can be bailed out. That is not "unfair", that devestation for so many people, whether they all deserved it or not.

I think you will find these posts interesting, by someone living in Germany:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=156412&view=findpost&p=2828629

http://www.housepricecrash.co.uk/forum/index.php?showtopic=156412&view=findpost&p=2828683

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  • 309 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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