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Aidan Ap Word

What Is A Reasonable Offer In The Se?

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All,

Just trying to gauge things (I would rather not even start the conversation with the EA if I am completely wasting my time).

I am looking around on the Berkshire/Buckinghamshire border (but not Slough), just getting a feel for things.

Regards and thanks for your vote!

Aidanapword

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There is no set rule, u need to work out what u think each property is worth and stick to a number. If you make stupid offers the EAs will just end up ignoring u as you'll be percieved as a timewaster/

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The only way as above is to decide what it is worth to you.

However to add to that, I have been keeping a spreadsheet of asking prices aginst achieved prices for my area, which is north east hampshire, which isnt that far from you.

The biggest drop being just over 25% (funnily enough I guessed to within 10k of the selling price from day 1) nice house/nice area btw..

The smallest 'drop' 3% over asking! (on a 600k house)

The majority are between 4 and 9%, however the data from the later half of the year is still to come available, so might be better.

However every house has to be taken on merit.......the last house I bought I got 14/15% off, however it was overpriced (have to gauge how much is blatant overpricing and how much is reasonable to expect off really)....I like to work on a rough price per sqm/sqf as a guide +/- a bit for land, garage, conservatory etc

If you were going to make an offer I find the best way is to be honest with the agent and say I think its worth x, brief reasons. If and when rejected just say thanks but thats my offer. Nothing to lose, always be professional and polite and they may come back to you. (IMO all this hardball stuff about decreasing offers every week, or I am going to buy the property that knocks the most off just winds people up, I have been on the recieveing end and just told them to bog off, people will 'cut their nose off to spite their face etc'.

Hope this is of some help...

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There is no set rule, u need to work out what u think each property is worth and stick to a number. If you make stupid offers the EAs will just end up ignoring u as you'll be percieved as a timewaster/

The EA can not ignore you and has to submit offers.....a lot of sellers are time wasters as a lot of EAs admit...hanging on for a price that will not ever be achieved

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Over the last two years in the 500 houses I observe around me in Poole, Dorset the difference in SOLD properties between initial asking and actual selling price has averaged 11%

Edited by juvenal

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The EA can not ignore you and has to submit offers.....a lot of sellers are time wasters as a lot of EAs admit...hanging on for a price that will not ever be achieved

Agents can and do ignore idiot buyers.

If you offer stupidly low the offer call from the agent will probably go something like "Hi sorry Mr Vendor we've just had a really daft offer on your home, we have to put it forward by law and I'm fully expecting you to say no, coz I know I would if I was you. Anyway the offer he made is x... yes I completely agree, you sometimes can't pick these timewasters out. Well sorry to waste your time, hopefully I'll be calling you soon with a genuine offer. Bye now..."

Agent satisfaction as the applicant card is ripped up into tiny pieces and the buyer never to be called again.

On the other hand if the offer is around the 10-15% mark, most agents will have a good go at getting it tied up.

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I would like to pick you up on this . What is a stupidly low offer?. I will give you a case in point. Northern Ireland - house prices rushed up over 100% now down 40%.

From this link of the Newtonabbey area - a commuting distance from Belfast--you will see that houses stay on the market for great lengths of time now compared with July 2009. --and this is with prices dropping all the time.

http://www.home.co.uk/guides/time_on_market_report.htm?location=bt36&all=1

Some of those houses are sitting for a year to sell. So what is a stupidly low offer? I would say that the offers would be at least 25% below asking to interest a buyer.

I was called "insane" by one EA ( don't I just love them) and asked to leave another's office for putting in an offer of 20% below asking. Those houses are still for sale and probably are waiting for the second coming of HPI to be sold.

You have a fair point, what are reasonable offers are all relative to local market conditions. In Peterborough if someone offered £120k on a £200k house they would be rightly laughed out of town, the market is not that bed here. Offers 20% below asking are on the cusp of acceptability, but as I feel that some properties could do with a 10-15% reduction anyway, I think we would hope to tie up an offer in that area (with a little movement from BOTH parties).

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On the other hand if the offer is around the 10-15% mark, most agents will have a good go at getting it tied up.

Having read your latest reply as well PbroAgent, about both a level of flexibility on both parts, being needed, and your comment that a lot of property is also 10-15% overpriced. I can only recite our recent efforts: we have offered 235 on something currently marketed at 250.

It has been on market since Feb 2010. Back then it was on at 270 and if the agent when he isnt charging round in his liveried mini is to be believed - they had an offer last summer when they were on at 270 for 250 and rejected it.

We feel in this case there is a vendor who is just being unrealistically stupid and greedy.... The price last paid for this property was £235 at peak pricing. It is currently sat empty, and if it were to be relet out it would need a lick of paint all round to freshen it up, and some other small maintenance elsewhere, which is also what we or probably most people would need to do on purchasing it.

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Having read your latest reply as well PbroAgent, about both a level of flexibility on both parts, being needed, and your comment that a lot of property is also 10-15% overpriced. I can only recite our recent efforts: we have offered 235 on something currently marketed at 250.

It has been on market since Feb 2010. Back then it was on at 270 and if the agent when he isnt charging round in his liveried mini is to be believed - they had an offer last summer when they were on at 270 for 250 and rejected it.

We feel in this case there is a vendor who is just being unrealistically stupid and greedy.... The price last paid for this property was £235 at peak pricing. It is currently sat empty, and if it were to be relet out it would need a lick of paint all round to freshen it up, and some other small maintenance elsewhere, which is also what we or probably most people would need to do on purchasing it.

Some vendors are just stupid. Unfortunately we live in a free world where people are allowed to be stupid and accept or decline what ever offer they want for their home. Every agent in this land will have at one time or another wished for a law that stopped stupid vendors declining sensible offers, but we will never get one.

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You have a fair point, what are reasonable offers are all relative to local market conditions. In Peterborough if someone offered £120k on a £200k house they would be rightly laughed out of town, the market is not that bed here. Offers 20% below asking are on the cusp of acceptability, but as I feel that some properties could do with a 10-15% reduction anyway, I think we would hope to tie up an offer in that area (with a little movement from BOTH parties).

Surely if properties are being priced 10-15% too high, offers at 20-30% below the asking price are pretty sensible in a falling market.

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Surely if properties are being priced 10-15% too high, offers at 20-30% below the asking price are pretty sensible in a falling market.

You will notice I said some properties are 15% too high. If the property is priced correctly then an offer of less than 10% should do the trick.

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You will notice I said some properties are 15% too high. If the property is priced correctly then an offer of less than 10% should do the trick.

The correct price for me is 30-40% less than they're going for now, so I'll wait a few years and make a cash offer ;).

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Bruce Baner - if you are happy to wait that is fine. We are waiting and hoping that more will come on that is realistically priced, and with motivated to sell vendors.

We just seem to have found 2 vendors who are expecting large rises on 2007 prices in current market; and who are just being silly and greedy, according to other agents in our town.

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Bruce Baner - if you are happy to wait that is fine. We are waiting and hoping that more will come on that is realistically priced, and with motivated to sell vendors.

We just seem to have found 2 vendors who are expecting large rises on 2007 prices in current market; and who are just being silly and greedy, according to other agents in our town.

I'm sure they will, but you need to wait a bit. Whatever price you can negotiate today will look very expensive in a year or so ;).

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Again you are talking for your area and as an agent for the vendors. EAs don't care about buyers. They are only representing the vendor and get paid by the vendor so have a vested interest in keeping house prices high to suit vendors.

Only offer what you are prepared to pay for a house. If the EA isn't keen then go direct to the vendor. Its your deposit that's going down the drain if house prices keep dropping.

It could be more than your deposit if prices drop as much as I expect them to.

For example, you have £50K in the bank and put it down as a 25% deposit on a £200K house. Fast forward a couple of years, the house is only worth £130K and you have to sell, that's your £50K deposit gone plus an extra £20K. From £50K in the bank to £20K in debt in a few short years :(.

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Decide what the house is worth to you, this might have no relation to the asking price.

Just got off the phone with an estate agent ... and, pretty close to word for word, that is what the estate agent said.

Pity for a vendor that the first house I have seen that I might be vaguely interested in starting the 'price' conversation with would probably have to accept an offer of 25 - 28% less than the asking price ... and probably more besides.

The vendor (who did the viewing, not the EA, for whatever reason but probably vendor preference) did mention he was moving up to Edinburgh ... from the SE (Berkshire) ... and he has owned the place he is selling (from new) for 13 years ... so I am not sure I would care too much about whether they need the money to fund the Scottish place ... hmmm ... does make their train ticket up to Scotland a one-way ticket though ... in a way.

Aidanapword

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Again you are talking for your area and as an agent for the vendors. EAs don't care about buyers. They are only representing the vendor and get paid by the vendor so have a vested interest in keeping house prices high to suit vendors.

Only offer what you are prepared to pay for a house. If the EA isn't keen then go direct to the vendor. Its your deposit that's going down the drain if house prices keep dropping.

Yes I am talking for my area and as I said on a previous post, the price needed to secure a property in different areas is relative to the local market conditions. I can only speak for a 20 mile radius of my office and can't help the OP with his original question, so am sorry if I took the thread a bit off topic.

I reject completely that I have a vested interest in keeping prices high to suit vendors. My vested interest is strictly in me making money and paying my bills. In order to do that I must sell houses. Yes the prices need to be high enough to tempt the vendors to sell and I have a duty to obtain the best price I can for the property, but prices also need to be low enough to tempt buyers to buy in a falling market. To misunderstand that is to misunderstand markets and the role of an agent within them. We currently spend far far more time trying to persuade vendors to reduce their price sufficiently to get below the trend line, in order that they don't end up chasing the falling market as your link so graphically demonstrated, but many many vendors are ignorant, can't afford to drop or just think that they know better.

That I pointed out that agents ignore buyers is valid. In my area (yes Peterborough AGAIN), a four bed house that I feel is worth £200k might typically be for sale at £230k (15% too much - because that's what they are all on for). If I can get the vendor to reduce to £200k (the correct price) it will be the cheapest 4 bed in the area. It will be priced commensurate to the 3 bed houses and thus will not need much of a further offer, because even if an HPCer thinks that there is another 20% to come off in the next 24 months, somebody else won't and will see it as a 4 bed for 3 bed money. As an HPCer you will not get that house for the figure you think because you will be outbid every time. Your only option if that is what you want to pay is to carry on renting and wait.

That is why I would laugh at someone who offered 40% below asking because it is too much for my area and that is why the OP's question is so valid - he want's to know what is right for his area - once again I'm sorry I can't help.

My advice like so many others' - decide how much it is worth to you and offer that. If you think prices are going to drop further and you don't want to take the equity hit then either offer very low and be prepared to not be taken seriously or just wait.

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That is why I would laugh at someone who offered 40% below asking because it is too much for my area and that is why the OP's question is so valid - he want's to know what is right for his area - once again I'm sorry I can't help.

My advice like so many others' - decide how much it is worth to you and offer that. If you think prices are going to drop further and you don't want to take the equity hit then either offer very low and be prepared to not be taken seriously or just wait.

An estate agent who makes sense, thank you.

A question that is probably impossible to answer: is there somewhere I can go to check (online is best for me) what sort of average difference there is between asking and achieved price in a specific area?

I know I can walk the LR data for specific postcodes but then I can't match it back to asking ... I do not want to do the EA's job for them *but* I am prepared to put the effort in to making sure I don't waste the EA's time. If I put in an offer on anything it will be aggressive but I am not interested in being a time waster.

I work hard to be able to earn the money with which I have a life (a part of which I would like to include in that being to buy a house to live in) ... I don't have time to waste in wasting EA's or vendor's time.

In short: I want to know that if the EA or the vendor scoffs at me for 'wasting their time' that - to the best reasonable effort - they are the ones being dumb.

Aidanapword

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That is why I would laugh at someone who offered 40% below asking.........

Not literally I hope. An estate agent laughed at a cash offer I made a few years ago and I left him in no doubt that when I buy another house it will not be through him or his chain. Even though, after my complaint, I received a written apology from his group MD, that group will never get my business.

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Pbroagent you come acrossin that earlier lengthy reply with the sort of good advice buyers especially us need. Wehave got 2 agents who seem to be on our side and who are giving us fair advice and who are telling us to hold fire as our offers are in the more than realistic and sensible category in their opinion as fellow agents in same town who know the propertiesin question.

Ican assure you that if anything new comes up for us and it is priced say depending on size 220 - 235. We will be after it and at pretty much on the nose prices as we will know it is well priced to sell. Whereas if it comes on at 248 - 260+. We will have to go in hard with knock downs

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Not literally I hope. An estate agent laughed at a cash offer I made a few years ago and I left him in no doubt that when I buy another house it will not be through him or his chain. Even though, after my complaint, I received a written apology from his group MD, that group will never get my business.

No, I'd probably treat the offer with incredulous bemusement - and would suggest the buyer adjust their sights to more suitable properties i.e. 2 bed semis.

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No, I'd probably treat the offer with incredulous bemusement - and would suggest the buyer adjust their sights to more suitable properties i.e. 2 bed semis.

And if the buyer has sufficient cash in the bank to pay the full asking price, do you not think he may find your suggestion a touch rude?

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  • 312 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% +
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      • Even
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      • up 5%



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