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How Low Would You Go?

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I am just wondering what sort of price reduction people are going to ask for and then expect to acheive when eventually buying a property? I have been following a few other sites where people are selling up and it seems that people are resigned to taking a fairly hefty offer below the asking price.

Interested in ither peoples opinions as we are desperate to buy but can probably give the market another 18 months or so before taking the plunge and obviously would like to get the best deal possible.

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I am just wondering what sort of price reduction people are going to ask for and then expect to acheive when eventually buying a property? I have been following a few other sites where people are selling up and it seems that people are resigned to taking a fairly hefty offer below the asking price.

Interested in ither peoples opinions as we are desperate to buy but can probably give the market another 18 months or so before taking the plunge and obviously would like to get the best deal possible.

I saw a report a few month's ago [Hometrack out something like that] which had a table comparing on a national and regional basis the asking price and the achieved price - the overall average, with little variation was 93%. However, if you are an FTB and therefore cash buyer you are going to be "quite attractive". I am renting at the moment and expect, if I ever buy again, to take off at least 10%. On top of that general rule I'd also look at individual properties and watch for those desperate to sell - its on with 2 or 3 EAs or it comes back on the market after the chain breaks down, there are more and more of these lately in my area [Midlands]. Save some properites you like on Rightmove and save a search which will get them to e-mail you knew ones, all the time you get sent a property on with another or different EA or its back again.

If you find that desparate buyer take off even more than 10% in your offer and then walk away - you may well find them coming back to you!!!

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I am just wondering what sort of price reduction people are going to ask for and then expect to acheive when eventually buying a property? I have been following a few other sites where people are selling up and it seems that people are resigned to taking a fairly hefty offer below the asking price.

Interested in ither peoples opinions as we are desperate to buy but can probably give the market another 18 months or so before taking the plunge and obviously would like to get the best deal possible.

Dont even think about it for the next couple of years!

What with USA possibly going bust > poss Global Recession?

Threats by Iran/oil nations to trade in Euro's > Dollar collapse?

Future 'nuclear' cold war with 'unstable' countries > Nato/US invasion?

Oil prices thru the roof leading to GUARANTEED recession >

Houses possibly worth 20% (or less) what they are now > due BTL sell-off

FTB Repossessions

Forthcoming Credit Crunch

Bank/B.S much more restrictive 'lending policies'

ETC

ETC

Like I've said before . . . . .

Even if you rent for next 3/4 years - when house prices crash (and you still go for the same size house) you will be able to pay your Mortgage off far, far QUICKER!

I would wait and see how secure your jobs are first in the forthcoming "politically manufactured" major recession!

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it depends on the "background" price. Ie I would presently look at Nethouseprices and see what a property was going for in 2000 and offer about 10% below that price... expecting to get 2000 price.

If a property was more reasonably priced, the difference between the two numbers won't be as marked as the prices that people have put on when thinking "take 2004 price and add 30%". Then you could quite easily get a 60% difference which will never wash with any seller or EA.

A person who has put their house on at a "reasonable" price in the current market (approximately 2003 value) wouldn't have to come down too much to 2000 price.... I am talking London prices.

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It may have been the good Doctor B who provided a calculation of what to offer on a property by using BTL yield calculations, also another poster did a calculation on what prices might have been with normal HPI/Inflation.

I had a play around with this BTL calculator.

Example - 2 bed newish build(2001) flat i have been looking at, cost £66,950 in may 2001, sold again in july 2002 for £77,000, now asking £109,950, i have seen these flats advertised at £425pcm to rent.

According to Paragon et al, average achieved yield has risen to 6.7%, so using that figure and knowing what was paid for property and rental amount, i have come up with these figures, -

Buy at £109,950 with rent of £425pcm = 4.64% yield

Buy at £76,250 with rent of £425pcm = 6.69% yield

So does that mean i would need to pay the same as the current owner paid in 2002 to achieve the so called average yield?, can not see them going for that.

Or should the yield have been calculated on whatever you negotiate of the asking price then take off 15% deposit to leave a 85% mortgage?.

Edit - spelling, after i said i liked spelling in the english test thread. :lol:

Edited by Mark5290

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In today's Scotsman someone is holding a reverse auction. They are starting at £735k and dropping by £2k a day until they get a bite. Lets see how low they go before the market finds a price.

What happens say if at 250k about 5 people bite?? As in other auctions then the price will go back up.

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In a couple of years time I intend to actively pursue houses in the 285 - 325k range with a cheeky 250 k cash offer in the hope of getting some extra leverage about the stamp duty limit, probably on two ot three different houses at once and let the EA know you have other offers in (or just lie). Well timed in a falling market this tactic could reap rewards. You are almost certainly going to get rejected at the outset but a couple of month of extra MOM falls can soften up the hardest of vendors especially when the EA needs to put food on the table.

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In a couple of years time I intend to actively pursue houses in the 285 - 325k range with a cheeky 250 k cash offer in the hope of getting some extra leverage about the stamp duty limit, probably on two ot three different houses at once and let the EA know you have other offers in (or just lie). Well timed in a falling market this tactic could reap rewards. You are almost certainly going to get rejected at the outset but a couple of month of extra MOM falls can soften up the hardest of vendors especially when the EA needs to put food on the table.

Not likely to happen, 250K to 300K houses are under valued due to the 3% Stamp duty, as this threshold rises with general inflation so will the prices. Nice try though.

Below 200K should remain strong due to affordability and FTB entering the market, 1 bed flats for 140K are going to starting tanking it soon as BTL investors start soiling their pants as more FTB start buying and so fewer renters around and also a due to a general over supply of properties in this market area, you know the ones stack'em high on waste land developments.

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In a couple of years time I intend to actively pursue houses in the 285 - 325k range with a cheeky 250 k cash offer in the hope of getting some extra leverage about the stamp duty limit, probably on two ot three different houses at once and let the EA know you have other offers in (or just lie). Well timed in a falling market this tactic could reap rewards. You are almost certainly going to get rejected at the outset but a couple of month of extra MOM falls can soften up the hardest of vendors especially when the EA needs to put food on the table.

I really do think you are deluding yourselves if you think people will sell for that low, in that price range.

Re original question, I have just got a £42K reduction on a £365K house (orig price) and am very happy. Needs quite a bit of work, but a really good house basically. Valuer even thought we had a bargain, and that we had done better price-wise than many others he has recently valued.

I also know someone who, completing last week, was very happy to pay £320K on a £325K house. While people will pay that close to asking, I'd be very surprised if prices will reduce a huge amount more in the near future. Sellers will just hold out.

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I really do think you are deluding yourselves if you think people will sell for that low, in that price range.

Re original question, I have just got a £42K reduction on a £365K house (orig price) and am very happy.  Needs quite a bit of work, but a really good house basically.  Valuer even thought we had a bargain, and that we had done better price-wise than many others he has recently valued. 

I also know someone who, completing last week, was very happy to pay £320K on a £325K house.  While people will pay that close to asking, I'd be very surprised if prices will reduce a huge amount more in the near future.  Sellers will just hold out.

True sellers do hold out for thier price.

There are an awful lot of deluded renters out there and on here who seem to think they can offer a silly price and the vendor will accept just like that!

Well - wake up no one in their right mind gives anything away.The seller often needs to move on and needs the money he/she is asking for the house they are selling.The asking price is a guide price and the majority of sellers want near as damn it to the price !If you can afford to buy then look for something within your affordabilty.There is nothing worse than the tight ars* that views a house and comes in at 20k under the asking , someone did this recently to me i told the EA dont bother me with time wasters like that sort again! And yes i waited out and sold my home for the asking price.

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  • 301 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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