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Dazbo1983

Ftb - Property Advice Sought Please...

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HPC Newbie here!

I am going for a 2nd viewing of a 3-bed semi in a rural area of N/E England.

The property has been on the market for approx. 18 months and is vacant possession (now belongs to the deceased's family).

The property has a type of garage with significant roof damage, a lot of the house could do with modernising (decor, no gas fire etc).

Good clu-de-sac location.

I am a prospective chain-free FTB.

It is on the market for £111,000 - my question is, what would be people's opening offer??

I know what my budget is but, was just looking for some opinions, please?

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HPC Newbie here!

I am going for a 2nd viewing of a 3-bed semi in a rural area of N/E England.

The property has been on the market for approx. 18 months and is vacant possession (now belongs to the deceased's family).

The property has a type of garage with significant roof damage, a lot of the house could do with modernising (decor, no gas fire etc).

Good clu-de-sac location.

I am a prospective chain-free FTB.

It is on the market for £111,000 - my question is, what would be people's opening offer??

I know what my budget is but, was just looking for some opinions, please?

88K

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Acocrding to the land Reg the average price paid of the asking price is 90 to 91 percent so take 10% off and pay no more than that as a maximum IMPO.

99,900k should be your top price paid.

But you want to be bid up to that maximum, falling market, blah blah. I would offer 85K and go up to 95K tops.

Up to you of course. best of luck.

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I think you should get it for £92,500; don't forget there are now more expectations that the market will fall more which puts even more of a downward pressure on prices.

Let us know on this thread if you purchase it

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Thanks guys - will certainly let you know how I get on. Please keep any viewpoints coming.

It's strange trying to work out what to do when indications suggest a falling market....

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It is on the market for £111,000 - my question is, what would be people's opening offer??

I know what my budget is but, was just looking for some opinions, please?

Put the postcode in here: http://www.nethouseprices.com/index.php?con=Search-Sold-House-Prices

See what the same property, or similar on the same street, sold for in the past. What's the price difference? Are you getting a good price or being taken for a mug?

For example...

1. I saw a place on Rightmove that I liked the look of, 3 bed semi and good area: £185,000 - LINK

2. I went for a "walk" on Google Maps and the area seemed ok. - LINK

3. A quick search of the EA's website reveals it's house no. 2 - LINK

4. A quick search on NetHousePrices reveals no sales history for no.2 but no. 4 (I presume next door) sold twice in the past 11 years... - LINK

4 Cygnet Close, Alvechurch, Birmingham - Semi-Detached, Freehold

17-Nov-2000 : £96,000

21-Aug-2009 : £165,000

... and these sellers want £185,000!

Do you think it's right that a house that cost £96,000 in 2000 should cost 72% more just 9 years later? (and bear in mind that this is post 2008 partial crash)

Do you think an almost identical house should cost £20,000 more just 18 months after said partial crash (that is, 21% of the original 2000 sales price)?

If the answer to both of these questions is "no" then you are correct and I would advise you to see what your own property searches reveal. If they reveal a bargain or a sensibly priced house then consider it. If they don't then sit back, relax and enjoy watching them slash the price over the next few years courtesy of the Property-Bee toolbar for Firefox - LINK ... which, coincidently, is exactly what I'll be doing for the property example above.

Banks aren't lending to first time buyers for a reason. That reason is that house prices are too high and they expect house prices to fall and, funnily enough, so do first time buyers.

Whatever you decide, welcome to HousePriceCrash. I recommend you hang around, join in and consider the broad range of opinions, experiences and issues that are discussed here. House prices are not high simply because they "always go up" and contrary to popular belief they do also go down.

Edited by GordonBrownSpentMyFuture

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@ Bob - would you really go that low?

you've got nothing to lose offering 75k, they may laugh but then you can bid up to 80k and 85k

dont people normally accept the 3rd offer?

rememeber we are at 2006 prices, and people are expecting 20-30% off over the next 2 years.

have a look on http://www.houseprices.co.uk/ and see if any sold in 2006.

you can also look at HPI here http://www.nationwide.co.uk/hpi/

remeber to select the region from the drop down.

let us know how it goes!

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Do a postcode search on houseprices.co.uk

and have a look at what else has sold recently.

Plus do a crime map search on maps.police.gov

Get property bee and look at price reductions within 1/4 mile.

How many houses have sold in area.

Are you in a good position and ready to go? Have they got probate sorted out and ready to sell?

Get solicitor quotes NOW so when you make your offer you can say "this is my offer and my solicitor will be..." so you look like you're ready to buy.

I'd say 82-85 - you'll get no freebie time on council tax to do repairs/work. The place has been empty so will be more damp/unloved etc.

They'll reject this I expect but make it clear it's your last and final offer.

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@ Bob - would you really go that low?

Yes I would. Property has been on for 18 months, needs updating and family will just want to sell. Ignore the asking and bid what you think it is worth. If you bid too much it is very difficult to reduce your offer. So start low and remember the old adage that if your offer does not embarrass you then you have offered too much.

Which part of the rural NE is it? Any chance of a link to the property (understand if you don't want to)?

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HPC Newbie here!

The property has a type of garage with significant roof damage, a lot of the house could do with modernising (decor, no gas fire etc).

Any idea what material the roof is made of? Could be asbestos cement (completely harmless if it's in one piece, but if it's broken then might be issues). Has to be disposed of using approved suppliers. Might make a useful negotiating point.

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Got 2 problems here:

1) if it belongs to a deceased's family, this implies it's shared between a number of descendants - getting them to ALL agree to a low offer will be tricky, especially if there's emotional attachment to the property. It might explain why it's been on the market for 18 months...

2) The £100,000 psychological barrier. Going below six figures will definitely kick off a "bloody hell, that's low" mindset in the seller for no other reason than the number of digits involved.

Don't chuck in a real lowball offer on the basis property's meant to fall 20% in the next 2 years, as this hasn't happened yet. You wouldn't whack on an extra 20% if the opposite scenario was supposed to happen would you? Buyer and seller both have to come to terms with what the market is at the moment, not what it was or what it could be

Me, I'd go 95 if I was feeling cheeky

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Don't chuck in a real lowball offer on the basis property's meant to fall 20% in the next 2 years, as this hasn't happened yet.

Cost up everything repairs, rewire, redec, kitchen.bathroom - and see how that plus the offer price equates to similar sold houses.

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Ive been puzzling out a similar conundrum recently. Ive seen a house near to the house where I was born. Not viewed it though as I still see it as a non-starter.

3 bed semi, cul de sac location, overlooking fields, 2 minute walk to take the dog to the woods. But it needs work and its north-east midlands.

Its on at £120k. On the face of it the price is much lower than anything else in the area. But nothing there is selling. And its been on since last summer; sstc once, but fell through. It seems the market doesnt think its keenly priced and the one buyer who has had a nibble couldnt back up his/her ambitions.

I reckon that the average earnings for the main earner in these types of house is above the average for the town, but still only about 26-27k. Being generous, I reckon this means a long term sustainable price for that house (in liveable condition) is £100k.

This house will need about £10-15k spending on it. As such, I wouldnt offer any more than £85k for it.

I am prepared to overlook this 'bargain priced' house. As Roy Orbison has already stated, we have been programmed to think such a price is a bargain. But a bit of fag packet maths says its 43% overpriced!

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Depends a lot on the seller's expectations. A bit of detective work is required.

How long has it been on the market?

Has the property already taken a price cut?

When did the seller buy it and at what price?

How desperate is the seller?

All these can have a big influence on what you should offer.

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Thanks for the replies everybody - I've been told the property has already been reduced from 120-125k to 111k . Would this significantly affect your offer? I was thinking a really cheeky offer in the region of 80k. Any further thoughts, please?

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Thanks for the replies everybody - I've been told the property has already been reduced from 120-125k to 111k . Would this significantly affect your offer? I was thinking a really cheeky offer in the region of 80k. Any further thoughts, please?

The only problem with that offer is that you think its cheeky!

Be careful not to fall into the Phil / Krusty trap of letting the tone of your voice show you dont expect the bid to be accepted!

Go in at £80k and show the agent that you are a serious buyer at that price. Be prepared to walk away, even if only to let the vendor have a reality check for a month or two!

As far as having reduced the price already, it tells you that they are slowly acclimatising to reality.

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Thanks for the replies everybody - I've been told the property has already been reduced from 120-125k to 111k . Would this significantly affect your offer? I was thinking a really cheeky offer in the region of 80k. Any further thoughts, please?

Ah the old "we've already reduced it" ploy. Without relevance in a market sliding off the cliff I would suggest.

Dazbo, ask yourself how you will feel in 3 years time when similar properties are struggling to make 60k.

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The only problem with that offer is that you think its cheeky!

Be careful not to fall into the Phil / Krusty trap of letting the tone of your voice show you dont expect the bid to be accepted!

Go in at £80k and show the agent that you are a serious buyer at that price. Be prepared to walk away, even if only to let the vendor have a reality check for a month or two!

As far as having reduced the price already, it tells you that they are slowly acclimatising to reality.

It might not be cheeky in the HPC world of willy-waving about how far down you'd screw down a seller on an imaginary house, "yeh, I'd offer 60k", "I'd offer 20k", "they'd have to pay me 20k and move my furniture!" etc etc but in the real world if this guy wants to buy the house he's going to have to offer closer to the sellers' valuation, especially if it's an inheritance job (no compulsion to sell). Frankly, if they'd accept 80k it would be on the market for that.

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It might not be cheeky in the HPC world of willy-waving about how far down you'd screw down a seller on an imaginary house, "yeh, I'd offer 60k", "I'd offer 20k", "they'd have to pay me 20k and move my furniture!" etc etc but in the real world if this guy wants to buy the house he's going to have to offer closer to the sellers' valuation,

No. He can offer what he likes. There is always a chance that it will be accepted, but you dont want to put it too close to the sellers valuation as you might be throwing money down the toilet by paying more than they were willing to accept.

especially if it's an inheritance job (no compulsion to sell). Frankly, if they'd accept 80k it would be on the market for that.

People rarely put a property on the market at the price they would accept, they are mostly trying to get more. We would only be guessing at the sellers motives, but an inheritance job might be shared between many people and that would be quite a lot of hassle to rent out.

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  • 284 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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