Bruce Banner Posted March 22, 2011 Share Posted March 22, 2011 problem is Brucie, the house you buy will probably be the one no-one else wants I'll leave that one for you to buy at the asking price . I don't expect to be buying for a few years yet, I'm comfortable with my cash in the bank, rather than tied up in an illiquid, depreciating, asset. Quote Link to comment Share on other sites More sharing options...
nice tuna sandwich Posted March 22, 2011 Share Posted March 22, 2011 I'm very uncomfortable with my cash depreciating before my eyes, and would rather have it invested in things of intrinsic value. A little house to live in, some shares, some unit trusts, some arable land... Quote Link to comment Share on other sites More sharing options...
nice tuna sandwich Posted March 22, 2011 Share Posted March 22, 2011 An IR rise relative to inflation might change my mind though Quote Link to comment Share on other sites More sharing options...
Bob Loblaw Posted March 22, 2011 Share Posted March 22, 2011 Rudeness gets you no where. I always find it's best to try and get along with the Estate Agents, (even if you have to smile politely to every stupid comment they make), that way they will put a good word forward with your offer. And NEVER leave an offer on the table. EAs in general are some of the rudest people you can meet. It is not rude to tell them your position and explain why you feel that way. Personally I find the asking prices that EAs dream up to be rude and offensive, along with their assumption that everyone is an idiot i.e. telling you they have a queue of buyers wanting the property Quote Link to comment Share on other sites More sharing options...
the flying pig Posted March 22, 2011 Share Posted March 22, 2011 useful tips on making offers, by an EA Quote Link to comment Share on other sites More sharing options...
Harold Bishop Posted March 22, 2011 Share Posted March 22, 2011 We looked at it and whilst it's ok it really needs a lot of work and really needs a loft conversion to get it to a 4 bed for us (another 25K). I reckon 50K might make a decent 4 bed property out of it. 380K + 50K = 430K. I've 'lost' a couple of houses like this. I know think that this type of reasoning gets you no where. I, like many here, have a pretty good idea at what improvements/renovations cost, however, I'm not a builder or a surveyor, so, my view is immediately rejected. But many buyers don't have a clue about costs and they put in stupidly high offers, then get told by their surveyor the roof ( say) needs £40k spending on it and the buyers/vendors generally come to an agreement and the sale completes. It seems it's better to get the price drop via the surveyor and valuer. But that means entering into agreements and survey costs with a strong chance of wasting that money. Do that several times and it starts to hurt. I also had an agent go cold on me when I said I wanted a proper valuation by an independent mortgage company valuer, even though I was a cash buyer. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted March 22, 2011 Share Posted March 22, 2011 useful tips on making offers, by an EA Yoikes! Nothing about setting an asking price which shows you're committed to the sale. “Should I make an Offer?” As a buyer you are in a powerful position, both in terms of the effect your buying decision will have on your own life, and on that of the person from whom you buy. If buying a property was some form of commodity like petrol or milk, then you would simply buy the cheapest stock available. However, buying a home is much less mercenary, and emotions run high. Over the years, homebuyers have become used to the idea of making a “starting offer” below the asking price, but it might be worth considering a few aspects of the implications of making a low offer. Firstly what does a low offer say about you to the vendor? That you don’t have the money and that any subsequent increase might stretch you beyond your ability to complete the purchase? Does it suggest you don’t really like their home, risking offence? A low offer can often start off the relationship with the vendor on the wrong foot. And what if your low offer is accepted? Will the vendors experience regret and continue to market the property hoping to find a higher price with someone else? The chances of such a buyer being found are high as people usually want a property that someone else wants. Ultimately it’s about commitment. An offer at, close to, a realistic asking price tells the vendor you are committed to the property. In return the vendor is likely to demonstrate a level of commitment to you that will result in a successful purchase. Quote Link to comment Share on other sites More sharing options...
BlackSwan Posted March 22, 2011 Share Posted March 22, 2011 http://newtonfallowell.briefyourmarket.com/Newsletters/Newton-Fallowell-Interactive-Newsletter-March-2011-Edition/-Should-I-make-an-Offer-.aspx Quote Link to comment Share on other sites More sharing options...
cybernoid Posted March 22, 2011 Share Posted March 22, 2011 I don't see the point of looking at the moment, if their asking price is upwards of 20% beyond what you're prepared to pay they're unlikely to accept it. It's a waste of your time. I think at the moment people are still waiting for things to pick up again, as others have said their asking price is often what they need rather than what they can get, it's a waste even bothering to communicate with these people. Sadly i think a lot of us are going to be waiting for these deluded old codgers to die off before we can get property for a sensible price, and for a lot of them, i think they are fine with that. If the price they can get for their property isn't going to fund the lifestyle they've been fantasizing about, they'll just stay where they are. Quote Link to comment Share on other sites More sharing options...
MinceBalls Posted March 28, 2011 Author Share Posted March 28, 2011 I don't see the point of looking at the moment, if their asking price is upwards of 20% beyond what you're prepared to pay they're unlikely to accept it. It's a waste of your time. I think at the moment people are still waiting for things to pick up again, as others have said their asking price is often what they need rather than what they can get, it's a waste even bothering to communicate with these people. Sadly i think a lot of us are going to be waiting for these deluded old codgers to die off before we can get property for a sensible price, and for a lot of them, i think they are fine with that. If the price they can get for their property isn't going to fund the lifestyle they've been fantasizing about, they'll just stay where they are. I agree with this, thanks for the advise.... I went to see A 4 bed terrace at the weekend - nice enough property I did some research this time as the street is a typical Victorian terrace with pretty much the same properties give or take the odd loft conversion. The top 2007 price was 295K The top EVER price recorded on the street for one of the terraced houses was 319K in 2009 Prices in the postcode are down 3% since the top priced property sold in 2009 What do you think they are asking? . . . . . 370K! That's 50K MORE than a like-for-like property has ever sold for on the street. And it needed a new kitchen (not that the kitchen was rubbish it just didn't really have one that wasn't being taken by them) and decorating throughout. Am I going mad or does this seem a little strange to anyone? Currently staying in it is a family who have outgrown the place - 5 children! They need to selll and buy somewhere in the same area but with more space. I assume they are thinking about getting top whack for this place and not having to fork out more for the next because they can't afford to increase their mortgage. I'm sitting this one out and will re-visit the situation after the 'Spring Flop'. As you pointed out to me, at present it just isn't worth putting offers in when asking prices (what vendors have already spent in their minds) are so far away from what I am willing to pay. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted March 28, 2011 Share Posted March 28, 2011 Totally agree the place I'm interested in was bought years ago by an elderly couple, probably for less than 20k, but now they are turning down an offer in excess of half a million pounds - because they need the money to fund their retirement and to gift to their children. Mad thing is I'll probably buy for even less when the lawyers sell it to settle the will amongst the kids. It may be a cheeky price but that was no reason to bump them off! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 28, 2011 Share Posted March 28, 2011 I think you've massively underestimated the renovation costs there old boy. If you are in the market then it makes sense to go back to the modernised 4 bedders for £370K. I'm sure you'll find plenty of upkeep to keep you busy on any Victorian building. yep, one third of a million pounds is very reasonable for a home. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted March 28, 2011 Share Posted March 28, 2011 I'm very uncomfortable with my cash depreciating before my eyes, and would rather have it invested in things of intrinsic value. A little house to live in, some shares, some unit trusts, some arable land... So you can watch those devalue instead? -1.7% per year currently according to the land registry. That's -7.2% real return in an illiquid asset class with huge transaction costs, as opposed to -2.5% real return on a good instant access ISA at 3% with 0 transaction costs. I know where my money is going to stay! (I'm talking about the property aspect only not the land or shares you mention) Quote Link to comment Share on other sites More sharing options...
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