Deluded Vendors

[pete.hpc]

Saw a place on at a reasonable price, certainly didn't need a big discount to get to what I thought was a fair price in this climate

I'm in a good position as a FTBer with an agreement in principle

My offer is 6% less than asking price, she says she would give 3% off, I say highest I will go is 4% off asking and she refuses

Maybe it's better out there than I thought and people are queuing around the block for a 3% discount off the asking price in the biggest economic collapse we've ever seen

[Normal]

Saw a place on at a reasonable price, certainly didn't need a big discount to get to what I thought was a fair price in this climate

I'm in a good position as a FTBer with an agreement in principle

My offer is 6% less than asking price, she says she would give 3% off, I say highest I will go is 4% off asking and she refuses

Maybe it's better out there than I thought and people are queuing around the block for a 3% discount off the asking price in the biggest economic collapse we've ever seen

You said it was on at a reasonable price so the rest of the post makes little sense. Would it have helped if they'd asked 50% more and let you haggle them back down to exactly the same price?

[MrFlibble]

Saw a place on at a reasonable price, certainly didn't need a big discount to get to what I thought was a fair price in this climate

I'm in a good position as a FTBer with an agreement in principle

My offer is 6% less than asking price, she says she would give 3% off, I say highest I will go is 4% off asking and she refuses

Maybe it's better out there than I thought and people are queuing around the block for a 3% discount off the asking price in the biggest economic collapse we've ever seen

Sellers still seem to believe they have the upper hand thanks to TPTB and their reckless policies.

4% seems very reasonable indeed given the current state of play. She was lucky you didn't open the dialogue with a 10% minimum

[cashinmattress]

Saw a place on at a reasonable price, certainly didn't need a big discount to get to what I thought was a fair price in this climate

I'm in a good position as a FTBer with an agreement in principle

My offer is 6% less than asking price, she says she would give 3% off, I say highest I will go is 4% off asking and she refuses

Maybe it's better out there than I thought and people are queuing around the block for a 3% discount off the asking price in the biggest economic collapse we've ever seen

In this climate, any recent property punter is making a break even or perhaps small loss on the sale, in real terms.

It's not over until contracts and monies are exchanged. Just keep at it.

[noodle doodle]

You said it was on at a reasonable price so the rest of the post makes little sense. Would it have helped if they'd asked 50% more and let you haggle them back down to exactly the same price?

+pi

Yeah, by the OP's own definition, he was trying to get it for an unreasonable price then?

[The Knimbies who say No]

+pi

Yeah, by the OP's own definition, he was trying to get it for an unreasonable price then?

I think by the OP's definition he was trying to get it for a 'fair' price. I know that, 'coz that's wot he wrote.

[silver surfer]

If you're the only current bidder then you'll probably get it at your offer price, if you're not you won't.

The dillemma for us buyers is that if the property is a good one (and you'll find good and bad properties in every price band) then there's often some interest. If it's a bad one then you're usually on your own.

The biggest mistake you can make (and the classic FTB mistake) is to rejoice about buying a bad property at a very low price. Be patient and hold out for a good property at a decent price. If you're not sure which is which then draft in more experienced friends and relations to go along and view with you, and push them hard for their ruthlessly honest feedback.

[pete.hpc]

Let me re-phrase, it was a reasonable starting point in the sense that most vendors are still asking stupid prices

Of course it was still over-priced, but not by much

My offer was for slightly more than the absolute maximum I honestly think it's worth, so it was a good offer, not a discount for discounts sake

Happy to turn away a buyer over a few grand, good luck to 'em

Edited April 27, 2011 by pete.hpc

[noodle doodle]

I think by the OP's definition he was trying to get it for a 'fair' price. I know that, 'coz that's wot he wrote.

I put it to the jury that the defendant... oops... OP, stated "Saw a place on at a reasonable price"

Are we to then understand that there is a qualitative difference between the terms "fair" and "reasonable"? Can you be unfair yet reasonable, or unreasonable yet fair? I say "NO", and thus, the OP has contradicted himself within his opening statement to the court... case dismissed

Edited April 27, 2011 by noodle doodle

[pete.hpc]

oh ffs, maybe this thread isn't for you and your pedantic interpretation of peoples choice of wording

[happy_renting]

Even in a buoyant market it is normal for a vendor to ask a little more than they expect to get.

What vendor turns down an offer only 4% below? Was the property on sale at a higher price before?

[Rentingsince07]

I'm a cash buyer who recently offered £5k short of the guide price on a house that's been on the market for two years.The vendor immediately came back with a list of items which were not included in the price, but would be available by private negotiation. These included a summerhouse set in concrete foundations but as it was specially designed and built for the house, the vendor expected to recoup the full purchase price. Adding insult to injury, I was asked not to put the vendor under any pressure to move quickly. This is in the West Midlands.

[pete.hpc]

Even in a buoyant market it is normal for a vendor to ask a little more than they expect to get.

Yeah absolutely, hence me using the term "reasonable", as it was a reasonable starting point considering how unrealistic some sellers are being

What vendor turns down an offer only 4% below? Was the property on sale at a higher price before?

Nah, just come on the market over the last couple of weeks. I think they need to spend a bit of time with it on the market to see if my offer was actually good or they get better ones. It's really not that nice a place, it just ticks a few boxes for me personally. My hunch is that they're not going to get much interest.

Edited April 27, 2011 by pete.hpc

[cashinmattress]

I put it to the jury that the defendant... oops... OP, stated "Saw a place on at a reasonable price"

Are we to then understand that there is a qualitative difference between the terms "fair" and "reasonable"? Can you be unfair yet reasonable, or unreasonable yet fair? I say "NO", and thus, the OP has contradicted himself within his opening statement to the court... case dismissed

^ Is this Hamish? Or one of the other trolls that got the boot?

oh ffs, maybe this thread isn't for you and your pedantic interpretation of peoples choice of wording

Yes, its annoying. Very much so.

[The Knimbies who say No]

I wouldn't be surprised if the EA is working on the seller and you get a call in a while. Seems daft in this climate to trifle over such a small fraction.

[jonboy2010]

Saw a place on at a reasonable price, certainly didn't need a big discount to get to what I thought was a fair price in this climate

I'm in a good position as a FTBer with an agreement in principle

My offer is 6% less than asking price, she says she would give 3% off, I say highest I will go is 4% off asking and she refuses

Maybe it's better out there than I thought and people are queuing around the block for a 3% discount off the asking price in the biggest economic collapse we've ever seen

Wait it out they might come back to you or give it month then go back in with a lower offer.

[BlinkTooFast]

Saw a place on at a reasonable price, certainly didn't need a big discount to get to what I thought was a fair price in this climate

...

My offer is 6% less than asking price, she says she would give 3% off, I say highest I will go is 4% off asking and she refuses

...

Ask a friend to go view it and to offer 10% below asking to see what response they get. There are various scenarios that can play out (I'll let you work them out) and in each of them you learn something useful, and the vendor gets disheartened.

[_w_]

Saw a place on at a reasonable price, certainly didn't need a big discount to get to what I thought was a fair price in this climate

I'm in a good position as a FTBer with an agreement in principle

My offer is 6% less than asking price, she says she would give 3% off, I say highest I will go is 4% off asking and she refuses

Maybe it's better out there than I thought and people are queuing around the block for a 3% discount off the asking price in the biggest economic collapse we've ever seen

The seller betrays an unreasonable state of mind. Therefore in all probability the initial asking price was unreasonable.

You have less information than the seller about the actual state of the property.

Ditch.

[silver surfer]

I'm a cash buyer who recently offered £5k short of the guide price on a house that's been on the market for two years.The vendor immediately came back with a list of items which were not included in the price, but would be available by private negotiation. These included a summerhouse set in concrete foundations but as it was specially designed and built for the house, the vendor expected to recoup the full purchase price. Adding insult to injury, I was asked not to put the vendor under any pressure to move quickly. This is in the West Midlands.

Astonishing! Over the years I've bought and sold to normal reasonable people, and unfortunately to the occasional neurotic nutter. Never again if I can possibly help it. Moving is stressful enough without adding someone like this into the equation.

[pete.hpc]

Wait it out they might come back to you or give it month then go back in with a lower offer.

Yeah that's the plan, every month that passes is a bit less mortgage I need so I'm in no rush

[Harold Bishop]

Went to see a place ( N Oxfordshire rural village) today. It last sold Dec 2006 for £500k. The vendors have not spent a penny on the place. Asking £575k as a private sale ( no agent involved). Halifax and Nationwide calculators both put the value at about £460k .

I thought it was worth £450k max. Others would probably say even less.

The gap between it's worth and the vendor asking price is just too massive to even enter into a discussion about, so, I'll just tell them it's not for me - which it was not if I was being very honest with myself. Very nice vendors but deluded. Shame, as it is another house out of the market, even though it is on the market !!

[The Masked Tulip]

The gap between it's worth and the vendor asking price is just too massive to even enter into a discussion about, so, I'll just tell them it's not for me - which it was not if I was being very honest with myself. Very nice vendors but deluded. Shame, as it is another house out of the market, even though it is on the market !!

That's the problem - asking prices are so ludicrous there is no point putting in an hour.

I looked at a house in Swansea West a fortnight ago that was originally on for 350K for a year and finally came down to 285K asking. So I went along for a look. It needed complete gutting and modernisation - say 100K of work no problem. So, at best, it was a 200K asking price house.

I told the EA that it needed to spend at least 50K if not 100K on it and that was my mistake - the EA badgered me to put in an offer 50K below asking, but 50K below asking was still too much so I refused.

24 hours later the house was on with a difference EA for 282K asking - a massive 3K drop in asking price.

[Harold Bishop]

That's the problem - asking prices are so ludicrous there is no point putting in an hour.

I looked at a house in Swansea West a fortnight ago that was originally on for 350K for a year and finally came down to 285K asking. So I went along for a look. It needed complete gutting and modernisation - say 100K of work no problem. So, at best, it was a 200K asking price house.

I told the EA that it needed to spend at least 50K if not 100K on it and that was my mistake - the EA badgered me to put in an offer 50K below asking, but 50K below asking was still too much so I refused.

24 hours later the house was on with a difference EA for 282K asking - a massive 3K drop in asking price.

Mad.

You are right about the cost of refurbishment. If it is a light re furb ( kitchens, bathrooms, decorating etc ) I allow £50 per sq.ft. If it's more ( windows, moving walls, re-wiring, heating, plumbing, roof work etc) that figure goes to £75 - £100 per sq.ft.

It's unbelievable how much it costs when you have to hire in the building trade.

And once again, vendors are always delusional about the quality of their houses. So, houses that need a lot spending on them seem to be asking only marginally less than houses in very good order. And trying to get the price reduced is just a waste of time. Why should I pay for someone else's neglect ??? Come to that, why should I also pay for their MEW, stamp duty & EA fees

The only exception are complete wrecks that seem to attract huge interest from all the rose specs wearers.

Edited April 27, 2011 by Harold Bishop

[Blue Nose Bear]

Saw a place on at a reasonable price, certainly didn't need a big discount to get to what I thought was a fair price in this climate

I'm in a good position as a FTBer with an agreement in principle

My offer is 6% less than asking price, she says she would give 3% off, I say highest I will go is 4% off asking and she refuses

Maybe it's better out there than I thought and people are queuing around the block for a 3% discount off the asking price in the biggest economic collapse we've ever seen

Hi Pete,

Ignore the VI t**sers.

You only made one mistake first offer should have been -20%. Anything more and you end up haggling over 1 or 2 %, because one of the parties thinks they will lose face if they accept.

[exiges]

You only made one mistake first offer should have been -20%.

Agreed. Never offer near what your expected purchase price is.

Edited April 27, 2011 by exiges