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Guys I dont post much, but have followed this forum since 2006.

I am fortunate enough to be in a cash position to buy a decent house and have 5 years + of living expenses in the bank after exiting the market in 2006.

I have already started viewing a few properties and have several more lined up for this weekend. Me and the missus are both ex Pfizer in east Kent after both getting laid off in 2009 and taking a good break the missus was lucky enough to land a permanent position 2 months before the big R and D layoff announcement. She may get Tup'd or another layoff with 8 months salary payoff. I have just landed a short term contract back on site. I may get 6 months work.

For various reasons we now think it's worthwhile looking.

I'm seeing lots of fresh property coming on to the market especially decent detached homes in good areas and I think this is ex or soon to be ex Pfizer staff, many of the properties are marketed as no onward chain. Prices locally are around 10 to 15 % off the 2007 peak. With this in mind we plan to view several properties and low ball offers on several that we like in the areas of town we like. Although I fully expect prices to decline in the short to medium term I believe we can get some further cushion against larger paper losses by taking this tactic.

What do you guys think we may actually get away with as an offer as a % of asking price. We are in rented now with cash in the bank. I'd be particularly interested if anyone has any local knowledge of what typical accepted offers are as a % of asking. I have a figure in mind but want to float this out there first.

Thanks in advance

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You have start with the premise that properties are at least 10% overvalued when listed (My experience).

Secondly you need to develop a yardstick of what similar properties in similar areas are up for, best way in my experience to to determine the internal area of the properties of interest and work out the price per sq metre or foot. (The EPC will provide the internal area dimensions). Adjustments can be made up or down for size of garden etc.

Thirdly you can get a feel for the urgency of the seller by seeing how many tweaks, changes and adjustments are made via the rightmove property bee function.

lastly numerous websites list propertysold prices & inflation / deflation stats by town area and region, you should be able to determine where a price should be for particular properties from this data.

So you should have an idea of the relative value of the property and whether the seller is committed after going through points 1 to 4.

If you get a whiff of desperation from the seller you can also check them out online, for a small fee to see if they in trouble financially.

As a cash buyer you have extra leverage so go for it

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Your wifes job is insecure, you are on a short term contract!

Do not ask us, I suggest you go and ask "Max your self out on the mortgage" Krusty.

Personally I think you are mad for even thinking of buying a house with those circumstances.

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Guys I dont post much, but have followed this forum since 2006.

I am fortunate enough to be in a cash position to buy a decent house and have 5 years + of living expenses in the bank after exiting the market in 2006.

I have already started viewing a few properties and have several more lined up for this weekend. Me and the missus are both ex Pfizer in east Kent after both getting laid off in 2009 and taking a good break the missus was lucky enough to land a permanent position 2 months before the big R and D layoff announcement. She may get Tup'd or another layoff with 8 months salary payoff. I have just landed a short term contract back on site. I may get 6 months work.

For various reasons we now think it's worthwhile looking.

I'm seeing lots of fresh property coming on to the market especially decent detached homes in good areas and I think this is ex or soon to be ex Pfizer staff, many of the properties are marketed as no onward chain. Prices locally are around 10 to 15 % off the 2007 peak. With this in mind we plan to view several properties and low ball offers on several that we like in the areas of town we like. Although I fully expect prices to decline in the short to medium term I believe we can get some further cushion against larger paper losses by taking this tactic.

What do you guys think we may actually get away with as an offer as a % of asking price. We are in rented now with cash in the bank. I'd be particularly interested if anyone has any local knowledge of what typical accepted offers are as a % of asking. I have a figure in mind but want to float this out there first.

Thanks in advance

It's your right to offer whatever you like and it's the sellers right to accept or reject it.

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"if you're not embarrassed by your offer then it's too high".

don't be swayed by asking pricing and %ages - asking prices can be set at anything depending on the relative delusion of the sellers.

decide a fair value for the houses yourself and work down from there.

seriously, why not rent until after Pfizer has closed and everyone has spend their redundancy money? I imagine plenty of people will leave the area after the place shuts.

delusionlandreg.jpg

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I'd be interested to know how it was recieved by the agent and the vendor ?

So will I. The house has been on the market for 5 months. Personally, I think it is in a really cr*p location.

It is a tiny fisherman's cottage in Mumbles on a bend in a road which is also spot on the part of the road where the road also narrows and is a small hill - meaning that cars are constantly braking, reving their engines about 3 feet from the front door.

A friend said he would not pay 120K for it. Nor would I.

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"if you're not embarrassed by your offer then it's too high".

don't be swayed by asking pricing and %ages - asking prices can be set at anything depending on the relative delusion of the sellers.

decide a fair value for the houses yourself and work down from there.

seriously, why not rent until after Pfizer has closed and everyone has spend their redundancy money? I imagine plenty of people will leave the area after the place shuts.

delusionlandreg.jpg

A good chunk of them are already on paid notice at home already. I was thinking try a few cheeky offers on the stuff we like on the market now and if there are no takers check the market again in a couple of months or so. Rented is a major pain in the **** with a dog you only really get offered really run down crap property or you got to go for a larger house which is added expense and larger bills. If I can get something around 2004 prices I think it would be worth it in our personal circumstances.

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So will I. The house has been on the market for 5 months. Personally, I think it is in a really cr*p location.

It is a tiny fisherman's cottage in Mumbles on a bend in a road which is also spot on the part of the road where the road also narrows and is a small hill - meaning that cars are constantly braking, reving their engines about 3 feet from the front door.

A friend said he would not pay 120K for it. Nor would I.

Yep those are the ones that will be very hard to shift if the market deteriorates. We are only looking at very good quiet areas that are popular. One house on an estate we like has gone under offer at 97.2% of asking price within 1 week of marketing. I dont think we will get any takers on less than 90% of asking if they are fresh to the market , some of the stuff we like has been sitting around for 3 to 6 months and there might be more room to negotiate.

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You have start with the premise that properties are at least 10% overvalued when listed (My experience).

Secondly you need to develop a yardstick of what similar properties in similar areas are up for, best way in my experience to to determine the internal area of the properties of interest and work out the price per sq metre or foot. (The EPC will provide the internal area dimensions). Adjustments can be made up or down for size of garden etc.

Thirdly you can get a feel for the urgency of the seller by seeing how many tweaks, changes and adjustments are made via the rightmove property bee function.

lastly numerous websites list propertysold prices & inflation / deflation stats by town area and region, you should be able to determine where a price should be for particular properties from this data.

So you should have an idea of the relative value of the property and whether the seller is committed after going through points 1 to 4.

If you get a whiff of desperation from the seller you can also check them out online, for a small fee to see if they in trouble financially.

As a cash buyer you have extra leverage so go for it

Some good advice here I think, thanks

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Your wifes job is insecure, you are on a short term contract!

Do not ask us, I suggest you go and ask "Max your self out on the mortgage" Krusty.

Personally I think you are mad for even thinking of buying a house with those circumstances.

With no mortgage we wont have to bring in that much between us to cover our living expenses. Also I don't expect to be having to or wanting to sell anything we buy any time in the near future, possibly ever. I'd expect to "lose" money on it in the medium term, but our quality of life would be considerably improved I believe.

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I'm also a potential cash buyer and I honestly can't think of a worse time to buy a house.

If you really must buy now, why not make lot's of offers at 60% of asking price? I wouldn't do it myself though in case one got accepted.

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You have start with the premise that properties are at least 10% overvalued when listed (My experience).

:wacko:

:D:P:D

Er....... nope: :blink:

Mmm... :wacko::wacko::wacko:

Actually, more like: - You have start with the premise that properties are at least 70% overvalued when listed. So offer 30%, and secretly allow yourself to go to 50% MAX.

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Did anyone watch the apprentice yesterday where the tea seller woman tries to flog her tea for £950 because it was the highest quality tea available.

She ended up agreeing to sell for about £450, and no doubt still made a healthy profit.

Seemed like a few parallels with the housing market in that story, and it encourages me to set aside vendor's high valuation of their own properties.

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Did anyone watch the apprentice yesterday where the tea seller woman tries to flog her tea for £950 because it was the highest quality tea available.

She ended up agreeing to sell for about £450, and no doubt still made a healthy profit.

Seemed like a few parallels with the housing market in that story, and it encourages me to set aside vendor's high valuation of their own properties.

Same happened to me over the weekend. Got a quote for fitted bedroom for £11K. Didn't call back. Salesman called yesterday and is now willing to do it for £8K. Will probably call on Monday to do it for £6K.

People shouldn't make offers as a percentage of the asking price they should make them on what they think the property is worth. In our street two identical houses went up for sale. One @ £650K, the other at £500K. The first house has had two reductions and not sold, the second sold within a week at asking. I would say the first house is now worth less than £500K as there is one less buyer out there.

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Same happened to me over the weekend. Got a quote for fitted bedroom for £11K. Didn't call back. Salesman called yesterday and is now willing to do it for £8K. Will probably call on Monday to do it for £6K.

People shouldn't make offers as a percentage of the asking price they should make them on what they think the property is worth. In our street two identical houses went up for sale. One @ £650K, the other at £500K. The first house has had two reductions and not sold, the second sold within a week at asking. I would say the first house is now worth less than £500K as there is one less buyer out there.

I agree with you to a certain extent especially at houses in those price brackets they tend to be more individual and harder to get direct comparisons. But we are looking at half those prices and they are houses on estates with similar properties, with several recent sales it's a lot easier to get a feel for the market.

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Time is on your side. What you offer depends on how bothered you will be if your house finally ends up worth less than you paid for it. If you're not too concerned about this and really like a particular house then 20% below seems reasonable. But, if you want to factor in likely future losses you might want to be closer to 30% below. In this case you might have to be prepared for a longer wait, and many offers, until you find a sufficiently motivated vendor.

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I agree with you to a certain extent especially at houses in those price brackets they tend to be more individual and harder to get direct comparisons. But we are looking at half those prices and they are houses on estates with similar properties, with several recent sales it's a lot easier to get a feel for the market.

We are in London in a 1930s estate with identikit 3 bed terraces. Wish we could get them at half the price ;)

Trickiest part in pricing near us is the lack of sales in recent years. There used to be a fair amount of sales going on until about 4 years ago. Only one family has moved in since. Most people have just extended rather than trade up. Last year, we had five loft extensions on a stretch of twenty homes on the go at the same time. Really handy, as I was able to have a look at all of them before we got ours done this year ;)

There is a bit of a lag in recent sales. I suspect you could knock 5-10% off a March 2011 sale price. Some are better maintained/decorated than others, but I am always amazed that people think their kitchen/bathroom etc. adds so much more to the value of the house. Normally they are the first things to go when people move in. I bought my current house despite the so-called improvements such as air-conditioning...

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Same happened to me over the weekend. Got a quote for fitted bedroom for £11K. Didn't call back. Salesman called yesterday and is now willing to do it for £8K. Will probably call on Monday to do it for £6K.

£11K? What on earth are you having it fitted with?

We had a quote of £4K a couple of years ago, and I thought that was a lot.*

Instead I painted a whole wall of good quality but horrible-looking fitted drawers and wardrobes - bloody fiddle, took at least 3 days - and changed all the umpteen handles.

Total cost about £60 :)

*salesman was one of those sharks who aren't interested unless you sign NOW. He never called back.

Edited by Mrs Bear

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A friend made an offer of 80% of asking today - 200K on a 250K asking price.

Was that "friend"...really you :lol:

Don't be embarrased, it's okay to offer...just dont buy

Edited by TheCountOfNowhere

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£11K? What on earth are you having it fitted with?

A load of wood veneered covered mdf. It's a big room, and we are having quite a lot put in, there are a couple of awkward angles as it is a loft conversion, but obviously the salesman was trying it on.

My OH told salesman we would pay £7K , which was a mistake....

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I have started looking too and have viewed 6 properties so far. When the agent has phoned me the following week, I have always said that I won't be making an offer as I believe the property is at least 20% overpriced and there is much better value to be had elsewhere. I say I'm only interested in a house that represents fair value and that although the house was lovely, the vendor needs to get realistic if they're serious about selling. Most of the agents have completely agreed with me and still asked me to put an offer in at 20% below asking just to see. TBH, my real opinion is more like 40% overvalued but you have to start somewhere :).

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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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