Mustard_Jones Posted June 5, 2011 Share Posted June 5, 2011 Hi HPC'ers, We've found a place we really like and would welcome some views on what to offer, the summary is:- 1. We are 100% cash buyer, no chain and can proceed immediately 2. The house we like has been on the market 6 months, sold twice and fell through both times 3. The owners moved up North for a new job and are renting, they need to sell in order to buy their new place 4. Price was £230k, then dropped to £215k 4 weeks ago 5 Two weeks ago the agent told me they need £212k 6.. Yesterday the agent told me 'offers over £200k' only 7. Neighbouring propoerties recently sold for £230k 8. The house is in a nice area, SE UK, lots of space, extended 3 bed semi and just what we're looking for 9. They originally paid £90k or so 11 years ago and I'm speculating they have no, or a low mortgage I can sense a hint of desperation from the ventors and I know I am in a good position. Naturally I'd like to use this to my advantage and I'd appreicate your views on realistically what to offer to get this. Thanks ! Mustard Jones Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 5, 2011 Share Posted June 5, 2011 Keep your powder dry and wait! I'm a potential cash buyer in the south east and I wouldn't dream of buying a house now. Whatever you negotiate now, I'm certain that you will pay substantially less in a few years time. Quote Link to comment Share on other sites More sharing options...
profitofdoom Posted June 5, 2011 Share Posted June 5, 2011 Keep your powder dry and wait! I'm a potential cash buyer in the south east and I wouldn't dream of buying a house now. Whatever you negotiate now, I'm certain that you will pay substantially less in a few years time. I recognise what you are saying Bruce but he wants to buy.I sold my detached farmhouse a year ago and took a 3 bed semi to facilitate the sale.I left it on at £155k and had one offer of £140k which I declined.However a friend has asked to buy the house and only has £125k,so I am selling at that and getting the £15k at the end of the year.I think you should try £195k and maybe be prepared to go the extra if you have to.Just as long as you are sure you can afford it. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 5, 2011 Share Posted June 5, 2011 I recognise what you are saying Bruce but he wants to buy. Why on Earth would he want to buy? If I were to draw £350K out of the bank and buy the house I'm currently renting, I'd be out of pocket because the interest the bank pay me on that £350K is more than I pay in rent. If you take into account repairs, maintenance and the fact that I believe house prices will fall 30% to 40% over the next few years, it's a no brainer. Quote Link to comment Share on other sites More sharing options...
aussieboy Posted June 5, 2011 Share Posted June 5, 2011 Keep your powder dry and wait! I'm a potential cash buyer in the south east and I wouldn't dream of buying a house now. Whatever you negotiate now, I'm certain that you will pay substantially less in a few years time. This sort of advice should come with a health warning. Quote Link to comment Share on other sites More sharing options...
mentholist Posted June 5, 2011 Share Posted June 5, 2011 (edited) Offer 180 get rejected. Get a mate to offer 175. See that rejected. Make improved offer Of 185 and see what happens. Ultimately though if it's a good house in the south east you'll be lucky to do better than 10% off asking. The stats kind of indicate this. Fwiw Bruce may be right. How much of a loss can you bear? Edited June 5, 2011 by mentholist Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 5, 2011 Share Posted June 5, 2011 This sort of advice should come with a health warning. I've been renting for the last five years and I'm well over £100K in pocket compared to what I would have been if I'd bought the house I'm renting. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted June 5, 2011 Share Posted June 5, 2011 I think my anecdote might be relevant here. I need a new phone to replace my old knackered iPhone 3G. I want an iPhone 4, not fussed if it's new or not, but I want a bargain. I've been bidding on eBay for the past 2 weeks with my price in mind but I've been outbid every time. I realised yesterday that I wanted the phone much more than the few hundred pound sitting in my bank account. So I just ordered if from Apple after all that. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted June 5, 2011 Share Posted June 5, 2011 Hi HPC'ers, We've found a place we really like and would welcome some views on what to offer, the summary is:- 1. We are 100% cash buyer, no chain and can proceed immediately 2. The house we like has been on the market 6 months, sold twice and fell through both times 3. The owners moved up North for a new job and are renting, they need to sell in order to buy their new place 4. Price was £230k, then dropped to £215k 4 weeks ago 5 Two weeks ago the agent told me they need £212k 6.. Yesterday the agent told me 'offers over £200k' only 7. Neighbouring propoerties recently sold for £230k 8. The house is in a nice area, SE UK, lots of space, extended 3 bed semi and just what we're looking for 9. They originally paid £90k or so 11 years ago and I'm speculating they have no, or a low mortgage I can sense a hint of desperation from the ventors and I know I am in a good position. Naturally I'd like to use this to my advantage and I'd appreicate your views on realistically what to offer to get this. Thanks ! Mustard Jones Emphasise your position and offer around £170k. It will almost certainly be rejected but you never know. Say you have other properties to you want to view. Leave a a week and then up to maybe £185k and see what happens. If you really really want you can up it again but leave it a week or so between offers. I do agree with Bruce though personally I would, and am waiting. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted June 5, 2011 Share Posted June 5, 2011 I think my anecdote might be relevant here. I need a new phone to replace my old knackered iPhone 3G. I want an iPhone 4, not fussed if it's new or not, but I want a bargain. I've been bidding on eBay for the past 2 weeks with my price in mind but I've been outbid every time. I realised yesterday that I wanted the phone much more than the few hundred pound sitting in my bank account. So I just ordered if from Apple after all that. Should have waited a year you would have got it for less than your bid was... Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 5, 2011 Share Posted June 5, 2011 I think my anecdote might be relevant here. I need a new phone to replace my old knackered iPhone 3G. I want an iPhone 4, not fussed if it's new or not, but I want a bargain. I've been bidding on eBay for the past 2 weeks with my price in mind but I've been outbid every time. I realised yesterday that I wanted the phone much more than the few hundred pound sitting in my bank account. So I just ordered if from Apple after all that. Not a good analogy if I may say. You would not rent an iPhone, but you can rent a house. I live in a nice house, in a top area and the fact I'm renting it, rather than having bought it, does not detract from it one iota. Quote Link to comment Share on other sites More sharing options...
libspero Posted June 5, 2011 Share Posted June 5, 2011 I can sense a hint of desperation from the ventors and I know I am in a good position. Naturally I'd like to use this to my advantage and I'd appreciate your views on realistically what to offer to get this. There's no right or wrong answer.. it depends entirely on the vendor. They might not accept a penny under £212k.. or they might be so keen to move they'll drop their trousers. If you really want to buy now, and this is definitely the right house for you (whatever the market does next) then I would say a realistic offer that is likely to be accepted is probably around 10% under asking price... so about £195k. This is obviously finger in the air stuff because we don't know the house the area or anything else about it. Others will probably say go lower... Quote Link to comment Share on other sites More sharing options...
#1 on West side Posted June 5, 2011 Share Posted June 5, 2011 I've been renting for the last five years and I'm well over £100K in pocket compared to what I would have been if I'd bought the house I'm renting. Thanks for the umptieth replay of your current situation, Bruce... We are well aware of your "my interest covers my rent" scenario. Now let's get back to the OP's question... Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted June 5, 2011 Share Posted June 5, 2011 I think the point I was trying to make is that what is the house worth to you? Look, I'm the biggest bear going and I'm aware that property in the UK is well overpriced, but if you've got that amount of cash and you really want that house why not trade them. Let me also say, I wouldn't have the same view about taking on a £230k debt backed on a UK house at the moment. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 5, 2011 Share Posted June 5, 2011 Thanks for the umptieth replay of your current situation, Bruce... We are well aware of your "my interest covers my rent" scenario. Now let's get back to the OP's question... What's the problem? Does it not suit your agenda that I can get a better return by not having my money tied up in an illiquid, depreciating, asset? This is a forum, one tends to say the same thing on different threads, where appropriate. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 5, 2011 Share Posted June 5, 2011 Hmmmmmm....... http://www.housepricecrash.co.uk/forum/index.php?showtopic=159399&st=0&p=2892502&fromsearch=1entry2892502 Quote Link to comment Share on other sites More sharing options...
libspero Posted June 5, 2011 Share Posted June 5, 2011 Hmmmmmm....... http://www.housepricecrash.co.uk/forum/index.php?showtopic=159399&st=0&p=2892502&fromsearch=1entry2892502 Did I hear Awooooga You must have a memory like an elephant Bruce.. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 5, 2011 Share Posted June 5, 2011 Did I hear Awooooga You must have a memory like an elephant Bruce.. I just clicked the forum name at top left of post > My Content - and there it was. Quote Link to comment Share on other sites More sharing options...
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