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aussieboy

How To Manage Vendors' Pricing Expectations

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I'm off househunting tomorrow (don't ask - no choice) and was wondering whether any people on the forum had any ideas of questions to ask that produce answers that have a negative effect on the asking price.

I'm thinking:

How noisey are your neighbours?

How much did you buy the place for and when?

Are you in a hurry to move?

Etc

I'm a cash buyer in no hurry and I'm only looking at houses which have been on the market a while and have already been reduced in price (I have read this forum for a while...)

BTW it's in Sheffield: the market there is going south rapidly at the moment BTW (I've been monitoring it for 18 months on a spreadsheet like the sad man I am) but I'll let you know what the vibe is in the specific geography forum when I get back.

Cheers

aussieboy

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Guest absolutezero
I'm off househunting tomorrow (don't ask - no choice) and was wondering whether any people on the forum had any ideas of questions to ask that produce answers that have a negative effect on the asking price.

I'm thinking:

How noisey are your neighbours?

How much did you buy the place for and when?

Are you in a hurry to move?

Etc

I'm a cash buyer in no hurry and I'm only looking at houses which have been on the market a while and have already been reduced in price (I have read this forum for a while...)

BTW it's in Sheffield: the market there is going south rapidly at the moment BTW (I've been monitoring it for 18 months on a spreadsheet like the sad man I am) but I'll let you know what the vibe is in the specific geography forum when I get back.

Cheers

aussieboy

Of course you have a choice.

Rent for a year and buy when cheap. The market has further South to go.

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Or my favourite: "Why are you selling";

1) Looking for smaller place - Ans. Ah, yes, it's quite big I guess it's draughty and difficult to heat in winter.

2) Bigger place - Ans. Yes, it is a bit on the small side isn't it....

etc, etc. :ph34r:

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Suggestions:

Why are you moving?

Do you get on with your neighbours?

How old are their children?

Are they ever noisy?

Have you found a house yet?

Have you had many viewings?

Where are you moving to?

How long have you lived here?

Did you do this yourself?

Have you got the certificate for the wiring?

Do you have fensa certificates for all windows etc?

How much are your fuel bills?

Are you fully insulated?

Can I just pull this bit of carpet up to look at the floor underneath?

Do you get problems with anyone on the street?

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I'm off househunting tomorrow (don't ask - no choice) and was wondering whether any people on the forum had any ideas of questions to ask that produce answers that have a negative effect on the asking price.

How about..." the market is falling and if you want to sell your house then you will have to drop the price by ??%. But don't worry... if you negotiate a similar % drop with the vendor of the house you want to buy they can do the same to theirs and so on, so you won't be losing out."

the estate agents used this system last time and after a while it works. obviously the vendor at the top of the chain loses, but no one else does, and the proven record of reduced house values hits the land registry.

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Guest Guy_Montag

Is it bad form to ask to look in the attic & drill into the beams (with like a 2-3mm drill)?

One of my colleagues got a survey done, which said nothing of value. For everything that might cause a problem it said, get a "plumber/electrician/surveyor" etc to check this. Makes me want to do this myself & do it properly.

Edited by Guy_Montag

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Raise the subject of price and then ask "Why is it that price?". Say NOTHING more and more often than not they will drop the price because they think you are saying it's too high even though you only asked a simple question. Just a tip I got from an EA.

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Suggestions:

Why are you moving?

Do you get on with your neighbours?

How old are their children?

Are they ever noisy?

Have you found a house yet?

Have you had many viewings?

Where are you moving to?

How long have you lived here?

Did you do this yourself?

Have you got the certificate for the wiring?

Do you have fensa certificates for all windows etc?

How much are your fuel bills?

Are you fully insulated?

Can I just pull this bit of carpet up to look at the floor underneath?

Do you get problems with anyone on the street?

Thanks, SarahBel: I've highlighted my favourite question! I'm looking forward to drafting a comprehensive set of reps and warranties into the sale documents.

In answer to the other question: can't wait... money to be spent.

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Suggestions:

Why are you moving?

Do you get on with your neighbours?

How old are their children?

Are they ever noisy?

Have you found a house yet?

Have you had many viewings?

Where are you moving to?

How long have you lived here?

Did you do this yourself?

Have you got the certificate for the wiring?

Do you have fensa certificates for all windows etc?

How much are your fuel bills?

Are you fully insulated?

Can I just pull this bit of carpet up to look at the floor underneath?

Do you get problems with anyone on the street?

I'm saving that list for when we start looking, thanks! :)

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"We made several appointments this weekend to look at houses but after reading the headlines in yesterday's Daily Express about a big slump in the price of houses we almost cancelled coming!"

How's that for an opening line?

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"We made several appointments this weekend to look at houses but after reading the headlines in yesterday's Daily Express about a big slump in the price of houses we almost cancelled coming!"

How's that for an opening line?

These are great suggestions... I'm taking notes!

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Is it bad form to ask to look in the attic & drill into the beams (with like a 2-3mm drill)?

One of my colleagues got a survey done, which said nothing of value. For everything that might cause a problem it said, get a "plumber/electrician/surveyor" etc to check this. Makes me want to do this myself & do it properly.

We had a few surveys done last time we were house hunting. They were full structurals but, as you say, the surveyor seemed to just keep covering his back by recommending having just about everything looked at by professionals. It seemed a waste of money.

However a friend had a home buyers report done when buying her house and the surveyor missed some really obvious dry rot (even obvious to me). Consequently she threatened action against the surveyor and they coughed up the full cost of the work required (a can blame someone else if anything goes wrong.bout 4K as they needed to replace entire ground floor, joists etc.)

So I guess it is probably worth getting a home buyers report, so you

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In a bear market this works:

Ask the vendor directly while viewing

(don’t communicate via agent)

‘What is the lowest price you would accept for a quick no chain sale?’

There maybe a awkward silence... but they will come out with something

like, ‘we couldn’t possibility sell for less than £****’ .

Make no commitment, and say you have to make some inquiries.

When the agent phones you, tell them that you think the price was still too high

and offer something ‘sensibly’ less.

You are in a strong position, don’t play their game. Find out what their bottom price is.

and try to squeeze it further.

I have bought in a falling market (1993). I got a further £15k knocked off (by them)

for being forward/cheeky/having some front, off a price that was reasonable to start with.

Don’t just take their asking figure and drop it by 10~15%. it’s a bear market now!

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Personally owning a period property I have found *some* surveyors don't put things into perspective. For some serious things, they ignore completely (like even looking at the roof from inside) or internal support where the beams are covered or hidden.

Other things (damp/movement/old woodworm) they jump up and down and refer to experts despite pretty much every property of the same age suffering from the same issues. The solutions suggested are pretty bizarre as well, I paid good money for a chemical DPC in my old house on the basis of a surveyors advice but I'm pretty sure that was money wasted.

As a historical perspective, my Dad's survey of our family house when he bought it, done in 1969, said that all the windows needed to be replaced. Last year the house was sold with the same windows in place and generally functioning well. On was a little rotten, the rest were fine.

Have you ever been burgled? To your knowledge, was the previous owner ever burgled.

Our buyers asked that. drove us mad during our sale, we had to reply formally at least three times.

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I suspect an air of vagueness about the area does well not to sound too keen, eh!

Ask lots of questions about the local schools and shops, wheres the post office (Oh there isn't one... Oh... thats a shame)

Be prepared for the estate agent rinigng you up and asking what you thought.

"We have concerns about the size of the upstairs rooms, concern over X,Y and Z... but we might be able to consider if for a reduced price.."

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I'm off househunting tomorrow (don't ask - no choice) and was wondering whether any people on the forum had any ideas of questions to ask that produce answers that have a negative effect on the asking price.

I'm thinking:

How noisey are your neighbours?

How much did you buy the place for and when?

Are you in a hurry to move?

Etc

I'm a cash buyer in no hurry and I'm only looking at houses which have been on the market a while and have already been reduced in price (I have read this forum for a while...)

BTW it's in Sheffield: the market there is going south rapidly at the moment BTW (I've been monitoring it for 18 months on a spreadsheet like the sad man I am) but I'll let you know what the vibe is in the specific geography forum when I get back.

Cheers

aussieboy

Ask them what they do for living, when they say tthey work down the local cash and carry, smile nicely and move on.

Have a nice day.

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In a bear market this works:

Ask the vendor directly while viewing

(don’t communicate via agent)

‘What is the lowest price you would accept for a quick no chain sale?’

There maybe a awkward silence... but they will come out with something

like, ‘we couldn’t possibility sell for less than £****’ .

Make no commitment, and say you have to make some inquiries.

When the agent phones you, tell them that you think the price was still too high

and offer something ‘sensibly’ less.

You are in a strong position, don’t play their game. Find out what their bottom price is.

and try to squeeze it further.

I have bought in a falling market (1993). I got a further £15k knocked off (by them)

for being forward/cheeky/having some front, off a price that was reasonable to start with.

Don’t just take their asking figure and drop it by 10~15%. it’s a bear market now!

Agree totally - see this post on thisismoney for my recommendations

Re: House prices - who to believe

Posted by: Teddyboy on 29/09/05 at 10:15 PM

I agree with all of the above but ther are a lot of things going on that can be interpretted differently by some 'bulls' and 'bears'. I come under the bear/realist category.

The number of mortgage approvals are up. This is because of a few things.

There are a LOT of remortgages from 2/3 and 5 year fixed deals coming to an end.

I have got a mortgage approval so IF I see a house I want I can go in with a low price and entice them that it could be completed within weeks (A very good selling point). As it stands I probably WONT buy yet, but sometime that little gem pops up.

People are buying houses - YES there are sales, but only for the ones who are prepared to lower their prices. As it stands there a lot more holding out for a better price (dont believe they will get it tbh).

Housing selling is not an indication of the market picking up. It could actually be the opposite. More people are selling their houses at REDUCED rates (realistic prices more like). This goes down as a sale. From a BULL point of view you will get "demand is strong - lets put the prices up". From the bears you will get "Yeah, but 1 sale in a month - big deal what about the other 65 on your books?"

From the realist point of view - this is good. As a bear I know that the only way to get the prices down to the level I believe they should be at (-20/30% of ASKING PRICES) you have to buy the house at reduced rates and FORCE the market down.

The best indicator you take is this:

What are they asking? £180,000

What was the last sold and when? £155,000 (Jan 2005)

Whats the market condition? POOR

Whats the Indice that reflects the true selling price? LR maybe?

My view is I WILL NOT BUY AT A PENNY MORE THAN LAST SOLD. The market has been declining for 18months - how can you justify the 25K difference in a falling market?

I would then say that the last sold was q1 2005 then if there was a drop of 0.1% in q2 and 0.2% in q3 then I would offer £154,000 as a ceiling price.

I then would look at other similar properties for that area on www.houseprices.co.uk and see if that initial £155,000 sale was irregular. You dont have to pay the highest ever price for every house. If this house is extended or a 'bit special' then that is probably a fair price.

You will know what is fair. My opinion (of course I have one) is that house "selling prices" will fall about 10% over 2 years. The asking prices, in my area anyway are still 30-40% over the last sold price. So EA's in my area (L'pool) need to get their act together. When you hear people say they will fall by upto 40% - in my area thats just putting back to the last sold price and therefor the house has actually not dropped at all. People will say "40% they will never drop that much?" Yet when EA's put an asking price 40% above last sold - nothing is said.

Funny that aint it?

Edited by teddyboy

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when I was looking to buy I asked the vendors about the amount of the bills, and maintainance (when purchasing leasehold). When I found a property I was interested I made sure I asked for the owners tel no, cheeky or not rather deal with them directly than via agent. I also knocked on neighbours doors, to ask if they were happy living there, as I was considering purchasing, what the neighbours were like etc most were quite happy to talk. I believe it is better to do your own research. Never rely or believe what an estate agent tells you!

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Is next door rented?

What sort of family? Working or not?

Do any of your neighbours have ASBOs?

Are there any known crack or heroin addicts? (The majority of burglaries are committed by addicts living less than 200 yards away from the attacked premises)

Have the police ever been called to your neighbours eg cos of drunken parties or domestics?

Are there dogs next door?

Has there ever been a crack house on the street?

Do prostitutes work on the street? (Sister got caught out on that one - her fault though -should have checked the area at night, but she could have asked the question. Might have got some redress. Oh yes-and the junkies hanging out at night in the cul-de sac by the school gates just 5 yards from her front door. Great environment for 2 kids)

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I'm off househunting tomorrow (don't ask - no choice) and was wondering whether any people on the forum had any ideas of questions to ask that produce answers that have a negative effect on the asking price.

I'm thinking:

How noisey are your neighbours?

How much did you buy the place for and when?

Are you in a hurry to move?

Etc

I'm a cash buyer in no hurry and I'm only looking at houses which have been on the market a while and have already been reduced in price (I have read this forum for a while...)

BTW it's in Sheffield: the market there is going south rapidly at the moment BTW (I've been monitoring it for 18 months on a spreadsheet like the sad man I am) but I'll let you know what the vibe is in the specific geography forum when I get back.

Cheers

aussieboy

Aussieboy, how did the viewings go? Did u use any suggestions mentioned here?

Jason.

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  • 338 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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