Neil_C Posted September 5, 2011 Share Posted September 5, 2011 I would really appreciate input on this.... Property is a 3 bedroom semi detached in a pretty desirable area - I've viewed it a couple of times and a note of interest has been given. It is on the market at offers over £225k, home report shows no issues and valuation is £245k. It was previously bought (current owner) for £247k in 2008 Condition is walk in and no work would need to be done, I reckon there will be plenty others interested so want to move fast. We are currently renting so ready to move as soon as our mortgage is in place. Similar size houses on same street went for £228k Feb 2011 £232k Jul 2010 After doing some research it seems the home report valuation is on the high side - putting the details into various sites gets results like below: Average Valuation: £215,000.00 Upper Valuation: £245,000.00 Lower Valuation: £180,000.00 Properties are selling but slowly so I would think average to high would be a good valuation (open to correction!) With this in mind and adding the fact I really like the property I offered £227,750 but it was refused. Feedback from seller to agent was that they were looking for the full home report value (£245k). I may offer £232,750 which would be 5% less that the valuation but not sure on the best strategy. The property has only been on the market for a week so no real rush. How would you proceed? Am I being realistic in thinking it is valued high? Cheers! Neil Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted September 5, 2011 Share Posted September 5, 2011 If you can easily afford it and now is the time... then it's your money. Personally I wouldn't offer over the 'offers over' price at all.... it's plain cheek from the vendors wanting the full valuation! Why have 'offers over' then! Greedy blighters probably think these days you still get 20%+ on top! It's your money and it sounds like you want it, so what I'm going to say you wont like and wont be of much help! Like so many here... I would say that I'm still interested, but the price I'm willing to pay will reduce a couple £k a month due to the falling market - buyer's market and all that. Honestly, the cheek of it! Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 5, 2011 Author Share Posted September 5, 2011 If you can easily afford it and now is the time... then it's your money. Personally I wouldn't offer over the 'offers over' price at all.... it's plain cheek from the vendors wanting the full valuation! Why have 'offers over' then! Greedy blighters probably think these days you still get 20%+ on top! It's your money and it sounds like you want it, so what I'm going to say you wont like and wont be of much help! Like so many here... I would say that I'm still interested, but the price I'm willing to pay will reduce a couple £k a month due to the falling market - buyer's market and all that. Honestly, the cheek of it! Thanks for the reply. I agree that it's a bit cheeky to have offers over when you have no intention of selling for less than the valuation. I think my offer was pretty generous, I'll hang fire and see how it goes in the coming weeks. Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted September 5, 2011 Share Posted September 5, 2011 (edited) Reading your original post, I have to say your original offer WAS very generous. Don't be a mug and pay the cheeky blighters even more. It'd serve them right if they had to wait on for longer for a lower price. You present the evidence yourself - present it to them! Imagine asking what they are when CLEARLY nearby homes sold for less. Mind you many people are in their situation and they must be REALLY angry & frustrated. Even my girlfriend... if she were to sell her flat I keep telling her she would have to price it low for a quick sale rather than long-term loss... and yet even after hearing me bang on with all the HPC knowledge, she STILL has this mental block where she 'won't sell less than what it's worth'. Offers over is one of my serious dislikes - it exponentially inflates pricing, it's devious and secret and just plain evil. Must admit I would be hard pushed to go for anything offers over - lots of fixed price on at the mo. Definitely hold on - don't let emotions make you rush into anything. Let us know how you get on! Edited September 5, 2011 by guitarman001 Quote Link to comment Share on other sites More sharing options...
Garf Posted September 5, 2011 Share Posted September 5, 2011 Heh. Is it the only place you can imagine living? Is it a once-in-a-lifetime "steal" that you can't pass up? Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 5, 2011 Author Share Posted September 5, 2011 Reading your original post, I have to say your original offer WAS very generous. Don't be a mug and pay the cheeky blighters even more. It'd serve them right if they had to wait on for longer for a lower price. You present the evidence yourself - present it to them! Imagine asking what they are when CLEARLY nearby homes sold for less. .......Definitely hold on - don't let emotions make you rush into anything. Let us know how you get on! I plan on compiling sale prices for surrounding streets to convince myself. They will be trying to recoup the £247k they paid 2 1/2 years ago and I can empathise....I'll be biding my time to see how it pans out. Heh. Is it the only place you can imagine living? Is it a once-in-a-lifetime "steal" that you can't pass up? It is a cracking property but if I miss out so be it! Problem I have is settling on what I think the property is actually worth. Thanks for the input guys, appreciated Quote Link to comment Share on other sites More sharing options...
ccc Posted September 6, 2011 Share Posted September 6, 2011 The peak for most of Scotland was Q1 2008. Even after the mess of 2007 we still had enough delusion to keep our market creeping up in a 'It is different here' culture for a few more months. When in 2008 was this purchased ? It wasn't until October/November 2008 or so that headlines started to appear that started to admit that Scotland was not, indeed, different afterall and there had even been shock falls in such places as Edinburgh. It was only at this point that the average person in Scotland actually started to consider what they were paying for a place - as the possibility it may actually go down in value had suddenly become reality. If this place was bought for £247k anytime before October 2008 ? Then this person is expecting you to pay the very peak of the peak price that they themselves paid for it. Unless it is some little cottage beside a river that gets sold once every 25 years - they are completely 100% taking the piss if they expect to get peak 2008 price for it. Your money though - if you have it and want to spend it then fire away. Nobody knows for certain what will happen in the future. Quote Link to comment Share on other sites More sharing options...
Pole Posted September 6, 2011 Share Posted September 6, 2011 With this in mind and adding the fact I really like the property I offered £227,750 but it was refused. Feedback from seller to agent was that they were looking for the full home report value (£245k). I may offer £232,750 which would be 5% less that the valuation but not sure on the best strategy. The property has only been on the market for a week so no real rush. Imagine you're the seller. In less than 7 days you get an offer that is 10% below your asking price. It's got a powerful psychological effect. It might mean to the seller that the asking price achievable. It's a difficult one. If the area is your perfect area where houses come up very rarely than it'll be even more difficult. I would also be interested what sort of a 'cracking property' one can buy in Edinburgh in a good area for £245k. I'm yet to find one. Quote Link to comment Share on other sites More sharing options...
abroad Posted September 6, 2011 Share Posted September 6, 2011 (edited) In this situation its helpful to have a second option...look for something else that you like. Dont be suckered into its this or nothing. This will give you something to do plus mean you are not just negotiating on a single option with just price as the decider. I recently missed out on a place as I refused to offer what they were asking, someone else did and good luck to them. I'm fine with it now as I think there will be plenty of other options and prices are not on the rise. It's a buyers market....so act like it it is. Timing of your offer has given the sellers hope.... Edited September 6, 2011 by abroad Quote Link to comment Share on other sites More sharing options...
ccc Posted September 6, 2011 Share Posted September 6, 2011 I think the posts above are interesting re. the offer and how soon it was made. On thinking about this it may actually make more sense to go in with a LOWER offer - and explain to the EA that you really hadn't studied the market and didn't realise how slow it was. Not gonna recover for ages. Now looked at similar places online and realise you offered far too much initially etc.. blah blah. Quote Link to comment Share on other sites More sharing options...
Pole Posted September 6, 2011 Share Posted September 6, 2011 I think the posts above are interesting re. the offer and how soon it was made. On thinking about this it may actually make more sense to go in with a LOWER offer - and explain to the EA that you really hadn't studied the market and didn't realise how slow it was. Not gonna recover for ages. Now looked at similar places online and realise you offered far too much initially etc.. blah blah. Yep. It's a game of poker. From talking to vendors in Edinburgh - most people can't sell their ~£250k homes because their potential buyers can't sell their ~£150k flats. A friend recently sold their flat for 15% less and bought his new house for 15% less. That's how it works these days in Edinburgh - therefore the market is so slow. Don't feel sorry for the vendors while offering low, their next house will also be much cheaper! Everyone benefits when house prices are going down - eureka!!! Quote Link to comment Share on other sites More sharing options...
ccc Posted September 6, 2011 Share Posted September 6, 2011 Yep the only people that seem to be moving in anyway are those going 'sideways'. Those wanting to downsize ? Not happy with the price they will get. Want more money. Those wanting to upsize ? Not happy with the price they will get. Want more money. Even though as you say above it would actually be to their benefit. Well as long as the house they are looking at buying provides the same 'discount'. FTB's ? Not interested. Out of interest - how many people know, friends or collleagues, moving to a larger/nicer/more expensive place in the last year or so ? I cannot think of even one ?! Used to be a common chat in the office or with friends family. Seems to have literally ground to a halt. Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 6, 2011 Author Share Posted September 6, 2011 Again, hanks for the replies. The property is in East Dunbartonshire and was bought in Dec 2008 for £247,000. The price I have offered (£227,750) is in the ballpark of what properties of a similar size on the same street have sold for in 2010/11. I don't think I will be offering above this. RE going in with a lower offer - I may do this in a few weeks if there is no movement. I will give more feedback to the vendor why I won't be offering more and that over the coming weeks my offer price will go down instead of up. Early days and maybe I jumped in too soon! Cheers! Quote Link to comment Share on other sites More sharing options...
ccc Posted September 6, 2011 Share Posted September 6, 2011 Keep us posted please. Always good to hear 'real life' stories. Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 6, 2011 Author Share Posted September 6, 2011 Keep us posted please. Always good to hear 'real life' stories. Will do One thing that is bugging me - the price paid by the current seller was at the end of 2008 so, in theory, after the peak. How soon after the peak did people start to pay more realistic prices for properties - can I assume £247k was an inflated price (condition of property was as now, walk in so no major work has been done since). Quote Link to comment Share on other sites More sharing options...
ccc Posted September 6, 2011 Share Posted September 6, 2011 IIRC I think it was well into 2009 before any sort of real drops started to take place. There was a good 6-12 months of extreme denial across the board. Has anything else in the street similar ever sold for more ? If not then there is your answer. Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 6, 2011 Author Share Posted September 6, 2011 IIRC I think it was well into 2009 before any sort of real drops started to take place. There was a good 6-12 months of extreme denial across the board. Has anything else in the street similar ever sold for more ? If not then there is your answer. 2 other 3 beds have sold in last few years £228k Feb 2011 £232k Jul 2010 Another 4 bed was on the market at £217k and is under offer - so don't know what it ultimately went for. I never got to view it so unsure of condition etc. Confused lol Quote Link to comment Share on other sites More sharing options...
Jadoube Posted September 6, 2011 Share Posted September 6, 2011 Out of interest - how many people know, friends or collleagues, moving to a larger/nicer/more expensive place in the last year or so ? I cannot think of even one ?! Used to be a common chat in the office or with friends family. Seems to have literally ground to a halt. I've heard of two people moving this past week, but I'm down south, and I don't suggest they constitute a counter example. As you say ccc, the market has largely dried up. 1) I was chatting with a colleague yesterday who is debating whether they are offering too much on a property. They offered £100k below asking and are worrying they went in too high. (Don't know what percentage that is or all the other relevant questions about things that might throw a spanner in the works.) They've no particular desire for the property (certainly not the town) , merely a need to live further north of London to facilitate travel to care for elderly relatives. New build. Salesman claiming to need permission from MD to acccept the offer but 'may do in order to get a sold board up in the development'. (NB My colleague does assume that the builder may well have priced a drop into the asking price.) 2) Next door had a 'sold' board up when I got home last week. No idea of the price, or whether the sale will complete. Its close to a highly sought after school which may help. EA's regularly leaflet the street seeking realistic sellers so presumably they see it as a good source for some turnover to live off. The first example is hardly a usual move and they are getting positive feedback when going in a lot under asking price. OP - if you're paying cash I wish you enjoyment living in a place you like. If you're borrowing, perhaps beware you're offering more than its worth? Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 6, 2011 Author Share Posted September 6, 2011 Got £100k deposit and top mortgage would be £140k. Leaving it at my existing offer for now and fed back to EA - hopefully they will get no other offers or very low offers and get back to me. Won't hold my breath for now Quote Link to comment Share on other sites More sharing options...
Garf Posted September 7, 2011 Share Posted September 7, 2011 Out of interest - how many people know, friends or collleagues, moving to a larger/nicer/more expensive place in the last year or so ? I cannot think of even one ?! Used to be a common chat in the office or with friends family. Seems to have literally ground to a halt. The only person I can think of who recently moved to a bigger place is a colleague of mine in the US. On this side of the pond, my sister and her family have recently moved in with mum - I'm sure she's not the only one in her age group who looked at how much it was costing to rent a tiny flat in London and made that decision. Of course, they'll get fed up with the arrangement after a while, but this lets them save some money over the next few months and review the situation in early 2012. Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 7, 2011 Author Share Posted September 7, 2011 Well I spoke with the EA again and asked if the vendor had a counter offer to mine. Nothing. No negotiation.... Surely it's good to talk? Quote Link to comment Share on other sites More sharing options...
Pole Posted September 7, 2011 Share Posted September 7, 2011 Surely it's good to talk? As long as you don't show them all your cards, I guess... Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 7, 2011 Author Share Posted September 7, 2011 As long as you don't show them all your cards, I guess... I would offer £5k more but have extra on top if I really wanted it. I won't be jumping in straight away with another offer but some coming and going would be good fun... Quote Link to comment Share on other sites More sharing options...
abroad Posted September 8, 2011 Share Posted September 8, 2011 (edited) East Dunbartonshire around Milngavie or Bearsden is quite an aspiration area so prices will likely be stickier than other less aspirational areas. This isn't to say prices can't or wont drop, just that those there and those wanting to be there will keep the market up more. Even in the last big drop in the 80's Bearsden held up quite well. I'm from West Dunbartonshire originally but lived in East Dunbartonshire for a few years in 90's. Edited September 8, 2011 by abroad Quote Link to comment Share on other sites More sharing options...
Neil_C Posted September 8, 2011 Author Share Posted September 8, 2011 East Dunbartonshire around Milngavie or Bearsden is quite an aspiration area so prices will likely be stickier than other less aspirational areas. This isn't to say prices can't or wont drop, just that those there and those wanting to be there will keep the market up more. Even in the last big drop in the 80's Bearsden held up quite well. I'm from West Dunbartonshire originally but lived in East Dunbartonshire for a few years in 90's. House is in Milngavie....full of old fogies lol Lots of houses appearing as the older generation pop their clogs.... Still in 2 minds with this - should I offer more or wait....no other offers as yet and no other notes of interest, however only been on the market for just over a week...... Quote Link to comment Share on other sites More sharing options...
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