I Made My First Offer Today In 4 Years.

[General Melchett]

Six houses you feel entitled to but you can't afford any of them apparently. How disappointing for you.

I'm afraid the agents phone call would just have gone

"Mr Chancer who viewed last week put in a silly offer of x pounds which we turned down but have to pass on to you."

That's a.... view. OTOH, are not entitled, chancer and silly words which might just as easily be applied to the vendor? Is not buying a house a matter of negotiation and price discovery?

As a certain Mr M King remarked "House prices are merely a matter of opinion, (whereas debt is real)."

Edited October 19, 2011 by General Melchett

[FloraPoste]

Six houses you feel entitled to but you can't afford any of them apparently. How disappointing for you.

I'm afraid the agents phone call would just have gone

"Mr Chancer who viewed last week put in a silly offer of x pounds which we turned down but have to pass on to you."

I doubt the vendor would have cared much either way apart from the inconvenience of having to offer a viewing to someone who wasn't able to proceed.

Why even bother to view places so far outside your budget? You're just wasting your own time and annoying agents who you may need onside if you ever do need to buy somewhere.

You don't always know a price is unreasonable till you see somewhere.

House I viewed last year would have been reasonable at asking price if it wasn't for the major structural issues not mentioned in the specs.

Personally I'm not doing the 'viewing and trying it on with low offers' thing because it would take too long, be too emotionally draining and I know that husband and I would get overattached to houses and risk paying more than we should be; makes more sense for us to wait. But some houses are indeed going for substantially under asking, so the 'view lots and hope one comes off' is one strategy. You're not likely to get 30% under asking but if both parties are prepared to negotiate you might get 20%.

[FIGGY]

It still amazes me that some people think that a house is some sacred cow. You can’t offer this, its insulting etc. I guess I can understand it as its Joe public and not a business to business transaction but they wouldn’t bat an eyelid about haggling on a car or a TV or anything high ticket item but the highest ticket item of all and you can’t haggle, what are these people smoking?????

[TheCountOfNowhere]

Six houses you feel entitled to but you can't afford any of them apparently. How disappointing for you.

.

I don't feel entitled to any of them, and I can afford of all them.

The fact that I would rather rent than pay £200K over a reasonable selling price is sensible.

You need to think more before you type.

[Dorkins]

It still amazes me that some people think that a house is some sacred cow. You can’t offer this, its insulting etc.

I also think it's interesting that offering to pay somebody 16x the average gross salary is considered insulting. I wish people would insult me more often!

[FIGGY]

I also think it's interesting that offering to pay somebody 16x the average gross salary is considered insulting. I wish people would insult me more often!

I agree and I think people on here get a little emotional about asking prices but my point is still valid. If the EA are happy to put on very very optimistic prices with no stigma (you don’t get buyers calling them chancers or talking about their insulting asking price except on here) then there should be no issue with putting in a very low offer.

Its price discovery, it’s the way the world works, if you want to make an offer 20/30% below asking then go for it, don’t cry if you don’t get it but go for it. I would pay and offer what I think is fair, if that is more or less than the asking price then that is what I would offer and I would vary it depending on how much I want it. It’s the same function in any business deal.

[FloraPoste]

Can you imagine the discussions if there was as much stigma around high prices as there is low offers?

'I want to put my house on at 750, will people think we're greedy?'

'If I tell the agent I want to price it at 320 will he think I'm a chancer and not take me seriously?'

'Will I look naive if I ask for 220 for my flat?'

[ruggedtoast]

You don't always know a price is unreasonable till you see somewhere.

House I viewed last year would have been reasonable at asking price if it wasn't for the major structural issues not mentioned in the specs.

Personally I'm not doing the 'viewing and trying it on with low offers' thing because it would take too long, be too emotionally draining and I know that husband and I would get overattached to houses and risk paying more than we should be; makes more sense for us to wait. But some houses are indeed going for substantially under asking, so the 'view lots and hope one comes off' is one strategy. You're not likely to get 30% under asking but if both parties are prepared to negotiate you might get 20%.

You might, but you're better off just being honest with the agent about your budget, they will soon let you know which vendors are likely to take a hit on the asking price.

Many people on this site seem to think property buying is a zero sum game where the buyer has to get an enormous discount, and the sellers have to leave penniless, crying bankrupt and in tatters as they stagger off to live in the local park.

The fact is that most people on here, if they do buy, will get the usual 5% average agreed off the asking price and then spend the next ten weeks praying the deal doesnt fall apart before exchange. Just like everyone else.

[Bruce Banner]

You might, but you're better off just being honest with the agent about your budget, they will soon let you know which vendors are likely to take a hit on the asking price.

Many people on this site seem to think property buying is a zero sum game where the buyer has to get an enormous discount, and the sellers have to leave penniless, crying bankrupt and in tatters as they stagger off to live in the local park.

The fact is that most people on here, if they do buy, will get the usual 5% average agreed off the asking price and then spend the next ten weeks praying the deal doesnt fall apart before exchange. Just like everyone else.

It's not about your budget, it's about what you're prepared to pay for a particular house.

As for offering 5% below the asking price and then "spending ten weeks praying the deal doesnt (sic) fall apart", in your dreams .

[FloraPoste]

You might, but you're better off just being honest with the agent about your budget, they will soon let you know which vendors are likely to take a hit on the asking price.

Many people on this site seem to think property buying is a zero sum game where the buyer has to get an enormous discount, and the sellers have to leave penniless, crying bankrupt and in tatters as they stagger off to live in the local park.

The fact is that most people on here, if they do buy, will get the usual 5% average agreed off the asking price and then spend the next ten weeks praying the deal doesnt fall apart before exchange. Just like everyone else.

Who said anything about not being honest about budgets? I don't get what you mean.

[InlikeFlynn]

You might, but you're better off just being honest with the agent about your budget, they will soon let you know which vendors are likely to take a hit on the asking price.

Many people on this site seem to think property buying is a zero sum game where the buyer has to get an enormous discount, and the sellers have to leave penniless, crying bankrupt and in tatters as they stagger off to live in the local park.

The fact is that most people on here, if they do buy, will get the usual 5% average agreed off the asking price and then spend the next ten weeks praying the deal doesnt fall apart before exchange. Just like everyone else.

You should never tell the agent your budget - they act for the seller. However you should always be civil and honest with them, and suggest that you are interested in dealing with motivated sellers.

Property buying is a texbook example of a zero sum game. How much discount (if any) is given is a matter for negotiation.

The average discount is well above 5% at present in most areas. A quick glance at recent sales should confirm this.

The only insulting offer is one which is made without the intention to proceed. The seller is at liberty to reject or counter offer should they find the offer unattractive.

[Democorruptcy]

Must admit I don't really see the point of viewing a house you know you would only buy for a lot less than asking price, if you don't know before the viewing how flexible the vendor is on the price.

It's a waste of your time and gives the agent some ammunition to use against other vendors "There's a lot of interest in it" etc.

Why not phone up and say "If they were interested in £xxx I would view it." Agent puts it to them comes back with yes, another figure or forget it.

Which is best? Vendor to family, friends and neighbours:

"Someone viewed my house yesterday" (Implies there is interest at the asking price)

Or

"Nobody will even bother viewing my house unless I drop it xx%" (Implies prices have to come down)

No discounts no viewings

[Gigantic Purple Slug]

Must admit I don't really see the point of viewing a house you know you would only buy for a lot less than asking price, if you don't know before the viewing how flexible the vendor is on the price.

It's a waste of your time and gives the agent some ammunition to use against other vendors "There's a lot of interest in it" etc.

Why not phone up and say "If they were interested in £xxx I would view it." Agent puts it to them comes back with yes, another figure or forget it.

Which is best? Vendor to family, friends and neighbours:

"Someone viewed my house yesterday" (Implies there is interest at the asking price)

Or

"Nobody will even bother viewing my house unless I drop it xx%" (Implies prices have to come down)

No discounts no viewings

+1

I went to see a house a year or so ago (been on the market 3 years now with different agents). I like it, but the price is stupid.

Once a month the agent rings me up and says its still available, why don't you put an offer in ? I say the price is silly and I'm not even going to waste my time putting a formal offer together unless they show some realistic appreciation of what they can get for it in the current market.

An offer to make an offer as it were.

[OzzMosiz]

Try offering 2003 price....worked for me

[Bruce Banner]

Must admit I don't really see the point of viewing a house you know you would only buy for a lot less than asking price, if you don't know before the viewing how flexible the vendor is on the price.

It's a waste of your time and gives the agent some ammunition to use against other vendors "There's a lot of interest in it" etc.

Why not phone up and say "If they were interested in £xxx I would view it." Agent puts it to them comes back with yes, another figure or forget it.

Which is best? Vendor to family, friends and neighbours:

"Someone viewed my house yesterday" (Implies there is interest at the asking price)

Or

"Nobody will even bother viewing my house unless I drop it xx%" (Implies prices have to come down)

No discounts no viewings

The thing is that I don't know how much a house is worth to me until I've seen it. I could, for instance, be interested in buying one house for £250K and another for £500K, it depends on what I consider to be good value for money. Although, having said that, I gave up seeing estate agents and making offers a few years ago, too much hassle. I'm going to keep renting until sentiment changes.

[Democorruptcy]

http://www.housepricecrash.co.uk/forum/index.php?showtopic=170686

so in the above,hosue was on at £2.2 mill,now £750,000,you'd feel a bit of a t1t if you'd offered £1.5 mill.

I'd view a house because I might like to live in it.it's obviously a hard concept for some on here to grasp,that if you like it,then you begin negotiations.

I think nothing of using a salespersons time for my own ends,that is what they're there for.

As for whether you should view a house that's 30%+ over what you'd pay but clearly overvalued as per the local market,I'm stunned that you woudln't.there's been loads of timesin my life when discounts have been 30%+ from advertised price,be it in cars,electrics etc etc.the vendors always saying don't view it if you're not prepared to pay the asking,then you get chatting and show them some cash and off you pop.

Whether it's 30%, 50% or 200% over what you think it's worth is irrelevant. All I'm suggesting is that you may as well get your negotiations going before you view it. If you get someone that won't negotiate to what you would pay, you wasted your time viewing it.

In the case of the thread starter his viewing could now be used by the agent/vendor as "someone else viewed it recently is very interested at the asking price and expected to put an offer in", which couldn't be further from reality.

What's the downside of negotiating earlier?

[ruggedtoast]

It's not about your budget, it's about what you're prepared to pay for a particular house.

As for offering 5% below the asking price and then "spending ten weeks praying the deal doesnt (sic) fall apart", in your dreams .

You can offer what you like, but outside of hpc.co.uk world, most people offering on a house in a decent area which is priced accordingly with neighbouring properties, arent going to see a discount in excess of five to ten percent of list price.

You would if there were a house price crash going on, but there isn't. Most people who offer on a place want to buy it and are looking forward to the day they get the keys.

This has become a very bitter and disconnected place over the years, buying a property isn't meant to be a war.

[Democorruptcy]

The thing is that I don't know how much a house is worth to me until I've seen it. I could, for instance, be interested in buying one house for £250K and another for £500K, it depends on what I consider to be good value for money. Although, having said that, I gave up seeing estate agents and making offers a few years ago, too much hassle. I'm going to keep renting until sentiment changes.

Isn't the approach I suggested something that might change sentiment? People viewing houses won't change sentiment it gives vendors hope.

Any pre-viewing starting point price isn't what you have to pay once you have viewed it. You could then offer less, if you think it isn't worth as much as your research indicated before you viewed it.

[FloraPoste]

Isn't the approach I suggested something that might change sentiment? People viewing houses won't change sentiment it gives vendors hope.

Any pre-viewing starting point price isn't what you have to pay once you have viewed it. You could then offer less, if you think it isn't worth as much as your research indicated before you viewed it.

Couldn't it work the other way round though?

A lot of the people with overpriced houses at the moment are convinced that there simply aren't any buyers out there at the moment, the problem isn't that they're overpriced, it's that no-one wants to buy a house this year. So rather than repricing they wait for the market to get better. (And wait. And wait.)

Once a viewer has actually seen their house and offered them money for it, albeit not very much money by their standards, don't they then have to admit that there are buyers and that price therefore may be a factor?

[Bruce Banner]

You can offer what you like, but outside of hpc.co.uk world, most people offering on a house in a decent area which is priced accordingly with neighbouring properties, arent going to see a discount in excess of five to ten percent of list price.

You would if there were a house price crash going on, but there isn't. Most people who offer on a place want to buy it and are looking forward to the day they get the keys.

This has become a very bitter and disconnected place over the years, buying a property isn't meant to be a war.

Bitter? Me? Not at all!

I'm sitting on a pile of cash, the interest on which pays my rent whilst house prices are falling. Houses like the one I'm renting were on the market for £400K five years ago, now the average asking price is about £350K and falling .

[bobthe~]

You can offer what you like, but outside of hpc.co.uk world, most people offering on a house in a decent area which is priced accordingly with neighbouring properties, arent going to see a discount in excess of five to ten percent of list price.

You would if there were a house price crash going on, but there isn't. Most people who offer on a place want to buy it and are looking forward to the day they get the keys.

This has become a very bitter and disconnected place over the years, buying a property isn't meant to be a war.

1. I live in Esher, and you should have been here in 2008.

2. Everybody looks forward to the keys on their new house. To suggest otherwise means that from day 1 they know they are making a bad deal. i am sure people who got NR 125% Together mortgages were happy on day 1. You need to ask if they are happy now with their purchase.

3. You are right about the war bit, though. Anyone who wants to buy a house should go in with a more conciliatory attitude. If you are just trying to wind an EA up rather than buy a house, then that is fine, it is good sport, but sooner or later they will need to be your friend. They can do more to talk a vendor round than you can. When we last bought, we still believe it was down to the previous house falling through at the last minute that meant the EA worked a bit harder to get our offer accepted.

[grandmaster]

Recently I offered £280k on an "offers over £300k" property and the agent didn't even bother replying. Amazing.

[ccc]

Recently I offered £280k on an "offers over £300k" property and the agent didn't even bother replying. Amazing.

Report them - I think they legally have to forward the offer ? Not sure who to report it too though.

[Redcellar]

You can offer what you like, but outside of hpc.co.uk world, most people offering on a house in a decent area which is priced accordingly with neighbouring properties, arent going to see a discount in excess of five to ten percent of list price.

You would if there were a house price crash going on, but there isn't. Most people who offer on a place want to buy it and are looking forward to the day they get the keys.

This has become a very bitter and disconnected place over the years, buying a property isn't meant to be a war.

I've got to disagree. For me it's never personal and therefore can't be bitter. I offer a realistic price based upon a houses value to me. A seller may think it's worth more, then gets emotional and makes statements like 'insulting' etc.

It's their choice not to sell. And it's mine what I think it may be worth to me, and I have the cash they want after all.

[Bruce Banner]

Report them - I think they legally have to forward the offer ? Not sure who to report it too though.

Not if the vendor has instructed them not to forward offers below a certain figure.