Jump to content
House Price Crash Forum

Recommended Posts

hi all.

im viewing 2 properties tomorrow. the EA is already saying they will take offers. both properties are on same street and same type of ex authority home. circa 1960s. so they have good gardens. im happy with the type of home. it suits my needs. price is 130k - and in NW, so quite expensive for area. rent for this home is £600. mortgage should be about £700-800 after a 10% deposit on a repayment mortgage, though i havent hammered out a deal yet.

im thinking prices will drop by at least -30% over next three years. i think they should accept a -15% reduction. this means im meeting the drop halfway with the seller. this seems fair to me.

any comments or tips. should i play both vendors off the other. whats a good line to use ?

(i am unable to put off the purchase as explained in previous posts)

Share this post


Link to post
Share on other sites

hi all.

im viewing 2 properties tomorrow. the EA is already saying they will take offers. both properties are on same street and same type of ex authority home. circa 1960s. so they have good gardens. im happy with the type of home. it suits my needs. price is 130k - and in NW, so quite expensive for area. rent for this home is £600. mortgage should be about £700-800 after a 10% deposit on a repayment mortgage, though i havent hammered out a deal yet.

im thinking prices will drop by at least -30% over next three years. i think they should accept a -15% reduction. this means im meeting the drop halfway with the seller. this seems fair to me.

any comments or tips. should i play both vendors off the other. whats a good line to use ?

(i am unable to put off the purchase as explained in previous posts)

If you become a property owner does this mean you'll start posting bullish posts? :)

Share this post


Link to post
Share on other sites

i was hoping from 130k to say 110k ?

do you yhink this is too much ?

120k is too much i think.

offer £105 to both then up to £110 in a couple of weeks and say it is your final offer.

Share this post


Link to post
Share on other sites
If you become a property owner does this mean you'll start posting bullish posts?

not really. i still think a crash is needed to free up the spending from house inflation and back into the economy. even though i have to buy now, i feel a drop over the next 1-3 yrs will put me in NE, but the home is suitable to live out my entire life in NE. in the long run. 10-15yrs i should be ok. the local rents are only slightly short of the mortgage payment. it has a large garden. i live in flat waiting for this crash for last 4 years. they are falling a bit, and provided i can get a 15% discount i will go ahead. thats crash enough for my needs.

so i wont turn into an uber bull as i am not a selfish type of person. (i hope not anyway). i know that that profit has to come from someone, somwhere.

offer £105 to both then up to £110 in a couple of weeks and say it is your final offer.

this is what im thinking, though thats VERY low. there are 2 identical props. i was going to approach them dead honest with the 115k take it or leave it offer ? - not good idea ?

Edited by right_freds_dead

Share this post


Link to post
Share on other sites

try £105 then £110, you have nothing to lose and 10k-5k to gain, if after 1 month they are both not budging, offer £115 as a final offer, they will think you have cracked and feel good about haggling you up. and may accept, so everybody is happy. ps. £115 is ony 11% off the asking which in todays market is not that good a discount. but if they bite @ £105 thats 20% and you will a happy man.

Share this post


Link to post
Share on other sites

Offer 106,000 and go up as far as 108,000

You are doing the guy a - big - favour.

These ex council places are going to get slammed the hardest when the stampede out of property starts.

Most folks I know have removed their houses from the market until next spring. Does anyone realize how many new properties will come on the market next spring?

These folks will be desperate having held off selling for a year. Also, interest rates will be +5% by then also.

Edited by Pluto

Share this post


Link to post
Share on other sites

not really. i still think a crash is needed to free up the spending from house inflation and back into the economy. even though i have to buy now, i feel a drop over the next 1-3 yrs will put me in NE, but the home is suitable to live out my entire life in NE. in the long run. 10-15yrs i should be ok. the local rents are only slightly short of the mortgage payment. it has a large garden. i live in flat waiting for this crash for last 4 years. they are falling a bit, and provided i can get a 15% discount i will go ahead. thats crash enough for my needs.

so i wont turn into an uber bull as i am not a selfish type of person. (i hope not anyway). i know that that profit has to come from someone, somwhere.

this is what im thinking, though thats VERY low. there are 2 identical props. i was going to approach them dead honest with the 115k take it or leave it offer ? - not good idea ?

What type of mortgage are you intending to get? If it's a variable rate, aren't you worried about potential increases in interest rates (since it looks like inflation is taking control of world economies)? Mortgage payments may look reasonable against rents now, but what about in 5, 10 years... IMO your offer price should be made at a suitable level to ensure that you can afford the payments if interest rates hit 8% (or more).

Edited by karhu

Share this post


Link to post
Share on other sites
Guest rigsby II

hi all.

im viewing 2 properties tomorrow. the EA is already saying they will take offers. both properties are on same street and same type of ex authority home. circa 1960s. so they have good gardens. im happy with the type of home. it suits my needs. price is 130k - and in NW, so quite expensive for area. rent for this home is £600. mortgage should be about £700-800 after a 10% deposit on a repayment mortgage, though i havent hammered out a deal yet.

im thinking prices will drop by at least -30% over next three years. i think they should accept a -15% reduction. this means im meeting the drop halfway with the seller. this seems fair to me.

any comments or tips. should i play both vendors off the other. whats a good line to use ?

(i am unable to put off the purchase as explained in previous posts)

Is it April the first ?

On a £130K house, off a private seller you will be lucky to get anymore than £10k off and thats if the wind is in the right direction - at the moment that is - in future who knows.

Is it worth all the angst though just to get another £5 or £10k off - over 25 years ? I think not.

Oh I know theres all the offer em 50% less and if they dont like it tell em to shove it up their 'arris brigade, but meanwhile in the real world...

Share this post


Link to post
Share on other sites

Give them an offer of £115,000 and they should accept £120,000.

That sounds realistic to me. If buying into the market now you have to play by the rules now. No point in pretending we're two years further down the line than we are.

Andrew McP

Share this post


Link to post
Share on other sites

hi all.

im viewing 2 properties tomorrow. the EA is already saying they will take offers. both properties are on same street and same type of ex authority home. circa 1960s. so they have good gardens. im happy with the type of home. it suits my needs. price is 130k - and in NW, so quite expensive for area. rent for this home is £600. mortgage should be about £700-800 after a 10% deposit on a repayment mortgage, though i havent hammered out a deal yet.

im thinking prices will drop by at least -30% over next three years. i think they should accept a -15% reduction. this means im meeting the drop halfway with the seller. this seems fair to me.

any comments or tips. should i play both vendors off the other. whats a good line to use ?

(i am unable to put off the purchase as explained in previous posts)

Ermm, if you've really gotta buy I would start about £105,000. I agree with one of the earlier posts about how sellers aren't ready to accept huge reductions.

Simply remember that you can increase your offer, but the opposite is not true, (practically).

This may sound daft, but you're really looking for them to reject your first offer or two, (IMO).

Good luck..

Share this post


Link to post
Share on other sites

hi all.

im viewing 2 properties tomorrow. the EA is already saying they will take offers. both properties are on same street and same type of ex authority home. circa 1960s. so they have good gardens. im happy with the type of home. it suits my needs. price is 130k - and in NW, so quite expensive for area. rent for this home is £600. mortgage should be about £700-800 after a 10% deposit on a repayment mortgage, though i havent hammered out a deal yet.

im thinking prices will drop by at least -30% over next three years. i think they should accept a -15% reduction. this means im meeting the drop halfway with the seller. this seems fair to me.

any comments or tips. should i play both vendors off the other. whats a good line to use ?

(i am unable to put off the purchase as explained in previous posts)

Best fixed rate deal is about 4.2%, if you borrow £117K which is 130K - 10% the repayement mortgage will be £630 PCM.

£700- £800 is clearly wrong here.

Offer about £115 initially, then go as far as £119 to avoid the stamp duty.

Good luck.

Edited by Dicky

Share this post


Link to post
Share on other sites

good advice here. i think ill hold off my real 115 offer and maybe try this 105 first as suggested ?

after all, there are 2 houses so i should still have another shot if they get sold.

its not so much the price, but the mortgage rates and inflation that really bother me.

but at the same time you can get a little too obssessed with all of this, which at the end of the day are quite small amounts in comparison to some on here.

i earn around 40k so i should be safe. in fact. sometimes i dont know why i was moaning. i was more into fairness than personal affordability. im hoping the economy holds together more that anything.

if it all goes pear shaped. why would renting have been any better. i could end up unemployed ect if the downturn is HUGE. id and up in a crummy flat like i have now. possibly ccjs or bankruptcy. but i think id be beyond caring and looking to hide the cash and split the uk anyway if things got that bad.

better to burn out than fade away........

Best fixed rate deal is about 4.2%, if you borrow £117K which is 130K - 10% the repayement mortgage will be £630 PCM.

£700- £800 is clearly wrong here.

thanks for that. i got a really rough estimate that i know is way over what it should end up being. im allowing myself a large berth. once i have established a price to buy with the seller ill be back posting looking for mortgage advice. before i came on here i had no idea about repayment mortgages and IOs ect. just being here for 6 months has made a huge difference whatever i buy thanks to that advice i found on here from posters.

Edited by right_freds_dead

Share this post


Link to post
Share on other sites

If you think they are going to fall 30% in the next few years then not only offer 30% less than asking price but tell them why you are offering that amount. I would also put a time limit of 10 days on the offer. Then wait and do not contact them again until they contact you.

Remember, if you are not embarrassed by what you offer you are offering too much.

That's just my opinion.

Share this post


Link to post
Share on other sites

You must be mad to even contemplate buying now, even with a 15% discount.

Do you realise how far ex Local Authority properties fall in a crash?

Having been through the last crash trust me when I say ex council is a really bad idea.

Share this post


Link to post
Share on other sites

You must be mad to even contemplate buying now, even with a 15% discount.

Do you realise how far ex Local Authority properties fall in a crash?

Having been through the last crash trust me when I say ex council is a really bad idea.

Ex local Authority are okay if in nice areas, its all about location, location, location.

Share this post


Link to post
Share on other sites

dont worry about the ex council bit. its a tiny build of about 20 which are semi rural and all private and nice. these types of old red brick houses are my favourites. new builds are good, but you never get the huge gardens and these are big with open aspects. it looks nice and its in a nice part of nw. im happy with house type. very happy.

i can deal with the NE drop because as i see it. rents will be 500-600 pcm for this area. my mortgage will be 600-800. whatever happens to the asset price my payments will be ok and i get to live in much more room than i do now. and i get a driveway !!!

Share this post


Link to post
Share on other sites

any comments or tips. should i play both vendors off the other. whats a good line to use ?

(i am unable to put off the purchase as explained in previous posts)

The properties sound ideal. When you view however, you'll clearly convey the opposite. You are spoilt for

choice. This needs to be said in the conversation. Indeed, you should play them off each other. This can be put across in a polite manner. They need to accept that they are in a buyers market. Find out what the sellers plans are once they sell. This can help with negotiations later on. Which seller is most desperate to sell? Say that you've looked at more properties than you actually have. This emphasises the point about a buyers market. Say that you think it is right that they should sell up now. Mention that prices "appear" to be dropping (you don't want to give too much away), and that you're unsure whether to buy now or wait until the new year when prices will have dropped further. You might want to mention this once you've established some rapport, say in the second viewing. You'll get a feel for price negotiations in the way the house is presented. If it's done up to sell then perhaps they won't sacrifice too much. If its just lived in then they're vulnerable to significant reduction. But it's also what you want. Are you looking forward to 'kirstyfying' your home? I'm not sure if it's that useful to expect major reductions based on future market adjustments. You've come to accept that you will buy now. Based on that, you'll have to accept a fair reduction on current prices, but 10% sounds fair. Is this backed up with land registry checks and talks with other EAs? Do you know who will be showing you around? Is it a couple or a single? Sometimes it is helpful to take someone else so that the other person has someone to chat to. Once you're serious then the subsequent viewings become more professional, i.e take a builder surveyor friend round.

Share this post


Link to post
Share on other sites
The properties sound ideal. When you view however, you'll clearly convey the opposite. You are spoilt for

choice. This needs to be said in the conversation. Indeed, you should play them off each other. This can be put across in a polite manner. They need to accept that they are in a buyers market. Find out what the sellers plans are once they sell. This can help with negotiations later on. Which seller is most desperate to sell? Say that you've looked at more properties than you actually have. This emphasises the point about a buyers market. Say that you think it is right that they should sell up now. Mention that prices "appear" to be dropping (you don't want to give too much away), and that you're unsure whether to buy now or wait until the new year when prices will have dropped further. You might want to mention this once you've established some rapport, say in the second viewing. You'll get a feel for price negotiations in the way the house is presented. If it's done up to sell then perhaps they won't sacrifice too much. If its just lived in then they're vulnerable to significant reduction. But it's also what you want. Are you looking forward to 'kirstyfying' your home? I'm not sure if it's that useful to expect major reductions based on future market adjustments. You've come to accept that you will buy now. Based on that, you'll have to accept a fair reduction on current prices, but 10% sounds fair. Is this backed up with land registry checks and talks with other EAs? Do you know who will be showing you around? Is it a couple or a single? Sometimes it is helpful to take someone else so that the other person has someone to chat to. Once you're serious then the subsequent viewings become more professional, i.e take a builder surveyor friend round.

im lucky theyhave 2 on the same row. im viewing both. i will talk about how many viewings ive had and perhaps add that those sellers were dreaming asking (slightly more then this seller) for a slightly (bigger/newer) place.

the nethouseprice figures are horrible. half that price in 2002, but the nw has had a big catchup boom. prices will fall, but not back to those levels, otherwise i feel btl with step back in.

im looking to get this for 115k. its on for 130. i wont pay more. its fair.

more than all that, its got all the bits i was looking for provided it gets through a later survey ect.

Share this post


Link to post
Share on other sites
Guest rigsby II

im lucky theyhave 2 on the same row. im viewing both. i will talk about how many viewings ive had and perhaps add that those sellers were dreaming asking (slightly more then this seller) for a slightly (bigger/newer) place.

the nethouseprice figures are horrible. half that price in 2002, but the nw has had a big catchup boom. prices will fall, but not back to those levels, otherwise i feel btl with step back in.

im looking to get this for 115k. its on for 130. i wont pay more. its fair.

more than all that, its got all the bits i was looking for provided it gets through a later survey ect.

Can you get broadband out in the sticks ?

We all know how fond you are of tickling the pink oboe...

Share this post


Link to post
Share on other sites
Guest STR2004

According to the Hometrack Monthly National Survey: September 2005

"In the current buyers’ market, sales price as a percentage of asking price has decreased to 93.2%".

Keeping this in mind your offer price ceiling is £121K. Anything above this and you'd be paying above the current market value IMO. Personally I'd start a lot lower than this (circa £110K) and work my way up - keeping the price below £120K to avoid stamp duty.

I'll wish you good luck even though I'd not buy at the present time.

STR

Share this post


Link to post
Share on other sites

Here is what I would do. View them both and be non-committal. Refuse to give the EA any feedback after the viewing.

Go back for a second viewing about a week later - and make a low offer direct to the vendor. Explain you are concerned the market is falling and don't want to buy and suffer from negative equity.

'I realise this is less than you were hoping to get but in today's slow market, if I were you I would consider my offer and go and see if you can knock the same amount off the house you want to buy. Mine is a serious offer so it does put you in a good position to negotiate a deal on your next property.'

Do not hide behind the EA to make an offer. I am convinced low offers are not forwarded to the vendor sometimes - because the EA is scare the vendor will bollock them for putting forward an insulting offer - and may change EAs as a result. If you do offer through the EA, confirm it in writing direct to the vendor.

Edited by Marina

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.