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darwin

If You Were A Cash Buyer, What Would Your Lowball Offer Be?

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One of the old posters on here-Bart of Darkness iirc-had a great stock phrase that

'if you're not embarassed by the offer,it's too high'.Wise

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In my area and for the property I want, 50%, with an aim for 40% minimum.

So, I won't be buying in the near future.

Renting remains the better option as it leaves the cash in my hand.

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We are potential cash buyers and recently have been asked when contacting EAs whether we have the funds in the bank or not. Make of that what you will.

Yes I've been asked equally strange questions. Apparently people say cash when they mean something else.

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Yes I've been asked equally strange questions. Apparently people say cash when they mean something else.

Yes some people seem to think anyone who doesn't have a property to sell is a cash buyer, regardless of whether or not they have any cash themselves.

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Tempting to go into an EA:

Me: "As a crash in hand buyer I'd like to make an offer"

EA: "Don't you mean cash in hand?"

Me: "I most certainly do not - wake up, smell the coffee, and let's start at 30% below asking".

EA: "You imbecile!"

Me: "Never mind, I'll be back tomorrow to offer 31% below asking. Cheerio."

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My best offer would be lower than any current seller would be likely to accept, which is why I remain a cash buyer, not a home owner.

If you offer - 20% in my postcode your still paying over the last sold pice in the last 12 months on the same street.

Naturally that will be rejected as insulting in most cases.

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I offered 190K for a place thats for sale for 215K and the agent didnt get back to me, 190K is a price similar property sold for in 2005.

Dont think being a cash buyer counts for much anymore.

I think if the market is allowed to correct the same place would go for 110-140K.

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Like others posting above I am a cash buyer but I'm not even bothering to view at the moment. At the beginning of 2013, EAs understood the value of cash and were willing to have serious conversations and at least entertain lowball offers.

But most EAs seem to have a very short attention span, and as soon as the props started kicking in last year, they didn't want to know. Many of the ones I was talking to actually became quite derisory of our position once we had to compete against people with a lot of cheap debt available to them.

There were a few EAs who clearly understood the situation, and where it is likely to end up. Those are the ones I will be going back to when the inevitable happens. Well, I will call back in on the other ones just to wind them up a bit. What comes around goes around, and all that.

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To get any traction with a low offer I think that you have to get the agent on your side (ie. make him believe that your offer is the only way he gets a commission on that house this month)

Hence I think the property needs to have been on the market a while so the number of viewings will have dropped off and the vendors are getting the message that it's not going to sell easily.

You then need to be able to demonstrate some basis for your offer (ie. the last house to sell on this street went for £x - this is the same as it sold for in 200x; this house was worth £x in 200x and so that's my offer). This basically "loads the gun" for the EA to be able to explain why your offer is fair value in the current market.

Finally you need to be in a position to say that you are either in no rush to buy, or that there are a number of houses that suit your needs and that you will not lose any sleep if you don't get this particular one.

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Hence I think the property needs to have been on the market a while so the number of viewings will have dropped off and the vendors are getting the message that it's not going to sell easily.

Thus it needs to be vastly overpriced in the first place and a shyt hole.

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Like others posting above I am a cash buyer but I'm not even bothering to view at the moment. At the beginning of 2013, EAs understood the value of cash and were willing to have serious conversations and at least entertain lowball offers.

But most EAs seem to have a very short attention span, and as soon as the props started kicking in last year, they didn't want to know. Many of the ones I was talking to actually became quite derisory of our position once we had to compete against people with a lot of cheap debt available to them.

There were a few EAs who clearly understood the situation, and where it is likely to end up. Those are the ones I will be going back to when the inevitable happens. Well, I will call back in on the other ones just to wind them up a bit. What comes around goes around, and all that.

I don't bother to contact EAs any more and won't until asking prices fall to within 20 or 30% of what I'm willing to pay.

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Thus it needs to be vastly overpriced in the first place and a shyt hole.

This

Its its financeable some dipstick will pay to much for sure on a mortgage atm.

Its a different mindset when you have the money

If you have the money your loath to spend it all and to make sure you get a good deal.

If you don't have the money well then the offer of finance is something to take advantage of whilst you can....a form of wealth.

Its definitely flat lining here your not getting the 450 any more in most cases and there have been some reductions to 400 from 450 still a bit to go to the 300 that would make me think about looking around again.

Its actually quite impressive in previous decades the ripple from London would take a year but now a few month and its already hit the shores of Norfolk it seems.

I am pretty sure that once those who got out at the right time in London have bought we will follow London down. I don't buy into the London goes down and the rest keep going ******** as you have to work in in London to afford a house in many nice areas outside it using your shoebox equity + commute to get a family house.

Edited by Fromage Frais

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Q. At this point in the market, if you were a cash buyer what would your lowball offer be?

25% below asking? 30%?

It depends on what the house is priced at top start with. If it's 15% over current selling prices for that property type in the area then offer 30% below, the vendors will soon get the hint reject the offer, drop their asking price or withdraw after another month of no offers or viewings.

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I think one needs to not use the sellers price as a starting point, and deduct from there as a percentage. Look at the house, and ask what value do you place on it as people have different needs. As a cash buyer you are in a stronger position, but not every seller is in a hurry.

I think websites such as Zoopla and Rightmove could well do with a thumbs up/thumbs down OR a star rating, with comments under each listing. This would be ground breaking and quickly determine market value. Social media can be brutally honest!

Or Zoopla and Rightmove can spin off a smaller pilot website to test out the idea (for new listings with the consent of the EA and seller, perhaps with initially reduced fees) - I know what they are thinking - it is highly risky to the current business model.

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Edited by 200p

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Q. At this point in the market, if you were a cash buyer what would your lowball offer be?

25% below asking? 30%?

Would surely depend on how long the place had been on the market, whether it had already been reduced, whether the EA had dropped any hints about vendor being 'open to offers', whether it needed work that was putting other buyers off, whether it was obviously a probate sale, etc. If it's the kind of place where owners are very proud of their granite worktops, 'statement' wallpaper and shiny cushions, then you're probably wasting your time.

I know of one probate sale in this family recently where the house went for more than 25% below original AP, but then it was in an area where the market was 'dead' according to EA (rural NW Scotland) and had been on the market for ages with hardly any viewings and no offers. It was also 'in need of modernisation'. And the executor, my BIL, living a long drive away and not wanting to leave it empty any longer, just wanted to get it wrapped up.

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I think websites such as Zoopla and Rightmove could well do with a thumbs up/thumbs down OR a star rating, with comments under each listing. This would be ground breaking and quickly determine market value. Social media can be brutally honest!

That's a brilliant idea. Can't see anyone going for it, though!

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