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iLegallyBlonde

How To Spot The Deals - What Questions Do You Ask ?

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Is there a check list of questions that gives you an idea you can put in a 20% off the asking price offer ?

I'm only going to be able to do it once with each agent in my area, they will ban me from the premises if I do it twice so I want to be sure at least one in my top ten houses bites !!!!!

(Poor hubs is going grey with all this rental business so if we can buy soon we will but in order to be true to the cause it will not be anywhere near the asking price).

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Is there a check list of questions that gives you an idea you can put in a 20% off the asking price offer ?

I'm only going to be able to do it once with each agent in my area, they will ban me from the premises if I do it twice so I want to be sure at least one in my top ten houses bites !!!!!

(Poor hubs is going grey with all this rental business so if we can buy soon we will but in order to be true to the cause it will not be anywhere near the asking price).

Call agents and ask current prices around the area you are looking. Check websites such as rightmove.co.uk and ourproperty.co.uk etc for recent selling prices. Look at your property guide to check prices.

I would also add that the prices you are seeing will probably sell at least 5% below asking. Once you know prices for your area you can get an idea of what is a 20% below value offer.

Just offer on anything you like.

One day you will get a bite, and as far as I'm aware the EA has to tell the vendor no matter what. Whether they actually do this is open to debate!

Good luck.

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Is there a check list of questions that gives you an idea you can put in a 20% off the asking price offer ?

I'm only going to be able to do it once with each agent in my area, they will ban me from the premises if I do it twice so I want to be sure at least one in my top ten houses bites !!!!!

(Poor hubs is going grey with all this rental business so if we can buy soon we will but in order to be true to the cause it will not be anywhere near the asking price).

Supply and demand.

IMHO. The best way is to:

1. establish how long a property has been on the market.

2. try to find out why they are selling, i.e. are they desperate to move? Locals, e.g., people in the local pub may know.

3. Is it over/under priced compared to other, similar properties.

If the property is sticking and the vendors are keen to sell, you're on to a winner. Offer 20% below and stick to your guns.

Oh and beware of a seller who does not need to move. They can hold you out to dry.

And get real, the Agents aren't going to tell you any of this. If they offer any of this information, remember, it may be a lie. Do your own research.

Edited by karhu

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No, actually you can do it as often as you like. Most agents give you that 'offended' look when you put in a low offer just to make you think that actually, no way is anyone going to bite at the prices you are prepared to pay.

First things first you have to plan. Look at the property, know what they paid for it on nethouseprices.com. Know what other properties went for, know how many properties there are in your area within your price range. Use the Hometrack report to get an idea of the average % discount off the asking price. Use rightmove to know how many are coming onto the market each day and how many are being sold. Having info at your fingertips (obviously HPC is a good source) is like gold for you. Don't rely on what the agent says about house prices in your area, know what the figures are for yourself.

Know what you really can afford (take into account insurance, stamp duty, council tax, water, electrics, paying off credit cards, etc) and do not make any offers above that figure. The figure you can afford is not the figure that the mortgage company will lend you since they will lend you anything at the mo. It will often be a figure below this.

Set a timescale. This should be at LEAST six months. If you are in a hurry then the agent will pick up on this. It is now a buyers market and you must take your time.

Target your vendor: if they bought it for 100k 4 yrs ago and it's on the market for 200k then they will more flexible than someone who bought for 180k last year who won't want to take a loss.

Second, get an idea of their situation. Target those who need to sell, either have bought a place and moved out and have 2 mortgages, those that have the property on the market with 2 agents, divorcing couples who want to get rid of the whole sorry mess, etc. Failing that, when the vendor says they are moving in with their partner and selling up, that's music to my ears as they will accept a lower offer since they don't need the equity to move up. Target vendors who either need to move or don't really need the cash.

Third, discuss your situation with them when you view the house, if you are a first time buyer (and remember they were too once) then explain your situation, being stretched and not having much scope for increased offers, etc. Then explain that how you are able to move quickly, that you can have the cash in their bank account in 4 weeks... spin the positives. Point out that for them, moving out, waiting 6 months for a chain to build is going cost them 6k in mortgage payments (most of which will be interest payments). Even discuss prices with them, about what you may be able to go for. If you act approachably then you may get a more sympathetic ear and they will accept a low offer.

When you make an offer, make the offer, in writing to both the agent AND the vendor with an explanation as to why they should sell to you. If you make a verbal offer to the agent and explain everything to them, all they will hear is "blah blah blah.. 20% off asking.. blah blah blah..." then ring up the vendor and say "they offered 20% off asking" and omit your positives. Your vendor will then say "cheeky bugger" and reject it. Your agent might tell you that 'so and so' property went for £XXXk just up the road' (to prompt you to think about pricing at that level). If so, then get the details (exact address and check it for yourself on the web and around the corner, it might be a bigger property or in better condition, etc... and also check the price to see what it actually went for).

Your first offer will ALWAYS be rejected, even if they are desparate as they will always reckon that you are good for at least another 5k. So your first offer must be below what you are expecting to pay... It's now a waiting game. Don't think about the property for at least 3-4 weeks. If you act keen and put a revised offer upwards within a week or so then you will be played for a sucker by the agent who can spot naive FTBs a mile off (remember they sell houses every day (okay... actually they don't do so many at the mo..) whereas you buy maybe 3 houses in your entire life... in other words they know every trick in the book). If you immediately up your offer then you are obvously up for a higher bit. Act as though time is on your side and you don't need to move (which you shouldn't if you are renting). Always be prepared to walk away if you are not getting the price you want. Where I live, there's 300+ houses within 3 miles of my address that are within my price range and most of them I could be perfectly comfortable living in. So there's plenty of scope to move on to another property.

Ring up 3 or 4 weeks later if the house is still up for sale and tell them you are still interested in the property and that if your vendor wants to discuss things. Probe them to see what their minimum price is. If someone else buys it in that time then good for the vendor.. Don't worry and don't think this means you have to rush to your next one. For every FTB who's razor sharp there's at least 2 sucker potential mortgage-slaves out there. Bear this in mind. Don't be one of them.

Some other things to keep in mind:

Always be pleasant, fair and reasonable with the vendor and the agent. If you rub up either then they won't be receptive to low offers. It's the agent's job to get the best price for the vendor as that's what he's paid to do. It's not a personal attack at you. If they act offended with your low offer, remember, they are not taking it personally but are playing the game.

There's no such thing as a silly offer. If you are genuinely serious about buying a house then the low offer you put in is a serious one because you have every intent of completing if they agree. Again, let the vendor and agent know this. You are not going to get blanked by any agent at the mo since buyers are a rarity. A good agent will be keeping you in the loop as well as the vendor as, ultimately you will actually pay his fees as you will be handing over the cash to them (via the vendor) anyway. A good agent will be trying to get you both to move to closing the deal. If you have been nothing but reasonable to the agent then they have no reason to blank you.

Remember who is selling the house. It's not the agent, it's the vendor. You have to get them on your side. A confrontational approach won't work. Try and warm to them. Get them to warm to you. If you can relate to them in a way that means you can be cordial then that's all good. If you are a FTB then the chances are that the people who bought the house in the first place were FTBs at the time. If this is the case then you have something in common. They will have stretched themselves when they bought and the situation is worse now so just dropping in how stretched you are might make them relate to when they bought.

Don't under any circumstances get emotionally involved with your perceived "dream home". There will be another one rolling onto the market in due course anyway. If you fall in love with the house you are well and truly toast. You might as well offer 10% above the asking price. Keep rational, keep you brain keen.

Finally, and old adage from the Salesman: "people buy people not products". A certain amount of trust is required in order to make committing transactions like these. If the vendor feels you are genuine and trustworthy then you are really making a case for yourself. On the other hand, you have to remember what figures you have in mind for the property and DON'T BUDGE from them. To you an extra £10k on the asking is actually going to cost you £17-20k so every 1000 quid is worth it.

Good luck (why the f**k are you buying at the moment anyway???? are you mad??) :unsure::unsure::unsure:

Adam :)

P.S. It's sad to say though there are bad estate agents out there as well as vendors who are still stuck in a time-warp and think it's June 2004. Work out who these are and avoid.

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1. You must always follow the market. Keep local rags, then you will know where

the desperate sellers are. (I’ve got three in my scopes )

Some properties come off the market only to reappear with another agent a month later.

2. Ask what is the lowest price they will accept. I gained £15k last crash by the vendor

knocking off for a quick sale. (and it wasn’t a bad price to begin with!)

3. Emphasize that you are ‘chain free’ these are golden words to a stressed-out vendor.

and make them work to your advantage. They have got to be worth 5~10% off asking price.

4. Get friends to f**k them about, (for sale) Oops! back on the market (for sale) Oops!... etc...

but that’s not nice, and you could lose valuable ‘carmer’ (if that’s how you spell it?) and

come back to earth as an estate agent in the next life.

Also ask if there is any subsidence, heave, landslip, structural defects that you’d rather not

pay a surveyor to tell you about. Also ask about ‘any disputes’ with neighbours.

Any likely compulsive purchase order from the council.

Of course your solicitor will check all the relevant facts (but they will bill you for them)

It’s always good to see the vendors face... for signs of stress, on the above questions.

Viewing a property

Neighbourhood profile

Don’t buy a home without us

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You will probably be more likely to get a good deal with a developer as they will only be trying to recover their costs. If a property sits empty they lose money.

Also, look for properties which are empty as someone has moved out. Also look for properties which are either in superficiially bad condition or have horrible decor. Look for bathrooms which are any colour except white, places with tatty carpets, look at photographs which show "old fashioned decor" All these help because expectations are that to get top price your home should be perfect - that is what all the property programmes are showing.

If you get into a bidding situtation (the classic "we have another interested party") - pull out.

Good luck

Edited by Given Up

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Find a seller who has a bridging loan!!. My younger sister in 2003 offered £250k on a £300k house, they refused and then dropped the price to £285k. Nobody offered and eventually as the vendor was under stress to free up cash accepted my sisters offer. My sister stayed in the property a year, put in a new kitchen and sold it April 04 for £326k.!!!!

Lou

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Is there a check list of questions that gives you an idea you can put in a 20% off the asking price offer ?

I'm only going to be able to do it once with each agent in my area, they will ban me from the premises if I do it twice so I want to be sure at least one in my top ten houses bites !!!!!

(Poor hubs is going grey with all this rental business so if we can buy soon we will but in order to be true to the cause it will not be anywhere near the asking price).

Are you a troll?

You've written so much about finding your new rental, but you also write about buying. Which one are you doing. If you've moved into a new rental, or are about to, surely you're not in a position to buy, so are either wasting your time searching, or are making troll posts on this forum to get the bears excited.

Which one is it?

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Are you a troll?

You've written so much about finding your new rental, but you also write about buying. Which one are you doing. If you've moved into a new rental, or are about to, surely you're not in a position to buy, so are either wasting your time searching, or are making troll posts on this forum to get the bears excited.

Which one is it?

Trolls can only make bullish posts...period!

;)

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Is there a check list of questions that gives you an idea you can put in a 20% off the asking price offer ?

I'm only going to be able to do it once with each agent in my area, they will ban me from the premises if I do it twice so I want to be sure at least one in my top ten houses bites !!!!!

(Poor hubs is going grey with all this rental business so if we can buy soon we will but in order to be true to the cause it will not be anywhere near the asking price).

Are you a troll?

You've written so much about finding your new rental, but you also write about buying. Which one are you doing. If you've moved into a new rental, or are about to, surely you're not in a position to buy, so are either wasting your time searching, or are making troll posts on this forum to get the bears excited.

Which one is it?

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Is there a check list of questions that gives you an idea you can put in a 20% off the asking price offer ?

I'm only going to be able to do it once with each agent in my area, they will ban me from the premises if I do it twice so I want to be sure at least one in my top ten houses bites !!!!!

(Poor hubs is going grey with all this rental business so if we can buy soon we will but in order to be true to the cause it will not be anywhere near the asking price).

just find a new build 1 bed flat and bingo! 20% off Jan Sale! :lol:

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  • 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%



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