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Are we nearly there yet? Is it cheeky offer time?


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3 hours ago, jiltedjen said:

i'm seeing a massive influx of property onto the market, that tiny interest rate rise has caused droves of people to think now is the time.

And whats incredible is that its not dross, beautiful 1930's build massive houses at much less than newer dross. Its like the market has suddenly been unlocked. 

The flood of property onto my local market has caused the selling level to become clear (195k being the max for the average local). As soon as you pass that level houses get exponentially nicer, as the whole market is compressed to the 200k range. 

Not a great time to be a BTL seller! 

For the last 18 months there has only be barely a page of results of properties for sale in my criteria, and within a week its turned into 4 pages. 

where are you based?

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I phoned on Monday morning and offered 350 on a house that is currently up for 400. I have just phoned the estate agent back and asked if he had spoken to vendors and his response was, “oh yeah they want about 400.” 

I find it beyond belief that the estate agent can’t even be bothered to phone me back, never mind trying to create a dialogue between 2 parties who are less than 15% apart. This house has been on market currently for 4 months and the agent is Entwistle Green.

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26 minutes ago, doomed said:

I phoned on Monday morning and offered 350 on a house that is currently up for 400. I have just phoned the estate agent back and asked if he had spoken to vendors and his response was, “oh yeah they want about 400.” 

I find it beyond belief that the estate agent can’t even be bothered to phone me back, never mind trying to create a dialogue between 2 parties who are less than 15% apart. This house has been on market currently for 4 months and the agent is Entwistle Green.

I was once told by an EA, that your offer of less than 15% is a direct insult to vendor in EA's intelligence.

And to be fair, the house sold for 5% asking in the end.

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There's a massive increase in property for sale around here (Chippenham) and in other places I keep an eye on along the M4 corridor in the past few weeks especially considering this is usually the quietest time of the year for buying/selling.  Unfortunately the prices are still up though here although nearer to London they have been falling for a few months.

Definitely time for a few cheeky offers?Sellers and EAs are going to have to get real.

Edited by janch
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33 minutes ago, doomed said:

I phoned on Monday morning and offered 350 on a house that is currently up for 400. I have just phoned the estate agent back and asked if he had spoken to vendors and his response was, “oh yeah they want about 400.” 

I find it beyond belief that the estate agent can’t even be bothered to phone me back, never mind trying to create a dialogue between 2 parties who are less than 15% apart. This house has been on market currently for 4 months and the agent is Entwistle Green.

I believe EAs are legally bound to pass on all offers to the seller

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2 hours ago, Pebbles said:

I'm seeing supply increase in Cambridgeshire (non fashionable places) however asking prices are still stupid. 4 Years ago there were plenty of 150k houses now you are looking at listing prices above 230k.

Funnily enough I've been looking there. Mother has been pressuring me suggesting I move there because it wasn't too expensive, is quite nice and I already have some extended family around there. You're right though about prices.

I first started looking back in 2015 and even then things were going crazy. One property was brought in IIRC 2013 for £130K and was on the market in around late 2015 for £180k... Looking at it now it seems prices have plateaued a bit but still silly for that area. And no sign either here in Chavsville or in the better areas up there of lots more property coming to market despite the 33% base rate increase.

Edited by LandOfConfusion
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2 hours ago, jiltedjen said:

plymouth is my search area, so its as far as way from the south-east as many northern places 

Well that explains this post in Funding Circle:

Quote

 Property development in Newquay 3 (39566) 93 days late

The refinance with the external lender has been delayed due to the lender requiring another valuation.

I'm seeing quite few of these sorts of messages now. Looks to me like lenders getting scared and it's leading to some projects being sold off even before completion.

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1 hour ago, doomed said:

I phoned on Monday morning and offered 350 on a house that is currently up for 400. I have just phoned the estate agent back and asked if he had spoken to vendors and his response was, “oh yeah they want about 400.” 

I find it beyond belief that the estate agent can’t even be bothered to phone me back, never mind trying to create a dialogue between 2 parties who are less than 15% apart. This house has been on market currently for 4 months and the agent is Entwistle Green.

Entwistle Green are one of Countrywides (seen the share price?). Maybe the agent was busy looking for jobs and tarting up the CV.

countrywide-brands-black.gif

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57 minutes ago, doomed said:

I phoned on Monday morning and offered 350 on a house that is currently up for 400. I have just phoned the estate agent back and asked if he had spoken to vendors and his response was, “oh yeah they want about 400.” 

I find it beyond belief that the estate agent can’t even be bothered to phone me back, never mind trying to create a dialogue between 2 parties who are less than 15% apart. This house has been on market currently for 4 months and the agent is Entwistle Green.

Well, unless you were privy to the last discussion the agent may have had with the client where they tried desperately to get them to agree to a £375k price but failed because the sellers wouldn't budge because 400K is the only price that would allow them to move to their new place.

Is it that hard to believe that a seller won't budge and an agent from previous interaction realises that and doesn't bother wasting their time on it ?

 

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12 minutes ago, Gigantic Purple Slug said:

Well, unless you were privy to the last discussion the agent may have had with the client where they tried desperately to get them to agree to a £375k price but failed because the sellers wouldn't budge because 400K is the only price that would allow them to move to their new place.

Is it that hard to believe that a seller won't budge and an agent from previous interaction realises that and doesn't bother wasting their time on it ?

 

So you don’t think the agent should bother phoning me back to tell me this? How does he know I wouldn’t stretch to 400 (I wouldn’t)? It is not like my offer was not in same ball park.

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2 minutes ago, doomed said:

So you don’t think the agent should bother phoning me back to tell me this? How does he know I wouldn’t stretch to 400 (I wouldn’t)? It is not like my offer was not in same ball park.

Could be any number of reasons.

It could be :

a) He's had a good month and doesn't need the revenue.

b) He has better prospects to try to close. Or he has a potential buyer on the same house who is far closer and he thinks is a more realistic chance of turning into a sale.

c) He has reason to believe that he won't be able to close the deal, either from prior experience with you or the vendors.

d) Maybe its a negotiating tactic to try to get you to up your offer.

e) Maybe as you say he's just rubbish.

I made a tentative offer on a place a while back, 10k under asking. Got no interest from the EA at all. A week or so later the property went off the market. Haven't seen what happened to it since, but I expect it will come up as sold within the next couple of months or so.

Anyway, I don't find any of the above stuff hard or difficult to believe. Bottom line is that your offer wasn't high enough to generate any interest.

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As I have said before I think the house price crash started a long time ago in the South, prices have done nothing but decline for sometime. The question is now how big and how sustained will it be? With another one or two interest rate rises, maybe something along the lines of second home stamp duty upped to 5% and the real possibility of a no deal Brexit in the background causing fear and winter on the horizon I’m thinking Jan/Feb 2019 could turn into a real good opportunity. However Jan/Feb 2020 could be even better. The thing that’s in my mind is there could be a lot of buyers on the sidelines and that may support the market further down the line making this winter the best buying opportunity. 

 

Nobody knows it anyone’s guess.

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P.s I have my eye on one house in a much sort after area which has boomed. It came to the market at 650k which was actually probably already mark down 50k from the peak. Never sold so they dropped it 50k in one go to 600k it made no impact at all. The estate agent wrote to me the other day and said they would consider an offer between 525 - 550k. Which from the sellers point of view is a lot of money to concede. I know what they paid from land registry and they are still quids in but they’ve owned it a while. If it’s still on the market in the new year and I can buy it for a price that starts with the number four I would be able to buy a house that would never have been possible at any other time for me. The thing is will that be a shrewd move, opportunist or will I be looking back in a year or so kicking myself. I know it’s a home and all that stuff but when you have waited as long as we have it would hurt thinking one more year and we could of had a mortgage for 50-100k less. It could easily happen because that is the position I would be in now if I bought a year or so ago because it has happened to them.

 

 

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I had a chat with an ex colleague who is now working for an estate agent.

He said they are receiving “lots of silly offers” at the moment, for example on a £450k house, (which was reduced from £500k) they received a number of offers around the 375k area.

He said vendors wait for months and will eventually receive a “realistic offer”. This particular house one offer of £440 was eventually received and accepted.

So I said “you eventually find a muppet then”, he kind of laughed it off. I was dead serious.

When we run out of muppets who can get hold of cheap credit that’s when the tide will turn.

So yes, people are putting in cheeky offers and from this sample of one agent it suggests you would be joining many others.

Edited by mathschoc
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35 minutes ago, mathschoc said:

I had a chat with an ex colleague who is now working for an estate agent.

He said they are receiving “lots of silly offers” at the moment, for example on a £450k house, (which was reduced from £500k) they received a number of offers around the 375k area.

He said vendors wait for months and will eventually receive a “realistic offer”. This particular house one offer of £440 was eventually received and accepted.

So I said “you eventually find a muppet then”, he kind of laughed it off. I was dead serious.

When we run out of muppets who can get hold of cheap credit that’s when the tide will turn.

So yes, people are putting in cheeky offers and from this sample of one agent it suggests you would be joining many others.

Or alternatively the process of price discovery eventually allows a transaction at market value to take place.

After all, something is worth what someone is willing to pay for it.

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41 minutes ago, Gigantic Purple Slug said:

Or alternatively the process of price discovery eventually allows a transaction at market value to take place.

After all, something is worth what someone is willing to pay for it.

sure like every HTB house is sold at market value. 

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