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Sellers shaving £10K off the asking price of their properties as homes stay on the market for longer

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https://www.msn.com/en-gb/money/homeandproperty/sellers-shaving-£10k-off-the-asking-price-of-their-properties-as-homes-stay-on-the-market-for-longer/ar-AAJypOK

Home sellers in the UK's biggest cities are accepting nearly £10,000 less than their asking price and waiting an average of three months before agreeing a sale, new research shows. 

Slower house price growth and weaker demand means that the average time to sell a property is now at a three-year high of 12 weeks, up from eight weeks in September 2016, shortly after the Brexit referendum. 

Meanwhile, buyers have strengthened their bargaining power as discounts to asking prices have increased from 2.2 per cent in 2016 to 3.8 per cent today, or an average of £9,800. 

 

 

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Well I just put an offer in on a terraced house, 2 bed but it splits into a one bed shop downstairs and flat upstairs, dodgy ish area but near tourist place so ideal for Air b n b/ booking.com

It was in for 45000, I offered 34000 it was accepted. Hope I don't get shot while renovating

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37 minutes ago, Grayphil said:

Well I just put an offer in on a terraced house, 2 bed but it splits into a one bed shop downstairs and flat upstairs, dodgy ish area but near tourist place so ideal for Air b n b/ booking.com

It was in for 45000, I offered 34000 it was accepted. Hope I don't get shot while renovating

Well done...but £45k? where is this?

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Recently refurb'ed place around the corner from me originally went on the market just over two months ago for £675K then 4 weeks later £645K this week its down to £620K, me thinks someones panicking abit................

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12 hours ago, burk said:

 £675K then 4 weeks later £645K this week its down to £620K, me thinks someones panicking abit................

Not quite panic, more price discovery but much faster than until recently.

Something has changed.

We're looking & offering right now in a relatively cheap SE location.

Lge, empty 2 bed det. Bung. in posh area £350k asking, offer £273.5k, counter offer £323.5k.  Mid terrace £250k asking, £210k offer, £240k counter offer.  Small, extendable 2 bed detached house in good area, was £315k asking, then £300k, then £275k, offer £250k yesterday, awaiting response.

The last one is a bargain & we'll be made up to get it c. £263k.

Vendors are blinking & by sh*loads more than 10k.

Friend's barrister daughter confident of securing a house in Richmond on for 1.3 for 800-850k.

Media are *really* understating the drops.

 

 

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13 hours ago, Grayphil said:

Well I just put an offer in on a terraced house, 2 bed but it splits into a one bed shop downstairs and flat upstairs, dodgy ish area but near tourist place so ideal for Air b n b/ booking.com

It was in for 45000, I offered 34000 it was accepted. Hope I don't get shot while renovating

That's -24%, a good offer in my opinion.

Edited by Bruce Banner

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13 hours ago, burk said:

Recently refurb'ed place around the corner from me originally went on the market just over two months ago for £675K then 4 weeks later £645K this week its down to £620K, me thinks someones panicking abit................

I suspect many of these "refurb to sell" properties are financed with hard money bridging loans at about 0.8% per month. Soon wipes out any profit if costs overrun, or the investor was overly optimistic on how long it'd take to sell. 

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"Slower house price growth and weaker demand means that the average time to sell a property is now at a three-year high"

Stress growth...no need to panic...

But of course according to many sources prices are actually falling in many areas...no mention of that?

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Reductions from initial asking price are becoming the norm in my area.  Often they drop by 5% at the first attempt eg £360K to £340K (three bed) or £425K to £400K (four bed) some then follow with further 5% reduction before lingering...I am waiting to see them appear on houseprices.io to see that was actually achieved for those that have sold.  Hopefully much more than the 10% off initial asking price suggested in the article above.

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13 hours ago, Orb said:

Can I guess Blackpool?

Naah it's in the lakes but, won't name the town cos it will become very obvious which house it is! 

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8 hours ago, Bruce Banner said:

That's -24%, a good offer in my opinion.

Cheers, reckon 5 grand to renovate one apartment, 15 for the other, and fingers crossed should be able to let them out over the holidays and weekends. If not the price tag won't ruin my life! 

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21 hours ago, hotblack42 said:

Not quite panic, more price discovery but much faster than until recently.

Something has changed.

We're looking & offering right now in a relatively cheap SE location.

Lge, empty 2 bed det. Bung. in posh area £350k asking, offer £273.5k, counter offer £323.5k.  Mid terrace £250k asking, £210k offer, £240k counter offer.  Small, extendable 2 bed detached house in good area, was £315k asking, then £300k, then £275k, offer £250k yesterday, awaiting response.

The last one is a bargain & we'll be made up to get it c. £263k.

Vendors are blinking & by sh*loads more than 10k.

Friend's barrister daughter confident of securing a house in Richmond on for 1.3 for 800-850k.

Media are *really* understating the drops.

 

 

I admire and applaud your endeavours.

As a seller, the extent to which I would entertain such offers would be determined by your status. If you are a cash in the bank buyer then, yes, hard offers are perfectly acceptable. However, if you need a mortgage then less so. And if you need to sell your own property first then I'll be laughing in your face.

At some point the offer become so low that it would make more sense to sell via auction within a gauranteed time scale. I guess thatt he trick is working out what that auction price floor is for the property you want.

 

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22 hours ago, hotblack42 said:

Not quite panic, more price discovery but much faster than until recently.

Something has changed.

We're looking & offering right now in a relatively cheap SE location.

Lge, empty 2 bed det. Bung. in posh area £350k asking, offer £273.5k, counter offer £323.5k.  Mid terrace £250k asking, £210k offer, £240k counter offer.  Small, extendable 2 bed detached house in good area, was £315k asking, then £300k, then £275k, offer £250k yesterday, awaiting response.

The last one is a bargain & we'll be made up to get it c. £263k.

Vendors are blinking & by sh*loads more than 10k.

Friend's barrister daughter confident of securing a house in Richmond on for 1.3 for 800-850k.

Media are *really* understating the drops.

 

 

properties over 1m in richmond are stale and no one is buying so i could imagine this is possible

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45 minutes ago, hurlerontheditch said:

properties over 1m in richmond are stale and no one is buying so i could imagine this is possible

Can you really see them dropping 500k less though very optimistic.

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9 minutes ago, longgone said:

Can you really see them dropping 500k less though very optimistic.

nope not in richmond.. however further out yes.. my ex brother in law bought in 2009, place was advertised at 1.1 but got it for 750k

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3 hours ago, micawber said:

As a seller, the extent to which I would entertain such offers would be determined by your status. If you are a cash in the bank buyer then, yes, hard offers are perfectly acceptable. However, if you need a mortgage then less so. And if you need to sell your own property first then I'll be laughing in your face.

We will raise a mortgage of 75% in order to capture the lower fixed rate attached to a 25% deposit.  This has been pre-approved.  Effectively we are cash buyers and could complete in a few weeks.  We could put down 50% deposit, or even scrape the whole price but that money is working elsewhere.
Concerning Richmond - there was a brief window in 1990 when our house in Cheltenham was worth almost as much as a comparable house in Richmond.  But we saw people waiting to pull off their drives into queues of traffic and decided to raise a family in Gloucestershire instead.  Expensive decision in retrospect, but I they were able to safely explore nearby countryside in clean air and get a good state education, so I'm OK with it.
Anyway, I think I'm right in saying Richmond prices could halve (from asking, not current actual market value) and still not be below the post war average.  Prices there are always a calculation against living in a smaller gaff with no parking in Chelsea, Bloomsbury etc and they are taking a right hiding at mo.

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Wish that was happening near me.

Still like some form of alternative reality

So nice 3 bedder sells for 430k

https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=46773026&sale=87964263&country=england

Well ours has an extra garage and another room but 90s interior so .... 530? nah let put it for sale £690

https://www.rightmove.co.uk/property-for-sale/property-57483309.html

A year later no reductions and no interest...a neighbour has a house nearly the same as the one for 430K.....that one is 690 mine must be worth 600!.....

https://www.rightmove.co.uk/property-for-sale/property-71768422.html

7 months and that has not yet sold......

Then another neighbour thinks wow mine is a little bigger than the one at 690 but has a better view ... and a worse garden + 90s interior/kitchen..... got to be worth £750!

https://www.rightmove.co.uk/property-for-sale/property-66248046.html
 


 

 

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2 hours ago, Fromage Frais said:

Wish that was happening near me.

Still like some form of alternative reality

So nice 3 bedder sells for 430k

https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=46773026&sale=87964263&country=england

Well ours has an extra garage and another room but 90s interior so .... 530? nah let put it for sale £690

https://www.rightmove.co.uk/property-for-sale/property-57483309.html

A year later no reductions and no interest...a neighbour has a house nearly the same as the one for 430K.....that one is 690 mine must be worth 600!.....

https://www.rightmove.co.uk/property-for-sale/property-71768422.html

7 months and that has not yet sold......

Then another neighbour thinks wow mine is a little bigger than the one at 690 but has a better view ... and a worse garden + 90s interior/kitchen..... got to be worth £750!

https://www.rightmove.co.uk/property-for-sale/property-66248046.html
 


 

 

haha its like a dart board.. throw a dart and make up a price

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  • 294 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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