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Buyers demand 20% discounts - the Mail


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And so it begins. The press are in full on Bear mode. I don’t know anyone who isn’t a VI ramper or a Mumsnet loon who still thinks that the market won’t lose at least 10%. With numbers like this in the Mail, it will soon be 20%, then 30%. Joy oh joy! Make sure to share articles like this with all your friends, everyone needs to be thinking this to insure it happens sooner rather than later and the “Mexican standoff” ends and young people can afford homes again.

Buyers demand 20% discounts

Even VIs are throwing in the towel with EAs in this article already conceding 5-10% drops this year.

Quote

Property adviser Henry Pryor said he had four clients who had deals put on hold by the lockdown, all of whom were now seeking 20 per cent off the agreed price, but would likely settle for 5 to 10 per cent.

 

Edited by HovelinHove
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OK, 20% might be seem a little over the top at this point in time.

But with the scary possibilities post virus return to work a 10 to 15% discount seems more than reasonable to me.

Personally I would stick my nose up at -25% right now, and knowing my luck live to regret it ? 

Seriously, I don't think I would come close to regretting it

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8 minutes ago, Paul77 said:

Finally some bear food!

I’d say most of the stuff I’ve read in the media has been very bearish about property. The BoE saying 16% means that anyone in their right mind paying current prices is clinically insane.

For me the crash is difference between a modest mortgage and being full cash. A 20% drop will bring houses that we were looking at in January into a cash only range, a 30% drop would bring really nice homes into a cash only range. I think waiting this one out is the key. There will be no silver lining for BTL or Airbnb etc, and boomers who need to offload their big family homes will find no sympathy from others. Happy days for the young!

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13 minutes ago, crumblingcon said:

OK, 20% might be seem a little over the top at this point in time.

But with the scary possibilities post virus return to work a 10 to 15% discount seems more than reasonable to me.

Personally I would stick my nose up at -25% right now, and knowing my luck live to regret it ? 

Seriously, I don't think I would come close to regretting it

It depends. Imagine if you were a seller in a chain, and had completed just before lockdown on the purchase, but for some reason had not completed on teh sale and used a bridging loan to cover for a couple of weeks. 7 weeks down the track you are scared out of your wits on the hook for 2 massive loans, and your buyer says that the buyer of his house won’t proceed without a 20% discount, and that he can now only buy if he gets 20% off too. The same applies for probate sales, or old folks going into homes etc. People will take what’s offered if they have no choice. There will be 20% discounts now...but there will be more than 20% discounts for all in 9 months time :)

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14 minutes ago, Paul77 said:

Finally some bear food!

It’s been non stop bear food, all these PMI and GDP figures! But it is nice to get a great big fillet steak like this I agree, looking forward to the headlines where the prices have actually fallen 20%.

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2 minutes ago, HovelinHove said:

It depends. Imagine if you were a seller in a chain, and had completed just before lockdown on the purchase, but for some reason had not completed on teh sale and used a bridging loan to cover for a couple of weeks. 7 weeks down the track you are scared out of your wits on the hook for 2 massive loans, and your buyer says that the buyer of his house won’t proceed without a 20% discount, and that he can now only buy if he gets 20% off too. The same applies for probate sales, or old folks going into homes etc. People will take what’s offered if they have no choice. There will be 20% discounts now...but there will be more than 20% discounts for all in 9 months time :)

As I often say on here, and I really want this on the record ? 

Anyone getting excited over possible -25 to -30% falls could well be well underestimating what could be on it's way, numbers that could well make you look stupid even posting on HPC, numbers even that could be too high for what I even want.

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10 minutes ago, HovelinHove said:

 

For me the crash is difference between a modest mortgage and being full cash. 

Hove,

Check out this lecture by economist Peter Schiff if you have time.  He tells some really pertinent stories about the housing bubble in the US and the dot com bubble. A lot of it can be applied here. I think 20% is just the start.

 

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3 minutes ago, HovelinHove said:

I’d say most of the stuff I’ve read in the media has been very bearish about property. The BoE saying 16% means that anyone in their right mind paying current prices is clinically insane.

For me the crash is difference between a modest mortgage and being full cash. A 20% drop will bring houses that we were looking at in January into a cash only range, a 30% drop would bring really nice homes into a cash only range. I think waiting this one out is the key. There will be no silver lining for BTL or Airbnb etc, and boomers who need to offload their big family homes will find no sympathy from others. Happy days for the young!

I'm in Edinburgh, there is a huge concentration of Airbnb here. This year no Fringe, no tourists and students decimated, so I'm already seeing a huge number of rental properties flooding the market and literally no takers. Let's see how many LLs will be forced to switch to selling.

Sitting on a pile of cash and trying to come up with a plan of attack... for those who are also planning to buy, what's your strategy?

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9 minutes ago, LetsBuild said:

It’s been non stop bear food, all these PMI and GDP figures! But it is nice to get a great big fillet steak like this I agree, looking forward to the headlines where the prices have actually fallen 20%.

You are right but all of my friends kept saying to me there will be no drops as property prices can only go up. Plus, with the money printing around the globe everyone should be looking to buy as an inflation offset. Now I can at lest show them this article :) 

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34 minutes ago, stuckmojo said:

The comments on these article crack me up. 

Oh god. "They can't drop because I refuse"

Right you are.

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> Just put 20% on the value of your house, then when they ask for a discount say yeah, you'll get the price you want, and they'll think they've got 20%off

 

How clever is that..!

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12 minutes ago, Paul77 said:

> Just put 20% on the value of your house, then when they ask for a discount say yeah, you'll get the price you want, and they'll think they've got 20%off

 

How clever is that..!

I have seen that with a few recent listings...that is what Zoopla is for. 

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1 minute ago, HovelinHove said:

I have seen that with a few recent listings...that is what Zoopla is for. 

One can still see the "value" in home report so I'm not sure how they could get away with that...

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More delicious Bear food. if I had made an offer but not exchanged contracts, I would just pull out, not even bother making a lower offer at this stage. This will get nasty...the banks will cover their backsides in the end as the government will run out of bail out moeney.

 

Mortgage firms pull deals after contracts have been exchanged

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21 minutes ago, HovelinHove said:

More delicious Bear food. if I had made an offer but not exchanged contracts, I would just pull out, not even bother making a lower offer at this stage. This will get nasty...the banks will cover their backsides in the end as the government will run out of bail out moeney.

 

Mortgage firms pull deals after contracts have been exchanged

This story was in the Times too.

https://www.thetimes.co.uk/article/c84c4d12-954b-11ea-97b5-8f15973668de

I think it is very big factor in the crash that is well under way already. Some banks who were willing to lend are obvioulsy getting too scared to lend on a fast depreciating asset now.

Plus, I never knew lenders could withdraw their offer after exchange!

Surely no one would want to risk exchanging right now if they needed a mortgage?

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7 minutes ago, Si1 said:

You can't really say much about that can you.

We can play count the red flags:

  • New build
  • Halted Construction
  • both Furloughed
  • jobs in marketing
  • Deposit paid
  • virtual images only
Edited by Freki
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  • 415 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% +
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      • Even
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      • up 5%



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