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If You Don't Ask You Dont Get

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Interesting development today that I thought you might want to hear about... something that proves that asking prices are A:- Ridiculous and B:- Extremely Negiotiable

We viewed a property over the weekend - my wife hated it but I could see the potential. Place in the country that has been on the market for well over a year with at least two agents. It originally went on the market for £850k in Autumn 2004. Currently on with new agent at £795k. It needs a new kitchen but benefits from 2 acres of garden and is very large (4000'). The agent let slip that the couple have split up and the house has been untended and unloved...

Anyway... here's the meat... During the viewing we were very frank and told the agent that the asking price was unrealistic and we were not surprised that it had not sold etc. His response was "but it will certainly sell now that Spring is here and the market has picked up". So that was that... we left.

Agent called me this morning for feedback. I was honest and said I could see the potential but in the current market there was no way I'd go for it but "at the right price" we might be able to afford to knock it in to shape. I said it was worth no more than £600k to us... The agent was actually quite composed and said he'd discuss it with the vendors.

And guess what? He called me about an hour ago - seems he had spent most of the day tracking the wife down to get her response. The agent said "my vendors need to sell yet cannot accept your offer and would be expecting something around the £650k range". I reckon I'd close the deal at around £620-630k.

I doubt very much that we'll go for it - my wife still hates it and I'm not sure I can win her over. We are happy to wait and prices round here are falling slowly. But the key thing is this:

If the market is as strong as VIs like us to think why are vendors prepared to slash prices before Spring is upon us? Heck - this couple have waited over a year already so why not wait a bit longer?

And what does it say about the state of the market that an estate agent is still on the phone at 9pm chasing down a deal?

£850k -> £795k - > £620k !!!

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Brilliant these anecdotes are whay better than any of the stats, cos this is the reality of of a property being only worth what some one is prepared to pay. the stats all lead us to beleive that all property is average but clearly exceptional property is rare and the rest is not going to sell without deep discounts.

sp1

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And what does it say about the state of the market that an estate agent is still on the phone at 9pm chasing down a deal?

£850k -> £795k - > £620k !!!

Perhaps they wanted some wiggle room for negotiation? :lol:

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Fandabidozi!!!!

:D:D:D

25% ish off - excellent!

It'll be 40% by 2008/9 ON AVERAGE; Some properties (very few - perhaps 1 in 40 but they'll be there) will be 75% below the peak price of 2004/5.

I well remember a house came available in Hitchin in 1994 at £170,000 - due to husband's business crash then his untimely death. That house was valued in 2004 at..........£650,000.

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Anecdotal - about 15 months ago the gf registered with a bunch of french e.a's (looking at buying a chalet in the ski regions of france). The stuff back then was loony - 600,000 euros for very ordinary 4 bedroom 'sheds' :-)

G.F told them as much and they drastically cut down the amount of property they sent her by email, maybe they thought she was a 'timewaster', although in reality we are cash buyers, who happen to want value for money...

Since xmas, they've essentially started 'spamming' her, several times a day, and the SMALLEST price reduction we are seeing is 15% off (she kept the originals cos she's a bit a*al like that).

Some of them have had 30% knocked off already.

Large numbers of what I can only assume to be speculative builders DESPERATE to get rid of ridiculous overpriced '1 bed' chalet apartments, i guess bcos the brits have stopped buying, and no frenchie would be so stupid as to buy a '1 bed chalet apartment' in his own country...

It's all tying together nicely, I'd say. It does seem to be unravelling far faster than last time... crash underway!

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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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