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Alfie Moon

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When you feel that house prices have dropped sufficiently for you to start house hunting in earnest what strategies are you going to use?

I know a bloke who bought during the last (1990s) house price crash. His strategy was to find 8 - 10 house that interested him. He then arranged viewings for all of them and made offers on any that took his fancy. He always started with an offer of 25% below asking price. His bottom line was that he would not buy unless he got a 20% below asking price offer accepted. Whilst it took some organisation and energy he was successful in getting a house he liked with a 20% reduction. I intend to try out this strategy when I start house hunting. I might give it a go this summer, to test the waters, depending on the next set of Land Registry stats.

Do any of you have better strategies?

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the houses right now are 3x what they should be.

this summer is not going to be low enough. let them roast for one more year.

im going to have a look in 2008/9.

let the rot really set in.

buy now and watch the price slide...no thanks.

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Perhaps HPC could develop a house buying strategy leaflet that would help people get the biggest possible price reduction on the house they eventually buy.

I'm sure Phil and Kirsty and all the Estate Agents would love us for producing such guide/leaflet.

There must be a market for this out there. All the property literature that has been produced through books, magazines, TV property programmes has all been aimed at maximising the selling price of houses. It's about time that mass information was produced and made available to help people get the lowest price on the property they buy. We need to generate a competive atmosphere out there of trying to achieve the lowest purchase price possible.

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we need do nothing:

this is dynamics. the market isnt sustainable.

its fuelled by hype and propaganda and copious amounts of tv brainwashing.

i cant buy - you cant buy.

who is buying ?

idiots trying to make a quick buck and thats about it.

this country is pathetic.

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the houses right now are 3x what they should be.

this summer is not going to be low enough. let them roast for one more year.

im going to have a look in 2008/9.

let the rot really set in.

buy now and watch the price slide...no thanks.

I agree with you absolutely. I won't be buying a house this summer but I might give the strategy I outline above a test run. Even if I get a bite I won't buy. Prices need to tumble a long, long way yet. However, I don't mind contributing to a bit of activity that helps vendors and Estate Agents realise that people will no longer accept such ridiculously high prices and expect large reductions if they are to be tempted into buying.

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the houses right now are 3x what they should be.

this summer is not going to be low enough. let them roast for one more year.

im going to have a look in 2008/9.

let the rot really set in.

buy now and watch the price slide...no thanks.

Absolutely right. Houses need and I think will halve in value. They've come off by about 5% since August '04 but there's still some way to go. Why settle for 20% (still way overvalued) off when you can wait for bigger reductions futher down the line.

I'll be looking to buy in the South East in about 2010.

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Yes, pathetic it is.

This country is full of Arthur Daily type people. Quick buck here and there. They are going to get burnt, as houses arene't sold likes shares or crap at a local boot. It takes time and these folk are going to be the first to dash for exits when interest rates start to rise - and rise they will.

Lots of bargains to be had.. tick..tock..tick...tock patience

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we need do nothing:

this is dynamics. the market isnt sustainable.

its fuelled by hype and propaganda and copious amounts of tv brainwashing.

i cant buy - you cant buy.

who is buying ?

You've changed your tune. Changed from active to passive. Didn't you once try to get HPC to demo outside #10 in the name of affordable housing ? You've finally gone from bull to bear.

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Perhaps HPC could develop a house buying strategy leaflet that would help people get the biggest possible price reduction on the house they eventually buy.

I'm sure Phil and Kirsty and all the Estate Agents would love us for producing such guide/leaflet.

There must be a market for this out there. All the property literature that has been produced through books, magazines, TV property programmes has all been aimed at maximising the selling price of houses. It's about time that mass information was produced and made available to help people get the lowest price on the property they buy. We need to generate a competive atmosphere out there of trying to achieve the lowest purchase price possible.

That's a good idea. But how would it be circulated?

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That's a good idea. But how would it be circulated?

The easiest option would be for HPC to have it available as a downloadable pdf file on the HPC home page. It would then be up to individuals to download it and distribute.

It might be worth trying to get a freelance journalist to write a piece on it and get it published as a newspaper article. Perhaps Vanessa Feltz in the Daily Express would be interested in writing something about it following her recent article highlighting the difficulties high house prices are creating.

It might also be worth approaching someone like Martin Lewis to see if he would want to take on developing the idea and creating opportunities for mass distribution. Martin might even develop it into a book and add it to his long list of 'money saving' publications and activities.

As an individual I would certainly do my bit of printing off as many copies of the leaflet to distribute in my locality as I could.

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Guest prudence

When you feel that house prices have dropped sufficiently for you to start house hunting in earnest what strategies are you going to use?

I know a bloke who bought during the last (1990s) house price crash. His strategy was to find 8 - 10 house that interested him. He then arranged viewings for all of them and made offers on any that took his fancy. He always started with an offer of 25% below asking price. His bottom line was that he would not buy unless he got a 20% below asking price offer accepted. Whilst it took some organisation and energy he was successful in getting a house he liked with a 20% reduction. I intend to try out this strategy when I start house hunting. I might give it a go this summer, to test the waters, depending on the next set of Land Registry stats.

Do any of you have better strategies?

your strategy as good as any - so long as you do not set your heart on a specific property.

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Do any of you have better strategies?

I’m out of touch with basic computer programming, but I am working on

such a program to help first-time buyers get on the property ladder.

hobbit3.gif

10. Scan local rags (Newspapers) continuously, don’t throw away.

20. Identify property that has been on the market for some time. (red marker pen)

30. Check and monitor prices being achieved on Land registry. in those streets.

40. If property is = or <2002 price. goto 100.

50 goto 10.

100. view property

101. Rem: (Charm offensive)

110. Constantly emphasize that you are chain free.

120. Compliment vendor on decoration / taste

130. Smile and be friendly.

140. Give impression you love the property. (to throw them off-guard)

150. Ask what is the lowest offer they would accept for no hassle quick sale?

160. If told to piss-off goto 10.

170. If asking price drops another 5% goto 200.

180. goto 10.

200. Thank them and say you will get in touch with Estate agent.

210. Don’t phone Estate agent , let them phone you,

220. Rem: (Normally this will happen within hours of getting back home).

230. Tell estate agent you have a couple of properties to view but you would

make an offer on that one.

240. offer 5% lower than their lowest. because you are chain-free quick sale.

250. If offer is accepted goto 300.

260. If offer is rejected goto 10.

270. goto 10.

300. Buy property. well done. You’re a home owner now!

310. Clear screen.

jsw.gif

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Nice one, but I think you have a syntax error on line 40.

40. If (property is = 2002 price) or (property is <2002) price. goto 100.

EDIT: Does your basic have "<=" ?

Edited by megaflop

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When you feel that house prices have dropped sufficiently for you to start house hunting in earnest what strategies are you going to use?

I know a bloke who bought during the last (1990s) house price crash. His strategy was to find 8 - 10 house that interested him. He then arranged viewings for all of them and made offers on any that took his fancy. He always started with an offer of 25% below asking price. His bottom line was that he would not buy unless he got a 20% below asking price offer accepted. Whilst it took some organisation and energy he was successful in getting a house he liked with a 20% reduction. I intend to try out this strategy when I start house hunting. I might give it a go this summer, to test the waters, depending on the next set of Land Registry stats.

Do any of you have better strategies?

I'm not sure about the strategy of applying a fixed discount over asking price. I can think of two properties near me. For one I think the asking price is fair at current market levels (but I don't believe that current market levels are fair). The other I consider insanely overpriced. I would not consider it cheap even with a 20% reduction.

I will almost certainly start thinking about buying at some point. I would probably make one offer at a time on a property. I'd order the properties and ask myself for each one what I am prepared to offer, given that if the offer is accepted I don't get the chance to offer on the other properties. After each refused offer, I'd then reevaluate the properties, and choose the next offer to make. This wouldn't be a round robin of properties.

Billy Shears

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Personally, when I believe the prices to be fair for what I'm looking for I'll view a few places, and if I find one I really want I'll probably offer close to asking price. If I want to live there whey risk it by offering 20% below?

Saying that though, prices need to drop about 30% before I'd consider buying, or consider the prices to be realistic.

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Prompted by a TV ad this week, I had a look at the National Homebuyers website. Then I looked them up in the BBC Watchdog archives. It seem that they offer between 10% to 30% (their figures) or 40% (Watchdog viewers' figures) below the market valuation from a drive-by survey (for which they charge the homowner / applicant up to £995).

My strategy would, I guess, be something similar - use local knowledge, internet sold price data, own experience etc. to come up with a reasonable valuation and then go in at 40% lower for any property you like. You may get told to p**s off many times, but you only need one poor desperate sod to bite.

One question I would have, though, is how do you frame the initial contact with the EA - you want to view properties at asking prices of, say, £250k, but you only have the intention of paying £150k. You can't let the EA know this though, so how do you go about it?

Cheers

LL

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I'll pick mine up at auction, and the time will only be right when no one else is even interested in bidding or bothering to go along to the auctions. I will want to make sure that my mother, my friends, and colleagues think I'm crazy to buy a house and should be putting my money into flower bulbs, gold or some other mania. ;)

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Personally, when I believe the prices to be fair for what I'm looking for I'll view a few places, and if I find one I really want I'll probably offer close to asking price. If I want to live there whey risk it by offering 20% below?

Saying that though, prices need to drop about 30% before I'd consider buying, or consider the prices to be realistic.

Yep I agree.

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One question I would have, though, is how do you frame the initial contact with the EA - you want to view properties at asking prices of, say, £250k, but you only have the intention of paying £150k. You can't let the EA know this though, so how do you go about it?

Cheers

LL

Good point. Don't go into an EA and tell them you want your dream house that currently sells for £300k but you only want to pay £150k for it. They will laugh at you.

Go along and tell them your maximum budget for a great house, say £300k, and ask what they have.

Focus on the distressed sales/BTL dummies bailing out.

Go along to viewing of house, and make careful notes of every problem.

Be polite etc, make happy noises.

Make offer to EA, at 40% off asking price. Justify this by showing a recent land registry price, and asking them to justify why the place is suddenly so expensive.

Ask for receipts on how they've managed to spend £120k on renovations to bring to price to the current level.

Don't feel sorry for this reasonable offer, they don't feel zip for trying to rip you off.

If you do feel a twinge of guilt, make some more offers, and get over it.

Edited by BandWagon

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My strategy would, I guess, be something similar - use local knowledge, internet sold price data, own experience etc. to come up with a reasonable valuation and then go in at 40% lower for any property you like. You may get told to p**s off many times, but you only need one poor desperate sod to bite.

One question I would have, though, is how do you frame the initial contact with the EA - you want to view properties at asking prices of, say, £250k, but you only have the intention of paying £150k. You can't let the EA know this though, so how do you go about it?

Cheers

LL

In today’s sentiment, offering -30% is only going to offend.

Nobody will accept that offer, unless their house is about to fall

off a cliff soon.

If the vendor is willing to drop -30% they will do it through

National Homebuyers. Sold with no hassle (but a lot of bitterness) in 5 days.

They will not, ‘by human nature alone’ give a stranger that kind of discount

Unless there was something in it for them.

When you view a property a ‘charm offensive’ is the order of the day.

I have had buyer’s really piss-me off though tactless comments.

Give the Estate agent and vendor the impression you are really interested

Don’t commit yourself, just act like it’s the right place for you.

When the Estate agents rings state it’s a nice property ‘BUT’ I think it’s over-valued

Don’t put figures for the Ea to work up from. Find out what they will drop to.

Then work down from there.

Being a chain-free buyer, should give you some clout in working 5~10% off.

20% off can be achieved if you manage to find a desperate seller:

1. About to get dropped from a chain.

2. Owns two properties and has a bridging loan.

3. Debt issues.

4. Inherited a property and wants ultra-quick sale.

5. A problem property (beware!)

6. something else.

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You've changed your tune. Changed from active to passive. Didn't you once try to get HPC to demo outside #10 in the name of affordable housing ? You've finally gone from bull to bear.

RFD getting shit from a newbie!

Tee Hee

:lol::lol:

Well done mate!

:P

TB

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  • 339 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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