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Civil Servant

Contemplating Bidding Strategy

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I'm in the fortunate position of STR'g at or near the top of the London docklands 2BR boom. Most of the money in bank since (a little in Gold/shares).

I'm also currently fortunate in that I don't presently need accommodation as I have been accommodated through other means. Nor will I need accommodation for at least 18 months.

Was browsing on the internet a few days ago and saw a lovely house on the market in the commuter belt outside London, near to a rail connection, with 4BR and gardens for, lets say, 1000 cowry shells (cs). I have a deposit available of nearly 600 cs.

Estate agent tells me it is being sold as a result of a divorce and has been on the market a little while. A quick search on the land registry tells me the current owners bought for 550cs back in 2001. And that 3 houses in the same road sold for 750cs back in 2004 (summer).

Should I go back and say (without yet having seen the property) that we are prepared to discuss buying the property from the current owners and letting it back to whichever of the couple wants to keep the house, stating we can proceed immediately with easy mortgaging, but only on the basis that the price is substantially reduced. This way the one half can keep the house a good while longer and yet realise the capital immediately.

I'm thinking it might be worth, in the longer term, c. 750-780cs i.e. about 20-25% below asking price. And if we could get it for that we'd certainly be very happy and wouldn't be worried should prices drop even a little further as it is a lovely house. Should I mention this figure or just ask the vendors to come back with the lowest sum they'd accept? 750-780cs would still show a good profit for the existing owners, who bought at 550cs.

Any advice on this please? Anyone tried similar strategies? What was the outcome?

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If the muppet vendors are prepared to accept cowry shells, I say give them 2000 cs and be done with it.

What are they, 18th Century American Indians transported to the 21st century? If they have any friends or neighbours interested in selling for shells, PM me please!

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I'm in the fortunate position of STR'g at or near the top of the London docklands 2BR boom. Most of the money in bank since (a little in Gold/shares).

I'm also currently fortunate in that I don't presently need accommodation as I have been accommodated through other means. Nor will I need accommodation for at least 18 months.

Was browsing on the internet a few days ago and saw a lovely house on the market in the commuter belt outside London, near to a rail connection, with 4BR and gardens for, lets say, 1000 cowry shells (cs). I have a deposit available of nearly 600 cs.

Estate agent tells me it is being sold as a result of a divorce and has been on the market a little while. A quick search on the land registry tells me the current owners bought for 550cs back in 2001. And that 3 houses in the same road sold for 750cs back in 2004 (summer).

Should I go back and say (without yet having seen the property) that we are prepared to discuss buying the property from the current owners and letting it back to whichever of the couple wants to keep the house, stating we can proceed immediately with easy mortgaging, but only on the basis that the price is substantially reduced. This way the one half can keep the house a good while longer and yet realise the capital immediately.

I'm thinking it might be worth, in the longer term, c. 750-780cs i.e. about 20-25% below asking price. And if we could get it for that we'd certainly be very happy and wouldn't be worried should prices drop even a little further as it is a lovely house. Should I mention this figure or just ask the vendors to come back with the lowest sum they'd accept? 750-780cs would still show a good profit for the existing owners, who bought at 550cs.

Any advice on this please? Anyone tried similar strategies? What was the outcome?

Yep that's the best way to cause maximum distress to a couple in dire need of stability. Hopefully the arguments will intensify to such an extent that one of them kills the other. That way you might be able to buy even cheaper - afterall who would want to buy a house in which murder had been committed? If you eventually pay more than 400cs then you're a fool.

Incidentally why the coy use of "cowry shells" and then the use of figures that are obviously a straght swap from £ to cs.

Don't patronise us on this site we aint all stupid.

Edited by Ignorant Steve

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If similar places sold for 750 cs in 2004 then you should be going lower than this IMO as prices generally peaked in around 2004. You should look at offering a price closer to the 2001 value (550cs) uplifted by inflation, which is probably closer to the long term average. However in negotiation you should always offer a lower starting bid on the basis that they will try to up it.

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Yep that's the best way to cause maximum distress to a couple in dire need of stability. Hopefully the arguments will intensify to such an extent that one of them kills the other. That way you might be able to buy even cheaper - afterall who would want to buy a house in which murder had been committed? If you eventually pay more than 400cs then you're a fool.

Incidentally why the coy use of "cowry shells" and then the use of figures that are obviously a straght swap from £ to cs.

Don't patronise us on this site we aint all stupid.

Ignorant Steve,

I'm not seeking to patronise you. The figures aren't just pounds to cs swaps (wish that they were and I had that much cash!) but I didn't want to talk real money because (a) some folk on this site get tetchy when you mention real sums whereas we can all relate to a more abstract discussion and (B.) its quite possible that the estate agent concerned browses on here whilst waiting for the spring bounce. My situation is reasonably unusual and so I wouldn't take a lot of identification. I'm sorry you took offence. None was intended.

Othello,

Prices didn't appear to peak in 2004, but in 2005 when someone paid 900cs for a similar house in the same road.

AssetPriceInflation

I am embarrassed by my potential offer and, to some extent, by my approach. But only a little by my approach as they can simply say 'sod off' if they don't like it - and just wait for someone to come along who is prepared to pay the asking price. But they might be waiting a long time.

CS

Edited by Civil Servant

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I am embarrassed by my potential offer and, to some extent, by my approach. But only a little by my approach as they can simply say 'sod off' if they don't like it - and just wait for someone to come along who is prepared to pay the asking price. But they might be waiting a long time.

Sounds to me like you've justified it to yourself already.

If you really wanna go for it, then do it, and don't worry about it.

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The legal side sounds like a nightmare. What tenancy term do you give them? 12 months? What if they turn out to be tenants from hell?

And if one spouse can't afford to buy out the other, what makes you think they can afford rent?

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I don't see the point of faffing around with offering them leases or other such schemes. Just offer a low price that you are mortifyingly embarrassed by, and see what happens. It'll be the only offer on the table for months, so no hurry.

frugalista

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This is very much dependent on what area you are looking at but on the subject of making deliberately 'silly' low offers....

Over the last 3 months I've made 3 offers on houses. For the first two I did actually heed some of the advice given on here and made low offers. Not even cheeky offers, just 8-9% off. I lost out to higher bids BOTH times. And I am not some armchair commentator chatting on a messageboard - I am actually out there doing this.

I have just completed on the house I actually bought for which I paid full asking price, and I am absolutely delighted (in fact I feel it's the best of the 3 I had been pursuing).

So I would say go ahead and make 'silly offers' if you want, but if you are chasing desirable properties be prepared for this strategy to fail completely.

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We managed to haggle around 200 cs off the place we are buying but it needs a lot of work and we agreed the purchase late last year. On the place we are selling, we ended up with the buyer paying over the asking price because it was well priced and doesn't need much doing to it.

So from that side it looks as if the haggling strategy works if you are trying to buy something nobody else wants but does not work if it is a desirable property.

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This is very much dependent on what area you are looking at but on the subject of making deliberately 'silly' low offers....

Over the last 3 months I've made 3 offers on houses. For the first two I did actually heed some of the advice given on here and made low offers. Not even cheeky offers, just 8-9% off. I lost out to higher bids BOTH times. And I am not some armchair commentator chatting on a messageboard - I am actually out there doing this.

I have just completed on the house I actually bought for which I paid full asking price, and I am absolutely delighted (in fact I feel it's the best of the 3 I had been pursuing).

So I would say go ahead and make 'silly offers' if you want, but if you are chasing desirable properties be prepared for this strategy to fail completely.

you couldn't make it up ! :D

full asking price ?

SUCKER !

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Estate agent tells me it is being sold as a result of a divorce and has been on the market a little while. A quick search on the land registry tells me the current owners bought for 550cs back in 2001. And that 3 houses in the same road sold for 750cs back in 2004 (summer).

Should I go back and say (without yet having seen the property) that we are prepared to discuss buying the property from the current owners and letting it back to whichever of the couple wants to keep the house, stating we can proceed immediately with easy mortgaging, but only on the basis that the price is substantially reduced. This way the one half can keep the house a good while longer and yet realise the capital immediately.

Any advice on this please? Anyone tried similar strategies? What was the outcome?

This couple are divorcing - you think that one of them will let the asset be sold at a knock down price so that their ex-spouse gets to live in it for cheap rent?

i don't think so...

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So from that side it looks as if the haggling strategy works if you are trying to buy something nobody else wants but does not work if it is a desirable property.

You have hit the nail on the head. All these people recommending making 'silly' offers and themselves being silly, I'm afraid. Doing so will only mark you out as a timewaster (or worse!).

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Some property valuations are so laughable (or, the asking price is from 2004) that an "insulting" offer is the only way to go.

For instance, bearing in mind this:

http://www.rightmove.co.uk/viewdetails-108...pa_n=3&tr_t=buy

Assuming that went for 95% of the asking price, then an offer IRO 230k would probably be appropriate for this one, which originally started on the market at 310k:

http://www.rightmove.co.uk/viewdetails-439...pa_n=1&tr_t=buy

Bearing in mind this (just a few doors away, sold then fell thru)

http://www.rightmove.co.uk/viewdetails-824...pa_n=2&tr_t=buy

I'd offer perhaps 220k on this:

http://www.rightmove.co.uk/viewdetails-107...pa_n=1&tr_t=buy

The EA might think the offers are insulting, but then, so is expecting 2004's price in 2006.

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Prices didn't appear to peak in 2004, but in 2005 when someone paid 900cs for a similar house in the same road.

Actually prices don't appear to have peaked yet as this property is being marketed for 10% more cs's than in 2005!

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Actually prices don't appear to have peaked yet as this property is being marketed for 10% more cs's than in 2005!

Is it being marketed at 10% above asking price in 2005 or price achieved?

We put our property on for 10% above price last achieved (2004) and ended up with offers above selling price.

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Should I go back and say (without yet having seen the property) that we are prepared to discuss buying the property from the current owners and letting it back to whichever of the couple wants to keep the house, stating we can proceed immediately with easy mortgaging, but only on the basis that the price is substantially reduced. This way the one half can keep the house a good while longer and yet realise the capital immediately.

Has the seller said they want to rent the property or are you just second guessing someones wants based on .. nothing.

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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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