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This Is What Im Hearing

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The customers im talking to now know the game is up, last year they didint.

And from many sources this is the point we have reached.

The only property that is realy still selling is the lower end ie 100-130k nothing else is moving at all.This tells me 2 things.

1. its all that anyone left that dont have a house and wants a house can afford, anything above this price is all transactions between people selling and buying for around the same money.

2.if all thats selling is the bottom end it means the higher end will need to come down to sell first, and when they do it will have a knock on affect all the way to the bottom.

We are past denial now and are in the acceptance phase of the correction in house prices in the uk.

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I'm thinking of trading up soon. Any advice on what a reasonable offer is? Should I go for, say, 20% off the asking price, or is that still too high?

What is the house reasonably worth? Is the asking price reasonable? Offer what's reasonable. If that's 30% below asking so be it. The worst that can happen is that they say no... uncomfortably... :)

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I'm thinking of trading up soon. Any advice on what a reasonable offer is? Should I go for, say, 20% off the asking price, or is that still too high?

If someone came along and offered you 20% less than what an EA told you your house was worth, would you be happy and take it?

I didn't think so. No one else will either.

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If someone came along and offered you 20% less than what an EA told you your house was worth, would you be happy and take it?

I didn't think so. No one else will either.

i agree thats the wrong way to go about it.

what you gotta do is offer the estate agents 5% to say the property is worth 25% less to the owners.

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A property will sell for whatever someone is prepared to pay for it.

And today, there are three buyers for everyproperty, so put in an offer below asking price but dont be suprised when your offer is refused for the higher above asking price offers.

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I'm thinking of trading up soon. Any advice on what a reasonable offer is? Should I go for, say, 20% off the asking price, or is that still too high?

Well being a technician at heart, I wouldn't reference my valuation to the opinion of an EA which is after all a subjective valuation. I would look on nethouseprices / ourproperty etc. and offer at least 20% below the last sale value for a similiar property on the same street. If your more pessimistic than me you might want to go for only 10% below.

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elizabeth you realy gotta lose all this negativity

the prices are already crashing

dobt dont dont believe the hype

Sorry Grover,

Should I have said 30%?

Now at least I KNOW what you look like ;)

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A property will sell for whatever someone is prepared to pay for it.

And today, there are three buyers for everyproperty, so put in an offer below asking price but dont be suprised when your offer is refused for the higher above asking price offers.

that ranks amongst the daftest comments ever posted on this site

Edited by sign_of_the_times

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A property will sell for whatever someone is prepared to pay for it.

And today, there are three buyers for everyproperty, so put in an offer below asking price but dont be suprised when your offer is refused for the higher above asking price offers.

Bless you..

Property two doors down from me has been on the market for over a year..

five others have given up ..

None have sold here for 2 years..

the last did for £250,000

so, shat are the values of these properties?

Bless you..

The real investors sold a little while ago..

Even mortgage lenders warn against it now ..

you are the mark..

"The economic cycle has been fixed at the top of the biggest boom ever recorded, it is down to Gordon Brown Economic Genious"

honestly, when all is said and done do you believe that.

Every market has seemed just the way you are seeing it.... the high.. the belief that it can go on for ever..

all markets that people speculate in have failed, without fail they have all failed..

All that you have been sold is credit, think of those talking the market up.. what do they sell?? what do you have a lot of???

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A property will sell for whatever someone is prepared to pay for it.

And today, there are three buyers for everyproperty, so put in an offer below asking price but dont be suprised when your offer is refused for the higher above asking price offers.

Even the redoubtable Laurejon knows the game is up - but he is correct people - property is worth what someone will pay for it.

He does have a sly little tickle on our fancies by saying there are 3 buyers for every 1 property.

Crafty old bull to the end he knows that - even if this were, true which it isnt - not all those 'buyers' could afford a house and would be clustered around a set of property in the upper and lower quartiles.

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one of the clearest signs the market is f**ked is the appearance of shed loads of 'doer-uppers' in the paper - a year ago you would't ever see these, now there is a choice to be had

in the meantime there are lots of 'done-ups' sitting empty - those houses which are traditionally i the lower end areas but which someone has kitted out with a £20k kitchen and are now double their usual value - a bit like trying to sell a £500 Nova with a Bose stereo system for £1500

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that ranks amongst the daftest comments ever posted on this site

You shouldnt highlight stuff like that, sledgehead will sense it and come on over to scalp him :lol:

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The only property that is realy still selling is the lower end ie 100-130k nothing else is moving at all.This tells me 2 things.

This certainly bares out my experience.

;)

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I think we have hit the nail on the head here. The last rate cut and recent reports of a upturn in the market has seen houses in kirklees, west yorkshire increase their asking prices but only houses in the 100-160k level. Others above this bracket are finding it hard to sell and have woken up to the fact that prices have had to moderate to get interest.

As a result the band between the housing price range has narrowed. You basically need 100k to even get a ticket to the house buying bonanza. Without that forget it. But once you are there the amount needed to move between a sh*thole dump and a nicer neighbourhood is very small. In other words cheaper properties are very expensive and have got more so whilst the higher bands have technically got cheaper and offer better value.

Therefore it can be concluded that the market is being driven in the lower price range with BTLs still (amazingly) buying, FTBs still (only just) committing financial suicide and the baby boomers downsizing to get a big fat wad of cash. But bear in mind that those downsizing are simply getting out! Hardly a recommendation to buy.

And annoyingly it is all these baby boomer generation fifty somethings who are telling me to buy. Cheeky sods...

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but only houses in the 100-160k level.

Would also appear to be moderately the case with low end properties here in south manchcester. They seems to be 'expecting' something.

But once you are there the amount needed to move between a sh*thole dump and a nicer neighbourhood is very small.

Absolutely agreed. I sensed (but didn't like to ask) that some friends of mine in a more desireable neighbourhood are finding this out. I promise to report as soon as I know more.

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If someone came along and offered you 20% less than what an EA told you your house was worth, would you be happy and take it?

I didn't think so. No one else will either.

Yes I would, IF the seller of the bigger house I was buying did the same. Because 20% of both would put me in the money. Go figure.

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I have a friend who bought a house in 1991 (i.e. during the last crash). His tactic was to identify 8 - 10 houses that interested him (i.e. he would be happy to live in). He then would arrange to view all of them over a couple days and, if ok, put offers on all of them. His offers were always at least 25%-30% below the asking price and was determined not to buy a property unless he got over 20% off the asking price. It worked. He ended up buying a property at 25% lower than the asking price. I will employ the same tactic when I eventually start house hunting in earnest. Don't believe the people saying that you will never get anyone to accept a 20%+ offer lower than the asking price.

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I have a friend who bought a house in 1991 (i.e. during the last crash). His tactic was to identify 8 - 10 houses that interested him (i.e. he would be happy to live in). He then would arrange to view all of them over a couple days and, if ok, put offers on all of them. His offers were always at least 25%-30% below the asking price and was determined not to buy a property unless he got over 20% off the asking price. It worked. He ended up buying a property at 25% lower than the asking price. I will employ the same tactic when I eventually start house hunting in earnest. Don't believe the people saying that you will never get anyone to accept a 20%+ offer lower than the asking price.

Thanks for the advice! I like the sound of that strategy! I'm going to start on that straight away.

Cheers

:)

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Thanks for the advice! I like the sound of that strategy! I'm going to start on that straight away.

Cheers

:)

The key seems to be to get into a fairly ruthless mindset when employing this tactic. Don't let your heart get set on a particular property (but do make sure you choose houses you would be happy to live in) and forget the British reserve/embarrassment hang up type behaviour. Let them know that it's all fast developing into a falling market and your offers are based on the need to protect yourself. There doesn't have to be any other justification - don't get into arguments about it.

The more of us who do this the better.

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I do believe that top end properties are being sold to macho City mugs right now. One of my clients sold his for £1.34m and he thought he'd get £1.2...

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The key seems to be to get into a fairly ruthless mindset when employing this tactic. Don't let your heart get set on a particular property (but do make sure you choose houses you would be happy to live in) and forget the British reserve/embarrassment hang up type behaviour. Let them know that it's all fast developing into a falling market and your offers are based on the need to protect yourself. There doesn't have to be any other justification - don't get into arguments about it.

The more of us who do this the better.

Thanks again - sounds like good solid advice. I especially like the bit about letting them know about the falling market and the offer being based on the need to protect myself. I think I might use phrases like "I have to price in the coming falls in order to reduce my exposure to loss". Etc.

:)

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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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