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deano_54321

Should I Buy At The Right Price? I.e 90% Of Asking Price?

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Hello Peeps!

Hope everyone is well.

Unfortunately, I am currently tempted by one or two properties in my area.

Prices are around the £100,000 mark here (in subberb of Wolverhampton), and I am thinking of making an offer of £90,000 on a £99,950 property (I hear that this kind of offer is being accepted!)

If most of us believe that a 10% crash 'might' happen, then wouldnt I be getting a good deal now? Also, if prices do crash around 10%, I think asking prices will be almost met at this time.

Are we therefore already living in a crash NOW, only living in a time of false prices? Or if the market crashes 10% might i get this house for around 86 or 87,000, in which case is it worth the risk of there possibly being a crash?

Sorry if these questions have already been asked, but I dont thing JUST looking at house prices going up and down tells the true story. Is there a graph on the site for average ACTUAL house selling prices rather than just what they are listed on the market for? I would suggest this would only show around 92 or 93% of the listing prices for houses?

I would appreciate your thoughts!

Thanks

Dean

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Should I Buy At The Right Price? I.e 90% Of Asking Price?

90% of the asking price isn't the right price. 60 to 70% of the asking price is.

I am thinking of making an offer of £90,000 on a £99,950 property (I hear that this kind of offer is being accepted!)

If that kind of offer is being accepted offer much less. Don't pay for equity that will evaporate in the next few years. Offer £60K and let them fight for every penny more that they end up getting.

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Start at the price of £65k. <_<

Look up what the property was purchased for by www.houseprices.co.uk

Don't get too hung up looking at the first property. I know you are tempted but can you wait another year or two? Could save you 10 - 30% in a couple of year! :)

Good luck

Cheers, for the good advice so far friends, please keep it coming, your opinions are valued.

TBH, I hate the idea of being tempted at current prices, it sickens me.

I can continue to live with my parents, but my girlfriend will come over within the next 18 months, and I am terrified of prices going up again, and would hate to end up in a horrible drug ridden area being the only place I could afford. I want to protect her from that, and that is my fear.

Thanks again,

Dean

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Along with the rest of the Black Country and the City of Birmingham, Wolverhampton has declining demographics, less people live in the area than 10 years ago and a decade hence even less people will be living there, a positive for housing? Remember that a £100k house would have been £30-40k only a short while ago.

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EA's in Wolverhampton must be finding it tough - in the pricey suburbs to the west nothing is selling and there are plenty of vacant rental properties in that area also (and vacant repossesed properties!). I would stay with the parents for as long as possible before making a decision. Your not going to see prices shooting up in Wolves so you don't need to fear missing out on anything.

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Along with the rest of the Black Country and the City of Birmingham, Wolverhampton has declining demographics, less people live in the area than 10 years ago and a decade hence even less people will be living there, a positive for housing? Remember that a £100k house would have been £30-40k only a short while ago.

You're right. In fact I know that identical houses were selling for only £55,000 only 3 years ago.

I did know know that this area had less people living here than 10 years ago. Is this as a % of the nation or are there less people in real numbers? I would like to hear more about this if you know more?

Thank you.

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Cheers, for the good advice so far friends, please keep it coming, your opinions are valued.

TBH, I hate the idea of being tempted at current prices, it sickens me.

I can continue to live with my parents, but my girlfriend will come over within the next 18 months, and I am terrified of prices going up again, and would hate to end up in a horrible drug ridden area being the only place I could afford. I want to protect her from that, and that is my fear.

Thanks again,

Dean

You haven't had any good advice. Just the usual paranoid ramblings. Offer 65k? - you'll be luck to get out of the estate agents without a kicking. Don't waste people's time.

If you can afford it reasonably, buy it. Life is too short for guessing games.

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I did try last summer on a house on my street in Gloucester asking price 105,000 i offered 92,000. I ended up getting it for 103,000 so reduced a little this was a few months before the intrest rate cut last year. So we were in one of those mini crash areas.

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You haven't had any good advice. Just the usual paranoid ramblings. Offer 65k? - you'll be luck to get out of the estate agents without a kicking. Don't waste people's time.

If you can afford it reasonably, buy it. Life is too short for guessing games.

He is happy to live with the rents for a while so doesn't need to buy. He is concerned that prices will start to rise again in the near future.

I am saying stay at the rents (don't buy out of fear). With the current economic climate I think wait and see is a good approach. He will continue to save money towards the deposit and may get the added bonus of prices dropping. How is that bad advice?

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I think most one here are expecting more than a 10% correction/crash. More like 20-30% I would think.

If the house is advertised at 100k but you can get it for 90k then its "value" at the moment is not 100k. Its 90k. You might have to buy it for more like 80k to get it for 90% of its value.

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TBH I would never py more than 90% of the asking price in a "normal" market, it's only been the past 5 years muppets have thought buying a house is like buying a loaf of bread, the price you see is the one you pay etc.

I'm offering 70% and haven't been slapped yet, they can only say no and it's better to start low and negotiate up, you can never go down unless the house collaspes between offer and exchange.

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I did know know that this area had less people living here than 10 years ago. Is this as a % of the nation or are there less people in real numbers? I would like to hear more about this if you know more?

In real numbers, in terms of the 'City' itself and across entire conurbation, there is a long running trend of outward migration from many areas, and Wolverhampton is no different.

Clearly a shortage of housing in Wolves is driving up prices :blink:

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TBH I would never py more than 90% of the asking price in a "normal" market, Then you've never bought a house in a normal market it's only been the past 5 years muppets have thought buying a house is like buying a loaf of bread, the price you see is the one you pay etc. Pure, undiluted, complete and utter drivel. I have been in the market for about 30 years. I would say that 75% of the time you pay very, very near asking. Often you pay asking. Sometimes for a nice property in a nice road, you pay above asking. You are making yourself sound like a completely inexperienced wally.

I'm offering 70% and haven't been slapped yet, didn't you work in an Estate Agents for a while? I'm offering 70%!!!!' more complete and utter drivel. they can only say no and it's better to start low and negotiate up, You're making yourself sound like an idiot now, most vendors will tell the estate agent to tell you to 'Feck OFF' if you offered 70% of the asking price - they wouldn't entertain further offers as they would know you were not a serious buyer you can never go down unless the house collaspes between offer and exchange. I wonder if you have ever actually bought a house - because, if you were honest, you didn't get it for 70% of the asking price.

To the person who started this thread - you would be well advised to ignore ramblings like this.

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I have sold a house for 30% I believe it was, below the orginal asking price. Inexperienced, maybe but I'm not such a twit that I would pay 90% of the current asking price at todays prices and actually whilst I was at the estate agents most of the offers were round 5% less and accepted and according to all figures trotted out that area is still rising.

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I have sold a house for 30% I believe it was, below the orginal asking price. Inexperienced, maybe but I'm not such a twit that I would pay 90% of the current asking price at todays prices and actually whilst I was at the estate agents most of the offers were round 5% less and accepted and according to all figures trotted out that area is still rising.

Aren't you the person that sold their own house to a person who worked as a mortgage broker at the estate agent you instructed? Did you accept 30% below asking? Or are you getting mixed up because the person who bought your house put it straight back on the market for 30% more than they paid for it.

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The first offer you make is the lowest price you can possibly buy for, always offer less than you think its worth Your the buyer and they NEED you, especially as property transactions are so low.

Look for a property that has an asking price that more than your budget, as this will stop you paying too muh ;p

Offer lower than other sales make on the street in the past year, use houseprices.co.uk

Let them think abour the offer, let them sweat it out they want to sell and your offering to pay alot of money.

If they say no, raise the offer VERY slowly, and give yourself a maximum, i decided i would go up 1k at a time.

DONT get emotional, if it doesnt work so what there is alot of property out there, treat it like a game of poker,

eventually somone in a sticky situation will bite.

Or just wait it out and watch the market, there is no rush to buy, if your rushing you will pay too much...

Edited by moosetea

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Aren't you the person that sold their own house to a person who worked as a mortgage broker at the estate agent you instructed? Did you accept 30% below asking? Or are you getting mixed up because the person who bought your house put it straight back on the market for 30% more than they paid for it.

The orginal asking price in 2004 was £315k it sold for £65k less, I believe is around 20% less than the asking price, so i'm 10% out with my calculations, in my favour - see I made an excellent estate agent

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I agree - you should ignore all Marina's ramblings :P

I agree too . Marinas got more opinions about shite than any other poster on here. I thought he'd gone anyway after making his prfound statement a while back ?

Stop trying to be the hard man Marina , it's only a forum . Your aggresion is comical .

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I agree too . Marinas got more opinions about shite than any other poster on here. I thought he'd gone anyway after making his prfound statement a while back ?

Stop trying to be the hard man Marina , it's only a forum . Your aggresion is comical .

I am glad you find my 'aggression' amusing. I didn't realise I was being aggressive. I thought I was trying to help you guys out by trying to make you realise a market crash is really not in your best interests and by trying to give you a bit of motivation to do something about the fact your generation is being shafted by the tax and other benefits enjoyed by BTLetters.

I do have some opinions on shite as well. Perhaps I should air them.

I think 1 shite a day is probably a good average.

I believe the squatting position when shiteing brings a range of benefits over the standard sitting position imposed by the use of a typical lavatory pan.

I am a great believer in a vegetarian diet - we have the long gut of vegetarian animals and it is unhealthy for decaying meat to be stuck in our intestines for the length of time it takes for food to move through our long gut. Carnivores like cats and dogs have a very short gut.

So, plenty of roughage in a good vegetarian diet and adopt the squatting position when passing stools - and you won't go far wrong.

Those are my 'opinions' on shite.

Also a lot of it is talked on here.

Some shite smells worse than others. I have no strong opinion on this. Although I have a suspicion that BTL shite smells worse than FTB shite. I could be wrong though.

Edited by Marina

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You haven't had any good advice. Just the usual paranoid ramblings. Offer 65k? - you'll be luck to get out of the estate agents without a kicking. Don't waste people's time.

If you can afford it reasonably, buy it. Life is too short for guessing games.

Yeah, have to admit, the people who say 'offer 65%' are just living in cloud cuckoo land. Suspect they have never been in a psoition to offer on a house before. And, if they carry on like that, they never will.

Thing is, if the owner put the house on the market at, say, £85K, they would sell it to a 'believer in the propert market' overnight. So why would they sell at £65K??

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Yeah, have to admit, the people who say 'offer 65%' are just living in cloud cuckoo land. Suspect they have never been in a psoition to offer on a house before. And, if they carry on like that, they never will.

Thing is, if the owner put the house on the market at, say, £85K, they would sell it to a 'believer in the propert market' overnight. So why would they sell at £65K??

because the average difference between selling and asking price is currently about 20->30% check out the stats on home.co.uk on average asking prices and average sold price. I agree 35% off is a bit much ;p

Current asking prices in wolves according to rightmove and the other internet sites :

http://www.home.co.uk/guides/house_prices....n=wolverhampton

No. of properties Average price Median price

Flat 257 £114,170 £114,950

Detached 418 £214,281 £199,950

Semi-detached 747 £143,171 £139,950

Terraced 305 £113,302 £109,950

sold prices according to the land registry

http://www.home.co.uk/guides/house_prices_...mpton&all=1

average

Apr 2000 Jun 2006 Change

Detached £108,292 £211,500 +95%

Semi £50,679 £116,267 +129%

Terraced £40,256 £99,983 +148%

Flat £32,511 £84,151 +159%

All £58,125 £113,977 +96%

Median

Apr 2000 Jun 2006 Change

Detached £93,500 £141,250 +51%

Semi £49,950 £113,000 +126%

Terraced £34,950 £88,250 +153%

Flat £35,000 £76,750 +119%

In wolves flats are being marketted on average for £114,950, however the median selling price is 76k, and the average selling price is 84k, the average sold price is about 30% below the average marketted price, and has been for 1->2 years....

Edited by moosetea

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because the average difference between selling and asking price is currently about 20->30% check out the stats on home.co.uk on average asking prices and average sold price. 35% off is a bit much ;p

Are you serious? You think properties on the market at 300k are selling between 210k and 240k.

Or 400k properties are selling between 280k and 320k?

Can't help thinking a reality check is in order here.

I looked at a property a couple of weeks ago that had come back on the market after a sale fell through. I sensed the vendors were desperate and got ready to move in for the kill. So I had a little chat with the EA along the 'what's their bottom number?' line. Was told they'd take 5k less than asking - any less and they couldn't do their deal.

This is the reality of the property market (round here).

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Are you serious? You think properties on the market at 300k are selling between 210k and 240k.

Or 400k properties are selling between 280k and 320k?

Can't help thinking a reality check is in order here.

I looked at a property a couple of weeks ago that had come back on the market after a sale fell through. I sensed the vendors were desperate and got ready to move in for the kill. So I had a little chat with the EA along the 'what's their bottom number?' line. Was told they'd take 5k less than asking - any less and they couldn't do their deal.

This is the reality of the property market (round here).

Yes I am serious, the figures speak for themselves. The land registry figures cross referenced against the median prices on rightmove. In wolves detached asking and selling seem to be closer (sellers are being more realistic with there valuations, or buyers have more money?). The figures back up my accepted offer on a larger property, which is about 35% off the peak price two years ago....

Edited by moosetea

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because the average difference between selling and asking price is currently about 20->30% check out the stats on home.co.uk on average asking prices and average sold price. I agree 35% off is a bit much ;p

Current asking prices in wolves according to rightmove and the other internet sites :

http://www.home.co.uk/guides/house_prices....n=wolverhampton

No. of properties Average price Median price

Flat 257 £114,170 £114,950

Detached 418 £214,281 £199,950

Semi-detached 747 £143,171 £139,950

Terraced 305 £113,302 £109,950

sold prices according to the land registry

http://www.home.co.uk/guides/house_prices_...mpton&all=1

average

Apr 2000 Jun 2006 Change

Detached £108,292 £211,500 +95%

Semi £50,679 £116,267 +129%

Terraced £40,256 £99,983 +148%

Flat £32,511 £84,151 +159%

All £58,125 £113,977 +96%

Median

Apr 2000 Jun 2006 Change

Detached £93,500 £141,250 +51%

Semi £49,950 £113,000 +126%

Terraced £34,950 £88,250 +153%

Flat £35,000 £76,750 +119%

In wolves flats are being marketted on average for £114,950, however the median selling price is 76k, and the average selling price is 84k, the average sold price is about 30% below the average marketted price, and has been for 1->2 years....

Just looked at the figures for my local area on home.co.uk and it shows selling price at 99.5% of asking... :blink:

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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% +
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      • up 5%



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