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babnye

Vendor's Denial

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A tale of denial!

The house next door to my friend's was put on the market 6 months ago for £320k. It was overpriced and the vendors need to move by the end of the summer so it has been reduced to £312k and then to £299k. they have also changed agents.

No takers at all. No offers at all (except us). Still, I am told the vendors 'really want asking price'.

We offered 275k. It is a 4 bed detached in a nice area but you have to know the area to realise its potential. The only other interested party can't offer because his house has been on the market for 6 months also with absolutely no interest at all. We, however, are chain free, renting,mortgage in place and can move within a month etc etc

Our offer was declined because the vendors 'really want the 299k'. However, they also need to relocate by end of August - they are moving out of the area and wish to buy elsewhere.

Today, out of the blue, the agent rang and said 'the vendors are really serious about selling and would be prepared to accept an offer of 290k, what do you think?' How very kind of them! There is no other offer on the table and there appears to be no other interest so what world do these people live in? Did they think I would just say, but, of course I will increase my offer to match your wishes!

It shows how EAs have been producing very unreal expectations in vendors who assume their property will automatically increase in zeros every year!

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A tale of denial!

The house next door to my friend's was put on the market 6 months ago for £320k. It was overpriced and the vendors need to move by the end of the summer so it has been reduced to £312k and then to £299k. they have also changed agents.

No takers at all. No offers at all (except us). Still, I am told the vendors 'really want asking price'.

We offered 275k. It is a 4 bed detached in a nice area but you have to know the area to realise its potential. The only other interested party can't offer because his house has been on the market for 6 months also with absolutely no interest at all. We, however, are chain free, renting,mortgage in place and can move within a month etc etc

Our offer was declined because the vendors 'really want the 299k'. However, they also need to relocate by end of August - they are moving out of the area and wish to buy elsewhere.

Today, out of the blue, the agent rang and said 'the vendors are really serious about selling and would be prepared to accept an offer of 290k, what do you think?' How very kind of them! There is no other offer on the table and there appears to be no other interest so what world do these people live in? Did they think I would just say, but, of course I will increase my offer to match your wishes!

It shows how EAs have been producing very unreal expectations in vendors who assume their property will automatically increase in zeros every year!

Wait until the end of August and offer £250,000!

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A tale of denial!

It shows how EAs have been producing very unreal expectations in vendors who assume their property will automatically increase in zeros every year!

This has happened to me a few times in the last 6 months. Been making a few offers on houses that I knew for a fact had been on the market for 1 - 2 years. All of them had been 'Under Offer' a few times and then lapsed.

I naturally though that as a cash buyer who could move quick and did not have to sell a house I would be able to make an attractive proposition to move at a discount. No chance. EAs consistently telling me that the sellers wanted asking price offers only despite being stuck on the market for years in some cases.

Edited by Wad

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I don't really understand your gripe.

The agent is employed to sell the property for the highest price they can. That appears to be what they are trying to do. It's called negotiation. Only a dimwit would expect to sell their house for the full asking price. And only a dimwit would expect their first offer to be accepted straight away.

Having said that, if there are no other takers by August, offer them £250,000

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Today, out of the blue, the agent rang and said 'the vendors are really serious about selling and would be prepared to accept an offer of 290k, what do you think?' How very kind of them! There is no other offer on the table and there appears to be no other interest so what world do these people live in? Did they think I would just say, but, of course I will increase my offer to match your wishes!

It shows how EAs have been producing very unreal expectations in vendors who assume their property will automatically increase in zeros every year!

Tell the EA you'd love to help them out but the 275K offer has now expired and your new offer is £249,995 but only if he throws in a Mercedes with electic seats.

Edited by Jimmy2Times

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I don't really understand your gripe.

The agent is employed to sell the property for the highest price they can. That appears to be what they are trying to do. It's called negotiation. Only a dimwit would expect to sell their house for the full asking price. And only a dimwit would expect their first offer to be accepted straight away.

Having said that, if there are no other takers by August, offer them £250,000

Wait til Aug 2008 and offer them 210K :ph34r:

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Guest Winnie

Estate Agents right now:

On the surface - extreme (fear-exaggerated) bravado - take a vendor's request and add 10% why don't you - that we we will continue to bluff the world because WE hold the keys to the marketplace....

Creep back to office, chain-smoking en-route. Email nice but dim friends with silent concerns........ "It's OK Justin, We'll just take a year travelling - Bali again, like after Poly..."

Journalists - bored with asking EAs their opinion....start to switch to bigger beasts. This is instinctively understood by the Rightmove guy, McEarley and a couple of others who are trying to look vaguely prpared for the inevitable.

And as for that John ***er from Foxtons, he's long gone, doing a Hugh Heffner somewhere in the Caribbean.

As we all celebrate over the next few months when it becomes evident to all it is irreversible (fixed rate resets as the cement) I cannot wait to see these third grade yuppies having to think about being less deceitful to earn enough to fund their habits.

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I don't really understand your gripe.

The agent is employed to sell the property for the highest price they can. That appears to be what they are trying to do. It's called negotiation. Only a dimwit would expect to sell their house for the full asking price. And only a dimwit would expect their first offer to be accepted straight away.

Having said that, if there are no other takers by August, offer them £250,000

No gripe really save for the overinflated view people have of their own property's worth. This is caused by EA's ovepricing because they need the business not because they think it's a fair market valuation.

I'd like to think that I am not a dimwit but I'm just trying to play it straight. Why pussy foot about? I have simply said this is what we can afford and what we think is reasonable. The fact that the house can't and won't sell for asking price is suggestive of the fact that it is overpriced in the current market. So take it or leave it.

Of course, when prices were rising people decried their overinflation by saying they were 'worth' the increase because that's what people would pay for them. Now they are decreasing/stagnating, sellers are in denial about 'worth'.

That's all I was trying to say really!

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OP - just bear this in mind: EA sells it to you for 275k - earns fat commission. EA fails to sell it for 299k - earns zilch. The EA wants the seller to sell to you - let him know you are considering several other properties.

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Guest grumpy-old-man
The buyer and the bank decide what you will sell your property for...not the vendor or the estate agent.

exactly right winkie. No money to borrow, no offer to give. :)

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If the property is worth £275K to you then just stick to your guns and tell the agent the cash is there if the vendor wants it. If there are genuinely no other takers they will bite eventually.

The only problem with reducing your price is that you come across as a smart-ar5ed time-waster.

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No gripe really save for the overinflated view people have of their own property's worth. This is caused by EA's ovepricing because they need the business not because they think it's a fair market valuation.

I'd like to think that I am not a dimwit but I'm just trying to play it straight. Why pussy foot about? I have simply said this is what we can afford and what we think is reasonable. The fact that the house can't and won't sell for asking price is suggestive of the fact that it is overpriced in the current market. So take it or leave it.

Of course, when prices were rising people decried their overinflation by saying they were 'worth' the increase because that's what people would pay for them. Now they are decreasing/stagnating, sellers are in denial about 'worth'.

That's all I was trying to say really!

I understand your point but you're not playing the game. By offering £275k you are leading the agent and his client to believe that you may go higher. If you'd have offered £260k you'd have probably agreed on £275k by now.

Remember the 'Life of Brian' scene?

'This bloke won't haggle!'

Edited by Mr Yogi

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Just to add my voice to those saying "offer what you're prered to pay and put a time limit (i.e., a week) on the offer. Once the time limit expires, the offer will go down to 250k.

If nothing else, be fascinating to see if it works...

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what do you think?

What do you think? it is not a rocket science is it? EA is looking for the last sucker for his profit and the vendor is looking for the last fool to sell his overpriced asset before it is too late, If only he knew, it already is too late.

Good luck to you if you offer more than £175K

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Oh its a shame you've already put in an offer on another place. Its been accepted, it would be difficult to back out now, although you did like that property you were looking at. I suppose at £249k it would be a better bet than this one though, if the price were right you could be persuaded to let it fall through...

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I think you will find that the agent would just want to sell, his commision between your offer and the asking price is negligable and I suspect the Vendors will simply change agents.

You all seem to blame agents, I know countless people that ask an agent to put a house on the market with the Vendor dictating the price, and when the Agent fails to get any viewings due to the unrealistic high price, the Vendor simply sacks the agent and gets another one.

I'm afraid Agents are up against the wall, there is a great disparity between what a Vendor wants, and what a purchaser thinks he/she should pay.

A couple I know recently put their house on the market for 425k, and I thought at the time vastly overpriced. However when they did get a buyer, they would have to pay 550k for the next property that was not much better than the one they were selling.

The market is completely screwed, its unbalanced, its nobodies fault except the Government who have fuelled the economy with debt, and supported house price inflation to provide the catalyst for the expansion of the debt economy.

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I'd like to think that I am not a dimwit but I'm just trying to play it straight. Why pussy foot about? I have simply said this is what we can afford and what we think is reasonable. The fact that the house can't and won't sell for asking price is suggestive of the fact that it is overpriced in the current market. So take it or leave it.

I agree - and they're leaving it!

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Relax, Babnye:

You're making an offer you can afford... the vendor can take or leave it, but better you get an affordable offer rejected than a crippling one accepted.

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I understand your point but you're not playing the game. By offering £275k you are leading the agent and his client to believe that you may go higher. If you'd have offered £260k you'd have probably agreed on £275k by now.

Remember the 'Life of Brian' scene?

'This bloke won't haggle!'

Agreed "You gotta haggle." ;)

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I think you will find that the agent would just want to sell, his commision between your offer and the asking price is negligable and I suspect the Vendors will simply change agents.

You all seem to blame agents, I know countless people that ask an agent to put a house on the market with the Vendor dictating the price, and when the Agent fails to get any viewings due to the unrealistic high price, the Vendor simply sacks the agent and gets another one.

I'm afraid Agents are up against the wall, there is a great disparity between what a Vendor wants, and what a purchaser thinks he/she should pay.

A couple I know recently put their house on the market for 425k, and I thought at the time vastly overpriced. However when they did get a buyer, they would have to pay 550k for the next property that was not much better than the one they were selling.

The market is completely screwed, its unbalanced, its nobodies fault except the Government who have fuelled the economy with debt, and supported house price inflation to provide the catalyst for the expansion of the debt economy.

I think you're right. But I also know that this EA has been lying through his teeth on this one. The other people interested have not even put in an offer because they can't sell (we know through mutual friends) but he keeps on telling me there is another 'offer' on the table when we know there is nothing of the sort.

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I think you're right. But I also know that this EA has been lying through his teeth on this one. The other people interested have not even put in an offer because they can't sell (we know through mutual friends) but he keeps on telling me there is another 'offer' on the table when we know there is nothing of the sort.

add a couple of grand and say final offer 48 hours or it will be withdrawn as theres some other properties on the market with a rival EA that your interested that are serious about selling.

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Glad to hear that it is not just me who that happens to. I am sick of hearing 'they are only accepting sensible offers!' - the last was £170k for a house now on at £185k (chain free, cash in bank).

We have failed to buy at least 6+ houses in the last 6 months for the sake of 10-20K. They are all still up. Interestingly, I now view them all as a lucky escape. Luckliy for me, the other half is now almost as convinced as I am of the imminent carnage and so I won't have to play this merry game no longer!

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