Jump to content
House Price Crash Forum
jaffa

Gobsmacked

Recommended Posts

I know this is probably going to be treated with cries off derision, but I have just offered 190K on a 200K house and it was refused outright. The vendors are waiting for full asking. We are chain free and ready to go.

I wouldn't normally dream of buying, but this is just one of those rare opportunities that does not crop up too often. No chance of me increasing it though. Hence, the subject of this poll.

Share this post


Link to post
Share on other sites
I think you are a bit silly putting a poll like this on the forum. Do you really expect to get an even result? Apart from a few wums ;)

Quite even so far! Notice how I missed off the 'both' option. That is actually the correct answer!

Share this post


Link to post
Share on other sites

You are a visitor of HPC, you likely have so much more information than them, you are in a much stronger position in the market. Offering 95% is totally daft for you.

I would have offered £175K tops, and only if it was a perfect house for me.

They are probably just ignorant, whilst you are behaving stupidly :lol: (No offence meant by the way...)

Share this post


Link to post
Share on other sites

Call the agent and offer £185k and tell him the number reduces in £5k steps each calendar month for the next 18 months.

[edit; last 5 words added]

Edited by Paddles

Share this post


Link to post
Share on other sites
Quite even so far! Notice how I missed off the 'both' option. That is actually the correct answer!

I agree that both would be the correct answer, but I suppose you´re only admitting you are stupid on an internet forum so I guess that´s OK :lol:

Share this post


Link to post
Share on other sites

How about you put in an offer of 200k then wait till all the legal stuff is done and then drop your offer price to 185 or 180 just prior to exchange? Remember the price you offer is not the price you necessarily pay.

Share this post


Link to post
Share on other sites

There are houses in top locations that are keenly priced where you just know the vendor will not reduce much.I can see where you are coming from Jaffa ,I am tempted by houses which are competitively priced and have no flaws; these make up less than 5% of the property on offer,most is over-priced crap.The truth is these will always sell and you can't arbitrage them,YET.

Edited by crashmonitor

Share this post


Link to post
Share on other sites
Guest The_Oldie
How about you put in an offer of 200k then wait till all the legal stuff is done and then drop your offer price to 185 or 180 just prior to exchange? Remember the price you offer is not the price you necessarily pay.

Remind me never to do business with you.

Share this post


Link to post
Share on other sites
Remind me never to do business with you.

But that is how the housing market works oldie. It's completely legal and we it's not called a buyers' market for nothing.

Share this post


Link to post
Share on other sites
Call the agent and offer £185k and tell him the number reduces in £5k steps each calendar month for the next 18 months.

That's the idea! I likes it! :lol:

Share this post


Link to post
Share on other sites
Guest The_Oldie
But that is how the housing market works oldie. It's completely legal and we it's not called a buyers' market for nothing.

Oh no it doesn't, fortunately some people still value their word. I would offer the low figure and point out that it was a genuine offer and that I would not attempt to do a dirty and drop the price at the last minute, but I guess it depends on whether your word means something to you.

Share this post


Link to post
Share on other sites
Oh no it doesn't, fortunately some people still value their word. I would offer the low figure and point out that it was a genuine offer and that I would not attempt to do a dirty and drop the price at the last minute, but I guess it depends on whether your word means something to you.

When you make an offer you are not giving your word. You are just making an offer which is subject to change. If you say I give you my word that I will not gazunder you and then do it then you are breaking your word.

Share this post


Link to post
Share on other sites

Say you'll commit to the full asking price, Get a full survey on the property then start knocking down the price because of the things in the survey. Or just sit on your hands and hold them off the market for 6 months

Edited by 234SALE

Share this post


Link to post
Share on other sites
Guest The_Oldie
When you make an offer you are not giving your word. You are just making an offer which is subject to change. If you say I give you my word that I will not gazunder you and then do it then you are breaking your word.

I beg to differ, if you make an offer, you are agreeing (your word) to purchase at that price (subject to contract) and you should not, morally, attempt to vary the agreed price unless a problem comes to light in the subsequent survey or search.

I would make an offer and state that, unless anything untoward comes out in the survey/search, the offer is firm. I would also offer to complete quickly, but make the offer valid for a week and feel free to drop the offer after the week, unless it had been accepted.

Share this post


Link to post
Share on other sites
I know this is probably going to be treated with cries off derision, but I have just offered 190K on a 200K house and it was refused outright. The vendors are waiting for full asking. We are chain free and ready to go.

I wouldn't normally dream of buying, but this is just one of those rare opportunities that does not crop up too often. No chance of me increasing it though. Hence, the subject of this poll.

you've answered your own question here - its a rare opportunity. why is that? I'm going to presume the sellers know this. If someone who thinks prices will drop is willing to offer 95%, then surely someone who thinks they will rise will offer the full amount?

round here (brighton) houses going for asking are still fairly common.

H

Share this post


Link to post
Share on other sites

I voted "Vendor. Refusing 95%".

However, it does depend how long the property has been available for.

If it's been up for less than a month I would say the vendor did the right thing.

If it's been up for over a month with no other offers, I would say the vendor needs to lower their expectations in an uncertain market.

Share this post


Link to post
Share on other sites
I beg to differ, if you make an offer, you are agreeing (your word) to purchase at that price (subject to contract) and you should not, morally, attempt to vary the agreed price unless a problem comes to light in the subsequent survey or search.

I would make an offer and state that, unless anything untoward comes out in the survey/search, the offer is firm. I would also offer to complete quickly, but make the offer valid for a week and feel free to drop the offer after the week, unless it had been accepted.

I beg to counter differ. You are giving your word when you exchange. If making a verbal offer was giving your word then it would be legally binding by law.

Oldie, what would you do if you found the house you wanted and put in an offer. You are supposed to exchange in one month time. The house next door comes up for sale at 100000 pounds less and is exactly the same or maybe even slightly better but they are desperate for a quick sale. Are you telling me you would stick with your original offer?

Share this post


Link to post
Share on other sites
you've answered your own question here - its a rare opportunity. why is that? I'm going to presume the sellers know this. If someone who thinks prices will drop is willing to offer 95%, then surely someone who thinks they will rise will offer the full amount?

round here (brighton) houses going for asking are still fairly common.

H

How do you know?

Share this post


Link to post
Share on other sites

I agree with Oldie on this one. Gazunderers are almost always time wasters and generally get treated with the contempt they deserve. I had to sell a block of flats in 2005 which attracted several amateur 'developers'. Several tried this trick and were sent packing on each occasion. ALL came back with higher offers, often much higher than the asking price, because they actually really wanted to buy. Their loss. The block was eventually sold for the asking price to a no-nonsense buyer who makes more in a year than those wheeler-dealer wide boys will make in a lifetime. Nothing wrong with offering less than asking price, but start trying to pull a fast one and you're more likely than not to talk yourself out of a deal. It's not a good tactic even for those who are happy that their word is worthless.

Share this post


Link to post
Share on other sites
Guest The_Oldie
I beg to counter differ. You are giving your word when you exchange. If making a verbal offer was giving your word then it would be legally binding by law.

Not so, you are giving your word when you make the offer, you are committing to a legal contract when you exchange.

Oldie, what would you do if you found the house you wanted and put in an offer. You are supposed to exchange in one month time. The house next door comes up for sale at 100000 pounds less and is exactly the same or maybe even slightly better but they are desperate for a quick sale. Are you telling me you would stick with your original offer?

It may surprise you, but yes, I would. Although a £100,000 difference on an identical house would seem unlikely unless we are talking about a £1M+ house and then the difference would only be 10%.

Share this post


Link to post
Share on other sites

Not all that surprised, 95% of the property right now is not priced at market value which gives the impression to a seller that things are ok. The last comment I read about ireland was that even now only 10% of the properties are priced at market rates and are actually for sale.

In November I made an offer of 90% on a 9 month vacant property which had fallen through once already, knowing the family had moved away and bought another home. I knew the market was falling but I was looking to buy a family home so had to offer what I thought was "enough" for them to accept; waiting for 6 months to be proved right was not an option. Again I was a no chain buyer who could settle fast.

They turned me down. The property is still for sale and the EA has NOT called back ( I did tell them at the time that if it didn't go ahead I would rent for 2 years but I didn't imagine they took any notice or if they did that it would prevent them from caling anyway.)

Can't comment on who was the bigest fool as it depends on how the house was actually priced compared to the rest of the market. Before I get mauled by the really savage bears out there I watched 2 places sell in co. cork, 6-9 months ago when the market was about where it is in the UK now. They both were priced below market and had significant real interest and were subsequently bid up to about 20% above asking. ( I looked at both and bid on one)

Interestingly the first is back on the market with an asking price of 35% above the original so the buyer clearly was a speculator. That might be how a property bull trap manifests itself.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 293 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.