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jcpricewatcher

Looking To Buy In Se - Advice On What To Offer?

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It's early days, but I'm looking to buy a 4/5 bed house either around M25/A217/A24 area or getting a new build in Kent (near the new Ebbsfleet station).

I'm doing my research at the moment, and noticed there are a lot on the market ;)

The prices in Surrey area I'm looking seem around 400-500 for what I'm looking, and around ebbsfleet it's around 350-400. Obviously we are all aware prices are most likely to go down...

So if I were to buy now, the benefit is that I'm much less likely to get gazzumped and also unlike in the last few years, I might be able to actually choose exactly what I want to buy...

Anyway, the bottom line is price, and my question is, if I were to buy without a chain, with finances all in good shape, ready to move quickly, what sort of discount off the asking price should I be looking at? - Does anyone know whether I should realistically be able to obtain say a 20% discount off a new build? (Be it via some kick back of say 20% deposit contribution and stamp duty paid). Though I've noticed they're already priced about 50k more than similar properties a couple of years old!

I know it's not a great time to buy, but remember it's not only an investment, but also a home. What's the general advice (other than don't buy!!) for someone who is looking to buy right now?

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Well, I visited my local EA's yesterday (enjoy being their only patron). Bear in mind my ceiling price is 250k. I was offered a viewing at a new build on market for 275K (a one off, not an estate build) , I was offered a viewing at another property marketing at 275K (their sale had just fallen through), and I was offered a viewing at a property marketing for offers in excess of 300K (very, very desirable area). In particular at the latter, I asked the EA if it was worth viewing this one, and she insisted though the property had received many offers, there was a change in circumstances where the viewing was definitely worth doing, again bearing in mind my ceiling is 250K.

If you must offer, then it must be an embarassing offer. Remember you can always go up, but you cant go down.

It is difficult to hold back, when all you want is to get a home, but I think you know as well as we all do, that the money is better in your pocket than theirs. Whatever way prices do go, they are NOT going up.

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jcpricewatcher - when you see the right property in the right area, then you'll know.

In my recent experience, I was all prepared to negotiate, use the fact I wasnt in a chain, spot all the flaws in the property, talk down the local market etc etc, but all that went out the window when the vendors got an offer from a FTB just below asking. Basically, did I want this property or not, and as it happens, I did, so they got ask their asking price within 2 weeks of listing the property.

Unsurprisingly, house prices seem to fall far less quickly then they rise even when their is a strike of FTB's or indeed anyone. All I can say is that when I was offering cheeky offers for decent properties, if the vendors werent in a chain, they just refused to negotiate anymore then the usual we'll take 5k off etc.

As for your new build scenario - I think 20% as an opening gambit is entirely justified. However, unless the builders are close to going bust, they'll hold out for more. I think your ideal scenario is finding a property in a chain where the Vendors are downsizing and are realistic about their offering price.

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...

As for your new build scenario - I think 20% as an opening gambit is entirely justified. However, unless the builders are close to going bust, they'll hold out for more. I think your ideal scenario is finding a property in a chain where the Vendors are downsizing and are realistic about their offering price.

Regarding new builds... I've got a bad feeling that they may just hold out for more. Though when the time comes, I will definitely start my bidding at least 20% under. At the end of the day, at worst I'll just have to pay more.

I've noticed most are now doing part-exchange schemes and/or deposit paid (sneaky since the actual transaction price remains high, thus artificially inflating the land registry prices and not setting a precidence for others to discount!)

Be interesting how many of these new builds remain unsold over the next few months...

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It's early days, but I'm looking to buy a 4/5 bed house either around M25/A217/A24 area or getting a new build in Kent The prices in Surrey area I'm looking seem around 400-500 for what I'm looking, and around ebbsfleet it's around 350-400. Obviously we are all aware prices are most likely to go down...

JCP, I'd be very careful in Surrey at the moment, though I do note you are not in a great hurry. Surrey has always been a lot more expensive than Kent and I believe has suffered more from price ramping in recent years.

I personally believe the county is going to suffer a very serious meltdown quite soon and strangely it is going to be led by high end properties rather than buy to let. My rationale for this is the shear number of properties on for over £1m, currently there are about 1500 listed on right move with more coming on every day. I can't belive there are that many buyers who can afford in that bracket. I am already seeing massive discounts, with properties at just over £1m being reduce by £200k (roughy 20%). I think there are two factors here, firstly Surrey is the original old school stockbroker belt county and the current financial situation is causing panic, but secondly the age profile of people in these larger house is typically older babyboomers and most are savvy enough to try and trade down before prices crash. However, as they have all made for the exit at once, many will be too late.

Once the £1m homes drop to £800k (which is starting to happen - I've even seen one, admittedly a real wreck, fall from over £1m down to £700k), then they will take everything else down with them. Why would anyone buy a current £800k home, when you could have one that is bigger and was previously £1m. So as the £800k homes then fall, the £700k ones will then get dragged down.

BTlers in the county will probably not be the spark for the crash. The only reason I say this is that Surrey has been rubbish for buy to let for quite a long time. The yields have typically been only 4% since 2002/3 and this actually did seem to put a lot of BTLers off even then. A a result a higher proportion of Surrey BTL properties have been held lfor quite long periods and will therefore have a good chunk of equity. Yes, as price dive some will sell, but many will hold as I have notice most people miscalculate yield comparing the rent with what they paid rather than the current open market value.

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jcpricewatcher - Just a comment on the newbuilds but this may not apply to you.

When applying for a mortgage some banks will only offer an x% mortgage for new builds - regardless of flats or houses. If the purchase price includes legal fees or desposit paid the bank takes this off before calculating the mortgage they will lend. HSBC was one of the banks I spoke to who mentioned this to me.

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jcpricewatcher - Just a comment on the newbuilds but this may not apply to you.

When applying for a mortgage some banks will only offer an x% mortgage for new builds - regardless of flats or houses. If the purchase price includes legal fees or desposit paid the bank takes this off before calculating the mortgage they will lend. HSBC was one of the banks I spoke to who mentioned this to me.

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jcpricewatcher - Just a comment on the newbuilds but this may not apply to you.

When applying for a mortgage some banks will only offer an x% mortgage for new builds - regardless of flats or houses. If the purchase price includes legal fees or desposit paid the bank takes this off before calculating the mortgage they will lend. HSBC was one of the banks I spoke to who mentioned this to me.

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jcpricewatcher - Just a comment on the newbuilds but this may not apply to you.

When applying for a mortgage some banks will only offer an x% mortgage for new builds - regardless of flats or houses. If the purchase price includes legal fees or desposit paid the bank takes this off before calculating the mortgage they will lend. HSBC was one of the banks I spoke to who mentioned this to me.

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jcpricewatcher - Just a comment on the newbuilds but this may not apply to you.

When applying for a mortgage some banks will only offer an x% mortgage for new builds - regardless of flats or houses. If the purchase price includes legal fees or desposit paid the bank takes this off before calculating the mortgage they will lend. HSBC was one of the banks I spoke to who mentioned this to me.

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jcpricewatcher - Just a comment on the newbuilds but this may not apply to you.

When applying for a mortgage some banks will only offer an x% mortgage for new builds - regardless of flats or houses. If the purchase price includes legal fees or desposit paid the bank takes this off before calculating the mortgage they will lend. HSBC was one of the banks I spoke to who mentioned this to me.

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jcpricewatcher - Just a comment on the newbuilds but this may not apply to you.

When applying for a mortgage some banks will only offer an x% mortgage for new builds - regardless of flats or houses. If the purchase price includes legal fees or desposit paid the bank takes this off before calculating the mortgage they will lend. HSBC was one of the banks I spoke to who mentioned this to me.

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jcpricewatcher - Just a comment on the newbuilds but this may not apply to you.

When applying for a mortgage some banks will only offer an x% mortgage for new builds - regardless of flats or houses. If the purchase price includes legal fees or desposit paid the bank takes this off before calculating the mortgage they will lend. HSBC was one of the banks I spoke to who mentioned this to me.

I'll only reply to this once :lol:

Thanks for the advice. I feel under in current times, if you are borrowing to the point where the 5% deposit paid by the bank affects whether you can borrow or not, then you're probably overstretching yourself.

Fortunately, this shouldn't be an issue for me.

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  • 297 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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