How Much?

[cock-eyed octopus]

... a house they'd (realistically) consider buying?

As posters here have noticed, there are quite a few places SSTC lately, but I reckon most of these will collapse due to non-affordability for ftbs. I know some of you want Buck.P. for £50, but, think logically, what cash reduction do you think the majority would consider reasonable? If it was, say, £30k, this could be passed up the chain quite easily I think.

BUT ... could it happen? Will it happen?

[AteMoose]

... a house they'd (realistically) consider buying?

As posters here have noticed, there are quite a few places SSTC lately, but I reckon most of these will collapse due to non-affordability for ftbs. I know some of you want Buck.P. for £50, but, think logically, what cash reduction do you think the majority would consider reasonable? If it was, say, £30k, this could be passed up the chain quite easily I think.

BUT ... could it happen? Will it happen?

<{POST_SNAPBACK}>

Hmmm i going to leave it a while before i put offers in, but im hoping to put in offers of 120k on property currently valued at about 180k... Possibly when the large scale repossesions are kicking in.... about 2 years from now. Prices should be down by 40->50k, maybe the chain might take the rest.... its a bit cheeky ;p

If i were to buy now, then i would want 40k knocked off, but i dont think the chain would accept it today

[Warwickshire Lad]

I've said it a number of times before, but I'll say it again. For my area it has to be 2001 prices (approx 40% drop).

[weaver]

Several houses that I am watching SSTC are back on the market. Usually same price new agent. A lot of these houses have no upward chain. Don't you think that these sales have fallen through due to a dip in confidence in the housing market and not simply 'non-affordability' . If you are reading in the paper every other day that houses are on the decline (even if it is minimal) you would think twice about the 98% offer you just made on a damp ex-council house dump that is twice the price it was 2 years ago.

A house is only worth what someone else is willing to pay for it and if you want to sell your house a reduction in price is the key.........it's just gonna take a while for people to realise!

[Guest NervousFTB]

Hmmm i going to leave it a while before i put offers in, but im hoping to put in offers of 120k on property currently valued at about 180k... Possibly when the large scale repossesions are kicking in.... about 2 years from now. Prices should be down by 40->50k, maybe the chain might take the rest.... its a bit cheeky ;p

If i were to buy now, then i would want 40k knocked off, but i dont think the chain would accept it today

<{POST_SNAPBACK}>

I would like if possible about 80K of a 200K house im interested in if i was to buy now. then i could put it back on the market and sell it at 160K.

I have spoken to the vendors re my 120K offer for their 200K house but they are not budging.

I think I will rent for 5 more years and then see if they will help me out.

[munimula]

Hmmm i going to leave it a while before i put offers in, but im hoping to put in offers of 120k on property currently valued at about 180k... Possibly when the large scale repossesions are kicking in.... about 2 years from now. Prices should be down by 40->50k, maybe the chain might take the rest.... its a bit cheeky ;p

If i were to buy now, then i would want 40k knocked off, but i dont think the chain would accept it today

<{POST_SNAPBACK}>

Similar, I'm looking for £180K flats to be priced at £120k - £130K

It will happen, it's just a question of when.

[vicster]

Of the houses I've been following, £150k down to £110 in the area I'd like to live, £130k down to £90k for second choice, but with an extra bedroom and a bigger garden for the latter. The places I'd really like (same size, but not ex-council) are way out of my league so no point thinking about them!

[wsutherland]

I will buy when average house prices are 3.5 X average earnings. The way it should be. Even if the IR is 10% by then.

[CrashIsUnderWay]

a clear 30% puts it back on to the long term mean, which will do nicely, thanks. With a few hundred k saved up, I'm ready and willing but I wiould rather set fire to it than hand it over to one of these BTL gimps at these stoopid prices.

[No Muggy Bear]

45% down. Just to get something reasonable. This would allow me to buy at 3.5x salary for a house where I would be living next door to people who earn the same money (eg. people who bought pre 2002). I just don't want to stretch myself to live around pond life that have never earned a penny in their lives. It would stick in the throat having to get up to go to work after losing sleep all night listening to next doors speed party on a wednesday night.

[Twig Vase]

I would like if possible about 80K of a 200K house im interested in if i was to buy now. then i could put it back on the market and sell it at 160K.

I have spoken to the vendors re my 120K offer for their 200K house but they are not budging.

I think I will rent for 5 more years and then see if they will help me out.

<{POST_SNAPBACK}>

You are a diamond NFTB

[The Masked Tulip]

40 - 50% but I think it is going to go to 60% anyhow.

[Red Baron]

I am not an FTB, rather an STR, but I think the comments on this thread from FTBs are pretty much spot on.

My view is that all property is 50% over-valued so a 33% drop is required to restore fundamentals. It's not a bad rule of thumb; look at all the properties for sale around you and mentally knock a third of the price off. They are still expensive but at least you get closer to sanity.

It will come...............

[Once in a lifetime]

I agreed with a lot of what’s been posted

very soon I’m going to play a game with some EA’s

I’m going to start looking at properties, after taken my eye off the game

for a couple of years! No way will I pay rip-off prices so I will

make offers at 30%-40% below market value just to see the colour drain from

their faces.

And yes they deserve it. A couple of people my wife knows put their properties

on the market last year and two different EA’s told them

’let’s put an extra £10k above market value and see what happens?’ TRUE STORY

Absolute ass-holes, greedy ba$tard$

My wife’s friends still have not sold.

Their husbands have now got it in their heads that they are actually worth that much!!!

P.S. should they accept I’ll knock another 10%-15% off for good measure

[beerhunter]

25% drop and I'd start to be interested.. even so I would make offers 10-15% under the asking price.

[right_freds_dead]

KEEP IT SIMPLE:

3.5 x annual wages. whatever the drop makes it - that is it.

[cock-eyed octopus]

Thank you for your replies.

They were most illuminating

[BandWagon]

Some tips for viewing properties:

When entering an estate agents, they will pester you for you budget.

I have tried to avoid this question, but they are persistent.

Don't tell them what you're looking for, and then the budget. They will look at you with disdain and 'Oh no, you wont find anything like that around here, trying looking in slumville instead'

I am looking for a nice 3 bed house, around Clapham, that's £500k at current silly prices. Now I reckon a 3 bed house is probably worth closer to £300k. I know what I want, but don't tell the agent what you really want to spend.

So get them to take you to see some houses in your price bracket +50%.

That gives you the opportunity to drop at least 30% when making an offer.

Point out EVERY single fault with the property (this is sooooo easy to do, and lots of fun,take a girl along, they love it). DON'T give the vendor/EA an easy ride.

Now the chances that the seller will take this -30% offer are very slim (ok next to 0). But you never know, they may be in more poo than you know. Or it may be someone who bought 10 years ago and can't believe their luck. And there are always people forced to sell.

Chances are they won't bite, but it will do a massive amount to knock confidence. Bear in mind that EA's have an obligation to take all offers to the vendor, promptly and in writing,unless the vendor has authorised otherwise.

http://www.oft.gov.uk/Business/Legal+Power...egotiations.htm

I usually take the opportunity to criticize the property thoroughly, quite rightly so if they expect 50% above a reasonable sum.

I suspect we will need the general public to understand that prices are falling, this may take another 6 months. Then all hell will break loose.

But every little sure helps...

[Guest negativeequity]

I think if you bought a house in 1995 for 60K and its now "worth" £180K you

might discount it by 10% or more.

If someone bought the same house for 180K 1 to 2 years ago there is no way they are going to sell it at a loss. Even potential"forced" sellers will do everything to avoid that.

If you had bought a house for 180K in 2004 would you accept a offer for 10% less e.g 162K ?

My point being the longer prices go on at this level ie 2003 prices onwards the more ppl who have bought in at this level the more likely prices will be fixed at 2003, 2004 prices.

Barrinng a few desparate forced sellers no one is going to sell at a loss. So

if there is going to be a HPC we need it quick as the more buyers that buy into 2003,2004 prices the more fixed / firm this price level will be.

So the longer there is without a crash the more likely there won't be a crash.

If the market has held these prices for 2003,2004,2005 then the market has locked in at these levels.