Your Cheeky Offers

[Willy Wonka]

That is a great reduction on the Wimbledon 5 bed house, but it depends on where it is.... ie further down the hill the further down market they are...... also have to be carefull not to go too close to Haydons road end nor the real bottom of town where the swimming pool is.......

Is there a link?

[Monkey]

a house round my way has been on the market for about 6 months, it went on at £164k with the next door house not selling for that for 3 months, and then renting, i put an offer in at £140k when it went on the market, and the EA just laughed,

it got reduced a couple weeks ago to £144k and today i got a phone call from the EA saying that the Vendor will accept my offer, i laughed and said i'll offer £115k now, expecting him to laugh, he just went "hmmmm i'll pass that on and get back to you"

its this one

http://www.austinwyatt.co.uk/content/006_R...0317-1226661420

[Robot Piston]

175K accepted on a 265K, that has a lot of 'issues'...

[TheLastSamurai]

Wimbledon 5 bed house - needs referb- vacant possesion

july 08 £799,000

Sept 08 £699,000

Anyway EA called me last week to say vendor would acept £550,000!! told him I would look at my position and call him back. Called him back to tell him nothing I could do and was there any other offers in on the property, yes hes said 2 offers at £500,000 he said the vendor was going to accept one........

So thats almost 40% off asking

If there was indeed a comparable selling for 900k a year or two ago, then that looks attractive.

Not sure I believe the EAbull about the 2 other offers. No better than a car dealer.

I guess this shows what happens when a vendor needs to sell and realises that there is going to be no early end to it all.

BRING IT ON.

DENIAL OVER.

[TheLastSamurai]

a house round my way has been on the market for about 6 months, it went on at £164k with the next door house not selling for that for 3 months, and then renting, i put an offer in at £140k when it went on the market, and the EA just laughed,

it got reduced a couple weeks ago to £144k and today i got a phone call from the EA saying that the Vendor will accept my offer, i laughed and said i'll offer £115k now, expecting him to laugh, he just went "hmmmm i'll pass that on and get back to you"

its this one

http://www.austinwyatt.co.uk/content/006_R...0317-1226661420

This is probably the most encouraging post on the thread. But let's see whether your £140k sets the psychological floor, as imp stated above.

Just hope your £140k wasn't serious... Or maybe you are a recent convert to 'reality economics'.

Well done on giving the EA the big finger anyway with your £115k.

[rentedroof]

I was thinking the exact same thing this morning. Although their figures seemed well off in terms of falls, and they are still horrible rampers, Phil's tactics will have no doubt shocked quite a few sellers. One one hand the programme seemed to be saying 'calm down, it will all be ok and it's not that bad' abd on the other hand Phil was offereing 30% off. Classic.

Right on. The significance of the LLL Crash special seems to have been inexplicably overlooked on this site. Here were the public faces of the property inflation bubble basically throwing the towel in. I'm a TV producer/director and I sensed a very odd tone to this programme, as if it didn't know which way to turn. Spencer and Allsop also put in very low key performances, almost like they knew this was the end for them. Fair play to Phil though, he certainly stuck in a few cheeky offers! I can see the scales falling from square eyes across the country.

[repetitive bleats]

Right on. The significance of the LLL Crash special seems to have been inexplicably overlooked on this site. Here were the public faces of the property inflation bubble basically throwing the towel in. I'm a TV producer/director and I sensed a very odd tone to this programme, as if it didn't know which way to turn. Spencer and Allsop also put in very low key performances, almost like they knew this was the end for them. Fair play to Phil though, he certainly stuck in a few cheeky offers! I can see the scales falling from square eyes across the country.

me too on this - i also thought the revisionist soliloquy at the end was very telling.

[Old_Traveller]

Right on. The significance of the LLL Crash special seems to have been inexplicably overlooked on this site. Here were the public faces of the property inflation bubble basically throwing the towel in. I'm a TV producer/director and I sensed a very odd tone to this programme, as if it didn't know which way to turn. Spencer and Allsop also put in very low key performances, almost like they knew this was the end for them. Fair play to Phil though, he certainly stuck in a few cheeky offers! I can see the scales falling from square eyes across the country.

Agree. What was even more amazing was that his cheeky offers were actually calculated to reflect today's (or actual date when they shot the show) prices, and no consideration was even given to a further discount taking into account where the market is headed.... in other words, his offers at 30% discount were not cheeky at all, but simply a reflection of today's prices!! I personally would consider officially cheeky anything lower than 15% off current date adjusted prices.

Edited November 20, 2008 by Old_Traveller

[southcoaster]

we had a call from an ea last week about a house we got details of but never looked at because it was a large 15 year old 5 bed detached up for 325 which has been on the market for 2 months our limit was 280.

ea said vendor was deperate to sell due wifes illness so we went to have a look , largest house we have seen 2k sq feet got a bit lost when up stairs with all the rooms, it was quite boxy inside & i guess hasnt been changed in 15 years currently not being lived in just the owner running his business from the large room over the double garage.

quite a strange feeling inside with the pictures on the walls but little furniture. anyway liked it enough to make an offer of 240 , i think the ea spilt his coffee when i told him by the noise he made . he rung back with a thanks but no thanks, he said he could get me a cheaper quote with a higher ltv than what i have arranged & quoted to him (hsbc 3.99 % 60%) with a hint of despair in his voice ,but i said we can wait our savings are rising & prices are dropping as ea`s go he is the one i hate with a bit of luck the vendor will shift it to another

[Jay24]

That is a great reduction on the Wimbledon 5 bed house, but it depends on where it is.... ie further down the hill the further down market they are...... also have to be carefull not to go too close to Haydons road end nor the real bottom of town where the swimming pool is.......

Is there a link?

link - http://www.rightmove.co.uk/viewdetails-224...=2&tr_t=buy

Post code is - SW19 1NX - can not exactly remember the number but it was 68 or 69

Not knowing wimbledon that well thanks for the advice,

As far as EA lies go I was told if I offered £550,000 it was mine as 2 other offers came in at £500,000 if he was bull Sh*tting me then fine as £550,000 is still a good drop.

[Jay24]

If there was indeed a comparable selling for 900k a year or two ago, then that looks attractive.

Not sure I believe the EAbull about the 2 other offers. No better than a car dealer.

I guess this shows what happens when a vendor needs to sell and realises that there is going to be no early end to it all.

BRING IT ON.

DENIAL OVER.

I called the EA yesterday and its under offer for £500,000, but as you say no better than a car dealer so who knows? I have seen quite a few houses go to sale over the last month, I'm very intrested to see what then went for. is it a 2 month wait for Land reg to catch up?

[rentedroof]

Agree. What was even more amazing was that his cheeky offers were actually calculated to reflect today's (or actual date when they shot the show) prices, and no consideration was even given to a further discount taking into account where the market is headed.... in other words, his offers at 30% discount were not cheeky at all, but simply a reflection of today's prices!! I personally would consider officially cheeky anything lower than 15% off current date adjusted prices.

I think Phil Spencers offers on LLL were not exactly cheeky but simply tracking the market, and as he said, using the neighbouring, very similar house that had sold 4 months earlier, as a guide . He simply knocked another 10% off what that went for. Very telling that the prospective buyers were agog at this obvious gambit.

No commodity or asset is usually traded at it's future likely value, but at it's current value - i.e. stocks and shares. As far as I'm concerned a CHEEKY OFFER is one that takes into account further drops beyond the likely date of exchange and therefore any vendor is underselling their property accepting this....but if you are a cash buyer and can move fast then it's open season - or will be very soon. Happy hunting.

Edited November 20, 2008 by rentedroof

[Monkey]

This is probably the most encouraging post on the thread. But let's see whether your £140k sets the psychological floor, as imp stated above.

Just hope your £140k wasn't serious... Or maybe you are a recent convert to 'reality economics'.

Well done on giving the EA the big finger anyway with your £115k.

no not serious at all,

1, i would buy it if i could see that the price will not reduce any further,

B, i could get a Mortgage for that at a sensible IR with out having to pay for half the house in cash (IE 80-90%LTV)

it was just to see what they were willing to do

[s2r2005]

>a CHEEKY OFFER is one that takes into account further drops beyond the likely date of exchange

yes very good point. i think the strategic mistake i made was in offering what i think the market will be at in early new year (eg 33% from peak) and the seller sensibly prefered to wait on the off chance things get better, rather than jump on it in case it gets worse. i am struglling to know what market prices are now in the small town where i live as nothing is selling.

still it felt strangely exiting to put in n offer that low after 18 months of looking.

[grizzly bear]

Has anyone else noticed that once you have put in a low offer, that becomes a floor below which the vendor won't drop their asking price. We've offered between 10-20% on a few houses, and even months later, and several drops to within a few percentage of our offer price, they just can't face going below what they were offered 6 months previously. If they did, they would just look stupid, at least to themselves.

yes we noticed that ... because they think it must be worth that as someone offered. they don't get that the worth is dropping.

[Sibley's Love Child]

>a CHEEKY OFFER is one that takes into account further drops beyond the likely date of exchange

yes very good point. i think the strategic mistake i made was in offering what i think the market will be at in early new year (eg 33% from peak) and the seller sensibly prefered to wait on the off chance things get better, rather than jump on it in case it gets worse. i am struglling to know what market prices are now in the small town where i live as nothing is selling.

still it felt strangely exiting to put in n offer that low after 18 months of looking.

I agree with your sentiment S2r2005 however my main beef as that after months of bear food a la HPC I fully understand the likely trajectory of the crash. Stupidly, I assume that the ostriches and ignoramus' (or should the plural be ignorami?) understand this as well. To this end, while I know that HP will be a good 40% off-peak in a 12 - 24 months time, I want it now. It's like being told my wife has bought me a brand new laptop for Christmas 2009 - what good is that, can't I have it now? Bah, psychology.

[calvtan]

I just finish speaking to an EA telling him the truth, which I learnt from HPC... :-)

Last week, an EA started showing me Ex-Local which I wasn't impressed... I din't put any offer in.

Today, he started sending me proper flat in W9 london. Due to constant call, I decide to tell him the facts.

On the phone, I told him that we are willing pay 30-40% of peak price. The new properties he just send me is value at 400 - 2 bed apartment - 4 year old.

Then he start asking me the range I would offer. I told him I do not want to offend himor the Seller, that's why we decide no to put any number/offer.

He insisted. I told him, that from Auction(i.e. Barnard Marcus/Allsop), prices are looking at the 2002/03 region (i.e. 30-35% in this area), and this is where we are looking,

And, we are willing to wait, since we are not desperate, and our mortgage are ready - no chain.

There was a long 5-10 secs pause. He didn't disagree nor agree but ended saying "I will continue to send you new suitable properties when arises'.

I say, Fine, but I told him, I just don't want to waste his time, or my time, showing around and yet no action from my side.

Do you think I am too harsh on this EA? Do you think this will kill of my relationship with this particular EA (i..e. as though if I care very much).... hahaha?

Edited November 20, 2008 by calvtan

[Old_Traveller]

i am struglling to know what market prices are now in the small town where i live as nothing is selling.

One possible simplistic way for you to guesstimate today's prices would be to go back to previous actual paid prices.

You can do that with the post code of the properties you want to use as benchmark. Then go to www.zoopla.co.uk and check actual prices paid during the last 7 years. Then use zoopla's own inflation/deflation % or the beautiful graph (better if you use the Nationwide data behind it) at the home page here in HPC and correlate to extrapolate to today. You can also use official % directly such as the Nationwide or Halifax reports to extrapolate average inflation (and deflation).

That is basically what Phil did at LLL: used actual paid prices and discount as per recent "official" average deflation figures (around 2% per month in the last few months). Remember that would give you just prices at today's market with no consideration for future drops.

Edited November 20, 2008 by Old_Traveller

[Jim B.]

Do you think I am too harsh on this EA? Do you think this will kill of my relationship with this particular EA (i..e. as though if I care very much).... hahaha?

No, I think he would have admired your honesty. He will want to keep you in touch I expect because sooner or later those houses will fall into your price band and he knows he can get a good sale from you.

[TheLastSamurai]

Then he start asking me the range I would offer. I told him I do not want to offend himor the Seller, that's why we decide no to put any number/offer.

He insisted. I told him, that from Auction(i.e. Barnard Marcus/Allsop), prices are looking at the 2002/03 region (i.e. 30-35% in this area), and this is where we are looking,

And, we are willing to wait, since we are not desperate, and our mortgage are ready - no chain.

There was a long 5-10 secs pause. He didn't disagree nor agree but ended saying "I will continue to send you new suitable properties when arises'.

Do you think I am too harsh on this EA? Do you think this will kill of my relationship with this particular EA (i..e. as though if I care very much).... hahaha?

I reckon you are right on the button - that is what all of us should be doing if we want to buy (ultimately) and can wait for a further year or so.

Suppose ideally we would all add - "I realise many vendors find it hard to recognise the reality of a declining market, but it doesn't help them if they chase the market down, and it certainly doesn't help estate agents. The best thing for the estate agency business would be for vendors to drop 30% now to finish off this ridiculous standoff and get the market moving again."

Every VI wants to get the "market moving" and wants "confidence back in the market". But interest rate cuts don't do it, 90% or 95% LTV is cloud cuckoo for the next 3 to 4 years. SO REDUCE PRICES TO WHAT BUYERS CAN AFFORD - WHAT BETTER WAY OF RESTORING CONFIDENCE COULD THERE POSSIBLY BE!

[Stop The Ride]

I reckon you are right on the button - that is what all of us should be doing if we want to buy (ultimately) and can wait for a further year or so.

Suppose ideally we would all add - "I realise many vendors find it hard to recognise the reality of a declining market, but it doesn't help them if they chase the market down, and it certainly doesn't help estate agents. The best thing for the estate agency business would be for vendors to drop 30% now to finish off this ridiculous standoff and get the market moving again."

Every VI wants to get the "market moving" and wants "confidence back in the market". But interest rate cuts don't do it, 90% or 95% LTV is cloud cuckoo for the next 3 to 4 years. SO REDUCE PRICES TO WHAT BUYERS CAN AFFORD - WHAT BETTER WAY OF RESTORING CONFIDENCE COULD THERE POSSIBLY BE!

Here's a chasing down the market anecdote. Went to look at a house today. Won't even be making a cheeky offer. Owner put it on 6 months ago at 215k (absolute peak price ). 2 months later turned down an offer of 180k. Now on for 165k. Her bottom line is 'below that but not much below'. She has just turned down an offer of 'well below 165k'. We were given the impression that an offer of 140k would be ignored. Owner is abroad now and 'doesn't want an asset in the country anymore but if she can't get the right price now, she'll rent it out and wait until the prices are back up again'. Oh dear.

[TheLastSamurai]

Owner is abroad now and 'doesn't want an asset in the country anymore but if she can't get the right price now, she'll rent it out and wait until the prices are back up again'. Oh dear.

Yes, because RBS will be profitable again next year and B&B and NR will go piling back into BTL within 18 months to kickstart the bottom of the market.....

Presume its an old woman who wears too much makeup. Suspect she will be dead or gaga before it sells.

[s2r2005]

sadly it looks like i am spending the second year running waiting for vendors to relaise there won't be a spring bounce and yes i imagine thoughts like the ones above are never far from their mind. even the ones who don't look like barbara cartland.

[researchmug]

Surely people won't drop prices until they have to, even if they know their property is over priced. Unfortunately I think it will be mass job losses that are the killer blow for prices when people are forced to sell and at prices that will bring about a sale. With probably way over 2 million unemployed by next summer I don't think that even the financially secure vendors will be able to put stupid price tags on their properties. It will be a question of sell at the going rate or remove the for sale board.

[displayed to non-members]

link - http://www.rightmove.co.uk/viewdetails-224...=2&tr_t=buy

Interesting decor . Not sure which I like more: the orange and yellow striped hallway with green carpet or the 1970s green flowers with the laminate floor!

Will look nice fully updated though.

Edited November 22, 2008 by displayed to non-members