Watched Phil & Skitsy last night and, as usual, prepared to watch them trying desperately to haggle someone down by five grand on a half million pound house - which we all know is practically impossible to achieve in a recession
Usually I don't know any of the properties they feature but last night - Bingo!
They had a couple who wanted to buy a 2 bed flat in Charlton on the market at £199950. Phil begrudgingly pointed out that the gutterings and fascias needed replacing but that a builder had said "it wouldn't worry him" - ha ha - presumably because (1) he's a builder and (2) he's not buying the place
This flat had been on the market for a fair old while with no takers possibly because (as Phil eventually revealed) it was nearly down to 70 years on the lease so was virtually unmortgageable.
The couple loved it - and Phil suggested bidding £193,500 (I nearly peeed myself at that point) which he thought was really a low offer because the vendor was going to extend the lease, and really, they were lucky the price was being increased!!! (on an otherwise unsaleable flat)
The vendor rejected £193,500 - Phil talked the couple up to £197,500 - the vendor rejected that too - but finally relented at £198,000.
Phil Spencer, in one of the most stagnant housing markets of all time, on a flat which was practically unsaleable, had achieved the princely discount of 1% off the asking price.
In the closing roundup, it was revealed that the couple had pulled out because the vendor was dragging his heels (having not found a place to move to when putting the flat on the market).
So the vendor lost the sale of their flat at £198,000 - Cheers Phil - mine's a Bolly!
The same flat is now on the market at £179, 950 including a newly extended lease.
The couple - no thanks to rubbish Phil (ace negotiation skills) - had a very lucky escape from wasting £20k.
The vendor must be kicking themselves - £20k - they had it and blew it! They probably won't get £179,950 now either.
But Phil, who is supposed to research the market and act for the buyers in the show - almost royally shafted them.
Oh, and I also think that LLL advise is usually spot on. The market has changed a lot in the last few years, so negotiation you see from 2008 might look crazy now,but that's how it was. Kirstie and phil do say when they think something is overpriced (I watched 2 old LLLon more 4 last night and in both episodes, they advised couples not to pay more than x under asking price as too much).
Lighttrain - if the seller is extending the lease, that's fine. Although I'd want hard evidence it had actually been been done before handing over my money and so would any solicitor worth his salt.
Redhelen's right, it wasn't sorted when they first viewed, was only mentioned at second viewing and then IIRC the sellers tried to argue they were doing some kind of favour, and used it as a bargaining tool to refuse to drop the price. In fact, the flat was was unmortgageable without the extension, so the sellers were only doing what was strictly necessary for their own interests.
Not in the same league at all but when we bought our previous house, the owner tried to charge us extra for the garden shed. People are sometimes amazingly greedy and petty. We said fine, take the shed out then - given there was no access to the garden other than through the house we would have been amused had she gone to all that trouble!