What should I offer on these houses?

[critterjitter]

I was looking for property in a particular area last year, but felt it was all too pricey.

I've now started seeing some drops on some of the houses advertised. Most of the houses are in the £300-325 range (last Summer/ Autumn they were coming on at £330-360).

I don't have anything to sell, so am in a good position.

What sort of offers would you make?

£250k - does that sound fair?

[ChippyMinton]

propertsnake
have you seen this website? you can see how much properties have been reduced by already.

[critterjitter]

Thanks. I find Propertysnake quite difficult to get around! It doesn't always tell you the specific address of a house, but often refers to a house in an area, so its difficult to nail down which one they are referring to.

[missingtheaction]

apologies in advance to anyone struggling to sell their place

Buying is haggling. you don't expect to offer a price, have it accepted and that's that. you expect a protracted conversation.

always start low - you want your first offer rejected so you can work up to the minimum they will find acceptable. Don't ask for anything to be included at this stage unless it's a dealbreaker for you. Make sure they know you have no chain and have your mortgage arranged (you do don't you?). Don't offer until you know their position (eg are they still looking for somewhere or are they hot to trot).

By all means start at £250, doubt their agent will let them accept it but it will give the agent the chance to tell you how much he thinks they might accept.

If they reject and you decide to up your offer, ask for something to be thrown in - curtains, washing machine, oven and carpets professionally cleaned.

Repeat until everyone is at screaming pitch. Then when you have agreed a deal be efficient but firm.

Buy Kirsty and Phil's book How To Buy A House - good advice in it I found

[critterjitter]

Thanks missingtheaction.

I thought £250k sounded fair, given that the market seems to have ground to an absolute standstill and there's talk of 20%, 30%, 40% and 50% drops coming?

[missingtheaction]

It's not about 'fair' - it's about what each of you (buyer and seller) are prepared to accept. Offer them £250 - it's their decision whether to accept that or not. If they do, that's fine. If not that's their perogative - they feel they can get more than that from someone else if you won't offer them more.

Don't think Fair, think Worth A Try. It's not love, it's not war, it's an Agreement.

Talk of price drops is not especially helpful - on average prices may drop 20% or 50% but each house will have its own range. A good house (good location, right balance of living to bedrooms etc) will always be more sellable so will hold its value and/or sell more quickly than a crappy house or a house that is very quirky in some way.

A lot depends on how long you think you are going to live there. If only a couple of years, then any house you buy at any price may be worth less at the end of 2 years than you pay for it now. Who knows?

[Upwind]

I think it is probably still not the best time to buy - because a lot of sellers are still in denial and convinced this is just a temporary blip. I was at a party, where this was talked about, last week - everyone seemed aware of a study the newspapers had quoted that suggested just that, nobody else seemed aware that the study was from the homebuilder's *federation"!

But there is no harm in making low offers now. For me the fair price will depend, not on some daft notional asking price, but on how comparable the mortgage payments would be to renting a similar property. And whether I would be happy to commit to paying back that amount of money for the chance to live in that house. It is a very personal decision.

[critterjitter]

Thanks Missingtheaction. By 'fair', I mean, are they going to immediately dismiss the offer out of hand, thinking I'm trying it on (which means that I've got to start the whole process all over again). Or are they going to think: "Well thats fair, considering the current market and where its going?" - and get in contact.

The houses are in a good location, but a crop of them have now come on the market and very few are selling at their current prices.

I'm thinking of doing a mail out to them.

[critterjitter]

Upwind.
Yes, I saw that Housebuilders Federation report! eeekkkk!

[ElfOnTheTopShelf]

missingtheaction - as somebody selling their home, your post is depressing!!

[WideWebWitch]

I would go in at 40% less than asking. imf say market overvalued by 3o%

[missingtheaction]

Sorry Elf. Cover your eyes.

CritterJitter, as I said, you actually want them to dismiss your first offer - that way you can work up to their bottom price. If they say no to £250 you are allowed to go back and offer more!!! It's not Starting The WHole Process Again, it's a quick phone call. Possibly even the same phone call.

They have no more idea of what the house is really worth (ie what someone will actually pay for it) than you do. Some people/agents go in high - put the house on at £400 but really only expect to get £350. Some go low - 'offers above £300'. You have no idea what game they are playing. Has the hosue been on the market for ages or just gone on? are they despearte to sell or just trying their luck?

Stop trying to second guess. What are you prepared to pay for the house? keep that in mind as your top offer, but start much much lower. You want to pay the minimum. Offer £250. Agent phones back and says something like 'no, they are looking for more than that'. immediately offer £260. Agent calls sellers, they say yes. Great - if you had started at £275 you would have wasted £15! So for the effort of doing a little haggling you have saved the price of a holiday and a car.

But I agree with upwind and ww - seriously consider hanging on for a few months yet unless you find somewhere you can make an emotional committment to

[ElfOnTheTopShelf]

House threads are like looking at car wrecks for me - just cannot quite stop looking!

We've been on the market for nearly two years. We've had the sale fall through four times.

I can see why people think selling your home is one of the most stressful things in life!

[critterjitter]

missingtheaction
My idea in putting in an offer of £250k was to offer what it will probably be worth in a year or two's time. Would it be really worth hanging on a few more months? I'd say that the estate agents will just chip a little bit more off - say £10k in that time and it will still just sit on the market. The prices being advertised just don't reflect the house price reports and predictions!

[1dilemma]

critter I certainly wouldn't go straight back with 260K not if there's a crop of them, just walk and offer 250 on the next.

I was walking round recently and thought I'd say to all the agents, OK ask all the vendors what is the lowest price they will accept and I'll have that one.

Kind of like a reverse auction!
Don't all shout at me I know they wouldn't do it!!

I also find it helps to look at the prices they were in 1999, and the what the wages of the people traditionally living in such properties would allow them to buy without any equity, that is the price they should be selling for!

[Swedes]

Have you tried Zoopla.com ? It's really good.

[critterjitter]

Saw one yesterday that's on for 280k. No central heating and will need a refurbishment (think its a probate). Estate agents say that they 'might' take offers!!!!!

[RedFraggle]

Ah Elf, I am with you. House een on the market for 18 months and had two sales collapse due to people not being able to get the mortgage they had been offered at the start of the process.

As a seller and a buyer though Critterjitter, I agree with going in quite low and then hopefully meeting somewhere near the mid-range. Be prepared for them to say no though as we wouldn't accept that type of a drop on our property, if it came to that we just wouldn't bother moving!
Depends how much they want to move doesn't it?

[Swedes]

It depends on people's circumstances - sometimes people need to move because they are getting divorced, their job is moving elsewhere, it's a probate sale, they have already committed to buy/rent elsewhere etc. They might well be prepared to take a low price now than an even lower price in 6 months time.

Do check Zoopla.com it really is good as it tells you what prices are doing in the very street you are looking in.

[critterjitter]

Thanks Swedes.

I've been on Zoopia now. It seems to show that only 1 house has sold in the street this year (!) - which is quite a surprise because its a very long street, near good schools, station etc. All the sales before that (last year at least) were at stonkingly high rates.

[critterjitter]

Went to see house today.

Its on for £280k (other similar ones in the area are coming on for about £300k now.)

Needs to be totally gutted and have central heating installed, as well as some double glazing in parts. Its fairly clean though (in terms of being able to make do in it for the very short term).

Suggested starting offers anyone?

[critterjitter]

up, up, up!