Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

Any Buyers Scared to Make Offers?

36 replies

CheeseyOnionPie · 13/08/2023 00:48

I’ve been looking at properties in SW London (Streatham, Norbury at first, Raynes Park more recently). I am seeing properties and saw one today that I liked. Had one offer rejected so far and the house went Sold STC a week later. I keep hearing advice to wait as prices will be falling further. I am in no hurry to buy, but now I’ve seen a house on the same street as the one I offered on. It’s come back on the market after the buyers pulled out and I know the level it was agreed at before (about 2 months ago). I don’t want to overpay now if the market will fall dramatically.

OP posts:
Bluesheeps · 13/08/2023 01:02

If you wait for the right moment you could be waiting forever. People have been waiting for market to crash for 15 years.
what’s the price range, how long do you intend to stay there ? Why did the previous buyers pull out?

Original poster
CheeseyOnionPie · 13/08/2023 01:07

Bluesheeps · 13/08/2023 01:02

If you wait for the right moment you could be waiting forever. People have been waiting for market to crash for 15 years.
what’s the price range, how long do you intend to stay there ? Why did the previous buyers pull out?

It’s listed at 695k. I would offer 5-7% below asking price. Buyers pulled out because their circumstances changed and they can no longer afford to buy the house. The seller is an elderly person who’s family are handling the sale to pay for care.

OP posts:
Original poster
CheeseyOnionPie · 13/08/2023 01:08

Sorry, I intend to stay there long term. It’s a nice area. I am also chain free.

OP posts:
Bluesheeps · 13/08/2023 01:13

im pretty flippant about buying and selling houses so maybe not the best person to ask. But ask yourself why you want to buy.
if you sell in 20 years and it’s gone down 100k, will that be worth the 20 years you’ve had in a house making it your own, probably paying less mortgage than rent?
no one can predict the market, too many people look back at the past 20 years looking at housing as an asset to rise in value.
it’s a home

Bluesheeps · 13/08/2023 01:17

My mortgage broker told me 6 months ago to wait till summer when rates will fall, I ignored him. Point being the industry professionals can’t predict the future or a war with Russia.
put a cheeky offer in, what’s the worst that can happen?
are you single, married, kids, life stage? All these things impact your decision and should do more than worrying about a potential housing crash

Original poster
CheeseyOnionPie · 13/08/2023 01:23

I’m single, no kids, early 40’s, living in a 3rd floor flat in a nice part of SW London. Been happy here for 15 years, but getting the itch for a garden and no neighbours above and below.

OP posts:
Bluesheeps · 13/08/2023 01:31

Well I’m your case I would probably go for it. If housing crashes you have no dependants or associated costs. You could easily downsize if needed.
lifes for living, will that on paper loss of 50-100-150k matter if you don’t move?
saying this as someone who lost 100k on a previous house

Furries · 13/08/2023 01:31

With the type/price of the kind of property you want to buy - how do the monthly mortgage payments compare to your current rental amount?

I would be using this as my main decider. If mortgage amount is similar then I’d definitely go for it. Personalty, I’d be fixing for 3 or 5 years right now. If the amount is affordable, then peace of mind re monthly payments not changing is worth it. You’ll be making your first dent into paying off YOUR property rather than that if your landlord.

If it’s going to be your long-term home, surely it’s better that you start now rather than keep paying someone else’s mortgage. Yes, there’s the risk that property prices could fall, but if it’s your long-term home then you just ride it out.

Trying to “time” the market is never easy.

WallaceinAnderland · 13/08/2023 01:33

The trouble is there will be loads of other potential buyers also waiting for prices to fall. If that happens, you might find yourself in a bidding war or you might just miss out to higher offers.

I wouldn't try to let the market dictate when to buy. Buy when it's the right time for you and offer what the property is worth to you.

Zanatdy · 13/08/2023 03:42

I’m looking to buy, mortgage broker said offer 10% less as prices will drop. I’m already seeing the drops, yesterday almost every flat I’d been looking at was reduced, some flats by 25k. I’m holding on a bit, unless I see something I really like, as I’m renting and in no massive rush (South London / Surrey border).

Twiglets1 · 13/08/2023 07:45

If you know the price that was agreed on 2 months ago, it will likely achieve a very similar price. Prices haven’t changed much in 2 months especially nice houses in desirable areas. The seller will be expecting to get a very similar price so will reject any offers significantly below.

You’ve already seen that a similar house in the same road sold quickly. So I would offer what you think the house is worth now ( based roughly on what it achieved 2 months ago) not on what you are guessing it will be worth in the future. You may be able to get it for slightly less than the previous price agreed, mainly because the Seller may be slightly more desperate now. But they won’t accept a knock down price because the property will likely get a good amount of interest from other buyers again.

If you’re really determined to get a bargain you could wait a few weeks to see if the house either sells or gets reduced. But the risk with that strategy is that if it sells, you’ve lost another property you were potentially interested in buying because you weren’t prepared to close the deal.

XVGN · 13/08/2023 07:52

Completely up to you and what is important in your life. So long as you have financial security and can afford to lose money on the home as prices decline - possibly over the next 5/6 years - then go ahead. Having the best home trumps most things.

Putting emotion to one side. You need someone to establish what that home is worth now and likely worth in 12mo time. I'd offer the future price - whatever discount that represents. Anyone saying offer X% less is deluded. It'd be entirely dependent on how realistically priced the property is now.

Also, you'll not miss out if you wait. Prices won't suddenly rebound. You'll have an inkling of a rebound (say, 3mo of increasing prices) and then be able to act. You won't get the bottom of the market but very much nobody does. Don't be scared by people saying you'll miss out, especially if price is important to you.

dramoy · 13/08/2023 07:56

don't be scared to make an offer, nothing to lose

TheYear2000 · 13/08/2023 08:02

Hi OP,
I empathise with you! I'm also looking in south london and am not sure whether to wait till September when traditionally more houses would go on the market.
I'm not sure if less houses will come on the market this September though? As someone already said, it's impossible to predict the market really.

Everything I'm viewing has already dropped guide price a bit.
It's a hard decision to make. Gah!

Twiglets1 · 13/08/2023 08:07

Have to say I think people are kidding themselves if they think September will suddenly bring a rush of good houses to the market. People were saying exactly the same thing before the Spring- just wait until Easter and there will be loads more houses coming on.

Er no… the market is stagnant. It’s not a good time to sell and Sellers know that.

dramoy · 13/08/2023 08:08

Er no… the market is stagnant. It’s not a good time to sell and Sellers know that.

Surely as more fixes end a few more might come up?

dramoy · 13/08/2023 08:09

But no point in trying to time the market.

XVGN · 13/08/2023 08:12

dramoy · 13/08/2023 08:08

Er no… the market is stagnant. It’s not a good time to sell and Sellers know that.

Surely as more fixes end a few more might come up?

This is true. Many people are having move because of rising mortgage costs. And many people are wanting to move because of rising utility bills on old (previously highly desirable) housing stock. And then the 3 D's will never be held back - Death, Divorce and Debt.

XVGN · 13/08/2023 08:15

dramoy · 13/08/2023 08:09

But no point in trying to time the market.

Not true, if buying a bigger home or getting a smaller mortgage are important to you.

But if getting on with the rest of your life is important AND you are financially secure, then go ahead.

dramoy · 13/08/2023 08:18

Yeah I know 2 people selling because of death & divorce & a friend wants to sell next yr as fix is ending,

dramoy · 13/08/2023 08:19

Not true, if buying a bigger home or getting a smaller mortgage are important to you

personally i think it's very hard to time the bottom & the top of the market.

SilverGlitterBaubles · 13/08/2023 08:23

If it's the right house, in the right location and you plan to stay there for the long term just go for it as the risk is that you will miss out and have to pay more to get the equivalent property somewhere else that does not tick all the boxes. The rises and falls even out over the long term.

Twiglets1 · 13/08/2023 08:26

dramoy · 13/08/2023 08:08

Er no… the market is stagnant. It’s not a good time to sell and Sellers know that.

Surely as more fixes end a few more might come up?

A few more but the market won’t suddenly change in September with a significant influx of properties coming to market. People on Fixes coming to an end have had a lot of time to prepare for the change and most will be able to weather the storm by various means such as extending the term, going Interest Only etc. Some will get family support.

Only the desperate have no option but to sell & September won’t be any different to the Summer in that regard. In my opinion anyway, but we’ll see what happens soon enough.

Twiglets1 · 13/08/2023 08:30

dramoy · 13/08/2023 08:19

Not true, if buying a bigger home or getting a smaller mortgage are important to you

personally i think it's very hard to time the bottom & the top of the market.

Agreed. It’s virtually impossible. All you can hope to do is try not to Buy at the very most expensive time (like during the Stamp duty holiday which created a sense of urgency amongst many Buyers) or Sell at the very worst time.
Anything else is largely down to luck.

XVGN · 13/08/2023 08:32

dramoy · 13/08/2023 08:19

Not true, if buying a bigger home or getting a smaller mortgage are important to you

personally i think it's very hard to time the bottom & the top of the market.

I apologise. No, timing the exact top or bottom is a useless endeavour. But if you can act within 3 or months of either then you'll be better placed and timing is important for some.