Page 2 | Any Buyers Scared to Make Offers?

CheeseyOnionPie · 2023-08-12T23:48:36+00:00

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.

Ohyousillydivvy · 13/08/2023 08:46

My fix is ending next Sept so we're looking to put our house for sale this autumn. We need more space as the kids need their own rooms & I need a larger reception.

People have to move regardless of the market, just be aware that a massive drop on prices will mean more buyers. If you want to avoid a bidding war then offer what you are comfortable with. I'd say go ahead and offer 5% less than the last buyer and see what they say.

dramoy · 13/08/2023 09:35

A few more but the market won’t suddenly change in September with a significant influx of properties coming to market

I don't think it will be huge but likely an uptick. Where I am a few more have started to filter through compared to 2 months ago but as you say we shall have to wait and see. It does depend on circumstances as well, people who have lots of equity may not mind selling at a lower price if what they are buying has also fallen.

dramoy · 13/08/2023 09:39

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.

Sorry I wasn't explicit.

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.

We upsized during the stamp duty holiday & saved there. We probably overpaid a little bit but fixed for 5 yrs at 2.3% so I'm not to worried. We needed to move anyway.

Twiglets1 · 13/08/2023 11:08

dramoy · 13/08/2023 09:39

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.

Sorry I wasn't explicit.

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.

We upsized during the stamp duty holiday & saved there. We probably overpaid a little bit but fixed for 5 yrs at 2.3% so I'm not to worried. We needed to move anyway.

I was speaking generally (that prices were sky high during the stamp duty holiday) but individual circumstances are more nuanced.

My daughter also bought at a time of high prices (last May) as also needed to move then. Not quite the frenzy of the stamp duty holiday so she did get some money knocked off but wasn't in a strong position to negotiate like she would be if buying today, by contrast. However, like you she locked into a good Fixed rate. She probably wouldn't be able to buy the same flat now that interest rates are higher. So if the value falls temporarily then so be it - it's her home.

The property market is so complex. I agree that if you got a 2.3% fix for 5 years that was a good deal and worth "overpaying" somewhat on the initial price. Not really overpaying, just paying what you had to in that market. There would have been a sweet spot where prices were starting to fall and interest rates were still low but blink and you missed it. Likewise, there will be a small window in the future when fixed rate deals have reduced to 4% say but prices have yet to start increasing again but no one can predict exactly when that will be.

DrySherry · 13/08/2023 11:36

Prices certainly have further to fall. Some regions & properties may or may not fall quite dramatically. I would say either go in with low offers or wait. You say you are in no hurry to buy so you can bargain hard.

Original poster

CheeseyOnionPie · 13/08/2023 12:17

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!

@TheYear2000 It’s hard isn’t it? I keep hearing property pundits (e.g. Moving Home with Charlie on YouTube) saying that if you don’t have to buy now, then don’t buy. But then when viewing properties, you invariably see one you like well enough to offer on!
I was going to get this weekend of viewings done and then leave it for a couple of months but then I saw this house and it ticks a fair few boxes for me. I like the area but it’s the sort of place where people tend to stay for many years (lots of 1930s 3/4 bed terraces) so a lot of the ones that will come to market can be due to elderly owners moving or passing away and they often need £50k+++ of work doing.

I need a crystal ball STAT!!!

OP posts:

ZooMount · 13/08/2023 12:34

If you are buying in London and staying long term then I wouldn't worry at all. You're not going to lose 100k. We have just made 200k on our house in 10 years, yes we might have made 250 a year ago but we've still made money. London is a different kettle of fish.

CrashyTime · 12/09/2023 17:45

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

Yes, but the problem is that people have taken that approach, totally over-borrowed and then got caught out with interest rates snapping higher so quickly, many will lose the home (but not the debt) because they offered too much (and the bank went along with it) Far better to wait until interest rates do their work of bringing prices down.

CrashyTime · 12/09/2023 17:50

Ohyousillydivvy · 13/08/2023 08:46

My fix is ending next Sept so we're looking to put our house for sale this autumn. We need more space as the kids need their own rooms & I need a larger reception.

People have to move regardless of the market, just be aware that a massive drop on prices will mean more buyers. If you want to avoid a bidding war then offer what you are comfortable with. I'd say go ahead and offer 5% less than the last buyer and see what they say.

"just be aware that a massive drop on prices will mean more buyers."

Not with rates going up, people who can`t afford the monthly payments are just staying away now and continuing to live where they are, if there is a really big price correction there might be a rush but we are never going back to Zero Cost Debt World IMO.

day80 · 05/02/2024 16:07

Looking for some information on Raynes park to buy a property. Any streets/ specific areas to avoid ? DS got offer in Kings Wimbledon and planning to move by this summer

CrashyTime · 06/02/2024 16:13

Ohyousillydivvy · 13/08/2023 08:46

My fix is ending next Sept so we're looking to put our house for sale this autumn. We need more space as the kids need their own rooms & I need a larger reception.

People have to move regardless of the market, just be aware that a massive drop on prices will mean more buyers. If you want to avoid a bidding war then offer what you are comfortable with. I'd say go ahead and offer 5% less than the last buyer and see what they say.

"just be aware that a massive drop on prices will mean more buyers."

Maybe a few more, but there wont be the same frenzy as when people thought property prices only went up (and rates stayed at zero) in the late 80s into the 90s crash people wouldnt touch property, even when it was very cheap, it became "bad news" something that was going to cost you money.