Fixed price house sale etiquette

[LazyLinePainterJane]

We are looking around with an eye to maybe buy should we find the right deal but keep seeing houses at "fixed price". Now I know what this means in THEORY, but does it really mean "fixed price for a few months until we realise it isn't selling and then we will reduce it"?

I saw one at a fixed price a few months ago at £160,000 and then recently down to £130,000 but still fixed price.

I know that in theory this means that they are not open to offers but in this climate does it really mean that?

Anyone here sold a house at fixed price or bought one that stated that?

is on at £140,000 and here: (as I am sure you will ask)

You can offer what you like and the seller can decide to accept or not.

I buy and sell things all day and in markets like that for stocks, bonds or commodities all buyers and sellers in effect make 'fixed price offers and bids' all the time. Its how these markets really work.

The deals are struck when people agree to accept someones bid or offer.

The housing market is the same.

It is not like going to a shop and looking at the 'fixed price' of a tin of beans which cannot be negotiated.

I think it's a new tactic from estate agents trying to imply that's the price take it or leave it.
I suspect most will leave it
I would have a look around at www.ourproperty.co.uk and see what the current owners paid for it, on that basis you'll know if they have any equity because if they paid £140k then that's what it'll be priced at for some time because the bank won't allow them to accept any less.

Agree with ABetaDad and Sorrento in that it's a ploy to try and suggest that's the price and there's no negotiating but EVERYTHING IS NEGOTIABLE (great book BTW, can't remember who it's by) and anyone who is serous about selling their house would be a fool to expect buyers not to try and reduce the price on a property. It's a bit like those "sale for a limited period" that estate agents have - how can you have a sale on a house and if it's reduced for a coupke of weeks, no-one's going to then pay more for it after the "sale" has ended!??!!

Thanks guys. My rational head tells me that of course it is simply an asking price, but there is certainly a psychological-ness to "fixed price". Thanks for the link sorrento, I found more houses there than I had on nethouseprices. It sold in 2000 for £100,000...

If you like the look of it I would go see it and afterwards, unless you think it really is a bargain already, tell the estate agent that you won't make an offer because you assume they won't take one and you think it's x-amount overpriced (try 20% ), then see from their reaction whether the owners are actually more flexible than that. We did this for one house when we were looking a while ago and the EA said "Well, they won't consider it... yet" with a knowing grin - i.e. he knew they weren't going to sell it at that price and just needed a little time for reality to set in. So if you've seen it you'll be in a great position if the price does come down.

Yes, you also don't know exactly 'where they're at' (ie the vendors). Maybe your lower offer will come in the day after the previous evening's heated discussion where SHE said (for example!) 'I'm sick of living in limbo and keeping this house in show-home condition, let's unload it for the next sensible offer'!

Sort of happened to us (abroad) a while back. An agent was showing us house after house. He drove us past one, commenting that the owners wanted (names silly sum) but that he felt they were tiring of the waiting game (as were the agents thus weren't actually bringing any more possible buyers to the house as it was a waste of time at THAT price) so we went in, made a proper offer- and were accepted more or less on the spot! Seems they'd had 'the conversation'.

Good luck.

LazyLinePainterJane - If it sold at 2000 for £100k then £120k is reasonable in my opinion, house prices are at 2004 levels now and should be around 2002 in the midlands by Christmas which makes £120k by my calculations a fair offer.
Of course it depends how much they need to move.
But as I keep saying on these threads, buying a house is a business decision do not fall in love or any of that crap, it's bullshit peddled by people who make money out of you.
For every pound you borrow you pay £3 back so keep that in mind when making offers too

Oh more posts thank you! Sorrento I completely agree with you about emotional house buying. I am very practical and do not understand "falling in love" with a house. IMO, if you like a certain style you go for that, everything else you can change.

I was thinking around the 120 mark also, we might look round the streets tomorrow to get some ammunition, a similar sounding one sold in the next street for a hundred recently so want to see what is what.

I guess the bottom line is that an asking price is always an asking price and nothing more.

Good idea, McNulty, shall try that

So my next question is will we get a mortgage with only a 10% deposit in this market?

Not a good rate, can you find another 5% ?

if we wait. Which I suppose is no bad thing anyway. Either the house will still be there and they will be more open to offers or there will be something else I suppose. We could save an extra 5% in 6 months.

The thing is it'll take 12 weeks for any house to go through the process so just keep saving, you've come this far and the penny will drop after the "spring bounce" simply doesn't materialise and you'll have saved more and be in a better position. You seem to have your head screwed on though

Yes I have read about this bounce that everyone selling and agents are waiting for. Thanks Sorrento