buying a house now?
Discussion
I think its time to buy a house, im 29! so it needs to be done now before i end up like ronnie corbet in sorry 
Anyway
Whats the current situation like in terms of making offers? is everyone still offering maybe 20% below asking price and meeting somewhere in between? or are things on the up and low ballers being laughed at?
Locally to me it seems the estate agents keep putting 'sold subject to contract' or 'offer accepeted' on the web advert, i would imagine this is to make people think houses are selling, i dont believe some of these are as they have been on there for months some of them
Would it be crazy to think i could get a house which is up for £220k for 200k or maybe a little less?
Anyway
Whats the current situation like in terms of making offers? is everyone still offering maybe 20% below asking price and meeting somewhere in between? or are things on the up and low ballers being laughed at?
Locally to me it seems the estate agents keep putting 'sold subject to contract' or 'offer accepeted' on the web advert, i would imagine this is to make people think houses are selling, i dont believe some of these are as they have been on there for months some of them
Would it be crazy to think i could get a house which is up for £220k for 200k or maybe a little less?
m3jappa said:
I think its time to buy a house, im 29! so it needs to be done now before i end up like ronnie corbet in sorry
Anyway
Whats the current situation like in terms of making offers? is everyone still offering maybe 20% below asking price and meeting somewhere in between? or are things on the up and low ballers being laughed at?
Locally to me it seems the estate agents keep putting 'sold subject to contract' or 'offer accepeted' on the web advert, i would imagine this is to make people think houses are selling, i dont believe some of these are as they have been on there for months some of them
Would it be crazy to think i could get a house which is up for £220k for 200k or maybe a little less?
Some of the things that you are saying make you sound 19, not 29. I know you've not bought before, buit surely you can still see what's going on in the world?!?Anyway
Whats the current situation like in terms of making offers? is everyone still offering maybe 20% below asking price and meeting somewhere in between? or are things on the up and low ballers being laughed at?
Locally to me it seems the estate agents keep putting 'sold subject to contract' or 'offer accepeted' on the web advert, i would imagine this is to make people think houses are selling, i dont believe some of these are as they have been on there for months some of them
Would it be crazy to think i could get a house which is up for £220k for 200k or maybe a little less?
First of all, how do you know that the asking price doesn't reflect the actual value at the time of selling? Why would you offer 20% below a well priced house?
Secondly, why would estate agents should houses as being sold stc, or whatever, if they weren't? Do you think sellers would be happy for that to happen to their house if it wasn't true? It would instantly put off most people even considering their property; that's usually what happens. If properties are being shown as sold stc, then that's what they are.
And those houses which are now on for 220k, how do you know what they were on for, before? They could have been on for 250k, or 260k, or who knows?!? I doubt you've been monitoring those particular properties, closely, or you'd know what they are selling for, and what the previous asking prices had been.
In answer to your question: Yes, I would think you were crazy if you thoughts that you could get a 220k priced property, for under 200k. I would eb impressed if you could, but put yourself in the seller's shoes; do you think they would be crazy to sell at that price?
Edited by RichBurley on Tuesday 16th June 17:17
m3jappa said:
I think its time to buy a house, im 29! so it needs to be done now before i end up like ronnie corbet in sorry
Anyway
Whats the current situation like in terms of making offers? is everyone still offering maybe 20% below asking price and meeting somewhere in between? or are things on the up and low ballers being laughed at?
Locally to me it seems the estate agents keep putting 'sold subject to contract' or 'offer accepeted' on the web advert, i would imagine this is to make people think houses are selling, i dont believe some of these are as they have been on there for months some of them
Would it be crazy to think i could get a house which is up for £220k for 200k or maybe a little less?
Offer accepeted and that are normal things to put up. I am in the process of buying a first house and it seems that the initial offer being accepeted is pretty much nothing in terms of what happens downstream. Things are only final and legal about a month after when you exchange contracts and anyone can walk for any reason. Those signs mean they have sold unless it goes wrong. Anyway
Whats the current situation like in terms of making offers? is everyone still offering maybe 20% below asking price and meeting somewhere in between? or are things on the up and low ballers being laughed at?
Locally to me it seems the estate agents keep putting 'sold subject to contract' or 'offer accepeted' on the web advert, i would imagine this is to make people think houses are selling, i dont believe some of these are as they have been on there for months some of them
Would it be crazy to think i could get a house which is up for £220k for 200k or maybe a little less?
My experiance of buying is probably pretty relevant. Buyers are generally low balling and sellers are still expecting last years money for their place. Alot of the places I looked at were being marketed by owners who wanted to have their cake and eat it. I think their are bargains to be had out there from people in desperate positions. However, I would also be prepared for the search to take a while and be dissapointed/ let down by unrealistic sellers who pull the property when they realise they cant get what they want. That happened to me quite a few times.
In terms of what to offer always start low. I always try to offer what I think is fair but it seems almost expected that there is three offers in everyone. Just pay close attention to what is going on in the area and be pally with the agents. If you get pally enough you can sometimes find out agreed prices which is a usefull tool when you want to know where to pitch.
Good luck!
Each house is different - it's possible that you may get a house that is on at £220k for £200k but that doesn't mean to say all sellers will or even should drop by that much. Some will be worth the full £220k and just have been priced realistically, others won't be but may have been priced in order for the seller to have built in some drop room, makes it look like he is taking a hit and being accommodating come negotiation time, when in fact he is just getting what he wanted.
A house is worth what it is worth to you, the asking price is nothing more than an indicator of what they might want - in these times with different pricing strategies (as above) it's not even very good at that.
A house is worth what it is worth to you, the asking price is nothing more than an indicator of what they might want - in these times with different pricing strategies (as above) it's not even very good at that.
m3jappa said:
Locally to me it seems the estate agents keep putting 'sold subject to contract' or 'offer accepeted' on the web advert, i would imagine this is to make people think houses are selling,
Developers might do this, but I'd be surprised if EA's do. Although you might be seeing lots of sales falling through.m3jappa said:
Would it be crazy to think i could get a house which is up for £220k for 200k or maybe a little less?
Absolutely not - I'd start at 25% below asking...but completely depends on the property. Too many variables to give conclusive advice, except houseprices ain't shooting up any time soon (interest rates might) so what's the hurry?
If I were in your shoes, I'd be looking to buy a repo at auction. IMO you'd be slightly mad to buy on the open market unless you were sure you were getting an absolute bargain.
DYOR...
IMO
cs02rm0 said:
RichBurley said:
In answer to your question: Yes, I would think you were crazy if you thoughts that you could get a 220k priced property, for under 200k.
I would think anyone offering 200k on an asking price of 220k would get their arm ripped off at the moment?!VX Foxy said:
m3jappa said:
Locally to me it seems the estate agents keep putting 'sold subject to contract' or 'offer accepeted' on the web advert, i would imagine this is to make people think houses are selling,
Developers might do this, but I'd be surprised if EA's do. Although you might be seeing lots of sales falling through.m3jappa said:
Would it be crazy to think i could get a house which is up for £220k for 200k or maybe a little less?
Absolutely not - I'd start at 25% below asking...but completely depends on the property. Too many variables to give conclusive advice, except houseprices ain't shooting up any time soon (interest rates might) so what's the hurry?
If I were in your shoes, I'd be looking to buy a repo at auction. IMO you'd be slightly mad to buy on the open market unless you were sure you were getting an absolute bargain.
DYOR...
IMO
Many thanks for the advice.
Personally i don't think now is a bad time to buy, i cant see prices going down much more and besides i want it to live in not make money so its all relative what they do. I want a nice 3 bed place so i can stay there for a few years if need be.
Why now? well i,m 29 years old and tbh i,m a bit embarrassed, i have my own buisness, i have a bit of money, i,ve had nice cars, holidays etc and just want to move out, my parents are good, my gf pretty much lives here but i think its time to go.
RichBurley said:
Secondly, why would estate agents show houses as being sold stc, or whatever, if they weren't? Do you think sellers would be happy for that to happen to their house if it wasn't true? It would instantly put off most people even considering their property; that's usually what happens. If properties are being shown as sold stc, then that's what they are.
Not always. I know a few agents around here that advertise (either "For Sale", "Under Offer" or "SSTC") houses that aren't even for sale.
It raises their profile and makes them appear to be doing good business.
touching cloth said:
I would think anyone offering 200k on an asking price of 220k would get their arm ripped off at the moment?!
maybe a wait and see if you can get the £220k or closer too it. ...but you're right - there are too many variables...
Feel free to buy if you can afford it whatever happens, and can also afford to take a hit on the value of the house.
My suspicions are:
Why? Two reasons.
1. There are significant numbers of people who are in negative equity, and thus realistically unable to remortgage. At the end of their fixed terms, they therefore revert to SVR. At the moment, they're fine, as the base rate is low, for obvious political reasons. However, they are very exposed to alterations in the SVR, and as soon as rates flutter upwards, increasing numbers of people will be unable to afford to pay their mortgage.
2. There is likely to be more pain to come in the jobs market, with a knock-on effect on people's ability to pay their mortgages.
The outcome? A cascade of repossessions, bankruptcies, shock headlines about negative equity, and a loss of market confidence. And further falls in house prices.
(I'm not a professional; I'd be interested to hear the views of people who are
)
My suspicions are:
- the current flattening / bounce of the market is temporary and false
- there will be more pain to come
Why? Two reasons.
1. There are significant numbers of people who are in negative equity, and thus realistically unable to remortgage. At the end of their fixed terms, they therefore revert to SVR. At the moment, they're fine, as the base rate is low, for obvious political reasons. However, they are very exposed to alterations in the SVR, and as soon as rates flutter upwards, increasing numbers of people will be unable to afford to pay their mortgage.
2. There is likely to be more pain to come in the jobs market, with a knock-on effect on people's ability to pay their mortgages.
The outcome? A cascade of repossessions, bankruptcies, shock headlines about negative equity, and a loss of market confidence. And further falls in house prices.
(I'm not a professional; I'd be interested to hear the views of people who are
)Very true mft
I see exactly what your saying and it is a worry, its difficult to tell and i guess no one actually knows unless we would all be rich.
But will prices drop huge levels? i,m not sure they will, i,m not sure any government would allow that, we all know that buoyent market means 'boom' even if it is artificial it doesnt matter if theres money flowing round the pot, even if it is worthless.
Maybe i should rent for a few months, i don't know.
Its never easy is it
I see exactly what your saying and it is a worry, its difficult to tell and i guess no one actually knows unless we would all be rich.
But will prices drop huge levels? i,m not sure they will, i,m not sure any government would allow that, we all know that buoyent market means 'boom' even if it is artificial it doesnt matter if theres money flowing round the pot, even if it is worthless.
Maybe i should rent for a few months, i don't know.
Its never easy is it
Edited by m3jappa on Tuesday 16th June 17:50
mft said:
1. There are significant numbers of people who are in negative equity, and thus realistically unable to remortgage. At the end of their fixed terms, they therefore revert to SVR. At the moment, they're fine, as the base rate is low, for obvious political reasons. However, they are very exposed to alterations in the SVR, and as soon as rates flutter upwards, increasing numbers of people will be unable to afford to pay their mortgage.
and what do our super-bright government do? They persuade everyone to go and get a new £10k car loan with the new scrappage scheme so they have no spare income for when the rates to do go up. Clever. Not.Same position as the OP but just "bit the bullet" and bought my first house last month ( at the age of 34 ) with the G/F and should be moving soon. The house we are buying was on at £245k this time last year ( which was "the going rate" at the time ). We offered £207.5k for the same house a year later which was accepted. The house is a 4 bed detached with decent sized garden,conservatory and the all important garage!
Managed to fix the mortgage at 4.39% for 5 years with HSBC with a deposit of £90k ( which works for us as we know how much we are forking out a month ).
Have we done the right thing? I think so but only time will tell. Might have been a disasterous thing to do, after all it's a gamble and NO-ONE is an authority on what is going to happen although we can all only speculate on what we THINK might happen.
Managed to fix the mortgage at 4.39% for 5 years with HSBC with a deposit of £90k ( which works for us as we know how much we are forking out a month ).
Have we done the right thing? I think so but only time will tell. Might have been a disasterous thing to do, after all it's a gamble and NO-ONE is an authority on what is going to happen although we can all only speculate on what we THINK might happen.
m3jappa said:
Very true mft
I see exactly what your saying and it is a worry, its difficult to tell and i guess no one actually knows unless we would all be rich.
But will prices drop huge levels? i,m not sure they will, i,m not sure any government would allow that, we all know that buoyent market means 'boom' even if it is artificial it doesnt matter if theres money flowing round the pot, even if it is worthless.
Maybe i should rent for a few months, i don't know.
Its never easy is it
Very true, whatever option you take, you just know it'll be the wrong one!I see exactly what your saying and it is a worry, its difficult to tell and i guess no one actually knows unless we would all be rich.
But will prices drop huge levels? i,m not sure they will, i,m not sure any government would allow that, we all know that buoyent market means 'boom' even if it is artificial it doesnt matter if theres money flowing round the pot, even if it is worthless.
Maybe i should rent for a few months, i don't know.
Its never easy is it
Edited by m3jappa on Tuesday 16th June 17:50
One point is that not everyone is losing their jobs, if the market falls like we have seen recently then people who are still earning money and are able to fund the mortgages start getting more involved in the market and I suspect this is what we are seeing now.
Consequently it does seem unlikley that prices will continue to fall, but maybe that is wishful thinking on my part!
Another thing we all know is the interest rates are going to go up. So yes some people will be stuck on the variable rate but its going to be those who either lose their jobs or streched themselves too far who are in trouble, and thats not everyone, thats not even the vast majority.
Lots of people bought their houses years ago and it doesnt matter what happens as long as they dont lose their job.
I also cant see the rates going up to ridiculous levels, every muppet in charge at least realises that if that happens there will be huge trouble, i,d like to think they will top out at 8% max perhaps.
Its all a big pot of money we all share from so when eveyone stops spending no one has anything, i believe we saw this earlier this year and i believe thats starting to stop now, people seem more confident, i,m getting more quotes come in and no ones cancelling now- in january EVERY job i had cancelled!
This scrappage scheme and the rest of it is rubbish and the money isnt real but i hate to agree to the fact that if everyone keeps spending it will prop society up- falsly maybe but if i,m busy and earning money paying off the mortgage then i dont care.
Lots of people bought their houses years ago and it doesnt matter what happens as long as they dont lose their job.
I also cant see the rates going up to ridiculous levels, every muppet in charge at least realises that if that happens there will be huge trouble, i,d like to think they will top out at 8% max perhaps.
Its all a big pot of money we all share from so when eveyone stops spending no one has anything, i believe we saw this earlier this year and i believe thats starting to stop now, people seem more confident, i,m getting more quotes come in and no ones cancelling now- in january EVERY job i had cancelled!
This scrappage scheme and the rest of it is rubbish and the money isnt real but i hate to agree to the fact that if everyone keeps spending it will prop society up- falsly maybe but if i,m busy and earning money paying off the mortgage then i dont care.
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