Mini (attempted) house purchase rant
Discussion
Mrs BTC and I have been looking in a certain area for a house. We are FTBs, so have no property to sell and a reasonable deposit which means we also have an agreement in principle.
Last week a new property came onto the market, it needs a lot of work to renovate and bring up to scratch. The price is actually pretty steep in comparison to what has been on in the same area previously. In order to not mess around, we have made an offer £2k under the asking price, which I think is a damn good price given the condition of the house and our circumstances.
Our offer has been rejected as apparently the vendor now thinks the agent has priced it too low. I also believe that if we went back with the asking price he would also reject it, convincing himself the property market will magically fix itself in the next couple of months. Now, all we can do is hope that other offers come in considerably lower than ours. Seems even in a house price slump we can't actually buy.
Last week a new property came onto the market, it needs a lot of work to renovate and bring up to scratch. The price is actually pretty steep in comparison to what has been on in the same area previously. In order to not mess around, we have made an offer £2k under the asking price, which I think is a damn good price given the condition of the house and our circumstances.
Our offer has been rejected as apparently the vendor now thinks the agent has priced it too low. I also believe that if we went back with the asking price he would also reject it, convincing himself the property market will magically fix itself in the next couple of months. Now, all we can do is hope that other offers come in considerably lower than ours. Seems even in a house price slump we can't actually buy.
The trouble is a couple of months ago, realistic offers were common place and accepted. Now for some reason everyone seems to think house prices are back on the up and so are unwilling to accept offers.
We looked at a house, 4 bed detached with double garage that was up for 320 last year, then 270 and finally sold last month for 250k. A sum we were about to offer only to be pipped at the post by a purchaser in a better position.
1 week later a similar style house (albeit very slightly smaller in room size in all rooms) in a similar area goes up for 290k. Speaking with the estate agent they reckon the vendor is unlikely to accept much of an offer, despite the fact a bigger (and IMHO better finished) house sold only the week before for 40k less.
We looked at a house, 4 bed detached with double garage that was up for 320 last year, then 270 and finally sold last month for 250k. A sum we were about to offer only to be pipped at the post by a purchaser in a better position.
1 week later a similar style house (albeit very slightly smaller in room size in all rooms) in a similar area goes up for 290k. Speaking with the estate agent they reckon the vendor is unlikely to accept much of an offer, despite the fact a bigger (and IMHO better finished) house sold only the week before for 40k less.
bazking69 said:
Why do people seem to think that everyone who currently has their house on the market is that desperate to sell that they will entertain silly offers just because we are in a recession and house price slump?
It depends what you class a silly price to be and what you class a realistic price to be.If the house isn't selling after a period on the market then you're asking more than the market value.
Muncher said:
bazking69 said:
Why do people seem to think that everyone who currently has their house on the market is that desperate to sell that they will entertain silly offers just because we are in a recession and house price slump?
It depends what you class a silly price to be and what you class a realistic price to be.If the house isn't selling after a period on the market then you're asking more than the market value.
I think too many people have been reading NW's threads thinking they can offer 40% below asking & get it.
Dave_ST220 said:
Muncher said:
bazking69 said:
Why do people seem to think that everyone who currently has their house on the market is that desperate to sell that they will entertain silly offers just because we are in a recession and house price slump?
It depends what you class a silly price to be and what you class a realistic price to be.If the house isn't selling after a period on the market then you're asking more than the market value.
I think too many people have been reading NW's threads thinking they can offer 40% below asking & get it.
Dave_ST220 said:
Some do, some don't, there is no rule. They refused your offer, you have two choices, up it or walk away.
I wouldn't entertain anything less than asking after only been on the market for a week.
Agreed. Unless your a distressed seller why take offers when you can wait? I wouldn't entertain anything less than asking after only been on the market for a week.
... in fact receiving an offer after just a week would make many vendors think that the house might prove to be popular with buyers and so will hold on to see what happens (which is sort of backed up by the "agent underpriced it" comment). Who knows, he might have had a large amount of interest ....
Big Time Charlie said:
Mrs BTC and I have been looking in a certain area for a house. We are FTBs, so have no property to sell and a reasonable deposit which means we also have an agreement in principle.
Last week a new property came onto the market, it needs a lot of work to renovate and bring up to scratch. The price is actually pretty steep in comparison to what has been on in the same area previously. In order to not mess around, we have made an offer £2k under the asking price, which I think is a damn good price given the condition of the house and our circumstances.
Our offer has been rejected as apparently the vendor now thinks the agent has priced it too low. I also believe that if we went back with the asking price he would also reject it, convincing himself the property market will magically fix itself in the next couple of months. Now, all we can do is hope that other offers come in considerably lower than ours. Seems even in a house price slump we can't actually buy.
Who said you can't buy?Last week a new property came onto the market, it needs a lot of work to renovate and bring up to scratch. The price is actually pretty steep in comparison to what has been on in the same area previously. In order to not mess around, we have made an offer £2k under the asking price, which I think is a damn good price given the condition of the house and our circumstances.
Our offer has been rejected as apparently the vendor now thinks the agent has priced it too low. I also believe that if we went back with the asking price he would also reject it, convincing himself the property market will magically fix itself in the next couple of months. Now, all we can do is hope that other offers come in considerably lower than ours. Seems even in a house price slump we can't actually buy.
You offered less than the asking price, and you got your offer rejected. Three simple rules to house buying:
1) If you offer less than the asking price, don't complain if it is rejected.
2) Your 'realistic offer' is your opinion only. It is obviously not everyone's as they would agree with you.
3) If you are going to mess around be prepared to be pipped at the post or messed around yourself.
If you really want a house enough that you will complain about not getting it, considering it will be the most major purchase of your life and you will live in it possibly for decades, why mess around with the final two grand? I mean is your assessment of the market accurate enough to categorically get any house within 1%?
All that has told the buyer is that you have thought about it enough to want to argue over the last two grand, which tells him he can probably eek another couple of counter offers from you and possibly get another buyer to play you off.
Consider what has happened compared to if you placed an offer for the full asking price giving him 24 hours to accept and take the house off the market with the view to exchange contracts in 4 weeks.
It would have taken someone very ballsy to reject that, and IMHO and experience - as I have done exactly the same, you would be cracking champagne now and not complaining.
Big Time Charlie said:
Update
Vendor has relented it seems and so we have a deal! All feels pretty odd sorting out solicitors and surveyors for the first time. In fact I'm quite s
tting it, which is not the emotion I thought I would have. Is this normal?
Pretty much the exact situation as me just now. Got a call on Tuesday from my solicitor to say congratulations my offer had been accepted. Got off the phone with a large smile on my face, then about an hour later i was in a state of 'fVendor has relented it seems and so we have a deal! All feels pretty odd sorting out solicitors and surveyors for the first time. In fact I'm quite s
tting it, which is not the emotion I thought I would have. Is this normal? k me, what have i done, i was in no rush to buy, i deffo like the house, will i go fix or tracker, i forgot to ask about the council tax, fk it i should be ok, what if he neighbours dont like me, maybe i messed up my budget and will be skint for the next 300yrs' ect ect..Took vast quantities (and qualities) of p0rn to calm down again that night. Wednesday was all happy again, then noticed a big arsed envelope with my name on it. Back to a state of 'f
k me, its from the solicitor, I feel unwell again, too many big words, over complicated, how can this fooker charge so much, what have I done'..I'm sure it will all be fine though...
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