Absolutely - the problem is simply that there are no potential buyers with whom to be hard-nosed. We are still getting the odd viewer, but so far none of them have made an offer. There's not a lot we can do, except sit it out.
Is it the right time to buy?
- Thread starter gkd_uk
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Then we are at 6.
"Historically all property crashes follow this pattern:
1. Prices fall.
2. Buyers don't buy because they anticipate further price falls.
3. Sellers can't sell because of 2) but also because they still think of their property as being worth what it was before the market peaked. It hurts them to slash the price to something a buyer would pay.
4. Transactions stagnate.
6. Pent-up demand starts to ignite the market - buyers try their chances with low offers, sellers who need to sell drop their prices.
7. Potential sellers who had been waiting for prices to steady or go back up realise they are in for a long wait and rush to the market before prices fall even further.
8. Excess supply gives buyers even more negotiating power.."
In this case we are at number 6 as i have just had £15,000 less than the asking price accepted. i was just been cheeky i would have come up £10,000. Right time to buy and right time to try a really low offer.
"Historically all property crashes follow this pattern:
1. Prices fall.
2. Buyers don't buy because they anticipate further price falls.
3. Sellers can't sell because of 2) but also because they still think of their property as being worth what it was before the market peaked. It hurts them to slash the price to something a buyer would pay.
4. Transactions stagnate.
6. Pent-up demand starts to ignite the market - buyers try their chances with low offers, sellers who need to sell drop their prices.
7. Potential sellers who had been waiting for prices to steady or go back up realise they are in for a long wait and rush to the market before prices fall even further.
8. Excess supply gives buyers even more negotiating power.."
In this case we are at number 6 as i have just had £15,000 less than the asking price accepted. i was just been cheeky i would have come up £10,000. Right time to buy and right time to try a really low offer.
For those who were interested in the ongoing saga of my attempt to sell my flat, here is the latest instalment. We started at offers over £105k, away back in April, when all the estate agents who'd valued it were gaily throwing around prices like £130-135k. We fairly quickly went to a fixed price of £125k, and then down to £122.5. We've been at £118k for the last month or so and have also just painted the living room to make it more of a neutral shade.
The estate agent came round today to take photos of the living room - and to advise us to drop the price to £110k. This is a big chunk and is only £5k above what we paid 3 years ago, so we are now figuring out whether we can still afford to buy somewhere that we'd want to live, if we accept such a low price.
It's not nice out here in the property market folks - don't come in unless you really need to!
The estate agent came round today to take photos of the living room - and to advise us to drop the price to £110k. This is a big chunk and is only £5k above what we paid 3 years ago, so we are now figuring out whether we can still afford to buy somewhere that we'd want to live, if we accept such a low price.
It's not nice out here in the property market folks - don't come in unless you really need to!
Sorry to hear you tale of woe, GG. It is, however, the reality of a falling market. The only positive is that the price of anything you wish to buy will be falling too. It's all relative.
From the jungle drums I've been listening to, things are likely to get a lot worse before they get better.
From the jungle drums I've been listening to, things are likely to get a lot worse before they get better.
Thanks Jeddo. The prices of properties we'd like to buy are definitely falling - the problem is just persuading anyone to buy our property!
In case anyone is interested, we have finally received an offer on our flat - for £102k. We have said no (on the advice of our estate agent) and are now waiting to see what, if anything, they come back with. Interestingly, one of the reasons they made such a low offer relates to something in our Home Report (Scottish equivalent of Home Information Pack). This is irritating because we didn't actually have to get such a report, since they only became a legal requirement on 1 December and our house was on sale before that. But we thought it would enable us to compete on a level playing field if we got one. Instead, it has just handed our prospective buyer a bargaining tool with which to try to lower the price.
Anyway, we are now on tenterhooks waiting to see if we will sell - it is a very nervous time, and not ideal right before Christmas!
Anyway, we are now on tenterhooks waiting to see if we will sell - it is a very nervous time, and not ideal right before Christmas!
Thanks Kate. They came back with an offer of £105k, £5k below our asking price, and we have accepted. However the bank insisted they get their own survey done, rendering ours entirely pointless, so we are waiting to have the "subject to survey" condition lifted from their offer. I am very conscious that many people are experiencing delays in completing sales, so I'm going to push for an early completion of missives - I don't want to find myself all packed and ready to move, only to find the buyer's having second thoughts!
Hi, we did have a survey done - we had the full Home Report, which in Scotland comprises an energy report, property information questionnaire and single survey. And I'm really not sure if it was worthwhile - it may have helped in getting the buyer's interest, but it also flagged up a problem with the gutters which she then used to drive the price down, even though the survey valued our flat at the asking price. However that is probably more related to the current market conditions, which put buyers in a very strong position, than it is to the Home Reports.
Just for the sake of completeness, I thought I'd let folk know that we have now actually completed our sale and moved out! We are staying with family while we find a new flat, so I am rapidly becoming best friends with the local estate agents and have several viewings lined up already. So far, there seems to be a fair amount of property on the market and a reasonable number of viewers, but judging from the length of time that property is taking to sell, either viewers aren't making offers or they're not able to get mortgages. I shall continue to report from the front line of the property market - more news soon!
Glasgow I have to say you are braver then me. Quick tip from an investment broker friend of mine - stay away from flats if you can, as they are the slowest to increase in value. Houses hold capital really well but flats only appeal to a small segment of the market so are less attractive long term.
beware of inflated premiums
no doubt you have seen this article in the press
Insurance broker Neil Cook of Ember JD Insurance, is raising concerns about the cost of insuring whole blocks of flats.
He says he is aware that hidden commission charges are being shared between brokers and managing agents at the property owner’s cost.
In a recent article in the Observer, Mr Cook suggested that some property owners are paying up to double the market rate for buildings insurance because brokers are paying “kickbacks” to the property agents who manage their homes.
He alleges that in some cases, backhanders are funded by insurance brokers choosing the insurer that pays the most commission, instead of the company that offers the best value.
Leaseholders are largely oblivious to their losses because they frequently have no idea which insurance company is covering the block.
Frequently, management companies simply send out an annual request for “ground rent service charges and insurance”.
Speaking to the Observer Mr Cook states: “I see a lot of inflated premiums for blocks of flats where it just doesn’t add up, and there is no way the broker has sought the best deal … sometimes it is as much as double but, typically, the premium is about 30% above what you would expect to pay.”
please comment and let me I can help find if you are being over charged or not
no doubt you have seen this article in the press
Insurance broker Neil Cook of Ember JD Insurance, is raising concerns about the cost of insuring whole blocks of flats.
He says he is aware that hidden commission charges are being shared between brokers and managing agents at the property owner’s cost.
In a recent article in the Observer, Mr Cook suggested that some property owners are paying up to double the market rate for buildings insurance because brokers are paying “kickbacks” to the property agents who manage their homes.
He alleges that in some cases, backhanders are funded by insurance brokers choosing the insurer that pays the most commission, instead of the company that offers the best value.
Leaseholders are largely oblivious to their losses because they frequently have no idea which insurance company is covering the block.
Frequently, management companies simply send out an annual request for “ground rent service charges and insurance”.
Speaking to the Observer Mr Cook states: “I see a lot of inflated premiums for blocks of flats where it just doesn’t add up, and there is no way the broker has sought the best deal … sometimes it is as much as double but, typically, the premium is about 30% above what you would expect to pay.”
please comment and let me I can help find if you are being over charged or not