How far will house prices fall [volume 4]

[TheLordJohn]

V8RX7 said:

I was bought up that being a man of your word is the most important part of being a man.

Well fk me, there's never been a truer word typed on PH.

[rs4al]

It seems to be round this way, a lot of the properties being listed are owned by the older leave brigade, who obliviously don't listen to all the project fear stuff coming true, also some estate agents still pricing properties at stupid levels to gain the property on their books.

[anonymous-user]

TheLordJohn said:

V8RX7 said:

I was bought up that being a man of your word is the most important part of being a man.

Well fk me, there's never been a truer word typed on PH.

I suspect anyone who is prepared to be an asshole because it's lots of money is simply just an asshole. A handshake and verbal agreement should be legally binding IMO. (IANAL how come it isn't?)

[walm]

fblm said:

I suspect anyone who is prepared to be an asshole because it's lots of money is simply just an asshole. A handshake and verbal agreement should be legally binding IMO. (IANAL how come it isn't?)

IIRC it's to do with surveys etc... you don't usually get those done until you agree a price and if you found that there was an airport going up next door or something it would be harsh to keep you to your original offer!
Not sure how they manage it in Scotland.

[anonymous-user]

walm said:

fblm said:

I suspect anyone who is prepared to be an asshole because it's lots of money is simply just an asshole. A handshake and verbal agreement should be legally binding IMO. (IANAL how come it isn't?)

IIRC it's to do with surveys etc... you don't usually get those done until you agree a price and if you found that there was an airport going up next door or something it would be harsh to keep you to your original offer!
Not sure how they manage it in Scotland.

Good point but the other way round where the buyer probably says no to other places, gives notice on his current place (or actually sells it) and pays for a survey only for the seller to raise the price is an asshole move. I propose the reintroduction of the duel for a swift resolution of ungentlemanly conduct.

[TheLordJohn]

fblm said:

I propose the reintroduction of the duel for a swift resolution of ungentlemanly conduct.

Seconded.

Edited by TheLordJohn on Saturday 16th July 08:29

[anonymous-user]

Hey we can say asshole on PH! Makes the ban on Shorpe seem a little harsh.

[Twilkes]

walm said:

IIRC it's to do with surveys etc... you don't usually get those done until you agree a price and if you found that there was an airport going up next door or something it would be harsh to keep you to your original offer!
Not sure how they manage it in Scotland.

The exchange/completion thing isn't actually that different in Scotland - the house we bought, we could have pulled out three weeks before buying, more than a month after the offer went in; and the flat we sold, the buyer could have pulled out the day before the keys were handed over.

The whole thing about 'offer accepted, you gotta buy it' is a myth - a mortgage application generally won't start processing until the offer has been accepted, and the solicitor won't close the sale until they know you can pay for it.

edit - the Conclusion of Missives is like exchanging contracts: https://www.moneyadviceservice.org.uk/en/articles/...

Edited by Twilkes on Friday 15th July 17:49

[battered]

fblm said:

Hey we can say asshole on PH! Makes the ban on Shorpe seem a little harsh.

Not really. I mean, have you seen the place?

[rustyuk]

We accepted an offer pre-Brexit and would not consider a lower offer from the current purchaser at this stage.

There is so little quality property entering the market I see no need.

[pim]

battered said:

Not really. I mean, have you seen the place?

Where do you live battered Buckingham Palace?

[battered]

Put your handbag down love, it's a joke.

[MrNoisy]

At last, somebody other than me that sees this! Sick of hearing how wonderful the system is in Scotland, they invented this sealed bids, offers over shenanigans. If you pull out and they can be arsed to chase you then you might get stung for a small charge after years of letter writing and wrangling.

In all honesty, imho, a system that takes the best of both bits would be ideal. I mean, how hard would it be to create a system where you can only offer an amount for a house when you know for sure you have the ability to pay?It's not like people pop out for a walk and suddenly get the urge to buy a house, it's usually a fairly planned occurrence.

Regulating the whole surveying and valuation corruption/skimming debacle would help too. All this could be done by the seller in advance and hey presto we'd have a system where somebody who has the proven funds can offer on something he/she is fairly sure what they are buying. A tiny deposit (to be returned in the event of discovering the multi story going up next door) would also prevent a lot of bs.

It's so simple it would surely only not be able to be squared away if there were powerful vested interests who make a living out of all this ste preventing it...............hmmmmm???

Twilkes said:

The exchange/completion thing isn't actually that different in Scotland - the house we bought, we could have pulled out three weeks before buying, more than a month after the offer went in; and the flat we sold, the buyer could have pulled out the day before the keys were handed over.

The whole thing about 'offer accepted, you gotta buy it' is a myth - a mortgage application generally won't start processing until the offer has been accepted, and the solicitor won't close the sale until they know you can pay for it.

edit - the Conclusion of Missives is like exchanging contracts: https://www.moneyadviceservice.org.uk/en/articles/...

Edited by Twilkes on Friday 15th July 17:49

[loafer123]

V8RX7 said:

I was a Land Buyer and had agreed a deal over months of negotiations and we were ready to sign.

The Group MD said the buying parameters (increased profit margins) had now changed and wanted £300k knocked off.

I put my job on the line and refused point blank to have anything to do with it which resulted in a stunned silence in the meeting - my MD ended up taking over the deal.

A land buyer with morals? I am guessing you didn't last long. What are you doing now?

[NRS]

MrNoisy said:

In all honesty, imho, a system that takes the best of both bits would be ideal. I mean, how hard would it be to create a system where you can only offer an amount for a house when you know for sure you have the ability to pay?It's not like people pop out for a walk and suddenly get the urge to buy a house, it's usually a fairly planned occurrence.

Regulating the whole surveying and valuation corruption/skimming debacle would help too. All this could be done by the seller in advance and hey presto we'd have a system where somebody who has the proven funds can offer on something he/she is fairly sure what they are buying. A tiny deposit (to be returned in the event of discovering the multi story going up next door) would also prevent a lot of bs.

It's so simple it would surely only not be able to be squared away if there were powerful vested interests who make a living out of all this ste preventing it...............hmmmmm???

Sounds a bit like Norway.

Seller pays for a home evaluation which all prospective buyers get, saying the condition etc. It's up to the buyers to check the details to see if there is problems. The buyer can only come back if something goes wrong that the seller lied about/ couldn't reasonably know about.

If you are a buyer you get an amount approved in the bank for a mortgage so you can bid on any houses up to that value.

For the actual process everyone goes to the same visiting, which is normally 1 hour in an evening. So seller only needs to "prepare" the house once, not each time people want to visit, saving them time. There is then an open bidding round where everyone is informed of the price by text, or often they call you if you are actually bidding as they check if you want to raise your bid. The auction stops at 12 lunchtime, unless there are more bids which move it another 5 minutes later until no more bids. Then the seller can accept the price or not.

The agent will have checked those who want to bid to see their mortgage limit so there is no "accidental" bidding on something you cannot afford. I think if you do pull out you have to cover the costs of the other person, but not 100% sure on the details.

Advantages are must less faffing around waiting, and no last minute pulling out. Disadvantages are it encourages prices up since you can see bids etc., and you have to decide quickly - no waiting for a few weeks to see if something better turns up.

[Burwood]

system is nz/australia. you have the funds pre arranged. the offer is subject to survey only, not finance on the basis its so bloody easy to get money and if you can't, well you're in trouble. if offer accepted you pay a deposit, usually 10% there and then. No fking around. the system works well. if the survey picks up something you negotiate but you can't back out because of a few loose roof tiles.

[Pork]

Lots of simple ideas could make home buying so much easier in the UK. My cynical view is they'll never be introduced because EAs like it just the way it is!

[XJ40]

Saw this doomy prediction earlier; French bank Société Générale say that "London property prices could fall by more than 30% in the wake of Britain’s vote to leave the EU and may halve in the most expensive parts of the city... We see a classic housing bubble in London and Brexit as the trigger for the correction … Given the current ratio of prices to incomes in London, a price correction of even 40-50% in the most expensive London boroughs does not seem impossible".
https://www.theguardian.com/money/2016/jul/18/brex...

I can't see such a correction myself, though we still don't really know what the outcome of Brexit will be. One point though regarding London property is that if the value of the pound stays low then UK property will look cheaper to those buying from abroad...

[p1stonhead]

XJ40 said:

Saw this doomy prediction earlier; French bank Société Générale say that "London property prices could fall by more than 30% in the wake of Britain’s vote to leave the EU and may halve in the most expensive parts of the city... We see a classic housing bubble in London and Brexit as the trigger for the correction … Given the current ratio of prices to incomes in London, a price correction of even 40-50% in the most expensive London boroughs does not seem impossible".
https://www.theguardian.com/money/2016/jul/18/brex...

I can't see such a correction myself, though we still don't really know what the outcome of Brexit will be. One point though regarding London property is that if the value of the pound stays low then UK property will look cheaper to those buying from abroad...

I cant see it happening either. There is too much demand which will swoop in if that happens, and prices will simply shoot up again.

I know at least 10 people personally who cant buy now but could with a 30% drop. Im sure many others do too.

What will happen to prices when every one of them can suddenly buy? Surely a rush and then prices rising again to meet demand.

[RYH64E]

p1stonhead said:

I cant see it happening either. There is too much demand which will swoop in if that happens, and prices will simply shoot up again.

I know at least 10 people personally who cant buy now but could with a 30% drop. Im sure many others do too.

What will happen to prices when every one of them can suddenly buy? Surely a rush and then prices rising again to meet demand.

Wait till the City job cuts start to filter through, how many could (or would want to) still buy if their monthly pay cheque stops coming through?