House Purchase- Advice please!
Discussion
Radar Love said:
Some context first, we placed an offer on a property 3 weeks ago that was 23% under a frankly riduculous original asking price and 15% under a recently revised price.
The property is a partially complete new build that will be sold completed and one of 4 on what was originally a farm in south Cambridgeshire. The development has been done by an independant builder with a good reputation and is in an excellent location.
The builders sat on our offer over Christmas and have now returned saying that they do not want accept at this stage as they have some viewings later in the week and are awaiting further news on the housing market.
We really like the house and location but are not prepared to increase our offer. 2 properties on the plot are empty and the land registry shows that the larger house adjacent to ours (part of the same development) sold in July 2007 for what they are asking for this one - making our offer seem generous in light of falling prices.
So over to PH! We are considering putting a time limit (2 weeks?) on our offer and empasising that after this the offer may be reduced. We really want the house, have a 25% deposit and are renting so no chain. I would have thought he would jump at the offer given recent news, how can we force his hand?
Put a time limit of 2 weeks on it and sit tight...The property is a partially complete new build that will be sold completed and one of 4 on what was originally a farm in south Cambridgeshire. The development has been done by an independant builder with a good reputation and is in an excellent location.
The builders sat on our offer over Christmas and have now returned saying that they do not want accept at this stage as they have some viewings later in the week and are awaiting further news on the housing market.
We really like the house and location but are not prepared to increase our offer. 2 properties on the plot are empty and the land registry shows that the larger house adjacent to ours (part of the same development) sold in July 2007 for what they are asking for this one - making our offer seem generous in light of falling prices.
So over to PH! We are considering putting a time limit (2 weeks?) on our offer and empasising that after this the offer may be reduced. We really want the house, have a 25% deposit and are renting so no chain. I would have thought he would jump at the offer given recent news, how can we force his hand?
Edited by Radar Love on Tuesday 6th January 09:13
Its tempting to rush in, but lets be honest there arent a lot of buyers around at the moment...
VX Foxy said:
I can't believe the vendor hasn't ripped your arm off! Without knowing the area, I'd say you should be looking at 15% below the 2007 price without allowing for future drops. Are you going slightly mad?
No, well at least I don't think so!The 2007 house was sold while the rest of the plot was a building site - it was sold to a builder who I'm guessing would have struck a good price by doing the internal fit out himself.
Another was sold 2005 for the same value again (spooky!)- it's been a long development...
Edited by Radar Love on Tuesday 6th January 09:21
VX Foxy said:
Radar Love said:
VX Foxy said:
Another was sold 2005 for the same value again (spooky!)- it's been a long development!
Beware that the LR prices can be manipulated - with incentives for example.Linkage?
Am I missing the plot?
The seller has turned down your offer, how can you force him to take it?
you can't. Find another property or increase your offer.
If you put a time limit on your offer which he has turned down, what are you going to do after that time limit? walk away increase your offer?
If you want this house then make an offer the seller will accept. Forget 15% under this and 25 under that, its immaterial. You either want this house or you dont at an agreed price.
Plenty of other houses out there - but do you want them?
The seller has turned down your offer, how can you force him to take it?
you can't. Find another property or increase your offer.
If you put a time limit on your offer which he has turned down, what are you going to do after that time limit? walk away increase your offer?
If you want this house then make an offer the seller will accept. Forget 15% under this and 25 under that, its immaterial. You either want this house or you dont at an agreed price.
Plenty of other houses out there - but do you want them?
Call a meeting and present them with the facts.
Do they really think they will sell the remaining plots in this climate to couples/families who have no chain and a 25% deposit?
Are their properties immune to the changing market?
Do they want to recoup their costs and is it possible to do so with such profit aspirations?
Their LARGER offering sold around the time the market peaked for what they are asking for this one, a SMALLER property marketed in an unstable market.
That's our offer, our money is not tied up in something that could take 18 months to sell, we want the property, are willing to pay £x, and we will give you until 4pm on 20/1/09 at which point, if you do not accept, our offer is withdrawn.
That is of course on the basis of your being happy with the price. Remember, in this climate, you can always drop it further under the same conditions. Haven't prices fallen more over Christmas?
Do they really think they will sell the remaining plots in this climate to couples/families who have no chain and a 25% deposit?
Are their properties immune to the changing market?
Do they want to recoup their costs and is it possible to do so with such profit aspirations?
Their LARGER offering sold around the time the market peaked for what they are asking for this one, a SMALLER property marketed in an unstable market.
That's our offer, our money is not tied up in something that could take 18 months to sell, we want the property, are willing to pay £x, and we will give you until 4pm on 20/1/09 at which point, if you do not accept, our offer is withdrawn.
That is of course on the basis of your being happy with the price. Remember, in this climate, you can always drop it further under the same conditions. Haven't prices fallen more over Christmas?
Edited by Pferdestarke on Tuesday 6th January 09:36
If i were in your boots i wouldn't offer a penny more than the 2003 price; i.e. before the banks started lending to anything with a pulse, property ladder really got under way etc. I feel they'll drop back to 2001 levels before regainging to 2003 prices.
House price inflation was fueled by very cheap and easy credit. That's gone. Now the price has to be underpinned by what people can realistically pay; so 2001/2003 levels is a sensible place to start.
House price inflation was fueled by very cheap and easy credit. That's gone. Now the price has to be underpinned by what people can realistically pay; so 2001/2003 levels is a sensible place to start.
superlightr said:
Am I missing the plot?
The seller has turned down your offer, how can you force him to take it?
Not so much turned down as just keeping him hanging on waiting to see if they can get a better offer.The seller has turned down your offer, how can you force him to take it?
He'd be daft to wait indefinitely as their backup, even if it means getting a firm rejection that requires him to put in a higher offer should he want to secure the property.
It's not forcing the vendor to accept the initial offer, it's forcing them to move it on a stage and not wait to see if he can be played off against another bidder.
It's a four bed new build - I doubt it's so uniquely special that he couldn't find another if he didn't secure this one.
Edited by cs02rm0 on Tuesday 6th January 09:41
superlightr said:
Am I missing the plot?
The seller has turned down your offer, how can you force him to take it?
you can't. Find another property or increase your offer.
If you put a time limit on your offer which he has turned down, what are you going to do after that time limit? walk away increase your offer?
If you want this house then make an offer the seller will accept. Forget 15% under this and 25 under that, its immaterial. You either want this house or you dont at an agreed price.
Plenty of other houses out there - but do you want them?
Yep, move on. We are in in a similar position, offered a price that was fair(new build prices are a total piss take but seems there are fools out there that will happily pay the inflated price). You've made you offer they have refused, look elsewhere or up your offer. We decided to walk away, prices are going one way at the moment and everyone knows it. Hold out and in 12 montsh you'll get a lot more for your money anyway. I'll be offering 28% off an over inflated price for a new build that isn't even built this Thursday if we like the one we go around, lowest they have said is £265k, what kind of a fool would pay asking on something that isn't built when last month alone saw a drop in values on 2.5%!!!!!!!!The seller has turned down your offer, how can you force him to take it?
you can't. Find another property or increase your offer.
If you put a time limit on your offer which he has turned down, what are you going to do after that time limit? walk away increase your offer?
If you want this house then make an offer the seller will accept. Forget 15% under this and 25 under that, its immaterial. You either want this house or you dont at an agreed price.
Plenty of other houses out there - but do you want them?
Dave_ST220 said:
Yep, move on. We are in in a similar position, offered a price that was fair(new build prices are a total piss take but seems there are fools out there that will happily pay the inflated price). You've made you offer they have refused, look elsewhere or up your offer. We decided to walk away, prices are going one way at the moment and everyone knows it. Hold out and in 12 montsh you'll get a lot more for your money anyway. I'll be offering 28% off an over inflated price for a new build that isn't even built this Thursday if we like the one we go around, lowest they have said is £265k, what kind of a fool would pay asking on something that isn't built when last month alone saw a drop in values on 2.5%!!!!!!!!
What sort of fool would sell something for a loss?Something is worth what someone will pay and thats pretty much where dealing ends.
Plotloss said:
Dave_ST220 said:
Yep, move on. We are in in a similar position, offered a price that was fair(new build prices are a total piss take but seems there are fools out there that will happily pay the inflated price). You've made you offer they have refused, look elsewhere or up your offer. We decided to walk away, prices are going one way at the moment and everyone knows it. Hold out and in 12 montsh you'll get a lot more for your money anyway. I'll be offering 28% off an over inflated price for a new build that isn't even built this Thursday if we like the one we go around, lowest they have said is £265k, what kind of a fool would pay asking on something that isn't built when last month alone saw a drop in values on 2.5%!!!!!!!!
What sort of fool would sell something for a loss?Something is worth what someone will pay and thats pretty much where dealing ends.
superlightr said:
Am I missing the plot?
The seller has turned down your offer, how can you force him to take it?
you can't. Find another property or increase your offer.
If you put a time limit on your offer which he has turned down, what are you going to do after that time limit? walk away increase your offer?
If you want this house then make an offer the seller will accept. Forget 15% under this and 25 under that, its immaterial. You either want this house or you dont at an agreed price.
Plenty of other houses out there - but do you want them?
I can't force him. But I can continue to negotiate. Currently he has our offer in reserve if he can't find another buyer who's prepared to pay more. Hence my proposed time limit.The seller has turned down your offer, how can you force him to take it?
you can't. Find another property or increase your offer.
If you put a time limit on your offer which he has turned down, what are you going to do after that time limit? walk away increase your offer?
If you want this house then make an offer the seller will accept. Forget 15% under this and 25 under that, its immaterial. You either want this house or you dont at an agreed price.
Plenty of other houses out there - but do you want them?
Plotloss said:
Dave_ST220 said:
Yep, move on. We are in in a similar position, offered a price that was fair(new build prices are a total piss take but seems there are fools out there that will happily pay the inflated price). You've made you offer they have refused, look elsewhere or up your offer. We decided to walk away, prices are going one way at the moment and everyone knows it. Hold out and in 12 montsh you'll get a lot more for your money anyway. I'll be offering 28% off an over inflated price for a new build that isn't even built this Thursday if we like the one we go around, lowest they have said is £265k, what kind of a fool would pay asking on something that isn't built when last month alone saw a drop in values on 2.5%!!!!!!!!
What sort of fool would sell something for a loss?Something is worth what someone will pay and thats pretty much where dealing ends.
YEs alright, first loss is your best loss and all of that.
However, you cant cost a development from the outside without knowing how its funded, what the land cost, how the equity split is set etc.
Also, if you're into the bank for a million and you're looking into the abyss I'd suggest that many developers wouldnt see the difference by getting into them for £2m.
However, you cant cost a development from the outside without knowing how its funded, what the land cost, how the equity split is set etc.
Also, if you're into the bank for a million and you're looking into the abyss I'd suggest that many developers wouldnt see the difference by getting into them for £2m.
A 2 week time limit is far too long - the vendors are hoping one of the other viewings will make an offer higher than yours.
If you want to force their hand, cut the time limit on your offer to 2-3 days. If the other viewers don't make a bigger offer, the chances are good that they'll still come back to you.
Just my advice, don't come crying if you follow it and it doesn't work
If you want to force their hand, cut the time limit on your offer to 2-3 days. If the other viewers don't make a bigger offer, the chances are good that they'll still come back to you.
Just my advice, don't come crying if you follow it and it doesn't work
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