First time buyers market – that bad?
Discussion
Are things really as bad as they seem to me?
I’ve just had my second prospective buyer offer fall through in six months… and in between those two offers / viewers we’ve only had one other person come to view!
The property has been on the market over 12 months now and is competitively priced (slightly lowered the price to match the market) and I'm keen to do a deal, immaculately presented and also quite unique as it’s a listed period property and not a new build box. Possibly not every first time buyers cup of tea… I understand that some first time buyers will be more attracted to new-build apartments.
As of this month it is now being advertised with a ‘first time buyers gifted deposit’.. I thought rather than knocking me down 10K, I could offer this, in cash, for their deposit.
Every time I raise the issue of lack of viewers to my agent the stock answer seems to ‘well the prices have all dropped over the last month, have you thought about revising your asking price’… be that as it may, if we had viewers stepping over the doorstep and complaining it was too expensive then I would be more keen to readdress the price.
I’m also under the impression now that the estate agent isn’t vetting the viewers they send round. Both offers have been made after second viewings – only to fall flat when they A. didn’t get accepted for a mortgage and B. realised the payments would be too expensive afterall and needs to have words with parents so I'm not holding my breath!
I’ve just had my second prospective buyer offer fall through in six months… and in between those two offers / viewers we’ve only had one other person come to view!
The property has been on the market over 12 months now and is competitively priced (slightly lowered the price to match the market) and I'm keen to do a deal, immaculately presented and also quite unique as it’s a listed period property and not a new build box. Possibly not every first time buyers cup of tea… I understand that some first time buyers will be more attracted to new-build apartments.
As of this month it is now being advertised with a ‘first time buyers gifted deposit’.. I thought rather than knocking me down 10K, I could offer this, in cash, for their deposit.
Every time I raise the issue of lack of viewers to my agent the stock answer seems to ‘well the prices have all dropped over the last month, have you thought about revising your asking price’… be that as it may, if we had viewers stepping over the doorstep and complaining it was too expensive then I would be more keen to readdress the price.
I’m also under the impression now that the estate agent isn’t vetting the viewers they send round. Both offers have been made after second viewings – only to fall flat when they A. didn’t get accepted for a mortgage and B. realised the payments would be too expensive afterall and needs to have words with parents so I'm not holding my breath!
anonymous said:
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Hi Tonker - I wouldnt have expected anything less 
No, nothing seems to be selling! And I'm not talking London prices here.. this is a city apartment, with courtyard parking and gardens in the midlands. £120K.
I'll PM you the details if you fancy a look.
The first offer was full asking price, no quibble... until her mortgage application was turned down (so on reflection that offer wasnt worth the paper it was written on!)
I'm in the same boat, we've had our house up for sale for 4 months and only had 3 viewings. Thing is, there are at least 8 outher houses up for sale within half a mile of ours and none of them have changed to sold in the last 4 or 5 months either. I dont really want to sell, its my missus who wants to move, but its looking more likely we're gonna have to sit it out. I aint giving it away thats for sure.
struggled to sell mine in the last 12 months - first offer fell through a week before exchange with a 3% discount on an already reduced price, second offer is going through with a further 6% discount 6 months on. - FTB territory in SE of 2-300K sale price.
Hopefully this one will go through..
Unfortunately for me the 4-600k market is a little tougher to get a similar discount as most properties on the market don't seem to be in a hurry to sell. stiffed both ways for me
Long term view etc etc
Hopefully this one will go through..
Unfortunately for me the 4-600k market is a little tougher to get a similar discount as most properties on the market don't seem to be in a hurry to sell. stiffed both ways for me
Long term view etc etc
anonymous said:
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I'm working on an average price that 3 estate agents gave us, and we were prepared to accept about 3% less than asking price so i thought that was a fair price to market the property at. A lower price will be giving it away, because our house is for sale at almost what we paid for it. Why do i think no-one else is selling, the banks aren't making the mmoney available for first time buyers. 20-30k for a deposit, going back 4 years ago when i was a first time buyer, to save that sort of money between me and my partner would take probably at least 2 years. Like i say, i'm not overly bothered about moving, just adding to the comments that the market is about as exciting as lumpy custard.anonymous said:
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I'm in the South Midlands, I'd say.FTB, 2 bed, property is currently £130k-£150k.
Obviously I don't know people's circumstances. I've been saving for 2 years and I have equity (which is dropping by the day it seems)
I don't necessarily think it's a case of people having expensive holidays and spending £500 a month going out, it's a case of a bank looking at a combined income of £50k and not handing out a mortgage without a 20% deposit....
Before the crash I would have thought our old house would have been £150k. After the crash estate agents valued at £160k - so up it went at £160. Result no viewings.
Dropped the price to £140k, lots of viewings a few serious but no offers. There always seemed to be someone desperate to sell a better house for the same money. So the limited number of people (usually one or two) in a position to make an offer always brought the other one and I don't blame them.
Finally dropped to a fixed price £125k - Had two offers within a week, sold for £130k mayebe could have got more.
Dropped the price to £140k, lots of viewings a few serious but no offers. There always seemed to be someone desperate to sell a better house for the same money. So the limited number of people (usually one or two) in a position to make an offer always brought the other one and I don't blame them.
Finally dropped to a fixed price £125k - Had two offers within a week, sold for £130k mayebe could have got more.
davidjpowell said:
Never convinced by sellers giving the deposit to the buyer. If a valuer get's wind of it you will be down-valued, and I would be surprised if the buyers seller would not have to disclose it to the lender.
Solicitor would definitely be obliged to disclose it to the lender, so you're shooting yourself in the foot by offering this.russ_a said:
Before the crash I would have thought our old house would have been £150k. After the crash estate agents valued at £160k - so up it went at £160. Result no viewings.
Dropped the price to £140k, lots of viewings a few serious but no offers. There always seemed to be someone desperate to sell a better house for the same money. So the limited number of people (usually one or two) in a position to make an offer always brought the other one and I don't blame them.
Finally dropped to a fixed price £125k - Had two offers within a week, sold for £130k mayebe could have got more.
When did you sell?Dropped the price to £140k, lots of viewings a few serious but no offers. There always seemed to be someone desperate to sell a better house for the same money. So the limited number of people (usually one or two) in a position to make an offer always brought the other one and I don't blame them.
Finally dropped to a fixed price £125k - Had two offers within a week, sold for £130k mayebe could have got more.
anonymous said:
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We did have a glut of new build developments / conversions in 2004 - 2007, and I certainly agree the ceiling price for what I'm selling would never go above £125K for this area.I was thinking that £110K would be a good deal for all concerned (its a bloomin' lovely area and building!... but its not you I'm trying to convince).
I remember when I bought a few years back, the seller had 5 identical offers to ours (full asking price) - we got it in the end as we wanted it for a family and the others were property developers, and the lady selling wanted someone to benefit from the house rather than just flip it for a profit.
We're not in those times any more and in the current market you really do have to give an incentive to a buyer to choose your property over others. Usually this would mean a bigger / better property for the same price as others, or one considerably cheaper, undercutting the competition. If you put your house up for sale at the same price as others on Rightmove (that haven't sold) then thats not really an incentive is it?
If it was priced right it would sell.
We're not in those times any more and in the current market you really do have to give an incentive to a buyer to choose your property over others. Usually this would mean a bigger / better property for the same price as others, or one considerably cheaper, undercutting the competition. If you put your house up for sale at the same price as others on Rightmove (that haven't sold) then thats not really an incentive is it?
If it was priced right it would sell.
Muzzer said:
russ_a said:
Before the crash I would have thought our old house would have been £150k. After the crash estate agents valued at £160k - so up it went at £160. Result no viewings.
Dropped the price to £140k, lots of viewings a few serious but no offers. There always seemed to be someone desperate to sell a better house for the same money. So the limited number of people (usually one or two) in a position to make an offer always brought the other one and I don't blame them.
Finally dropped to a fixed price £125k - Had two offers within a week, sold for £130k mayebe could have got more.
When did you sell?Dropped the price to £140k, lots of viewings a few serious but no offers. There always seemed to be someone desperate to sell a better house for the same money. So the limited number of people (usually one or two) in a position to make an offer always brought the other one and I don't blame them.
Finally dropped to a fixed price £125k - Had two offers within a week, sold for £130k mayebe could have got more.
Agree with Tonker that most people are just sitting at the pre-gloom price. Those that NEED to sell drop the price and the few buyers that there are snap them up.
We didn't need to sell, but dropped so we could take advantage of the current market to move a couple of rungs up the ladder.
Just wished we had stuck to out original offer of 25% under for the new place. Got about 13% in the end.
Where/what are you selling?
I am a first time buyer, with a substantial deposit, mortgage all lined up, yet I can't find a decent property. It seems places that were £180-200k two years ago (when I started looking) are now back up to £220-240k. And have been on the market for some time. All I want is a garage and a garden in a relatively nice area. It just looks like no-one's selling at the moment.
I am a first time buyer, with a substantial deposit, mortgage all lined up, yet I can't find a decent property. It seems places that were £180-200k two years ago (when I started looking) are now back up to £220-240k. And have been on the market for some time. All I want is a garage and a garden in a relatively nice area. It just looks like no-one's selling at the moment.
anonymous said:
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I'm not sure it's that relevant anyway, it strikes me that being able to afford the (current) mortgage payments and management charge isn't the problem, it's getting the deposit together that's slowing down the market.I'm glad I don't have to deal with management agencies any more though, the one I had topped the ranks of "licensed robbery", easily beating even car insurance companies in their blatant thievery.
anonymous said:
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I have heard some horror stories about management agencies - but thankfully ours has been great over the years and you can actually see where your money is going.The viewers we do get are keen - but just too few and far between.
But I'm guessing time of year isnt going to help much now either - maybe a price review next spring is in order.
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