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 Post subject: House buying experiences
PostPosted: Sat Apr 04, 2015 4:32 pm 
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Joined: Sat Dec 28, 2013 3:52 pm
Posts: 845
Saw 2 properties Yesterday.

1) Prop 1 : Asking price 20% over last year's sold price for similar property. House small and not in great condition but good location. Agent kept saying we have several offers over asking price.
2) Prop 2 : Asking price 22% over last year's sold price. Good house but not a sought after location. Agent said 2 offers over asking price and several at asking price. We should make an offer within 24 hrs if we liked the property.

How do I know if the agents are telling truth? I don't want to under offer, however, I don't want to over offer wither. Any tips?


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PostPosted: Sat Apr 04, 2015 4:39 pm 
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I'd be suspicious - why are they showing more people around if there are good offers on the table?

Make a sensible (below asking price offer) if you want the house or walk away. Don't be suckered into a bidding war.


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PostPosted: Sat Apr 04, 2015 4:51 pm 
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Joined: Wed Jan 11, 2006 7:10 pm
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Location: Buckinghamshire
berks_mum wrote:
Any tips?

Yes.

1. The agent's lying.

2. Find out what the rate of inflation in property prices is for your area http://www.nationwide.co.uk/about/house ... calculator

3. Take the previous sold prices, apply the percentage and offer accordingly.

4. If needs be, walk away. The agent may become strangely enthusiastic about your offer if you do.

ETA: If either property has had significant improvements made since the last sale, you will need to factor those in. You can ask for a general cost of those and we can give you a reality check.


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PostPosted: Sat Apr 04, 2015 5:07 pm 
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Location: Buckinghamshire
Another thought. (Can you tell I've done this quite a few times? :wink: )

You might like to say to the agent that you aren't keen on any property that already has an offer or several offers because of the risk of being gazumped. (Outbid by a higher offer.) The other offers may strangely melt away ...

There is a genuine potential issue there as well. You have to question the integrity of any seller who accumulates higher and higher offers, rather than deciding on their best price and going with it. Your offer could be accepted tomorrow and you could then be outbid once you have invested a lot in the transaction.

The last time we sold a house we accepted an offer at the asking price. Someone appeared on the scene the very next day who was desperate to buy the house and offered £15k more for it. I gave her tea and sympathy but refused the offer. I also told the purchasers what I had done and it secured a very clean sale from start to finish.

Honesty counts for a lot in house-buying when you can find it.


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PostPosted: Sat Apr 04, 2015 5:10 pm 
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Joined: Mon May 16, 2011 1:05 pm
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Location: Reading
House prices in Reading have shot up recently so I'm not surprised. I get monthly emails from ourproperty.co.uk with actual selling prices rather than what they on out on the market for. I think it is the cross rail effect. Whatever it is, I've been stunned by what local houses are selling for.

As for everything else, I think you work on the basis that estate agents work for the seller not the buyer, and that they will do whatever they can to get their seller the best price.


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PostPosted: Sat Apr 04, 2015 5:12 pm 
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Location: Buckinghamshire
The Nationwide site suggests that inflation in the area is approximately 8 - 12%. It isn't precise to location, but a little further research should provide a more accurate figure.


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PostPosted: Sat Apr 04, 2015 5:19 pm 
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Tinkers - you might think they work for the seller but actually they are in business for themselves.

We were told of offers (well below asking) on properties we looked at that had be accepted (and then the buyer had had to withdraw) or were told how low we could try. We didn't look at any more properties from that estate agents ... too desperate for commission at any 'cost'.


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PostPosted: Sat Apr 04, 2015 5:40 pm 
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Location: Reading
My point was they are definitely not on the side of the buyer. (Any business is in business for themselves.)

I've looked at one street near me and prices have gone from £330k in August to £365k in feb.


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PostPosted: Sat Apr 04, 2015 7:06 pm 
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G55,Sally Ane and Tinkers,
Thank you for posts. They are very helpful.


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PostPosted: Sat Apr 04, 2015 7:13 pm 
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Tinkers, re cross rail, hear hear. A friend recently had a job change and decided to move in Maidenhead after years in London. She was shocked at the prices. She said the cross rail excuse has unleashed so much greed in the market. A house bought for £285K in Aug 2013 is now on the market for £415K. And this is not even in the Town centre.
God knows what will happen from next week when the pension pots are out. BTL investors will bid out all FTBs/low earners. Hope not.


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