We're currently looking to buy a house in Sheffield. We've viewed a number of properties over the last month and finally short-listed a couple we would possibly make offers on. We were just wondering on 'how much to offer'?

We managed to sell our house (well almost, it hopefully completes in 5-6weeks), in the north east, for £5k under the asking price however we spent a lot of time and money on the houe in an attempt to attract potential buyers. The properties we're interested in are almost £50-80k more than our last house. Given that we're in no chain and the state of today’s market what kind of offer would you make on a property valued at £200k?

depends how cheeky you are and how long its been on the market.
why not offer 10% (£180k) below asking as an opening gambit and stress your favourable position?
good luck.

It's a fine line between making a reasonable offer, and one that will frankly p**s off the vendor. He may want to sell his house to you, but he doesn't owe you his soul! It depends on the state of the house, and how badly you want it. Good houses at sensible prices are still selling steadily, despite all the crap in the media. Generally, I'd offer a bit below (impossible to say how much without knowing the house), but it really depends on, as others have said, length of time on the market, condition etc.

I have no connection with an estate agent by the way!

£190k sounds like a good opening bid. It depends on your vendor's position (e.g. if they've already found somewhere, they may take a low offer for a quick sale). If you're nice about it and in a good position, you should be OK. You can always negotiate generously on the fixtures and fittings to build up some goodwill in the deal, which could compensate for a low purchase price.

I would offer 20% below asking price.
Or not at all, it might be better to rent for 12 months and look around then.
You buy at £190K then this time next year it will be worth £170K at best.
Work it out: lose £20K plus or
cost of rent minus interest from lump sum savings.
House prices are not going to go up for a long time yet. :love:

I would offer 20% below asking price.
Or not at all, it might be better to rent for 12 months and look around then.
You buy at £190K then this time next year it will be worth £170K at best.
Work it out: lose £20K plus or
cost of rent minus interest from lump sum savings.
House prices are not going to go up for a long time yet. :love:

Any chance of letting me have next weeks winning lottery numbers?! :hihi:

Just a joke! :hihi:

I think it also depnds on how long you are likely to stay in teh house. If possibly only a short time the Frankief's advice is quite sound. But if you may well be there for 10 years then it really doesn't matter what happens inteh next 2 or 3, you are likely to gain on it in the long run.

I suppose in part your offer should depend on how much you like the house, how you'd feel if you didn't get it etc, and also any clues about the vendor's position ie on the market a long time, need to sell quickly, or on the market speculatively etc etc.

Good luck either way!

Any chance of letting me have next weeks winning lottery numbers?! :hihi:

That's something that is difficult to forecast!
Forecasting a fall in house prices - now that's easy - just a question of how much. :roll:

thanks for the advice guys . we heard 10% under was the usual trend these days, we weren’t cheeky enough to go 20% (personally i would have felt 20% was a kick in the teeth although with todays market i can see why people do this).

any how we started the ball rolling at £180k. if we do agree on a sales price and proceed with the purchase we will be joining a chain which we would have liked to avoid. our second choice is a repossessed house (almost identical but different area) which could potentially be purchased at 20-40k cheaper and has the same market value (apparently). the bonus to the second property is there is no chain however the previous owner (poor guy) has damaged numerous parts of the house (mostly cosmetic which doesn’t bother me much) and also gutted/stripped it. therefore this would involve time and additional costs to put right.

as we're currently renting (in sheffield) our biggest worry is we could be waiting many months for the chain on the first property to complete. do you think it would be fair of us to give/ask for some kind of timescale/deadline... not sure how/if that could work?

That's something that is difficult to forecast!
Forecasting a fall in house prices - now that's easy - just a question of how much. :roll:

No doubt they are down a bit at the moment, but they will inevitably rise again...Just a question of when. These things have always been cyclical. :D

It's a fine line between making a reasonable offer, and one that will frankly p**s off the vendor. He may want to sell his house to you, but he doesn't owe you his soul! It depends on the state of the house, and how badly you want it. Good houses at sensible prices are still selling steadily, despite all the crap in the media. Generally, I'd offer a bit below (impossible to say how much without knowing the house), but it really depends on, as others have said, length of time on the market, condition etc.

I have no connection with an estate agent by the way!

To be honest, your in the BEST possible position at the moment to bargain as house prices are seriously crashing at the moment due to the credit crunch. They probably won't recover in the near future either, as so many people think. People are pretty desperate to sell their houses and they are clearly not selling...you only have to look at how a lot of people have had to reduce the prices of their houses on websites such as rightmove.

Good luck to you;)

Yes, house prices are crashing!:love:
So put in a low offer and it could be accepted.
Times are changing, thank God! And it's a good thing that is happening.
If you are buying, you will be able to finally get on the ladder.
If you are selling, OK you'll get less, but in turn the bigger house you are moving to will be less.
Why the hell are people on here defending the ridiculous house prices in this country? :confused: They should be marching on Downing Street. :huh: Ever get the feeling, you've been had?

To be honest, your in the BEST possible position at the moment to bargain as house prices are seriously crashing at the moment due to the credit crunch. They probably won't recover in the near future either, as so many people think. People are pretty desperate to sell their houses and they are clearly not selling...you only have to look at how a lot of people have had to reduce the prices of their houses on websites such as rightmove.

Good luck to you;)

Can you give some examples of house prices "seriously crashing" because i have yet to see any so examples would be good:huh:

To be honest, your in the BEST possible position at the moment to bargain as house prices are seriously crashing at the moment due to the credit crunch. They probably won't recover in the near future either, as so many people think. People are pretty desperate to sell their houses and they are clearly not selling...you only have to look at how a lot of people have had to reduce the prices of their houses on websites such as rightmove.

Good luck to you;)

He may be in a good position, but my post indicated that I think a bit of caution before slapping down an insulting offer would be wise, particularly on a good house. (I'm not suggesting that the OP would do this, it's more of a general point.)

There are people desperate to sell houses, but not all! I maintain my opinion that properly priced houses are ticking over ok, but the ones which were overpriced in the first place are suffering.

Example: A chum of mine's neighbour is desperate to sell. The house is the same size as one round the corner, and the one round the corner has a garage. It's reasonably priced. The neighbour's one was priced at £10,000 more and had no OR parking. Guess which one sold? The neighbour has reduced to an appropriate level and is now getting interest.

The neighbour's price hasn't "crashed", it was just crap in the first place.

I'm not convinced that a 1% fall over the past year represents a serious crash! (although I'm perfectly prepared that they may well drop some more, but nobody knows how much in reality.)

:)

.



I'm not convinced that a 1% fall over the past year represents a serious crash! (although I'm perfectly prepared that they may well drop some more, but nobody knows how much in reality.)

:)

Its 1% over 12 months, but it was going up for the first 6 months. The price drop over the last 6 months is more interesting. A 1% drop over 12 months is a real terms drop of perhaps 4% anyway. They are going down, but what no one can predict is when it turns and they start going back up. Prices may drop for forced sales - people moving abroad, those who need to release equity at all costs, reposessions....but not all sales. A lot of people can choose not to move for a while. Its not a straightforward calculation at the moment.

Its 1% over 12 months, but it was going up for the first 6 months. The price drop over the last 6 months is more interesting. A 1% drop over 12 months is a real terms drop of perhaps 4% anyway. They are going down, but what no one can predict is when it turns and they start going back up. Prices may drop for forced sales - people moving abroad, those who need to release equity at all costs, reposessions....but not all sales. A lot of people can choose not to move for a while. Its not a straightforward calculation at the moment.

Agreed, which is why I think the general hysteria is a little disturbing at the moment. After the last "crash", things were pretty much back to normal a year or so later. There is a general equilibrium, and the world just wobbles a little either side of this from time to time! :)

After the last "crash", things were pretty much back to normal a year or so later.

are you talking about the crash that started in 1989/90? I don't think things were back to normal in a year. More like 5-6 years.

are you talking about the crash that started in 1989/90? I don't think things were back to normal in a year. More like 5-6 years.

Was this in your little world or everyone elses though? In yours prices have going to crash for a good 5/6 years. I dont think the current 1% fall over 12 months is serious. Just a blip.

Times are changing, thank God! And it's a good thing that is happening.
If you are buying, you will be able to finally get on the ladder.


If you can get someone to lend you a mortgage. If your employer hasn't gone into recievership. If you can afford your household bills as well as your credit debts as well as the repayments on a mortgage with fuel, utilities, council tax and food costs all going up.

A recession is not all happiness and joy! And I'm speaking as someone who doesn't own a property!

Was this in your little world or everyone elses though? In yours prices have going to crash for a good 5/6 years. I dont think the current 1% fall over 12 months is serious. Just a blip.

How old were you in 1989?

How old were you in 1989?

Old enough to know it wasnt all bad. My parents managed through and came out the otherside a little richer to boot.

Old enough to know it wasnt all bad. My parents managed through and came out the otherside a little richer to boot.

I'm alright Jack, eh?

I'm alright Jack, eh?

You what? Finally lost the plot have we?

You what? Finally lost the plot have we?

Just because your parents were ok during the last crash, you assume that everyone else was. Have you heard that over 100,000 people were repossessed?

Your replies are so smug for someone who has a 100%+ mortgage on a house bought in the last couple of years.

Don't expect any sympathy once the reality of what is going on in the market dawns on you.

my prediction is that people who don't have to move at the moment, i.e, people who just fancy a change, wont move,
this will cause a lack of properties on the market, this in turn will stop house prices falling too much ??
not rocket science

my prediction is that people who don't have to move at the moment, i.e, people who just fancy a change, wont move,
this will cause a lack of properties on the market, this in turn will stop house prices falling too much ??
not rocket science
You could be right, but why wouldn't they move? unless they are in negative equity, but the majority aren't.
For example, there are people who won't sell their semi now for £150K, because 'it was £170K last year - i'm losing money' But they only paid 60K for it, and they can go out and buy another semi for £150K anyway! :loopy:.
If you are selling at the moment you get less, if you are buying you pay less, sounds good to me.
And making mortgages more difficult to get sounds good as well, these self cert 'liar loans' should have been against the law, maybe they were anyway.
Why do people fool themselves that the continuous house price inflation was making them rich?
What's so bad about cheaper housing for all? If new cars came down in price would we still get the same outcry? If a pint of beer came down in price to a reasonable level would BBC newsreaders report the 'crisis'?

Because people dont live in pints or cars. Houses are a different thing.

A lot more people have secured loans and credit debts than they did 10 years ago. If the financial climate is uncertain people will be less likely to take risks - new jobs, for example - which would make them more likely to move. Don't forget that a lot of fixed rates are coming to an end, meaning difficulties remortgaging will be causing a some folk a real headache. A lot of people are sitting tight at the moment.

Just as it is foolish to presume that rising house prices are good for people, it is also naive to presume that a housing crash will be good news across the board.

A lot more people have secured loans and credit debts than they did 10 years ago. a lot of fixed rates are coming to an end, meaning difficulties remortgaging will be causing a some folk a real headache. it is also naive to presume that a housing crash will be good news across the board.

I'm not naive, a housing crash will be very bad for some people, those who have borrowed more than they could repay, I have little sympathy for. Some are greedy, some are just foolish, some were just hoping for a quick profit .They thought that house prices only went up, or to be correct they were told that by the media. They've been shafted, by the money lenders.
Those who lose their job and are repossessed, obviously I sympathise with.
But the answer is not to keep house prices going up and up. The 'bust' will then be even worse.

You could be right, but why wouldn't they move? unless they are in negative equity, but the majority aren't.
For example, there are people who won't sell their semi now for £150K, because 'it was £170K last year - i'm losing money' But they only paid 60K for it, and they can go out and buy another semi for £150K anyway! :loopy:.
If you are selling at the moment you get less, if you are buying you pay less, sounds good to me.
And making mortgages more difficult to get sounds good as well, these self cert 'liar loans' should have been against the law, maybe they were anyway.
Why do people fool themselves that the continuous house price inflation was making them rich?
What's so bad about cheaper housing for all? If new cars came down in price would we still get the same outcry? If a pint of beer came down in price to a reasonable level would BBC newsreaders report the 'crisis'?

people wont move because they'll be thinking, if i don't move, my £150,000 semi will go down 10 % = £15,000 loss, and if i move it'll be a £200,000 house, and then if it goes down 10% =£20,000 loss in 1 year £100/week so is this new/bigger better house worth it ?

With £50 billion being made available to the banks I suppose mortgages will be easier to get again and the demand for house will rise again, until the £50 billion has run out.

You could be right, but why wouldn't they move? unless they are in negative equity, but the majority aren't.
For example, there are people who won't sell their semi now for £150K, because 'it was £170K last year - i'm losing money' But they only paid 60K for it, and they can go out and buy another semi for £150K anyway! :loopy:.
If you are selling at the moment you get less, if you are buying you pay less, sounds good to me.
And making mortgages more difficult to get sounds good as well, these self cert 'liar loans' should have been against the law, maybe they were anyway.
Why do people fool themselves that the continuous house price inflation was making them rich?
What's so bad about cheaper housing for all? If new cars came down in price would we still get the same outcry? If a pint of beer came down in price to a reasonable level would BBC newsreaders report the 'crisis'?

If you bought a pint of beer at £2.00 and a few minutes later it came down to £1.50 you'd kick yourself because you just 'wasted' 50p.
If you knew in advance that the price were falling, you'd wait and see how far it fell.
That's why the market will cool. Unless people have a good reason or are forced to move they'll sit tight and the gap to the next rung gets closer.
It's not bad for anyone except those who recently took out high % loans.

people wont move because they'll be thinking, if i don't move, my £150,000 semi will go down 10 % = £15,000 loss, and if i move it'll be a £200,000 house, and then if it goes down 10% =£20,000 loss in 1 year £100/week so is this new/bigger better house worth it ?

So let's summarise this logic.
Before: sell for £150K, buy for £200K, take out a mortgage for extra £50K.
After 10% price falls: sell for £135K, buy for £180K, take out a mortgage for extra £45K.
I bet the banks love people like you to shovel money at!:love:
You're sat in the same house for £5K less, call that a crisis, I don't!:thumbsup:

PS. Do the same calc with 20/30% falls and you will see why the moneylenders are desperate to prop this all up and keep it going.

If you can get someone to lend you a mortgage. If your employer hasn't gone into recievership. If you can afford your household bills as well as your credit debts as well as the repayments on a mortgage with fuel, utilities, council tax and food costs all going up.

A recession is not all happiness and joy! And I'm speaking as someone who doesn't own a property!

True but we all need a roof over our heads, so even without a mortgage you still have to pay rent.

True but we all need a roof over our heads, so even without a mortgage you still have to pay rent.

Unless you own your house.

Having read this thread, I must agree with perplexed, there are so many properties that have been on the market since way before all the hysteria began, because they were well overpriced to begin with. The competing agents now value a property, just for the vendor to tell them how much they "need" to sell for in order to buy the house they have fallen in love with, one of the agents competing for the business will give in and market at a price they know is un-realistic, just to win the board, rather than saying "Well I need to sell my metro for £25K to buy a BMW but it aint gonna happen is it!"

http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/cg.stm

According to the Land Registry, prices in Sheffield have fallen 8.6% in the first quarter of 2008 alone.

If you are looking to buy, make sure you drive a very hard bargain to insulate yourself from the falls to come.

Been reading this thread with interest.

When I first joined SF years ago I used to read topics on here about the procedure for making offers on houses in Sheffield, and they all spoke of sealed bids to agents by a deadline and having to bid way over asking prices to even have a chance of winning. I take it this practice is now long gone?