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Hi I was chatting to an agent who has been monitoring the market especially auctions. His view was prices are dropping in and around the capital, no shock there.
Is the market showing signs of declining he thinks prices could fall up to 20%
What he also say is he has noticed the large increase of unsold lot at auctions
Is this a good way to get a good deal making an after sale offer? What’s the best way to go about this and how would you make an offer related to the guide or last bid price. Can you go direct to the vendor and cut out the auction co.
Any thoughts or comments?
Can't undercut auction, not recommended anyway.
London prices expected a huge correction in the region of 30 to 40% BMV over the next 12 months.
> London prices expected a huge correction in the region of 30 to 40% BMV over the next 12 months
That's one heck of a prediction. Its wrong, but fair play to you for sticking your neck on the line
"It's wrong". How can a prediction be wrong. It is an opinion. All predictions are right, until the date of the prediction passes. :-)
Interesting you say 30-40%. Do you think people will accept offers 30-40% below their asking price or simply stay put and move when the market improves? I think it's naiive to say when we went through the biggest financial crisis the world has seen in '08 and prices in London dropped a reported 3% that we will have a 40% correction because of Brexit. In reality affordability is the issue at the moment and this has been correcting since the end of 2015 anyway, as wages rise and mortgage multiples grow the market will return again Brexit or no Brexit.
I think it is important to make a distinction between PRIME London and the rest of London. I think the prime market in London will be far more badly affected that the more reasonably priced areas.All being discussed and monitored here, with regular updates:Spotlight: Prime London property marketSpotlight: London investment property marketWhy I still believe in BTL in London
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
When I am looking to purchase I contact agents advise then that I am in the market
I then walk away and let them come to me
if the market is dropping they will contact you in quick time if you can move quickly
don’t chase agents let them chase you
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
The trouble with that strategy DL is they might have 30 investors on their books
If you play hard to get you may become No 30 on their books
30 calls is very time consuming for them
If you keep the contact up they respect that and you move up the list
Estate agents have feelings too
Aim to stay in their top 5 and on their day to day radar by communicating with them regularly
If a deal is to be had they may only have to make 5 calls to serious investors before it goes
Someone who hasn't contacted them for 2 months will not be their first phone call
However if I ring up 2 days ago and just ask .. Anything about Stevie mate -
He may say No but I know at least i will be remembered
If the next day a deal comes in Stevie has me in his brain and will give me a call first more than likely
Its a two way relationship I believe . Mutual respect
Jonathan Clarke. http://www.buytoletmk.com
I just advise them I am buying and what I want and leave it there
i never sound keen
I keep looking on rightmove ect
but I never chase them
I know what I want if it dosent stack up I walk away
I differ from you - I like to sound keen . Its then reciprocated
Rightmove is too late for me sometimes
The early bird catches the worm
I used to accompany them when they took initial instructions and measured up
Offer on the spot
By the time it gets on rightmove it may be shown STC
Friends may say to me .
Oh I see one of the kind you like buying has just come on rightmove
Pity though they say - I see its shown as sold already
I smile - They give me a quizzical look - Then the penny drops
The only way we will get 20 30 or even 40% drops is if there is a massive rise in interest rates ( very unlikely) or there is a tightening of lending criteria back to a multiple of 3 times the main earner and 1 times the spouse... again highly unlikely
Very few forced sellers makes a stagnant market with falls on the forced sale properties of 5 to 10%, too much pent up demand from ftbs and the like to fall much further