Some sellers are still living in early 2021. Recently offered on a house valued at 437k, it needed lots of work and other houses on the street that needed less work had offers accepted at 400k. I offered 395k. Seller rejected that and a 420k offer saying something along the lines of “it’s valued at 437k, I’m getting 437k”…ok then mate I’ll see you at the bottom 😂
LOL yes that happened to us. We felt the bungalow we'd seen was overpriced due to some repairs needed. We would only have suggested a reduction of £5- 10k but the vendors were so aggressively assuring us before we'd said a word that there was no room for price negotiation we just walked away. This was a property being sold by the family of a deceased relative - often the worst people to try to negotiate with!
LOL @ ''ok then mate I’ll see you at the bottom''..... Soooo, did you see them at the bottom? I'd be very interested to learn what the place sold for, if it did at all.
Hi Charlie, thanks for this video. I am unfortunately in a worst of both worlds situation. First time buyer that agreed a purchase in April before the interest rate hikes. Got my 90% mortgage offered fine, but there has been huge delays in completing due to land issues with the house. We are now highly unlikely to complete before my mortgage offer ends. My advisor sent me a new illustration that was £7500 more over the 5 year fixed term! We absolutely love the house, but can't take that kind of hit, I have had to tell the seller if they don't hurry up I will have to reduce my offer. The only possible silver lining is that a reduction in price combined with longer time to save means I will likely be able to reach a 15% deposit. Its honestly been a total nightmare.
Great video, as always. I'd really appreciate some advice on regional variations during previous crises and what do you expect in the next few years. I'm interested in south coast urban areas (trying not to divulge my exact location 🙂). Thanks for great content
Go to the Nationwide house price calculator. Enter £100,000 house. Set dates to Q1 1990 to Q1 1994 then just run through the various regions. South East hit hardest by far.
It’s crazy that the standard model most landlords follow is to max out the borrowing on properties each time they get an increase in value, they rarely leave any equity in the property as they use it as a cash machine. All I know is no matter what I own, if it is maxed out it’s dangerous!!!
That is how big business operates too. Our largest companies,even water utilities, leverage themselves to the hilt. The rich get richer using borrowed money not their own.
yer and they go broke. there are so many zombi Corporations out there that would just keep refinanceing when money was cheap but now they are stumped! that's also how the rich on paper get poor.
Hi Charlie, you are on point. I fell in the circle of up and down. I have renegotiated, but not quite what I really want to pay for the property. I wish to negotiate again because the property size is smaller that what I anticipated and it has Damp back and front. What do you thing about my move?
Sorry I’m not sure what you’re asking. Are you saying you’ve already renegotiated once, before knowing the details of the property? Now you want to renegotiate again? If so, I would expect a higher chance of the second negotiation failing. I can’t advise without knowing the whole situation. Trust your instincts! Good luck.
Hi Charlie, we bought our house 8 years ago and I renovated it and built a lodge in the garden added lot of value but we had been thinking about selling for a while for a bit of a change, last week we were offered 10k over asking price just because the woman loves the house and has sold hers. Looking around the market has definitely slowed which is why I’m surprised we got that offer. No other house on the street has sold near our offered price. I’m very unsure about letting go of our family home I’ve done a lot of work to but please reassure me I’ve probably sold the top 😅🙏🏽 Moving in with family and Hoping to get discount next spring.
Hi Stevie. It sounds like you’ve put a lot of love into it and your buyer can see that. Rare properties will always sell well. It also sounds like your only reason for selling is financial and that you’d miss the house. So I can’t help with the decision, that’s for you to weigh up which is more important: living where you live, or banking the profits but then living somewhere that’s not first choice. Yes you’re definitely selling at or near the top, but that doesn’t mean you won’t regret selling. Time for some soul searching! Good luck! Hope that helps. (Tip: which mistake would you regret more: Selling and wishing you hadn’t? Not selling and wishing you had? That’ll give you your answer.)
@@MovingHomewithCharlie Good advice. I’d say you only live once and you need change now and again. Well we do anyway. My favourite quote comes to mind, most people tiptoe through life hoping to make it safely to death. Not for me that 😂. My wife is an expert researcher and house hunter so have no doubt she will find us something amazing somewhere new. Thanks a lot for feedback 🙏🏽
I believe Charlie has called the top of the market well. Asking prices have been dropping since June. Media scaremongering on energy, the inertia of the Tory leadership and now the Queen's death are psychologically very significant. The funeral tomorrow and the onset of autumn on Wednesday give folk a nice neat end point. A transition to a new, less secure, less wealthy period. The Queen's death has locked in 18 months of decline. But be patient. House prices always rise long term
Same as with any home: Disregard all their sales guff about "we can't lower prices" etc. Work out your max comfortable offer. Send it by email. With new homes builders you can negotiate in extras like flooring, bathrooms, kitchen upgrades etc. Ask for it all!
We don’t have this problem in Hong Kong. Well, we do but there is adequate compensation to the non-welching party. On agreement of a price for a property, a provisional sale and purchase agreement is drawn up by the estate agent along with a 5% deposit from the purchaser. If either party backs out, they are liable to the tube of the deposit plus the estate agent’s commission. In Hong Kong, the estate agents act for the buyer and purchaser equally, and the buyer and purchaser share the cost of the estate agent equally. The formal sale and purchase agreement is then prepared by the vendor’s solicitor that includes a further deposit of at least 5% with the balance payable on completion, typically within a few months. Again, the welching party is liable to pay the non-welching party the deposit to date and all incidental costs including legal and estate agent commission. Compared to the certainty of what I’m use to in Hong Kong, buying a property in the U.K. is a ‘mare.
11:38 This happened to someone I know. The agent was so rude and said he wouldn’t even tell the seller about the offer. Then the buyer offered something more than they thought the property was worth based on area statistics and the seller accepted straight away. First timer mistake.
Yes, but I don’t know if it’s that simple. It will change the overall product metrics, complicated af I think. Risky to do without speaking to your broker first.
I sold my house last September 2021 the whole process took 56 days from start to finish and the money was in the bank is was very happy with price and complete process I would also recommend this because if anyone backs out it will cost them their ten per cent deposit paid at fall of hammer on day of auction is feel you should cover auctions on your videos as often now a better price can be achieved for the seller and it takes away a lot of messing about it believe this is the way of something achieving it's true value I also sold a house through auction in 2003
Auctions are definitely a good way to go for certain properties. But there's a reason it's not right for everyone. Typically, you'll sell faster (which is often an auction seller's priority) but also get a slightly lower price than on the open market.
@@MovingHomewithCharlie yes but I thought we were speaking about a falling market and buyers pulling out so my answer to that is sell quickly without risk of losing buyer you are predicting substantial falls in prices anyway aren't you
I'm a cash buyer, I've agreed upon the price, had a survey carried out, which recommends repairs, I put this to the sellers, they outright refused to put right, or reduce the price of the house !..any suggestions anyone ?(also under pressure from she who must be obeyed to drop my frustration and just carry on with purchase...)
1. Decide on what you feel is the new, fair price, taking into account the recommended repairs, and how much you actually want the property. 2. If you're willing to accept the risk of losing the property, withdraw your current agreed price, resubmit the new price you feel is fair, and say you are prepared to proceed with exchanging as soon as possible if they accept. 3. Tell the powers that be that anything other than this approach may end in tears. Overpaying at the top of the market is only ok if you are a cash buyer (check) and you love the property enough that you don't care about paying a premium to secure it, and want to keep it long term. Hope that helps!
Thank you so much for the reply, swift reply ! !, I'll think upon this, although the pressure is unrelenting from "she who must be obeyed "ie.. we're going come he'll or high water "! !
@@dartman9265 yes that makes sense in the market in 2021 - he was a silly boy if he liked the property, he lost out. V foolish of him and wise of you to call it like you did.
I get people want to avoid negative equity and maybe right now is the only acceptable time in the past 10 years because of the £ crash, but it really is a sh*t move, because the seller has lost all leverage as it has now been off the market for x amount of time. Especially if you over bid! Someone else might have not got it because they priced in the very obvious down turn coming...
It’s also worth noting that the sellers probably calculated what they could afford in their onward purchase based on what you offered. So if you try to lower at the last minute then they are often unable to afford their next purchase and the whole chain falls apart. Which wastes thousands in conveyancing fees for everyone but especially the person in the middle of the chain. That’s why I personally think gazundering and gazumping are both crappy things to do. Don’t offer on a house more than you think it’s worth in the first place because you could cost other people thousands in fees and there was probably someone else who they could’ve sold the house to if you hadn’t messed them around. If the house wasn’t worth as much as you offered the mortgage company would’ve down valued it (which they do all the time and that is a legitimate reason to renegotiate, as is unexpected issues in searches/surveys) The other side of the coin in just as bad - my friends parents accepted an offer for £360k on their house last September, come January they hadn’t found anywhere they wanted that they could afford with that and the market had shot up so they went back to the buyers and demanded an extra £40k. Obviously the buyers told them to do one. They put it back on the market for £425k and it still hasn’t sold even though everything else put on at the same time sold ages ago.
Good point. But in a fast changing market the 4/5 month time between offer and exchange, the world can change a lot. It’s not unreasonable for people to reconsider their situation in light of a starkly different outlook. Tricky one.
Here's a starkly different outlook Charlie. Energy bills that were rumoured to be going from £1,970 a year to £5,500 are now to be just £2,500 less a Government handout of £400. So up 7% instead of 176%.
![[ENGSUB] UNPRODUCTIVE DAY ใช้ชีวิต (เปื่อยๆ) ด้วยกัน 1 วัน! | OUROAD CLOSEFRiEND SS2 EP.9](http://i.ytimg.com/vi/pyYKZ3kra9w/mqdefault.jpg)
A must watched video for home buyers 👍
Brilliant, thanks for the advice.
Some sellers are still living in early 2021. Recently offered on a house valued at 437k, it needed lots of work and other houses on the street that needed less work had offers accepted at 400k. I offered 395k. Seller rejected that and a 420k offer saying something along the lines of “it’s valued at 437k, I’m getting 437k”…ok then mate I’ll see you at the bottom 😂
That happens a lot. Very unfortunate
LOL yes that happened to us. We felt the bungalow we'd seen was overpriced due to some repairs needed. We would only have suggested a reduction of £5- 10k but the vendors were so aggressively assuring us before we'd said a word that there was no room for price negotiation we just walked away. This was a property being sold by the family of a deceased relative - often the worst people to try to negotiate with!
@@essanjay8604 ours was for was a probate as well - 3 bed semi
@@Anyhandleidontcare There you go! Greedy relatives.
LOL @ ''ok then mate I’ll see you at the bottom''..... Soooo, did you see them at the bottom? I'd be very interested to learn what the place sold for, if it did at all.
Hi Charlie, thanks for this video. I am unfortunately in a worst of both worlds situation. First time buyer that agreed a purchase in April before the interest rate hikes. Got my 90% mortgage offered fine, but there has been huge delays in completing due to land issues with the house. We are now highly unlikely to complete before my mortgage offer ends. My advisor sent me a new illustration that was £7500 more over the 5 year fixed term! We absolutely love the house, but can't take that kind of hit, I have had to tell the seller if they don't hurry up I will have to reduce my offer. The only possible silver lining is that a reduction in price combined with longer time to save means I will likely be able to reach a 15% deposit. Its honestly been a total nightmare.
Sorry to hear that - fingers crossed it works out for you!
Really good info Charlie, many thanks.
Glad it was helpful!
Great video, as always. I'd really appreciate some advice on regional variations during previous crises and what do you expect in the next few years. I'm interested in south coast urban areas (trying not to divulge my exact location 🙂). Thanks for great content
Go to the Nationwide house price calculator.
Enter £100,000 house.
Set dates to Q1 1990 to Q1 1994 then just run through the various regions.
South East hit hardest by far.
Give me a postcode area and I'll see what I can dig up for you :-)
@@MovingHomewithCharlie Thanks for the offer, Charlie. Let's pick up any postcode in the SO18 range. Many thanks
Really helpful, thank you!
It’s crazy that the standard model most landlords follow is to max out the borrowing on properties each time they get an increase in value, they rarely leave any equity in the property as they use it as a cash machine. All I know is no matter what I own, if it is maxed out it’s dangerous!!!
That is how big business operates too. Our largest companies,even water utilities, leverage themselves to the hilt.
The rich get richer using borrowed money not their own.
yer and they go broke. there are so many zombi Corporations out there that would just keep refinanceing when money was cheap but now they are stumped! that's also how the rich on paper get poor.
Hi Charlie, you are on point. I fell in the circle of up and down. I have renegotiated, but not quite what I really want to pay for the property. I wish to negotiate again because the property size is smaller that what I anticipated and it has Damp back and front. What do you thing about my move?
Sorry I’m not sure what you’re asking. Are you saying you’ve already renegotiated once, before knowing the details of the property? Now you want to renegotiate again? If so, I would expect a higher chance of the second negotiation failing. I can’t advise without knowing the whole situation. Trust your instincts! Good luck.
Hi Charlie, we bought our house 8 years ago and I renovated it and built a lodge in the garden added lot of value but we had been thinking about selling for a while for a bit of a change, last week we were offered 10k over asking price just because the woman loves the house and has sold hers. Looking around the market has definitely slowed which is why I’m surprised we got that offer. No other house on the street has sold near our offered price. I’m very unsure about letting go of our family home I’ve done a lot of work to but please reassure me I’ve probably sold the top 😅🙏🏽 Moving in with family and Hoping to get discount next spring.
Hi Stevie. It sounds like you’ve put a lot of love into it and your buyer can see that. Rare properties will always sell well. It also sounds like your only reason for selling is financial and that you’d miss the house. So I can’t help with the decision, that’s for you to weigh up which is more important: living where you live, or banking the profits but then living somewhere that’s not first choice. Yes you’re definitely selling at or near the top, but that doesn’t mean you won’t regret selling. Time for some soul searching! Good luck! Hope that helps.
(Tip: which mistake would you regret more:
Selling and wishing you hadn’t?
Not selling and wishing you had?
That’ll give you your answer.)
@@MovingHomewithCharlie Good advice. I’d say you only live once and you need change now and again. Well we do anyway. My favourite quote comes to mind, most people tiptoe through life hoping to make it safely to death. Not for me that 😂. My wife is an expert researcher and house hunter so have no doubt she will find us something amazing somewhere new. Thanks a lot for feedback 🙏🏽
I believe Charlie has called the top of the market well. Asking prices have been dropping since June.
Media scaremongering on energy, the inertia of the Tory leadership and now the Queen's death are psychologically very significant.
The funeral tomorrow and the onset of autumn on Wednesday give folk a nice neat end point.
A transition to a new, less secure, less wealthy period.
The Queen's death has locked in 18 months of decline.
But be patient. House prices always rise long term
@@Stevieab You'll be surprised at how many people are also "expert researchers and house hunters", the current market requires way more than just that
@@wsa9120 Thank you for that useful information. Hopefully 12 years studying economics and markets help me make the correct decision.
Do you have tips on negotiation with house builders for new build homes?
Same as with any home: Disregard all their sales guff about "we can't lower prices" etc. Work out your max comfortable offer. Send it by email. With new homes builders you can negotiate in extras like flooring, bathrooms, kitchen upgrades etc. Ask for it all!
@@MovingHomewithCharlie thanks Charlie.
We don’t have this problem in Hong Kong. Well, we do but there is adequate compensation to the non-welching party.
On agreement of a price for a property, a provisional sale and purchase agreement is drawn up by the estate agent along with a 5% deposit from the purchaser.
If either party backs out, they are liable to the tube of the deposit plus the estate agent’s commission. In Hong Kong, the estate agents act for the buyer and purchaser equally, and the buyer and purchaser share the cost of the estate agent equally.
The formal sale and purchase agreement is then prepared by the vendor’s solicitor that includes a further deposit of at least 5% with the balance payable on completion, typically within a few months. Again, the welching party is liable to pay the non-welching party the deposit to date and all incidental costs including legal and estate agent commission.
Compared to the certainty of what I’m use to in Hong Kong, buying a property in the U.K. is a ‘mare.
11:38 This happened to someone I know. The agent was so rude and said he wouldn’t even tell the seller about the offer. Then the buyer offered something more than they thought the property was worth based on area statistics and the seller accepted straight away. First timer mistake.
Now I just need a video on how to determine the value of a house that I want to buy...
Surely negotiating down would only improve your loan to value if you kept the same deposit?
Yes, but I don’t know if it’s that simple. It will change the overall product metrics, complicated af I think. Risky to do without speaking to your broker first.
I sold my house last September 2021 the whole process took 56 days from start to finish and the money was in the bank is was very happy with price and complete process I would also recommend this because if anyone backs out it will cost them their ten per cent deposit paid at fall of hammer on day of auction is feel you should cover auctions on your videos as often now a better price can be achieved for the seller and it takes away a lot of messing about it believe this is the way of something achieving it's true value I also sold a house through auction in 2003
Auctions are definitely a good way to go for certain properties. But there's a reason it's not right for everyone. Typically, you'll sell faster (which is often an auction seller's priority) but also get a slightly lower price than on the open market.
@@MovingHomewithCharlie yes but I thought we were speaking about a falling market and buyers pulling out so my answer to that is sell quickly without risk of losing buyer you are predicting substantial falls in prices anyway aren't you
Would you send your new offer by email? (for the same reasons you should send your original by email)
Yes absolutely
I'm a cash buyer, I've agreed upon the price, had a survey carried out, which recommends repairs, I put this to the sellers, they outright refused to put right, or reduce the price of the house !..any suggestions anyone ?(also under pressure from she who must be obeyed to drop my frustration and just carry on with purchase...)
1. Decide on what you feel is the new, fair price, taking into account the recommended repairs, and how much you actually want the property.
2. If you're willing to accept the risk of losing the property, withdraw your current agreed price, resubmit the new price you feel is fair, and say you are prepared to proceed with exchanging as soon as possible if they accept.
3. Tell the powers that be that anything other than this approach may end in tears. Overpaying at the top of the market is only ok if you are a cash buyer (check) and you love the property enough that you don't care about paying a premium to secure it, and want to keep it long term.
Hope that helps!
Thank you so much for the reply, swift reply ! !, I'll think upon this, although the pressure is unrelenting from "she who must be obeyed "ie.. we're going come he'll or high water "! !
@@davidbrown4140 well that's a legitimate reason to consider overpaying! Peace is worth a premium!
I had this done by the buyer £10k off few days before completing
Never nice if you’re the seller, especially if it’s close to exchange. But well done keeping it together and getting it over the line.
@@MovingHomewithCharlie I never sold it . Put it back on the market for 5k more then before then sold it. I refused to get had over a barrel.
When did that happen? Fair enough if the buyer did a cheeky last minute have a go when there was no market justification for it.
@@MovingHomewithCharlie 12 months ago.
He was picking out stupid things pulled the plug . Worked out better for me in the end
@@dartman9265 yes that makes sense in the market in 2021 - he was a silly boy if he liked the property, he lost out. V foolish of him and wise of you to call it like you did.
I get people want to avoid negative equity and maybe right now is the only acceptable time in the past 10 years because of the £ crash, but it really is a sh*t move, because the seller has lost all leverage as it has now been off the market for x amount of time. Especially if you over bid! Someone else might have not got it because they priced in the very obvious down turn coming...
It’s also worth noting that the sellers probably calculated what they could afford in their onward purchase based on what you offered. So if you try to lower at the last minute then they are often unable to afford their next purchase and the whole chain falls apart. Which wastes thousands in conveyancing fees for everyone but especially the person in the middle of the chain. That’s why I personally think gazundering and gazumping are both crappy things to do.
Don’t offer on a house more than you think it’s worth in the first place because you could cost other people thousands in fees and there was probably someone else who they could’ve sold the house to if you hadn’t messed them around. If the house wasn’t worth as much as you offered the mortgage company would’ve down valued it (which they do all the time and that is a legitimate reason to renegotiate, as is unexpected issues in searches/surveys)
The other side of the coin in just as bad - my friends parents accepted an offer for £360k on their house last September, come January they hadn’t found anywhere they wanted that they could afford with that and the market had shot up so they went back to the buyers and demanded an extra £40k. Obviously the buyers told them to do one. They put it back on the market for £425k and it still hasn’t sold even though everything else put on at the same time sold ages ago.
Good point. But in a fast changing market the 4/5 month time between offer and exchange, the world can change a lot. It’s not unreasonable for people to reconsider their situation in light of a starkly different outlook. Tricky one.
Here's a starkly different outlook Charlie.
Energy bills that were rumoured to be going from £1,970 a year to £5,500 are now to be just £2,500 less a Government handout of £400.
So up 7% instead of 176%.