Diary of a frustrated buyer

I previously posted regarding a house I put a bid on the price had dropped from 465, 435, 405, 380 (on the market since April 2007). I put in a bid of 360,000.
It initially took 8 phone calls over 4 weeks to arrange a viewing which only was arranged when I threatened to go directly to the seller. The agent never got back to me about my bid despite several more phone calls.
Today I got an alert on the property listed under a new agent the price was 400 an increase of 20. Called the new agent outlined above said my bid still stood he basically agreed with me it was priced to high but said the vendors thought the market was going to pick up! So now I have to wait for reality to dawn on these deluded sellers as this is a house I really like but refuse to pay over the odds for.
How can anyone given the media headlines over the past week think the market is going to pick up.

stop being a frustrated buyer

Become a happy renter!..give it a bit of time and you too can live in the nicer parts of town and wait for reality to set back in while rents keep dropping.
:wink:
and to your question:

Take your pick from the headlines…something to suit all - all the ‘economist’ say it is nearly over! that is the ones who are paid by EA and Banks…
:unamused:

I hear ya!,

But look at it this way (this might not make comforting reading).

There are two interested parties in this house. You and the people that already own it.

You think it’s worth 360. They think it’s worth 400.

You can argue till your blue in the face that they are wrong, but if the other interested party was another buyer and put a value of 400 on it, you’d lose out and you’d move on, and you’d scratch your head about why anyone would pay that.

What’s pissing you off is that the other interested party is the seller.

From my point of view the scenario is exactly the same regardless of whether it’s another buyer or the seller who values it at 400. Either way you lose out, so move on.

The seller has the choice of sticking 360K or the deeds of their house in their pocket. They choose the deeds of the house, because to them the deeds are worth more than 360K.

Don’t forget that there are sellers who don’t really care whether they sell or not, the see property falling in value, they know the chance to make a killing is gone, but there’s a long way to fall yet and they’d prefer to sell now than later. If they can’t get a price that makes it worth their while they’ll stay put.

If this is a seller that needs to sell, they will sell eventually. It’s up to you to decide whether you want to wait, or increase your bid. If you can’t buy it for 360, then it’s worth more than 360 to someone, and you just have to live with that.

Time will be nicer to you than them, if that’s any comfort.

-Rd

Interesting and insightful post as always, Rd.

If I saw this pattern I would assume you were being jerked around with never any real intention of selling at 360. The vendor is trying to find a price that will attract bidders and perhaps think that now they have found a floor they will raise the price slowly to see if they can get slightly more. Putting a deadline on your bid may help to focus minds.

Don’t forget that there is a rational logic to playing hardball for certain sellers.

If you are selling to trade up (spend more on a house), your optimal strategy is to hold out and wait. If you get lucky and you get someone who overpays, then great. If you are left hanging for a year or two and end up having to sell much lower as the market falls then the cost of trading up is now lower, great again. It is a win-win strategy for these types.

Interesting point.

And if FTB’s are staying put in rented accomodation, and the people living in the houses that FTB’s want are staying put waiting to trade up, you get a stand-off.

The trader uppers are ok where they are, and don’t mind waiting for the market to fall.

The FTB’s are ok where they are because renting is cheaper than the hardball prices being asked by the trader uppers. They don’t mind waiting for the market to fall.

This seems to be where we are. Somebody blink for goodness sake!

-Rd

Unless they fall into NE and can’t get a bank to allow them to transfer their mortgage. Then they are stuck.

Either way they’re not selling.

-Rd

What about the FTBs who are living with Mammy? That’s even cheaper than renting! And you get your bed made!

A much better option if you want to save.

But maybe if once they realise they are near NE they may feel an urge to accept an offer before their options run out. Especially if they’ve seen a few of their friends fall into this trap already.

But not if you want to enjoy an exciting sex life. :wink:

Don’t be in such a rush to spend 360k.

You have time on your side and there’s always a chance of a better , cheaper property around the corner :wink:

A missed opportunity or a bullit dodged ? Time and patience will tell 8)

The wanted 380, you bid 360.

They’re probably thinking “if we up the price to 400, he’ll up his bid to 380”.

They’ll take your 380.

Don’t let them win.

If it was me, I’d tell them that you have to lower you’re bid due to new terms from your bank.

offer 340k now.