In February, I received an email out of the blue from a couple in Harrogate who at the time were renting a property having sold their home in June 2007. The peak of the market.
I gave them some cautious advice and four months later they have bought a new house – at a whopping discount.
From: “PV”
Date: 3 February 2009 07:55:22 GMT
To: henry.pryor@mac.com
Subject: Advice please!!!
Hi,
Quick line to gauge your views on our predicament. We are in rental and have been for some 18 months having sold our house in Harrogate June 2007. Have an opportunity to offer on property in York that was initially £325,000 fourteen months ago now on at £249,950 and intend to offer £225,000. The property does need some updating but nothing too major.
Quite a reduction if we can secure at the lower price…………. or do we hold on for another three, six months or even longer?
Many thanks,
P & D V
and my reply;-
From: Henry Pryor <henry.pryor@mac.com>
Date: 3 February 2009 08:52:29 GMT
To: PV
Subject: Re: Advice please!!!
Morning P,
Question. Was the property in York ever worth £325k?
If it may have been then the maths adds up and this is the kind of reduction I would expect. The only real test is can you afford £225 if it is accepted and if the cost of any borrowing were to increase (remember rates are unusually low today) then can you still afford it?
I don’t expect the market to bottom for a few months yet but then if I knew I’d be worth a fortune, wouldn’t I. If you are buying a home then remember that if you pay a little more than you have to, it’s where you are going to live. As my wife reminds me, what’s money for if not for paying for a home for your family?
I hope this helps and good luck.
Kind regards,
Hclp.
A brief acknowledgment;-
From: PV
Date: 3 February 2009 09:17:21 GMT
To: Henry Pryor <henry.pryor@mac.com>
Subject: Re: Advice please!!!
Henry,
Thanks for the advice, much appreciated. We are cash buyers so the lending issue is negated, hopefully the offer will be accepted!
P & D
Then finally;-
From: PV
Date: 7 June 2009 08:43:47 BST
To: Henry Pryor <henry.pryor@mac.com>
Subject: Thanks!!!
Henry,
Quick line to once again say thanks for the advice you offered on a recent house purchase near York. The original deal fell through so we found another house and have exchanged contracts etc etc.
As an indicator as to how the market is around York we offered 20% below asking which was accepted and then found two years previous (at the height of the market) it was valued around 20% higher than present day. In real terms a drop from peak of around 35-40%.
Despite the hype the market here appears ripe for cash bargain hunters, however many properties remain on the market for many months.
A recent conversation with an estate agent revealed that a number of chains are now collapsing at the bottom due to first time buyers finding difficulty funding. Detached around 300-400k are proving difficult to sell.
I hope this assists for your research and once again thanks for the advice,
PV