Swansea-State Of The Market

[mumblesmental]

never seen such a ugly house as that tycoch monstrosity! What a dreadful place

[swa]

at least swansea doesn't have earthquakes like in nz.

[mumblesmental]

at least a quake might smash that place down!

[Argoed]

Hmmm.

I used to offer 1% with no VAT. Could not get an instruction. Started asking 1.5 + VAT and getting instructions now. Plus lots of buyers signing up and lots of viewings.

Having said that, we did not really bother with sales until 3 months ago. We are now being proactive and building a sales branch with a view to opening more offices. This is on the back of successfully building the letting business and sourcing investment or BMV property.

We also share our instructions with 1000 estate agents across the UK which means we are in pretty much every area in the UK and that helps find people relocating. It gets us on every portal which is the best way to sell these days. We lose commission due to this, but commissions are not what drives us. All we want to do is sell and let property which is the reason for being in business. Of course we have to make money, but our lettings takes care of all the running costs, so a sale is a bonus. Providing people or I/we don't get greedy, then there is a lot of money to be made selling houses the right way.

However, I still have the same problem. Other EA's ramping prices to gain the instruction. They have no interest in selling the house or at least for 6 months anyway. They now pick up commission on other things just for the instruction. EPC's floor plans etc. Then after no viewings tell the vendor to reduce.

Hi SEA,

You are are man in the know , so I wonder if you can clarify something for me. I have made an offer (cash) on a repro but the EA has asked for proof of funds. Is this normal? It seems to me very intrusive, but that being said......say I flash a statement across his desk, but he then asks to copy it to produce for the bank involved in the sale. Would this be regarded as usual in such situations. I must say I feel very uncomfortable with the demand.

[Swansea Estate Agent]

315K asking price!!!???

http://www.homesonview.co.uk/Scripts/ShowProperty.asp?css=&CompanyID=DAWSMUMB&AgencyID=DAWSMUMB&ID=DUP01808

£315k. More like £135k

[Swansea Estate Agent]

This appears to be up that lane that runs round the back of Cefn Coed and down through Tycoch. Is that 1 or 2 saunas that I can see?

http://www.rightmove.co.uk/property-for-sale/property-33780883.html/svr/1713;jsessionid=08F3B312AB019ED9C65F007D3378DE63

Our office manager just sold her house in Reynoldston and viewed this house. She said it was a long way over valued and not nice at all.

The pictures look ok apart from the outside to me.

[mumblesmental]

SPA! you usually talk so much sense! that place is just awful, inside and out, i really would not live there if you paid me! Has it been a long week?!

[Argoed]

Our office manager just sold her house in Reynoldston and viewed this house. She said it was a long way over valued and not nice at all.

The pictures look ok apart from the outside to me.

Hi SEA,

You've mentioned buying repossessed properties. Wonder if you can expand on the process? I make an offer , then notice goes in the paper asking for figures over mine. Does the notice go in a local paper only or also outside the area. The public know what they have to beat but do I also get advised what the counter offers are ? If not why not? I shown my cards why should "his" be witheld ?

Your observations much appreciated.

[Swansea Estate Agent]

I was viewing it on my mobile, so it was not too clear and now I have looked again and can understand your points more

It's been a very long week. My 3 month old has not slept for what seems like an eternity and with our new 0% sales commission I am over-worked

The guy that lives next door to that property is one of our main landlords and he has been trying to sell his property with Dawsons for about 5 years, but now off the market. I assume they got the price from his property which was on for more than this one.

[Swansea Estate Agent]

Sorry it's been a longer week

It is his house

No wonder I had some kind of soft spot for it. I was going to say that his property had been on the market over priced with Dawsons for about 5 years. I'm sure it was closer to half a million. I told him that he needs to bring it down quite a lot.

Our office manager took a £50k hit on her property in Reynoldston last week which was a 5 bed detached with 2 receptions and 4 bathrooms and was on the market for less than this property. When he found out, he was gutted and took it off Dawsons. Looks like Astleys are going down the same route though.

[The Masked Tulip]

Sorry it's been a longer week

It is his house

No wonder I had some kind of soft spot for it. I was going to say that his property had been on the market over priced with Dawsons for about 5 years. I'm sure it was closer to half a million. I told him that he needs to bring it down quite a lot.

Our office manager took a £50k hit on her property in Reynoldston last week which was a 5 bed detached with 2 receptions and 4 bathrooms and was on the market for less than this property. When he found out, he was gutted and took it off Dawsons. Looks like Astleys are going down the same route though.

Looks like they are all putting in ludicrous, IMPO, valuations.

I still think it is partly to get the property on their books in the first place, partly because offers are coming in so low that they need to 'protect' their 1% fees - they need that money badly it seems.

So in the worst recession in decades with banks tightening lending asking prices are rising how stupid is that. It can only end up in one thing when the bank look at a mortgage on such places.

I heard an interesting story recently of a house in Swansea West which was put on last year for 400K - had an offer within 24 hours from a couple. 3 month later the house was still not completed on. The seller then learns from the EA that the couple who made the offer are apparently well-known for putting in offers on houses and never completing. How nuts is that? Why did the EA accept the offer on DAY ONE? Why not tell the seller back then the score?

So this year the seller goes back to same EA and this time they suggest putting it on for 50K less than last year's 400K.

Instead, the seller says that the market is poor and says that the house should go on for 325K. That sounds good - except that two other houses in the road have already been on for between 325K and 350K and both have now dropped below 300K asking, one is now on for 275K asking.

Chasing the market down. From what I can make out the last person you want to value your house in Swansea, if you wish to sell it, are some of the EAs!!!?

[Swansea Estate Agent]

It's always an idea for vendors to get 3 valuations and don't go for the 3 biggest agents.

If I was looking to sell, I would ask Dawsons, WWH and a smaller company like us that do not have a large sales stock.

This should give 3 different valuations and 3 different pieces of advice. From there, you can decide for yourself which seems to be honest or close to the mark even if you use an average.

I had to sell my house in Lancashire and did this. I selected my own asking price which was an average of the 3 and went back to the biggest agent to instruct them with my price. It was about 10% lower than their valuation, so they were happy to take it on. They didn't sell it, so I gave it to another agent at the same price and they sold it within a month for full asking price.

[The Masked Tulip]

It's always an idea for vendors to get 3 valuations and don't go for the 3 biggest agents.

If I was looking to sell, I would ask Dawsons, WWH and a smaller company like us that do not have a large sales stock.

This should give 3 different valuations and 3 different pieces of advice. From there, you can decide for yourself which seems to be honest or close to the mark even if you use an average.

I had to sell my house in Lancashire and did this. I selected my own asking price which was an average of the 3 and went back to the biggest agent to instruct them with my price. It was about 10% lower than their valuation, so they were happy to take it on. They didn't sell it, so I gave it to another agent at the same price and they sold it within a month for full asking price.

Alas, I don't think it works like that - not in Swansea anyhow due to the snobbery involved in having your house on for a ludicrous asking price. It is all about one-upmanship. I am convinced lots of people just like having their houses advertised for a silly price in order so they can boast about it.

Round here you get 3 or more quotes, get the price bid up by EAs desperate to have stuff on their books and you go with the highest price. Complete delusion and greed.

[Swansea Estate Agent]

It is like that everywhere in all fairness, so vendors need to take some responsibility if they do actually want to sell their property.

With regards to the snobbery, I believe that is mainly in SA3 with SA2 not far behind.

If people do want to sell and have been on the market for a long time, then they are either completely out of touch with reality or believe what their agent keeps telling them. Common sense would be to get another opinion.

I know how vendors minds work because I lose more instructions than any other Swansea agent due to my realistic valuations. I'm now getting vendors coming back to me after a year of being on the market with other EA's. Problem is my valuations now are less than a year ago and it seems to destroy their souls.

I would like to say 'I told you so', but I don't think its right somehow

It does make me feel for a lot of them in a way because they listened to bull from other EA's, but I also feel that they have themselves to blame for being a little bit greedy. They should have realised after a month that the price is too high. After all I did tell them that most interest comes in the first month. If there is no interest, then the price is probably too high or the agent has not done enough work.

[Swansea Estate Agent]

Don't get me wrong, we have property over priced, but the vendors know it and still want to get more money, but that's mainly because they have to sell for that price to remain in positive equity.

[mumblesmental]

ok, better keep him happy if he is a good customer!

This one is back on! when will they realise is woth about 130 at most

http://www.findaproperty.com/for-sale/property-11508258

[The Masked Tulip]

ok, better keep him happy if he is a good customer!

This one is back on! when will they realise is woth about 130 at most

http://www.findaproperty.com/for-sale/property-11508258

Nah, this is a new one is it? This is not the one next door to the curry house, but the one next door to the one that is next door to the curry house.

You can tell by looking at the faux diamond-shaped leading in the top of the double-glazing. You can see it clearly from the interior photos and just about make it out when looking at the exterior photo.

200K for being on what must be one of the busiest, noisiest and fume-filled roads in Swansea? When I cycle past that bit of the prom I try to hold my breath so not to breathe in all the fumes from the traffic.

Wonder if it is a holiday home up for sale? Not my idea of a relaxing place to escape the rat race from.

I get the impression that the EAs in Mumbles are desperate to keep up the asking prices of these 2 up 2 down terraces in Mumbles - because if they go the whole lot comes tumbling down.

I heard on the grapevine (pub) last night that repos in Swansea West have shot up since the day after Easter Monday.

Apparently the banks returned from Easter and began repoing big time - and apparently lots of them are very expensive asking prices houses in Langland, Gower, Derwen Fawr, etc.

I was told that the banks are so keen to repo that they are instructing EAs to put the houses on the market the day they foreclose.

This has resulted in one EA chain being very busy preparing details on houses and then finding themselves in the position where, if the owner manages to pay a bit more of the mortgage, the bank stops the repo and so the EA has to postpone putting the house on the market for another month. If that makes any sense.

I was told that they are shocked by the banks suddenly ramping up repos in the last week.

All in all, I find it very sad. I don't feel sorry for those who have been greedy ramping up prices in the area but I do feel sorry for those who must be going through a nightmare of stress worrying about losing their home.

Edited April 19, 2012 by The Masked Tulip

[The Masked Tulip]

It is like that everywhere in all fairness, so vendors need to take some responsibility if they do actually want to sell their property.

With regards to the snobbery, I believe that is mainly in SA3 with SA2 not far behind.

Just saw a Harrods delivery lorry driving through my road in Sketty.

[The Masked Tulip]

I'm now getting vendors coming back to me after a year of being on the market with other EA's. Problem is my valuations now are less than a year ago and it seems to destroy their souls.

I would like to say 'I told you so', but I don't think its right somehow

It does make me feel for a lot of them in a way because they listened to bull from other EA's, but I also feel that they have themselves to blame for being a little bit greedy. They should have realised after a month that the price is too high. After all I did tell them that most interest comes in the first month. If there is no interest, then the price is probably too high or the agent has not done enough work.

I see it from the other side - the prices chasing the market down.

So they drop their price to something more realistic but that price should have been the asking price 12 months ago.

IMPO a lot of sellers have been either badly advised and/or deluded themselves by valuations. I think, dare I say it, that we are now beginning to see the start of a possible cascade in asking price drops in Swansea. The new stuff is coming on for silly numbers but the older stuff is beginning to drop a fair bit - the end of the Summer will be interesting.

[mumblesmental]

MT even better! - buy em both and knock through making a 4 bed! Right im off to put in an offer!

[The Masked Tulip]

MT even better! - buy em both and knock through making a 4 bed! Right im off to put in an offer!

Your on-line offer may result in the asking price trebling!

Edited April 20, 2012 by The Masked Tulip

[The Masked Tulip]

Pointless 15K drop in asking price off this already discussed house IMPO.

http://www.rightmove.co.uk/property-for-sale/property-36772145.html/svr/2713;jsessionid=3D00F23A6201115B85889E0818D2E3A6

No bathroom photo - you think for 440K asking you would get a bathroom photo. Even a few bedroom photos?

Anyone know if it is a repo or not? It is very empty. I suppose empty does not always mean repo? Anyone know?

[Byron]

I think that the problem with big 4 bedroomed detached houses is that people buying them often have no idea of the running and upkeep costs. What seems just a modest step up from a three bed semi involves a lot of extra expense.

This tends to be the breaking point for those without a big stash and hefty income.

Things were fine, but now that money is tight, so many businesses are swallowing up the cash.

This means that the big house has to go.

Sadly, the money invested in updating etc. has been lost, but many do not yet realise this.

I am amazed at just how many of these houses have brand new bathrooms and kitchens. Anecdotally, I heard from a kitchen fitter that he has re-equipped all his families' houses with 5 year old kitchens that have been replaced by new for no other apparent reason than to 'Keep up to date'

[The Masked Tulip]

I think that the problem with big 4 bedroomed detached houses is that people buying them often have no idea of the running and upkeep costs. What seems just a modest step up from a three bed semi involves a lot of extra expense.

This tends to be the breaking point for those without a big stash and hefty income.

Things were fine, but now that money is tight, so many businesses are swallowing up the cash.

This means that the big house has to go.

Sadly, the money invested in updating etc. has been lost, but many do not yet realise this.

I am amazed at just how many of these houses have brand new bathrooms and kitchens. Anecdotally, I heard from a kitchen fitter that he has re-equipped all his families' houses with 5 year old kitchens that have been replaced by new for no other apparent reason than to 'Keep up to date'

I know of 2 kitchen fitters who have done very nicely in the past 10 years in the Mumbles/Gower area - before the credit/housing boom about 2002 they were just plodding along, then as the housing bubble grew in Swansea they went from occasional work to turning down work. They could command their own price.

They said that thy were regularly replacing kitchens and bathrooms in the area that they only put in 18 months before - sometimes only 12 months before. These were not your 1K B&Q jobs but 5K, 10K and even 30K stuff. They said that it just became a status and snobbery thing for most of their customers.

When you see some of those ludicrous asking prices in Swansea West just bare in mind that some of those kitchens, even though they don't look it, might be 20Kish or more of the askin price - and may be the third, fourth or fifth kitchen put in via MEWing.

What you say about the big houses is interesting. I have looked at, in the past 2 to 3 years, a good 30 houses in Derwen Fawr. The area is interesting as it used to be the real wealth suburb of Swansea but most of the people who lived there during the 70's/80s are now either dying or close to dying - sorry to put it in those words.

Nearly every house I have viewed in Derwern Fawr has been a complete wreck inside with seemignly nothing done since the 1970s or 1980s at the latest. But you can see that they once had the best that you could get in those days.

In other words, the owners could afford to get the best back then and then they couldn't afford it again. Hence why those asking prices in Derwern Fawr are so stupid - 300K to 600K on houses that need to be gutted completely.

I can see those big houses in Langland/Caswell and on the Gower becoming like the Derwen Fawr ones are now in the next 10 to 15 years - probably sooner now that easy credit lending is finished for good and we are in stagflation. People will simply not be able to keep them modernised. In fact, people probably will not be able to heat them.

I think - in fact I know - some people in their 60s with such houses are desperate to sell them because:

1. They need to sell and downsize so they can actually pay off the mortgage.

2. They need a cheaper, smaller house to run.

3. They have - in rare cases - have realised that the housing boom is over and are desperate to get out before it pops in Swansea. I know of some who regret holding out till last year and wished they had put their houses on the market 3 years ago.

Alas, for most the penny still has not dropped that the financial landscape of the UK has changed and that housing is going to be deeply affected.

I am told that repos are on the rise though.

Edited April 21, 2012 by The Masked Tulip

[Byron]

I know of 2 kitchen fitters who have done very nicely in the past 10 years in the Mumbles/Gower area - before the about 2002 they were just plodding along, then as the housing bubble grew in Swansea they went from occasional work to turning down work. They could command their own price.

They said that thy were regularly replacing kitchens and bathrooms in the area that they only put in 18 months before - sometimes only 12 months before. These were not your 1K B&Q jobs but 5K, 10K and even 30K stuff. They said that it just became a status and snobbery thing for most of their customers.

When you see some of those ludicrous asking prices in Swansea West just bare in mind that some of those kitchens, even though they don't look it, might be 20Kish or more of the askin price - and may be the third, fourth or fifth kitchen put in via MEWing.

What you say about the big houses is interesting. I have looked at, in the past 2 to 3 years, a good 30 houses in Derwen Fawr. The area is interesting as it used to be the real wealth suburb of Swansea but most of the people who lived there during the 70's/80s are now either dying or close to dying - sorry to put it in those words.

Nearly every house I have viewed in Derwern Fawr has been a complete wreck inside with seemignly nothing done since the 1970s or 1980s at the latest. But you can see that they once had the best that you could get in those days.

In other words, the owners could afford to get the best back then and then they couldn't afford it again. Hence why those asking prices in Derwern Fawr are so stupid - 300K to 600K on houses that need to be gutted completely.

I can see those big houses in Langland/Caswell and on the Gower becoming like the Derwen Fawr ones are now in the next 10 to 15 years - probably sooner now that easy credit lending is finished for good and we are in stagflation. People will simply not be able to keep them modernised. In fact, people probably will not be able to heat them.

I think - in fact I know - some people in their 60s with such houses are desperate to sell them because:

1. They need to sell and downsize so they can actually pay off the mortgage.

2. They need a cheaper, smaller house to run.

3. They have - in rare cases - have realised that the housing boom is over and are desperate to get out before it pops in Swansea. I know of some who regret holding out till last year and wished they had put their houses on the market 3 years ago.

Alas, for most the penny still has not dropped that the financial landscape of the UK has changed and that housing is going to be deeply affected.

I am told that repos are on the rise though.

What you say is very interesting and confirms thoughts that I have had. For some reason, people began to replace perfectly acceptable kitchens and bathrooms and spent a lot of money doing so.

Perhaps it was a social thing, following TV programmes?

I know that in other less affluent areas people have resisted doing this and made do with repairs and paint.

The result is that they are now financially well placed.

The problem with the bigger houses is that everything costs more, even decorating because the rooms etc. are bigger.

Those who truly had the money could afford to update, unfortunately, a lot of their less well off neighbours seem to have tried to follow via MEW.

No wonder repossesions are on the increase.