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House Price Crash Forum

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HOLA441
Posted (edited)

MSE link : http://forums.moneysavingexpert.com/showthread.html?t=825397

Classic case of a seller in denial. Has his house on the market for £150k - thinks he might have to reduce it a bit and needs advice.

Scroll down the replies a bit and he informs us that he bought the house within the last 12 months for £135k and has spent £3k on it. He's adamant, however that it's worth more than the other properties on at about £150k in his area.

Anyone want to educate this guy about selling into a falling market?

Edited by johnycoldears
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HOLA442
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HOLA444
Posted
Although I'm not a financial advisor so take precautions and make your own judgement on my opinion but if you can afford it, and the rent can cover your mortgage then you should consider renting in short term until the general financial conditions improve. Unfortunately the financial turmoil in money markets has severely affected property buyers' sentiment so people are anticipating a small correction in property market and are willing to rent in the meantime. It's probably not a good idea to sell a property in next 12 months or so, if you can afford to keep it.

However, if you definately need to sell then offer to pay 5% deposit and either legal fees or stamp duty. This will make your home particularly attractive for people who don't want to put down a deposit to buy bare essentials. With this approach, you won't get 100% of what you expected but at least, you'll get a sale at or near the original asking price. You'll be also helping someone get on the property ladder so, there also a 'feel-good' factor too!

Don't try to approach so-called 'cash-buyers' as they make offers significantly less than asking price usually 15-25% depending on your circumstances / how quickly you need to sell.

Good night and good luck.

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HOLA445
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HOLA449
Posted
Thats because he probably did what i did and asked the guru - "Any Question Answered" AQA [ http://www.aqa.issuebits.com/promotion.htm ] via a text and asked what house prices will do next year. The reply I got was house prices are expected to increase by 15%.

Idiots

If anyone remembers, I posted my answer from AQA sometime ago.... They were wrong!!!

I do a bit of work for AQA, and would just like to yell 'NOT GUILTY!'. You'd be surprised how many texts we get like that, and the volume is increasing: how nice to be able to decide whether or not to sell your biggest asset on a £1 text from a stranger :blink: . I always tell them 15-20% drops (at least) forecast, hope I haven't caused any breakdowns.

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HOLA4410
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HOLA4411
Posted
m ikelivingstone.last post 2nd page.moneysaving newbie my @rse.................................hpc veteran more like

Damn you spotted me. Just having a bit of fun with the MSE crowd. :lol:

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HOLA4412
Posted
I do a bit of work for AQA, and would just like to yell 'NOT GUILTY!'. You'd be surprised how many texts we get like that, and the volume is increasing: how nice to be able to decide whether or not to sell your biggest asset on a £1 text from a stranger :blink: . I always tell them 15-20% drops (at least) forecast, hope I haven't caused any breakdowns.

opps sorry I didnt mean to offend. I remember putting forward a well put together question of will there be a housepricecrash, citing some fundementals - earnings, economy etc.... But I got the experts opinion that a crash is unlikely and, prices expected to increase 15%!

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HOLA4413
Posted

Good research by Cells in his post. I particularly liked:

oh, the person who bought before you seems to have sold it to you at a loss!

* 17, Chaplin Close, Sileby

* Type : Terraced

o Sale Date : 25 March 2004

o Price : £144,995 (Freehold)

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HOLA4414
Posted
opps sorry I didnt mean to offend. I remember putting forward a well put together question of will there be a housepricecrash, citing some fundementals - earnings, economy etc.... But I got the experts opinion that a crash is unlikely and, prices expected to increase 15%!

None taken: I kept meaning to put the experience in 'Anectodals' anyway, as I don't remember any questions like that when I first started with them. Nice to be doing my bit for the 'war effort', anyway. Perhaps in 5 years' time, someone will be griping that they paid 5k for their house, did it up beautifully and still no-one'll offer them 7k for it...

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HOLA4415
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HOLA4418
Posted

Some stalwart advice here:

I think you've answered your own question here.

Bought within the last 12 months for £135k + £3k spent = £138k.

Latest Nationwide figures indicate price falls for the last 5 months giving an overall year on year increase of 1.1%.

According to that your house is "worth" £139.5k if bought 12 months ago. Add to this the fact that you are selling into a falling market and therefore need to undercut the competition in order to sell.

Yet amazingly you think your house has increasedin value by almost 10% to £150k and are somehow surprised that it won't sell.

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HOLA4419
Posted
Dont loose youre kool.

Its not there fault OK.

Did you know that the word 'sugar' is the only one in the English language, starting with SU that sounds like Shu?

Are you sure?

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HOLA4420

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