Wednesday, Sep 16, 2009
How Should Residential Property Be Valued And What Is Market Value Based On?
The Economic Voice: How Should Residential Property Be Valued And What Is Market Value Based On?
The home sellers are refusing to take offers that are slightly lower than the asking price because they believe the estate agents have factored in recent house price drops into their valuations.....
Posted by titaniccaptain @ 12:08 PM (1225 views) Add Comment
14 Comments
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1. will said...
Any intervention to prevent a property correction will only lead to mass migration out of the UK. Property in the Americas and most of Europe has dropped considerably and is now looking tempting to many. I fear a generation of school leavers facing a tough choice.
2. phdinbubbles said...
@will
True - and especially damaging as it'll be the better educated and most capable that will leave.
3. happy mondays said...
Ti's true, i for one with my young family will be heading into europe to buy our feedom at a reasonable price, & hopefully have some land with that aswell.. Just waiting to see what happens & that europe does not implode..
4. need-a-crash said...
Quite agree with the above. Emigration is becoming increasingly tempting and I've been working for nearly 10yrs. I can't imagine how people coming out of school, university are feeling. My sister has recently graduated and most of her contemporaries seem to accept that their only hope of owning property is to marry a rich man - so much for the feminist revolution!
5. 51ck-6-51x said...
Thought: An exodus just means the postponed second leg down of the crash will be even bigger - not only less demand but also less power for the state to support the market.
6. paul said...
I think the impasse is more or less solved by the surveyors - who can be sued for pricing a property incorrectly. No wonder they've been coming in for some flak recently from sellers. How dare they price houses truthfully!
7. mark wadsworth said...
Anecdotal, I was browsing "sold " prices (mouseprice? ourproperty? houseprices? I can't remember which site) on properties near me, and there is a row of identical 'townhouses', two of which sold for £163k back in 2000, which crept up and up to £305k by 2007, one went earlier this year for £240k.
8. timmy t said...
MW - nice - if they were late 2000 then we might be on for a 10-YOY fall yet...
9. greenshootsandleaves said...
'... distressed sellers who are complaining that valuations given by estate agents on their homes are not being realised in sales and they are left feeling dejected after their homes have been on the market for over 12 months ...'
What else do they expect? They're in denial about the true state of the market, and the estate agents they tend to seek out will, if anything, have erred on the side that attracts more punters. Nothing there that ye olde law of supply and demand cannot put right, though. If they don't want to sell, they don't want to sell and that's that. Let them get on with their lives. Perhaps it is they who, by refusing to take offers that are slightly lower than the asking price, will end up missing that boat we keep hearing about. I don't know about you, but an improvement in the market that is dependent on very low volumes sort of reminds me of that Frank Carson joke about the £15 wheelbarrows which a customer was complaining cost only £10 across the road. 'Well why don't you buy one there, then?' 'Because they haven't any left.' 'Well, when we won't have any left, ours too will be on sale at £10.' 'Fine, I'll come back when you haven't got any, then'.
On a more serious note, there's one thing that everyone, bears and bulls alike, would welcome: a higher level of market activity, if only to settle the argument. Until then, any chance of someone devising a more accurate method of recording property sales stats than the ones currently in use?
10. gone-to-colombia said...
The full price correction will eventually arrive. No amount of government tinkering can stop this.
I suspect that the next price drop will be much, much harder and deeper than the last.
We are in a kind of Indian summer, the last days before reality arrives
11. titaniccaptain said...
Bloody hell just read some of my spelling mistakes....please forgive I can't spell for toffeaq and my grandma is less than desirable.....
12. nomad said...
I don't believe it TC, tell us about your grandma.
13. mark wadsworth said...
@ Timmy T, i was pleasantly surprised as well, just scan the list here (concentrating on 'Terraced' which are all identical)
14. drk said...
MW@13,
It appears you are an Essex lad like me! Up to 3 years ago I was living in Loughton then moved to Horsham. Not sure what the West Essex market is like now but Horsham is surging unfortunately :(