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House Price Crash Forum

The Turn Around Has Begun.....


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I have often wondered how long it would take for EA's to shift sides. They have been desperatly trying to dispell the HPC as rubbish and continually lying about house prices are about to rocket again. Desparately trying to keep prices high, but i allways new it could only last so long. Thats why i really enjoyed the conversation with a local EA this morning.

She rang to ask if i was still in the market for a property in her area, I replied that i was, she then told me the details of a few that have been around for a while, i replied that i didnt want to view them as they were asking too much.

she replied.

" To be honest, as it stands in todays market, asking prices dont really mean anything. You basically view a house and you decide how much you will pay for it and they try and come to a deal".

I was very suprised by this, as to me, she was basically saying that her job was now getting sellers to meet buyers prices, as opposed to getting buyes to pay the sellers prices, which is the way it has been working for the last 10 years at least.

I feel this is pretty significant. i was wondering if people on here agreed or am i making too much of that?

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A friend of mine is looking to buy an apartment in the center of London and she said that the EA she spoke to are encouraging sellers to accept lower offers from buyers because at the moment with transactions at an all time low they are hardly earning anything. I would imagine this is the same for most EA's throughout the country so sellers are going to have to start getting realistic and price their property accordingly if they want to sell

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People will never accept it until they are kicked out.

Some people have a profit in the house and can reduce however if we really have fallen 20% almost then loads of people are trapped already.

It does not compute to cut ones losses when its the only asset you have and you bought it for thousands more.

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An EA told me sometime last year 'we quickly figure out what people want to hear and tell 'em just that'

Could be a simple as that, she knew what to say to you to make you listen?

Personally, I am still waiting for this type of phone call, as our lease was up end of last year we were looking in the summer, we made a couple of offers that were around 20% off peak and EA's wouldnt even entertain us, they sounded bored and ended the conversation quickly with a 'whatever' air.

All the properties we offered on are still up far sale, not because there is anything wrong with them but because they were very nice but very overpriced, so nice they were of course exempt from the crash.

If I get a call of this type inviting me in to make offers I shall say no, I find the whole business very uncomfortable and am not prepared to go there again, if you have a nice property fitting my needs at a fair price I will look at it, until then I like the rest of the waiting buyers will wait till asking prices come down at least to current market levels, which I believe is about 21% off peak.

Given the data lags somewhat and it is after all a falling market I recon about 25% off peak should do it.

In a rising market you valued at just above market value, in a falling market you will have to price at just below, if you want some guides I can provide you with some sold prices, we can work it out from there.

Have a nice day!

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People will never accept it until they are kicked out.

Some people have a profit in the house and can reduce however if we really have fallen 20% almost then loads of people are trapped already.

It does not compute to cut ones losses when its the only asset you have and you bought it for thousands more.

Sadly you are right, my fear is that because the country needs lower house prices to allow industry to function (allowing people to move from town to town for economic reasons), and because, as you point out, people don't accept less unless forced to, so I fear mass unemployment is a necessary pre-requisite for the economy to start functioning again.

The reluctance of sellers to accept reality will take the total on the dole up to 5m

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cardiff.

sorry, wont name the EA.

I'd imagine Cardiff is taking a big hit at the moment, what with all the new stuff that has been built. There were far too many 'luxury' flats.

Makes sense though. I don't see why and EA cares about the price - they need sales, simple as that. They talk up prices as in a falling market no-one will buy, but in reality now they have no choice but to get sales any way they can.

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sellers realistic? Fairly unusual.

I saw the oddest news story the other day (I think!).

Women repossed.

"Bought" house for 44000 years ago.

"Valued at " 120000 at sometime.

Chucked out, and bank sold for 60,000 at auction.

She said they could have just sold it back to her for that price. What? But she wouldn't sell it for less than 120,000. I was most confused. Maybe someone else saw it? I couldn't work out what the hell was going on.

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sellers realistic? Fairly unusual.

I saw the oddest news story the other day (I think!).

Women repossed.

"Bought" house for 44000 years ago.

"Valued at " 120000 at sometime.

Chucked out, and bank sold for 60,000 at auction.

She said they could have just sold it back to her for that price. What? But she wouldn't sell it for less than 120,000. I was most confused. Maybe someone else saw it? I couldn't work out what the hell was going on.

It really is weird.I believe some people cannot accept the reality of losing all that profit (in their mind).

They actually chose to become a victim,then it means their house was stolen from them.They accept that and can harp on about the injustice of it all for years,rather than tell people they were responsible for losing all that profit,as they see it.

Illogical :blink:

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I'd imagine Cardiff is taking a big hit at the moment, what with all the new stuff that has been built. There were far too many 'luxury' flats.

Makes sense though. I don't see why and EA cares about the price - they need sales, simple as that. They talk up prices as in a falling market no-one will buy, but in reality now they have no choice but to get sales any way they can.

i'm pretty certain this is also the case in birmingham where i am, although i've never had it confirmed by an EA. Merely going by the sale prices vs asking prices on properties which have sold.

Asking prices are still a 2007 figure, the sale price will invariably be 10-12% off that, but only if the vendor has a desire to actually participate in the housing market. Those who are holding out are not participants, merely chancing their arm.

In a buyers market, buyers go straight past the crap, and can usually get what they want at a price that's reasonable. If you don't have good product you'll be waiting for hell to freeze over to get a 2007 price...infact you'll be waiting a long time to get any offer [why guestimate an offer on a dump when you can get something well looked after and ready to move into for only a small percentage more ?]. When good properties aren't selling at 2007 prices it's clear asking prices are utterly meaningless at the moment.

Edited by spivtastic
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It really is weird.I believe some people cannot accept the reality of losing all that profit (in their mind).

They actually chose to become a victim,then it means their house was stolen from them.They accept that and can harp on about the injustice of it all for years,rather than tell people they were responsible for losing all that profit,as they see it.

Illogical :blink:

and that is the problem. High house prices along with the expectation of higher prices meant that to get onto the ladder, people were "forced" into high loans. The high cost of servicing the loans means that there is no hope of ever saving for retirement, but the expectation of ever hgher prices meant that it didn't matter, as they would just downsize at retirement, cash out the equity and then live off that; a place to live and a pension, all in one. Perfect.

These people are now left floundering on the shore.

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...I don't see why and EA cares about the price - they need sales, simple as that...

well, EAs obviously compete to sign up vendors on the basis of highest asking price... we all know that EAs are dreadful liars but even so i would imagine that a firm might start to get a bit of a reputation if it lured a would-be vendor in with promises of, say, a £200k asking price ['prices for prime prowerpdees such as yours never fall'] only to turn round a few weeks later and say 'the market's crashing, a hovel like yours hasn't a prayer of fetching a penny over £150k'.

there's also, i suppose, the fact that, as a proportion of their salary, EAs are much likely to be up to their eyeballs in pwoperdee-related debt than anyone in any other profession... i guess that sacrificing, or, as you're no doubt telling yourself, delaying, a bit of commission might be a price worth paying if it means somehow keeping yourself out of negative equity.

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It really is weird.I believe some people cannot accept the reality of losing all that profit (in their mind).

They actually chose to become a victim,then it means their house was stolen from them.They accept that and can harp on about the injustice of it all for years,rather than tell people they were responsible for losing all that profit,as they see it.

Illogical :blink:

I think you are right-it's the victim (I am not to blame mentality). She can sit with her mates in years to come and say "Stuff em, I wasnt going to accept that miserly offer so the rotten bank came and stole me inheritance from right under me nose. I tell you I wuz robbed". Friend then says "Not your fault Mabel, it was them capitalist robbin bank bastards. Should be locked up they should. You are not to blame me luv".
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