Jump to content
House Price Crash Forum
Sign in to follow this  
US Citizen

Buyers Want More Discount <> Sellers Say No

Recommended Posts

The property market in the UK has always had its winners and losers. When prices are high, its a sellers market and when prices are low its a buyers market.

We the availability of credit to get a mortgage the number of buyer are thin on the ground. Those that are buying are existing homeowners, who want to move up the property ladder.

Those that have the skill and have found a buyer for their property are hammering the housing market and gazumping their way up the ladder.

I heard of a woman in my area who sold a 3 bed semi in Preston for £189,000 and managed to get a 4 bed detached around the corner in a slightly better road and location for £175,000.

Take off legal fees and the like and she has done well out of it.

Buyers want more discount to exhange and sellers are saying no. This tug of war is happening everywhere.

Sellers know they wont get the price they paid back, but are not settling for silly offers.

Buyers are of the view, that if they keep making silly offers, sooner or later the sellers will accept.

Share this post


Link to post
Share on other sites

The hard faced sellers who want me to fund their retirement by the seaside can snot off.

One guy wants 50% profit for living in a house for 6 years. Well someone else will have to pay his price cos I won't.

Share this post


Link to post
Share on other sites

As somone who is looking to sell and buy I am happy to accept a lower price (2003 to 2005 level) as long as I can trade up at the same ratio. I am seeing lots of larger properties that were say 100-150k more expensive than my current house in 2003 now 400K more expensive in relative terms.

It makes more sense for the majority if all properties come down in price, but the same could be said for taxes.

Share this post


Link to post
Share on other sites
The hard faced sellers who want me to fund their retirement by the seaside can snot off.

One guy wants 50% profit for living in a house for 6 years. Well someone else will have to pay his price cos I won't.

Due to inflation, aren't prices of things suuposed to double every 10 years or so?

Share this post


Link to post
Share on other sites
Guest pioneer31

Well the sellers can go and shove it can't they.

When interest rates rise and the noose tightens, maybe they will rethink their 'strategy'.

Or they can sit and rot in their 'investment'

Share this post


Link to post
Share on other sites
Due to inflation, aren't prices of things suuposed to double every 10 years or so?

What inflation? We've never had such low inflation.

Share this post


Link to post
Share on other sites
I heard of a woman in my area who sold a 3 bed semi in Preston for £189,000 and managed to get a 4 bed detached around the corner in a slightly better road and location for £175,000.

Sellers know they wont get the price they paid back, but are not settling for silly offers.

Buyers are of the view, that if they keep making silly offers, sooner or later the sellers will accept.

What's the definition of a silly offer? Is £189k for a 3 bed semi in Preston a silly or a sensible price?

Share this post


Link to post
Share on other sites
30 percent rise in CPI from 2007. House prices 300 percent.

Since 1997?

Share this post


Link to post
Share on other sites
Due to inflation, aren't prices of things suuposed to double every 10 years or so?

At 7% that would be correct.

Share this post


Link to post
Share on other sites
As somone who is looking to sell and buy I am happy to accept a lower price (2003 to 2005 level) as long as I can trade up at the same ratio. I am seeing lots of larger properties that were say 100-150k more expensive than my current house in 2003 now 400K more expensive in relative terms.

It makes more sense for the majority if all properties come down in price, but the same could be said for taxes.

I have no idea what happened in previous crashes but the perceived losses were less.

30% fall on a £90000 property is £27000

30% loss on a £300000 property is £90000!

Neither sellers or buyers want to make these losses, buyers however, have a choice, if nobody will accept 30% off peak wait until winter 2009 and get 40% off. Sellers however, that have put in offers on other properties but not even started to market their property (NAEA report today ), I think will have missed the boat, with an average of about 20 weeks to get an offer + another 12 weeks to complete, they should have started the process in February this year and been happy to accept 25% off peak, by the Autumn I think we will see a lot of properties people thought they had sold coming back on the market! Summer 2009 was the last chance to get anywhere near peak, with July being the busiest month for moving, I think it is significant that the May loans figures was down on Apri and 58% down on last year.

So yes , it would make more sense to accelerate the falls so everyone would know where they stood. Miles Shipside, Director of RM and others have been saying this since the beginning of the year :

March 2009 : Miles Shipside said Rightmove Index: Raised Asking Price Doing More Harm than Good

The latest release of Rightmove's house price index shows asking prices on UK property rose 0.9% this month compared to last month.

The report admits that agent's are being forced to up initial advertising prices to win new instructions, amid the fierce competition for the few quality properties that are currently being put onto the market.

That makes the asking price rise, for me, more like bad news than good news. I understand that agent's are trying to survive in a difficult market, but we need to firm out the price drops that we have had, before we can ascertain if they are enough to bring the market to bottom, and accelerate any further drop that may be necessary

In short, by humouring unrealistic vendors over asking prices, agents may be doing nothing more than prolonging their own misery.

The report said that lack of mortgage availability is hindering market recovery as sellers who have dealt with the market reality and drastically dropped their asking price are faced with buyers unable to obtain finance. Rightmove commercial director Miles Shipside said:

"Some sellers are still pricing wishfully high, though it is encouraging that elements of the market have adapted relatively quickly to find a new price floor at a discount of around 25% from peak. "

"Until banks get their own houses in order, the active minority of sellers and agents who have drastically adjusted pricing will remain frustrated by the limited functioning of the financial services sector."

So, after its initial optimism the Rightmove index enforces the realisation that the UK property market recovery hinges on two things: vendor realism and mortgage availability. The latter more than likely hinged on a recovery to the wider UK economy, which in my opinion is also necessary to increase buyer numbers sufficiently to bring vendor realism

And in the article about the BOE official in April who warned Darling "Not to Stop the Housing Crash" it was also suggested that it would be better for the market to fall sooner rather than later.

In a controversial call, Markets Director Paul Fisher said it would be ‘dangerous’ for policymakers to try to stem the relentless slump in the value of property. ...

‘There is a danger that policy intervention in the housing market stops these sorts adjustments from happening.

‘We have to be very careful with policy intervention that we don’t actually make it worse.’

Property prices are still 40 per cent above their historic averages, suggesting further declines are unavoidable, the Organisation for Economic Co-operation and Development said earlier this month.

Analyst Vicky Redwood of Capital Economics said: ‘The housing market correction has to happen and we may as well get it over with sooner rather than later.

‘It is obviously in the government’s interests to try to delay any adjustment in house prices and get them to fall at a slower pace for political reasons.’

Treasury Committee chairman John McFall said: ‘Policy interventions have to accept there has to be a floor in the market. There can be no artificial stimulus.’

I think this Autumn / Winter the denial phase will be over, people will have heard about the UK being a "land of broken chains" (BLOO LOO), will understand that mortgage lending levels are down 2/3rds + and that it is indeed lending levels that dictate property values NOT the other way round!

Share this post


Link to post
Share on other sites
Due to inflation, aren't prices of things suuposed to double every 10 years or so?

Historically (pre RMBS , so pre 2001) property prices have gone up in line with wages and about 1 - 2% above inflation I believe . Property went up 147% since 1999 I will let you do the maths as to how many years it should have taken for property to go up 147%, but clearly property is about to lose at least 40%!

Edited by Sybil13

Share this post


Link to post
Share on other sites

Surely sellers have the right to get the possible price for their property. Is it not the buyer who has to be realistic and pay more than they really want to.

Afterall, if a seller make a loss, theres no way they can recover that loss, while a buyer can let the property prices rise again and recover any loss into a profit.

Isnt that right.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   289 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.