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dredwerker

Is There A Mini-boom In Asking Prices

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I have noticed people are not selling their properties for months and months and have decided that a higher price is the way to sell it not a lower one. This would lead to property asking prices going up in any stats mentioned to try and prove consumer confidence.

Has anyone else noticed this?

A couple of examples:

Upper Beeding

Portslade, East Sussex

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I have noticed people are not selling their properties for months and months and have decided that a higher price is the way to sell it not a lower one. This would lead to property asking prices going up in any stats mentioned to try and prove consumer confidence.

Has anyone else noticed this?

Definitely. I think it is because they are getting lots of offers that are say 20k off, so they put the price up by 20k in the hope that they will hit asking.

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My sister is moving at the moment.

She was advised by estate agents to put her flat on the market for £400k which is way more than she thought she'd get.

As it was she had lots of interest but other than one person who bid £390k and then pulled out within minutes of it being accpeted, nobody was prepared to pay nearly £400k for it.

However they happily accepted a bid of around £365k as this is what they thought they'd get anyway. If she'd put it on at £365k would she have been looking at offers of £330k instead?

I think the moral of the story is overprice and be prepared to accept a lower bid. The vendor gets a sale at a good price and the buyer thinks they've got a bargin.

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My sister is moving at the moment.

She was advised by estate agents to put her flat on the market for £400k which is way more than she thought she'd get.

As it was she had lots of interest but other than one person who bid £390k and then pulled out within minutes of it being accpeted, nobody was prepared to pay nearly £400k for it.

However they happily accepted a bid of around £365k as this is what they thought they'd get anyway. If she'd put it on at £365k would she have been looking at offers of £330k instead?

I think the moral of the story is overprice and be prepared to accept a lower bid. The vendor gets a sale at a good price and the buyer thinks they've got a bargin.

I get that but these have been on for a while and have slipped down to more 'realistic price' havent sold so they have put them up again.

I guess people just couldnt even got a mortgage or dont want to buy overpriced tat so people are putting the prices up coz thats what they 'expect'. I might expect this in the first couple of months but surely this it should be pricing to sell at some point.

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I think the moral of the story is overprice and be prepared to accept a lower bid. The vendor gets a sale at a good price and the buyer thinks they've got a bargin.

And the problem with that moral is it assumes there is nothing more to economics than psychology.

If the buyer can't pay the debts the model is not sustainable and the system crashes.

Maths beats psychology everytime.

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