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What Is Going On With Asking Prices?


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Just done my daily trawl of rightmove (very sad i know i have an addiction) and the two postcodes i look at have one house each new to the market.

The first is a 3 bed terrace very large but on a main road (no parking outside) and the back yard will just fit a small car in it and nothing else it is up at £146500

on the same street there are a further 8 identical houses ranging from £90,000 to £129950. Why???? the majority of people in that area work on the market or work in the shops. The average house price sold in the street in 2009 was £99,000 there were 8 sold.

I just find it so annoying that their asking price is so high compared to the selling price, personally i wouldn't even view it at that price, not when you can get a detached with a drive and a garage in the same post code not half a mile away (yes it is new build ~15 years) I just don't understand.

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I just find it so annoying that their asking price is so high compared to the selling price, personally i wouldn't even view it at that price, not when you can get a detached with a drive and a garage in the same post code not half a mile away (yes it is new build ~15 years) I just don't understand.

I agree with your sentiment, it does sound rather strange. But why let it annoy you? As you say, anyone with half a brain is not going to view it and eventually reality will descend on the sellers, but life is too short to let it worry you.

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i recommend you go and view then not bid. the folks I know selling right now get pretty exasperated when there is no follow up to a viewing. I am not saying wind them them or the ea up, just say having viewed the property you are not interested at that price point.

quite a few posts lately have intimated higher asking prices in a early january rush of instructions. I can say I have not seen anything like that in the parts of manchester I am tracking (I track a LOT of manchester)

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Just done my daily trawl of rightmove (very sad i know i have an addiction) and the two postcodes i look at have one house each new to the market.

The first is a 3 bed terrace very large but on a main road (no parking outside) and the back yard will just fit a small car in it and nothing else it is up at £146500

on the same street there are a further 8 identical houses ranging from £90,000 to £129950. Why???? the majority of people in that area work on the market or work in the shops. The average house price sold in the street in 2009 was £99,000 there were 8 sold.

I just find it so annoying that their asking price is so high compared to the selling price, personally i wouldn't even view it at that price, not when you can get a detached with a drive and a garage in the same post code not half a mile away (yes it is new build ~15 years) I just don't understand.

A general point to make...friends of mine put their house on the market in September 2007. They had a range of suggested prices from 3 Estate Agents and decided to go at the high end for their house: £275000. Come December they had dropped the price twice - to £265000 and finally £250000 (stamp duty level). This gave the EA great leverage with buyers who were falling over themselves to pick up a 'bargain' at almost 10% off. These houses now sell for considerably below £250000.

The moral of the story is be very wary of asking prices. As a buyer you are in control and would only offer what something is worth, not how much it may have dropped from a fictitious 'market value'. As we all observed with Northern Rock shares, they would have seemed very cheap at several points on the way down, but that didn't make them great value when they slid to 0p in the end.

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  • 2 weeks later...

Just done my daily trawl of rightmove (very sad i know i have an addiction) and the two postcodes i look at have one house each new to the market.

The first is a 3 bed terrace very large but on a main road (no parking outside) and the back yard will just fit a small car in it and nothing else it is up at £146500

on the same street there are a further 8 identical houses ranging from £90,000 to £129950. Why???? the majority of people in that area work on the market or work in the shops. The average house price sold in the street in 2009 was £99,000 there were 8 sold.

I just find it so annoying that their asking price is so high compared to the selling price, personally i wouldn't even view it at that price, not when you can get a detached with a drive and a garage in the same post code not half a mile away (yes it is new build ~15 years) I just don't understand.

Hi Spud. I'm a RightMove addict too, (as well as having a gorgeous cat called Spud, which is irrelevant). In my opinion a lot of places are being overpriced because the vendors have over-extended themselves financially, and simply can't afford to sell at a lower figure. A lot of the overpriced places on the market seem to have been "improved". I suspect that the owners have taken out finance to make their improvements under the delusion that they were adding more value than they were borrowing.

We sold our place in the West Midlands for £125,000 in 2006. It was a low price because we were emigrating. Our purchasers put the house back on the market over a year ago at £225,000, then reduced to £215,000. That is still a ridiculous price for a two bed terrace in the area we were living in.

It is obvious why they need to sell at that price. They have replaced the wood window frames with PVC double glazing, even though the wood frames were partially double glazed and in good condition. In the process one of the installers must have put his foot through the flat roof on the kitchen extension, because they have replaced the roof too. They have totally redecorated, replaced all the carpets and all the curtains, and completely redone the bathroom. In my opinion, none of these "improvements" would have added enough value to justify a price hike of £90,000, even before the price crash.

It was obvious when we were selling to them that they were having difficulty arranging the finance to make the initial purchase. My guess is that after buying, they raised additional finance to make their "improvements" under the delusion that they were adding more value to the property, and they could sell at a profit. That was despite the fact that my immediate neighbour had made the same mistake and had already spent around 4 years trying to sell her place at £185,000, which was the lowest price she could afford.

I think that the numerous home improvement programmes on the TV have a lot to answer for. They've given people the completely false impression that they can add value to their houses greater than the money they've spent. In my experience (40 years of buying and selling houses) it is a complete fallacy. If you want to make a profit on a house, don't do anything to it. Let your neighbours improve their houses so the area "goes up", then sell at a profit. That's no great insight on my part; if you read the more responsible advice in newspapers and journals, that is what they always say.

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Just found this little gem....

Crazy Overpricing

This is two doors up from my parents, where I lived for 29 years. All the houses on the road are identical (I should know because I have been in pretty much all of the at one time or another), except for the ones on the end of the terrace, although these are literally just that on the end of a terrace, no extra features, no extra parking etc etc.

There haven't been that many sales in recent years but for some crazy reason this one is on at £100k more than any other house has every sold for on that road. There is nothing particularly special about this one, other than the fact that most of the other houses on the street have converted the central room down stairs into a kitchen, yet this one feels that an 8x8 kitchen is what you want for close to £400k

The last one to sell was 13 which went on the 18 months ago at £320k and took close to a year to sell, after aggressive price cuts once a month down to £245k and even then it was on the market at £250k for a good 4-5 months.

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There has been a sudden glut of houses come on near us (Farnham Surrey), instead of the usual 1 for sale down our key roads there are now 3. The EA's have been telling the sellers (i know some of them) that the market has really picked up since Jan but what they really mean is lots more houses for sale giving buyers greater choice and sellers more competition. All of the new houses for sale are at higher prices that the "original" 1 for sale in each street. These original houses for sale have been on the market between 1year + and 3 months, if the original house isn't selling it's clearly overpriced so these new ones have ever further to fall. Seen one house new to the market drop 10k (only 2.5% though!) after only 4 weeks on the market.

I refuse to go and look at over priced houses early on as the buyers clearly aren't realistic and i don't want them to entertain the thought that i would be prepared to pay that price. Knowing some of the sellers circumstances (i don't acutally want to buy their houses as it doesn't match our criteria) they are desperate to sell as partners have now got jobs hundreds of miles away and the family only gets together at weekends. They're hoping for a quick sale but i can only see this happening with substantial price drops. It might take them until summer for them to realise a quick sale isn't going to happen so i'm waiting for these desperate sellers to kick off more price drops round here.

In the meantime i'll continue to waste our money in our rental house.

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There has been a sudden glut of houses come on near us (Farnham Surrey), instead of the usual 1 for sale down our key roads there are now 3. The EA's have been telling the sellers (i know some of them) that the market has really picked up since Jan but what they really mean is lots more houses for sale giving buyers greater choice and sellers more competition. All of the new houses for sale are at higher prices that the "original" 1 for sale in each street. These original houses for sale have been on the market between 1year + and 3 months, if the original house isn't selling it's clearly overpriced so these new ones have ever further to fall. Seen one house new to the market drop 10k (only 2.5% though!) after only 4 weeks on the market.

In the meantime i'll continue to waste our money in our rental house.

Same experience in the South West. We're looking in the roughly 750k price category - those sellers have been completely on strike round these parts for the last year at least. In the last 2 weeks I'm suddenly seeing these properties creeping onto the market. Having said that though, we went to view one yesterday - I believe it was overpriced by at least 100-150k. The seller was saying that they've been waiting to put the house on the market for a while, and now seems like a good time - owned the house for over 30 yrs.

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There has been a sudden glut of houses come on near us (Farnham Surrey), instead of the usual 1 for sale down our key roads there are now 3. The EA's have been telling the sellers (i know some of them) that the market has really picked up since Jan but what they really mean is lots more houses for sale giving buyers greater choice and sellers more competition. All of the new houses for sale are at higher prices that the "original" 1 for sale in each street. These original houses for sale have been on the market between 1year + and 3 months, if the original house isn't selling it's clearly overpriced so these new ones have ever further to fall. Seen one house new to the market drop 10k (only 2.5% though!) after only 4 weeks on the market.

I refuse to go and look at over priced houses early on as the buyers clearly aren't realistic and i don't want them to entertain the thought that i would be prepared to pay that price. Knowing some of the sellers circumstances (i don't acutally want to buy their houses as it doesn't match our criteria) they are desperate to sell as partners have now got jobs hundreds of miles away and the family only gets together at weekends. They're hoping for a quick sale but i can only see this happening with substantial price drops. It might take them until summer for them to realise a quick sale isn't going to happen so i'm waiting for these desperate sellers to kick off more price drops round here.

In the meantime i'll continue to waste our money in our rental house.

To update round here i'm seeing quick price drops on the new houses that have come on post Christmas. The reductions vary from 10-20k which is only 3-5% of the asking price so pathetic but this is within 2 weeks on some of the properties. This is taking them back to the middle of last years asking prices but to drop this quickly it makes you wonder if they've had no reductions at all. Houses round here are priced all over the place with the prices that are sticking looking even more silly as time goes on.

One of the houses down our street has gone under offer for the 2nd time. It was the one on the market for the longest (since early Dec) but it's also the cheapest in the street by at least 10k as the newer ones have priced higher.

Interesting times ahead

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There's a place down my road which sold for 425k in Sep 2006, so basically at the peak. It's now on for 675k. I was so baffled that I called the estate agent, feigning interest. Apparently, it needed a lot of "internal attention" when they bought it and it now has a nice kitchen. Asked him if they'd done anything structural, he said "a conservatory".

So.... peak price plus 40%, because they've added a conservatory and a nice kitchen. Fair play to them if they can find a massive enough mug.

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Same experience in the South West. We're looking in the roughly 750k price category - those sellers have been completely on strike round these parts for the last year at least. In the last 2 weeks I'm suddenly seeing these properties creeping onto the market. Having said that though, we went to view one yesterday - I believe it was overpriced by at least 100-150k. The seller was saying that they've been waiting to put the house on the market for a while, and now seems like a good time - owned the house for over 30 yrs.

Referring to my post above, the house went on the market last Friday, we viewed last Saturday, the house was "Sold" by Monday, presumably at or near asking price. This is probably one of the most depressing experiences I have had for several months, given how awful and overpriced we thought the house was. It probably means that as soon as anything comes onto the market that we do like, we can forget about about making "offers" for it, because it will be a case of trying to extract ourselves from the bottom of the rugby scrum that will have piled up ontop of the house within 24 hours of it going onto the market. I thought buyers would be scant at our level of the market, but it seems I couldn't be more wrong. I even found out yesterday about other people we know who were trying to go view it too but were turned away because they weren't cash buyers in rented, and everyone else going to view last Sat it was ....

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I'm seeing the same thing - complete rush for properties, we saw a property this week that said 'vendors keen to sell and will accept realistic offers', they have now been indated with offers from proceedable (cash/no chain) buyers so it's gone for just above asking price.

Seems there are alot of buyers around with cash or very low ltv (who have made money in the property madness of recent years) that are able to bid. The FTBs are managing if they have mum & dad deposits so there is movement in the market. Cant see a slow down yet, despite mortgage restrictions and the negative economic news

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I'm not

It must depend very much on where you are.

I deparately wish it was the same for us - we did have that situation about a year ago but since then the market has changed, can't figure out why.One EA in the area even said he thought the market was too hot as it doesn't stack up with the bad economic news, GA around the corner, IRs likely to rise.Some EAs are valuing at stupid levels just to get the instruction but those places do hang around. There are 3 places that have been on for a year and the deluded sellers haven't dropped the price but anything half decent, typically a family sized house sells quickly. In our area we seem to get a spill over from London so perhaps that a factor. A colleague is looking to buy - he's in St Albans and on a great salary so he could buy but he just can't bring himself to do so as the prices feel so unreal (guess it's relative as he's orginally from the north).

I'm hoping this is the 'return to normal' phase before the leg down..I keep thinking of the property situation in Ireland, everyone was a property speculator, it was price rises all the time but it turned downwards pretty quickly.

Edited by surreybased
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Greater london

Im SSTC at peak price in less than 1 week. The two I have my eye on are trying to break peak prices for the roads but my offers will be peak to match my sold price. This is one year after the media was reporting the world was going implode.

Crazy... :rolleyes:

All this crap has shown a novice like me that "Safe as Houses" still rings true, my home is back at peak within a year and my shares are still well down, I would of been better of cashing in and upgrading my house 3 years ago..!

What else do I put my money into? That’s what some of you clever economic guys need to understand, dumb arses like me (and there are many) that have money don’t know what to do with it. Every investment I made has been crap, the index linked RPI crap thing I read about on money saver went negative, premiums bonds that I haven’t won a bean on, yea 10k for 8 months not even £25, crappy interests rates in the bank which are taxed at 40%, shares i'm not even going there...!

might as well buy a bigger overpriced house.

PS. If i didnt have kids it would be flash cars and whores.

Edited by bulldog
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Have you ever heard of the US dollar? I'd buy property in the US. US dollar denominated assets will outperform massively versus other assets over 2 years up to 5 years, maybe 10 if Europe remains weak which I think it will.

I offloaded all my London property in 2007 and even early 2008 at quite good prices. There's no way I could have got the prices I did then now. I think you are lucky to sell so probably have a property with unique features or qualities that would hold even in weaker times, or are selling in one of the many mini-bubble areas that I've seen around the country.

Greater london

Im SSTC at peak price in less than 1 week. The two I have my eye on are trying to break peak prices for the roads but my offers will be peak to match my sold price. This is one year after the media was reporting the world was going implode.

Crazy... :rolleyes:

All this crap has shown a novice like me that "Safe as Houses" still rings true, my home is back at peak within a year and my shares are still well down, I would of been better of cashing in and upgrading my house 3 years ago..!

What else do I put my money into? That’s what some of you clever economic guys need to understand, dumb arses like me (and there are many) that have money don’t know what to do with it. Every investment I made has been crap, the index linked RPI crap thing I read about on money saver went negative, premiums bonds that I haven’t won a bean on, yea 10k for 8 months not even £25, crappy interests rates in the bank which are taxed at 40%, shares i'm not even going there...!

might as well buy a bigger overpriced house.

PS. If i didnt have kids it would be flash cars and whores.

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I would treat all claims by Estate Agents that the property market (whether in regard to their locality or nationally) is 'hot' and that properties are flying off the shelves with deep suspicion.

The following is the totals for mortgage lending:

2002 £219bn

2003 £271bn

2004 £292bn

2005 £287bn

2006 £346bn

2007 £364bn

2008 £256bn

2009 £143bn

In terms of property sales, transactions crashed in 2008 and have continued crashing ever since without any hint of recovery showing up in the Land Registry data. For example the number of sales achieved in Worcester each year since 2006:

2006 - 2690 sold

2007 - 2179 sold

2008 - 1180 sold

2009 - 811 sold by end of October, so heading towards a figure of about 973 by year end.

You find the same crash in property sales up north in places like Blackburn but also down south in places like Wokingham and Maidstone.

In Worcester so far this year the number of properties going SSTC is the lowest I have ever seen. This is combined with a noticeable pick-up in the number of properties coming on the market + an increasing number of properties that went SSTC last year becoming available + much more aggressive reductions in asking prices (£15k - £30k rather than silly £5k reductions).

Edited by Alfie Moon
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one house near us has just fallen through for the 2nd time that i'm aware of but has put the asking price up by nearly 10k. 2 Doors down from it started at 400k and eventually sold at 320k after nearly a year on the market. A few weeks after this one sold this current one came on at 320k and eventually dropped to 275k when it finally went under offer (twice). It's now on for 284950. The question is was it selling last time for a higher price or do they know the markets fallen and now trying to get the 275k again?

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Both my offers at peak rejected today.

So ill have to wait to see what comes on now, if nothing decent comes on that I can get at peak prices ill have to put mine up for more, no point moving if its not a level playing field. As mine did sell very quickly and after today offers I’m starting to think mine is the undervalued one at peak... :rolleyes:

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There's an old lodge house a couple of miles from me built in the late 1800's, it was a lovely old place but had been left empty for years by some company that owned a load of land around it and were hoping to get permission for some serious building.

Back in the 90's I enquired about buying it but it wasn't for sale.

I guess they never got permission and a few years ago it was "refurbished" and sold.

I don't know what, if any of the old lodge house structure remains as it now looks like a very different building.

Now modern, extended and 5 bedrooms where I believe it was originally 3 and a big @ss detached double garage.

Anyway, history lesson over... I happened to be driving past it the other day and noticed it was up for sale again so out of curiousity thought i'd check it out.

I nearly choked on my cornflakes, it's asking price is a bargaintastic £945,000 reduced from £1,095,000.

WTF ???

It may look nice enough inside and it's located very conveniently to the center of Solihull, but it doesn't have a huge garden, it's on what has now become a busy road, it's close to the flight path to the airport and it's close enough to the M42 that you'll get a load of noise from that too.

Maybe i'm mental but I can't see how it could be worth more than £450,000? And actually I think that's too much too.

North Lodge

I think everyone's gone mad.

Edited for typos.

Edited by Spot
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Just done my daily trawl of rightmove (very sad i know i have an addiction) and the two postcodes i look at have one house each new to the market.

The first is a 3 bed terrace very large but on a main road (no parking outside) and the back yard will just fit a small car in it and nothing else it is up at £146500

on the same street there are a further 8 identical houses ranging from £90,000 to £129950. Why???? the majority of people in that area work on the market or work in the shops. The average house price sold in the street in 2009 was £99,000 there were 8 sold.

I just find it so annoying that their asking price is so high compared to the selling price, personally i wouldn't even view it at that price, not when you can get a detached with a drive and a garage in the same post code not half a mile away (yes it is new build ~15 years) I just don't understand.

Why do you need to understand? If it's too expensive for you then forget it. You don't have to understand the reason that every person has for setting their price. Perhaps there is something different about this property that you haven't noticed. Perhaps there isn't. It's a free country, so the seller can ask whatever price he wants. It's called a free market. Either it will sell or it won't. Forget about it.

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Then don’t buy it at that price. Bid what you feel the property is worth and see where it takes you. If a house is worth 100k and you bid 65K, does that also make you greedy and delusional?

I don’t get this nonsense from people who complain about asking prices. They are merely figures set high but demand will always determine the actual selling price.

Stop complaining on here. If you want the house, make your bid. If you don’t, then do not.

Simple

Spot on. I agree totally. If a house is worth £100K an the owner asks £120K, then according to the people on here he's being greed, stupid, etc. But if someone on here puts in an offer of £80K, then they aren't being greedy or stupid, they're bing smart.

Well it works both way. If wanting £120K is being greedy, then offering £80K is being greedy.

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  • 434 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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