Jump to content
House Price Crash Forum
Sign in to follow this  
Executive Sadman

Fanciful Pricing

Recommended Posts

http://www.rightmove.co.uk/house-value/find.html?searchLocation=PE28+3HU&radius=0.0&propertyTypeAlias=detached&bedrooms=3&sellersPriceGuide.x=26&sellersPriceGuide.y=2&sellersPriceGuide=HOUSE+PRICES

First two homes, same housetype, same development. One is nearly 45% more. One is at 2007 prices, the other at 2002/3 prices.

The £130k one was originally on at £142k, didnt sell, then £135k, didnt sell, now £130k.

What planet do the £180k people live on?

Share this post


Link to post
Share on other sites

Awesome little Rightmove feature there, Sadman. I hadn't sumbled across it before. Looks like the site gives the public a lot more opportunity to build a balanced opinion of how fairly (or otherwise) a property is being priced, even without Property Bee installed.

Helped me find quite a bit of information on the area I moved to in December and am currently keeping an eye on.

Share this post


Link to post
Share on other sites

We bought our two bedroom flat in West London late 2006 for £235k

We recently had a Woolwich valuer come to value the property and they valued at £250k.

We have also got it on the market at £250k which I thought was high, but it was interesting that the Valuer agreed with what we had it on for.

Share this post


Link to post
Share on other sites

http://www.rightmove.co.uk/house-value/find.html?searchLocation=PE28+3HU&radius=0.0&propertyTypeAlias=detached&bedrooms=3&sellersPriceGuide.x=26&sellersPriceGuide.y=2&sellersPriceGuide=HOUSE+PRICES

First two homes, same housetype, same development. One is nearly 45% more. One is at 2007 prices, the other at 2002/3 prices.

The £130k one was originally on at £142k, didnt sell, then £135k, didnt sell, now £130k.

What planet do the £180k people live on?

The £130k one needs 'modernisation' and appears to be empty.

If it won't sell, it doesn't matter how 'nice' the other one is, it's not going to sell at £180k. Is it?

Share this post


Link to post
Share on other sites

We bought our two bedroom flat in West London late 2006 for £235k

We recently had a Woolwich valuer come to value the property and they valued at £250k.

We have also got it on the market at £250k which I thought was high, but it was interesting that the Valuer agreed with what we had it on for.

...the only true valuer is the eventual buyer .... :rolleyes:

Share this post


Link to post
Share on other sites
First two homes, same housetype, same development. One is nearly 45% more. One is at 2007 prices, the other at 2002/3 prices.

The £130k one was originally on at £142k, didnt sell, then £135k, didnt sell, now £130k.

What planet do the £180k people live on?

One view maybe that; they are each simply looking to dispose of the liability (mortgage) without making a profit or a loss. One purchased in 2002/03 and the other in 2007. Hot potatoe.

In some sense maybe the government should make it so that a mortgagee (borrower) was legally allowed to send back the mortgage (terminate it early) to the mortgager (lender) under some scheme. This would make the lender weigh in the risks correctly. I do not know the details of how such a scheme might work but the problem here was irresposible lending and that was because the lender was able to dispose of their own liability for it by packaging it up and selling it on the market. That ability to dispose of the liability needs to be addressed, maybe there should be a maximum % ratio of any single policy that can be sold on, so the bank that setup the agreement is still on the hook.

If the high-street banks decided that the public home owner mortgage market was now too risky (because there are easier ways to make money from money in the world), then I really don't see why we can't have a 100% goverment owned co-op bank/lender (a new player), which was run deliberatly to set the pace of the market, enjoyed some kind of extra special priviledges (remember a bank already has special priviledges) over regular banks but the profit became a new HM Treasury income. At least then this entity becomes a political vehicle where the public have some say in the shape of it over time.

The key point of the purpose is to be a pace maker in a free market, that is such a bank would expect customers to come and go as the market moved around them, they were not there to become the biggest bank in the world but to regulate via market forces, keep an eye on the market from the inside and provide new HM Treasury income to boot.

For example if high-street brands were not giving savers a high enough interest rate, the government bank would set the best rate in the country. If the high-street brands were not providing enough mortgages then or loans then the government bank would attempts to implement fiscal policy. If the fiscal policy was actually not possible then they would have a great insight into reporting back to those trying to set policy what the real problem is. In this way they gain good public insight inside the banking process (better than the FSA could hope to achieve from asking a bank what the problems are). All of the decisions this bank would make would be self-supporting based on allowed accounting practise.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 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%



×
×
  • Create New...

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.