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People Putting Their Prices Up

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Why do they do this if their hosue has been on the market for months, possible years, and still hasn;t been sold?

The website Irish House Hunter has a list of asking prices and also includes a "History" link you can click on to see how an asking price of a particluar house has changed.

Take this one for example

Date Old Price New Price Price Change

7/2/2009 269,950 174,950 -95,000

21/2/2009 174,950 184,950 10,000

28/2/2009 184,950 179,950 -5,000

14/3/2009 179,950 184,950 5,000

30/1/2010 184,950 174,950 -10,000

24/7/2010 174,950 179,950 5,000

It was reduced to £174,950 in Feb 2009. Still hasn't sold but it costs more now!

What goes through the minds of these people?

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Why do they do this if their hosue has been on the market for months, possible years, and still hasn;t been sold?

The website Irish House Hunter has a list of asking prices and also includes a "History" link you can click on to see how an asking price of a particluar house has changed.

Take this one for example

Date Old Price New Price Price Change

7/2/2009 269,950 174,950 -95,000

21/2/2009 174,950 184,950 10,000

28/2/2009 184,950 179,950 -5,000

14/3/2009 179,950 184,950 5,000

30/1/2010 184,950 174,950 -10,000

24/7/2010 174,950 179,950 5,000

It was reduced to £174,950 in Feb 2009. Still hasn't sold but it costs more now!

What goes through the minds of these people?

How about this ?

Landlord owns 5 properties. Is desperate for cash. Puts all five on the market. Gets one sale, which improves the cash position. Decided he needs to get out of property long term, but now has cash to tide him over. Increases prices on remaining houses as now in no rush to sell.

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What goes through the minds of these people?

The thinking goes something like this........

I put my house up for,say, 200k

No buyers but have had a couple of offers at 185/190 which I obviously refuse because my house is "worth" more than that.

I know, I'll put it up for 220k then when someone offers 200k I accept.

I'll get my 200k, the buyers think they've got a bargain and everyone's a winner.

Greed and stupidity is a wonderfully comic combination.

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It is the price that people NEED to sell at.

My friend bought his 2 bed flat in Brighton in 2006 on a 95% mortgage which was interest only. He has put his flat on the market in February 2010 for what was a reasonable price given the market but had seen no offers (had about 20 viewings by the way).

Anyway he dropped the price by £20k and this took him to £3000 shy of what he had originally paid for it. He had a few bites at that price but they failed to get mortgages so deals fell through. Anyway he received a bonus from work and as a result felt he could take it down another £10k and swallow the £7k loss in his deposit. The EA (who was a real buckle shoed toss*r by the way) assured him that by doing so he could guarantee him a sale.

Anyway 2 months later a guy who was buying it, who apparently is a "local property investor" has just had the plug pulled on all his "investments" by the bank. As a result it is back on the market again........but this is the best bit.....it is back on for £15k more.

When I asked my mate what he was thinking of he told me he had spent all his bonus money and couldn't afford to sell at the reduced price !!!. He now had to sell at the new price to just break even because not only had he spent all his bonus money but he also told me about a credit card debt of £15,000 that he had built up on small things he had spent on the flat. He simply "wasn't willing to walk away from a property investment with a loss".

House sellers are really walking this thin tightrope where every penny counts and they are literally so far in debt that they cannot afford to sell at certain prices. These prices are then moving up and down in accordance with the sellers finances rather than the market itself.

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Is it a new build on a development? I quite often see developers using the same listing to advertise various properties on the same site. So the price just about all over the place. That first drop seems a bit to big to be realistic IMO.

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What Einstein said.

They are probably getting offers well below what they need to sell at - so they believe that by raising the price they will actually get their original price.

Seen a fair bit of this locally but the houses just sit there. Loads of people have 6 figure debt on top of their mortgages so go figure.

I have been told by a few sources close to me that 100K to 200K non-mortgage debt is common in my part of Swansea and that seems to tie in with the asking prices I am seeing versus what the houses last sold for 2 or 3 years ago.

In debt for 150K - add it on to the asking price. Problem is, when hundreds of others are doing the same the houses just sit there.

It is quite interesting what is going on now - falling amount of mortgage lending, massive job cuts in the pipeline, house prices already ludicrous but there appears to be large numbers of sellers pricing themselves out of any chance of selling.

:lol:

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When I asked my mate what he was thinking of he told me he had spent all his bonus money and couldn't afford to sell at the reduced price !!!. He now had to sell at the new price to just break even because not only had he spent all his bonus money but he also told me about a credit card debt of £15,000 that he had built up on small things he had spent on the flat. He simply "wasn't willing to walk away from a property investment with a loss".

Got to love the idea that investments are one way bets.

He seems a genius in the financial management stakes.

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House prices now down a massive 35pc in four years

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By Clodagh Sheehy

Thursday July 29 2010

THE price of the average house dropped by just 1.7pc in the last three months giving a 35pc drop in all since the peak at the end of 2006.

Prices are now at the same levels as the end of 2002, according to figures released in the latest permanent tsb/ESRI House Price Index.

The drop in the three months from April to June of this year is the lowest quarterly reduction since the same period in 2008.

In the first quarter of this year, prices reduced by 4.8pc which followed a drop of 3.9pc for the last three months of 2009.

CUT

Over the first six months of this year, prices have been cut by a total of 6.4pc which compared to 8.1pc for the same period last year.

At the moment the average price for a house across the country is €201,364 compared with €242,593 for the same time last year.

This is a fall from a peak of €311,078

Dublin house prices fell by 3.5pc in April to June of this year compared to a drop of 10.3pc between January and March and 7.5pc in the last three months of 2009.

The overall drop in the first six months of this year was 13.5pc compared to 12.2pc for the same period in 2009.

The average price for a Dublin house between April and June this year was €242,000, compared with €250,872 between January and March.

Commenting on the figures, Niall O' Grady, General Manager with permanent tsb said: "While prices continue to fall at different levels in Dublin versus the rest of the country, this reduction in Quarter 2 is the lowest recorded quarterly fall in almost two years.

"This may indicate that prices are starting to find a more sustainable level after almost three and a half years of decline"

The price of a house outside Dublin fell by just 0.8pc in the three months to June.

This means that houses outside the capital are costing about €181,820 in June of this year compared to €183,309 in March.

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Why do they do this if their hosue has been on the market for months, possible years, and still hasn;t been sold?

What goes through the minds of these people?

Isn't that the tactic the furniture stores and others were criticsed for? Ramp up the prices for a few days and then be able to offer the same item at a super knock down price (supposedly). They are not allowed to it anymore...

Perhaps the people selling, or attempting to sell their house, don't realise that there is the Internet, and it is reasonably straightforward for people to do their homework? :)

QB

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Isn't that the tactic the furniture stores and others were criticsed for? Ramp up the prices for a few days and then be able to offer the same item at a super knock down price (supposedly). They are not allowed to it anymore...

They have to list "has previously been available at £xxxx in the advert... pick up a copy of one of the Argos sale leaflets for a great example of this.

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  • 140 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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