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jplevene

Stupid Reasons Why Vendors Sell At High Prices

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Just as a laugh, I think it would be fun to add reasons why some vendors are selling their houses at far beyond real valuation prices. I have heard and seen really stupid vendors. Another favourate of mine is Estate Agent Lies !!!!!

One bought their house 9 months ago for £580,000 (normal price for a house like that in its road), put in a new kitchen and a bit of paint (no extensions or structural work), but never managed to finish it off and now want an extra £450,000.00 ontop of what they bought it for - maybe they used expensive builders.

Another wants £50,000.00 more than any house in the road ever sold for (even though other houses were bigger) as they have a nicer kitchen. House is under £400,000

One bought a house 12 months ago, did absolutely no work at all (house really needs modernising) and wants an extra £200,000.00. They bought the house for the normal price for a house down that road (maybe overpaid a bit as it needs alot of work), their reason, they got it for a cheap price; NO they got it for the current market value price, that is not cheap, that is what the rest of us would expect to pay.

Estate Agent friends telling me vendors just won't listen to the valuations they give them, and the majority of sales are falling through due to overpricing to what the surveyor values the house. After numerous valuations, numerous waisted solicitor fees and time, they usually bring the price down but by a stupidily small amount.

Estate agents also come out with some real great lies:

The best is every house we go and see has already had offers near the asking price!!! Thing is 6 months later they are still on the market and lowering the price by a stupidly small amount.

How many calls do you get from agents saying they have a new house that they are not yet marketing but it is a great deal that they are offering you first as you are special to them, I get 4 to 5 of these a week, all of these houses are overpriced rubbish. The reason you are special is that they really mean they are hoping you are a special case - a clueless mug!!!

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Stupid reasons why people BUY houses at high prices would be more apt.

Asking prices are always speculative.

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EA rang me a couple of months ago to tell me about a house just came to Market it was too expensive (as everything is) and wasn't in an area we are particulary keen on. He said it has had a lot of interest already and was we available to view this weekend! (it was Friday afternoon) I said I'd like to see the details first as he said he had emailed me them. He told me to call him back straight away after. Well I obviously didn't bother as it was nothing special.

Well the house is still on the Market and has now been reduced. Never believe a word those lying shits say.

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EA rang me a couple of months ago to tell me about a house just came to Market it was too expensive (as everything is) and wasn't in an area we are particulary keen on. He said it has had a lot of interest already and was we available to view this weekend! (it was Friday afternoon) I said I'd like to see the details first as he said he had emailed me them. He told me to call him back straight away after. Well I obviously didn't bother as it was nothing special.

Well the house is still on the Market and has now been reduced. Never believe a word those lying shits say.

I'm getting the impression you don't like Estate Agents? :lol:

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Can't blame a seller for trying. Problem is that when they've got a nice high asking price in their heads and had a few nights dreaming of what they'll do with all that unearned dosh, they become convinced that it's actually worth that price and refuse to reduce in any meaningful way. My favourite house at the moment - 510,000 quid initially (bought a couple of years ago for around 375,000). Mint condition - nothing needing done to it when they bought it and nothing needing done now. After 3 months on the market, a massive reduction to 495,000. I predict it'll be there a long long time.

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I'm getting the impression you don't like Estate Agents? :lol:

I don't understand why EA lie so, it doesn't do them any favours and it ruins any credibility they might of had, after that you just think that every word that comes out of their mouth is a lie. ;)

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Just as a laugh, I think it would be fun to add reasons why some vendors are selling their houses at far beyond real valuation prices.

Two main culprits in Farnham.

  1. Strutt
  2. Parker

'Nuff said really.

b

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I don't understand why EA lie so, it doesn't do them any favours and it ruins any credibility they might of had, after that you just think that every word that comes out of their mouth is a lie. ;)

I feel Estate Agents need to be regulated. One house we saw the agent knew it needed underpinning but held the information from us, and tried to convince us not to get a full structutal survey. They don't care that they waiste £1,000 of your money on legal fees and surveyor fees for a property they know is overpriced, it's not their money.

In USA agent has to disclose everything by law.

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I am convinced that there are vast areas of the UK, with probably hundreds of thousands of houses in total, which are totally now priced out of the market.

I think anything over 250K is basically out of reach for most people, even couples, and when you get to 300K you are basically going beyond the norms of what people can afford on typical wages over a 20 to 30 year period.

Yes, there will be those - lawyers, doctors, etc, etc - who can afford to buy but, by and large, I think once you get over 300K, outside of the SE and London, you basically are living on hope for a buyer. When there are hundreds of similarly priced asking price houses on the market, such as in Monmouthshire or the Gower as two places that I personally know of, then your only hope is serious wealth coming in from elsewhere.

I think this is true for most of the UK and, during the bubble, these ludicrous prices could be asked for partly because of the housing mania but mainly because of easy credit.

Look where we are now - the BOE base rate has been effectively at 0% for nearly 2 years now. The vast majority of people will have been able to get their mortgage down to below 5% if not 3% and some lucky people are lower... but the houses are not moving... they are not selling...

Money has never been 'cheaper' to buy a house but at even these lowest rates for 300 years the price of these houses is still too much.

There are simply tens of thousands of these kind of asking price houses on the market now. That is tens of thousands of sellers, IMPO, in complete denial. It could be years before they drop in asking price to anywhere near where someone is prepared to pay for them.

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I am convinced that there are vast areas of the UK, with probably hundreds of thousands of houses in total, which are totally now priced out of the market.

I think anything over 250K is basically out of reach for most people, even couples, and when you get to 300K you are basically going beyond the norms of what people can afford on typical wages over a 20 to 30 year period.

Yes, there will be those - lawyers, doctors, etc, etc - who can afford to buy but, by and large, I think once you get over 300K, outside of the SE and London, you basically are living on hope for a buyer.

But don't forget to factor in that many, many people who bought a decade or more ago are sitting on hundreds and hundreds of ks of equity. What you need to look at is the difference between what they're selling and what they're buying.

Plus many of them will have a fair whack of savings. Ok not many will be able to buy a 750k house in cash, but 500 in cash could be quite do-able, or 650 with a fairly small (by today's standards) mortgage.

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But don't forget to factor in that many, many people who bought a decade or more ago are sitting on hundreds and hundreds of ks of equity. What you need to look at is the difference between what they're selling and what they're buying.

Plus many of them will have a fair whack of savings. Ok not many will be able to buy a 750k house in cash, but 500 in cash could be quite do-able, or 650 with a fairly small (by today's standards) mortgage.

Yes, I understand that... but the market for these houses is more or less frozen solid.

I do not buy into the idea that some impoverished FTB has to buy a 1 bed flat for 50K - can you get them for 50K nowadays - for people selling in the 300K plus range to be able to buy and sell and move. Certainly not above the 500K mark as the vast majority of those people would, surely, be moving in similar price brackets?

I mean, you 400K person might be going up to 500K and the 500K up to 650K but thr 650K person is not going to be coming down to a 100K flat - more likely, if downsizing, then to something like, at a guesstimate, a 300K house.

In other words that market in the, say, 300K to 700K sector is a market in itself, just as the market in million Pound plus homes is a market in itself, and if, as you say, many of those people bought X years ago and have hundreds of K of equity then what is freezing this sector?

Something certainly is.

MEWed debt? Fear?

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In other words that market in the, say, 300K to 700K sector is a market in itself, just as the market in million Pound plus homes is a market in itself, and if, as you say, many of those people bought X years ago and have hundreds of K of equity then what is freezing this sector?

People sitting tight ? All hanging for the best price an no-one blinking ? Stuff in this range does sell, usually when the seller drops a nominal amount and he buyer feels more comfortable

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People sitting tight ? All hanging for the best price an no-one blinking ? Stuff in this range does sell, usually when the seller drops a nominal amount and he buyer feels more comfortable

Yes, it has to be greed and sitting tight waiting for a buyer... Yes, the odd one will sell now and then but, as a property journalist commented to me, he sees the same houses on the market at 300K plus that he was writing about 2 and 3 years back. More so for the 500K plus asking price ones.

Hence why I think this market is more fecked than they probably realise - if you ain't going to sell those properties now in this ultra low IR enivronment what chance in 2 or 3 years when the IRs rise?

No doubt many will have convinced themselves that their house is worth the asking price - or rather, that they are worth it.

We talk about stagflation on here but we have stagnation in the housing market as far as I can see.

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Don't forget a few years ago house prices were rising 20% a year.

So adding 20-30% to the price of a house you bought a few years ago isn't a huge increase.

Having bought when prices were rising 20%pa, and not having bought since, it's understandable how most sellers think the price increases are reasonable... people behaive based on past experience.

Edited by RufflesTheGuineaPig

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I feel Estate Agents need to be regulated. One house we saw the agent knew it needed underpinning but held the information from us, and tried to convince us not to get a full structutal survey. They don't care that they waiste £1,000 of your money on legal fees and surveyor fees for a property they know is overpriced, it's not their money.

In USA agent has to disclose everything by law.

In the USA the seller (usually) has to correct every fault that your surveyor finds, so the EA's knows that they aren't going to find some mug who wont get a survey

tim

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I feel Estate Agents need to be regulated. One house we saw the agent knew it needed underpinning but held the information from us, and tried to convince us not to get a full structutal survey. They don't care that they waiste £1,000 of your money on legal fees and surveyor fees for a property they know is overpriced, it's not their money.

In USA agent has to disclose everything by law.

This really drives home why HIPS was such a monumental ****** up waste of time instead of something set to smooth the transaction process. If it was law that a seller has to have a survey available for buyers to consult it would save so much time and wasted money. I read articles saying, but how could you trust a survey if you haven't commissioned it yourself? Well surely if the survey was done by a RICS surveyor who was commissioned by seller rather than buyer it should be reliable? Same person doing it, different person paying. This would cut business to surveyors, maybe RICS VIs that helped make the whole thing such a farce?

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The best is every house we go and see has already had offers near the asking price!!! Thing is 6 months later they are still on the market and lowering the price by a stupidly small amount.

How many calls do you get from agents saying they have a new house that they are not yet marketing but it is a great deal that they are offering you first as you are special to them, I get 4 to 5 of these a week, all of these houses are overpriced rubbish. The reason you are special is that they really mean they are hoping you are a special case - a clueless mug!!!

I get this a lot. House reduced serveral times, yet agent says 'we've had offers near the asking price' - or ever occasionally above. When you mention why has the price been reduced from that level, they pause for a bit then say 'well it turns out the offer wasnt a serious one'

Personally, i rather not deal at all than deal with a crooked estate agent (unfortunately about 90% of them), so im getting a bit limited to the individuals within estate agents ill talk to :D They probably think im a weirdo having principles and stuff.

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Don't forget a few years ago house prices were rising 20% a year.

So adding 20-30% to the price of a house you bought a few years ago isn't a huge increase.

Having bought when prices were rising 20%pa, and not having bought since, it's understandable how most sellers think the price increases are reasonable... people behaive based on past experience.

my mother thinks a lot like that.

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Q: Stupid Reasons Why Vendors Sell At High Prices? A: Stupid buyers!

For most, it will be the biggest single purchase of their lifetime, yet it amazes me how very little some buyers invest in doing their research.

There are a lot who simply work out what they can afford, then start looking in that price range. Few, on finding a house they like, actually start investigating previous sold/bought prices and work out how much it should really be. Mention Property Bee, Nethouseprices, Zoopla or LR data and they’ll just scratch their heads! Ask what the current trend for house prices are, and you’ll probably get no more that a quote from their last-remembered newspaper headline (probably without even reading the full article, and no idea whether it was biased or not), or perhaps even worse, their impression is based on ‘advice’ from family & friends – The “You can’t lose with brick & mortar”, “At least you’re on the ladder” – types!

I doubt many find the sold price, adjust for increases/decreases and work out what the maximum current price should be, then work out what they might lose with further reductions, then consider a sensible offer.

I think it’s down to the ‘falling in love’, ‘we must buy this house at all costs’….and (pass me the bucket please) the ‘wow factor’! This, combined with a misplaced faith in the EA valuations, means occasionally houses sell….

The more savvy will do their sums and simply work out the seller is dreaming, and walk away or put in a realistic (soon rejected) offer. But sadly, all the hard work will be undone be some Muppet who buys their ‘bargain’ (i.e. they had their offer accepted £5k less than the asking price!)

House prices should be falling, and some are, but although headed in the right direction, public sentiment hasn’t quite got there yet…..

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Two main culprits in Farnham.

  1. Strutt
  2. Parker

'Nuff said really.

b

one of those near me as well. Never have anything under about 450K (for ordinary country cottages) in an area where the average wage is less than 20K.

sad thing is they keep getting sales due to incomers :(

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Don't forget a few years ago house prices were rising 20% a year.

So adding 20-30% to the price of a house you bought a few years ago isn't a huge increase.

Having bought when prices were rising 20%pa, and not having bought since, it's understandable how most sellers think the price increases are reasonable... people behaive based on past experience.

hmmm, I think people are just stupid and not realist and acting like a child of 4 years old, I mean if house prices were rising 20%pa, well they should get the point that there is a moment where nobody will be able to afford a shoesbox.. I mean let's take the house below (yeah the pinky one), I will give 50k max for it and the man is trying to sell it for 319k?? I mean seriously past experience or not when you buy/sell you just need to do simple maths?

My link

I mean that the type of sheeple who encouraged this ridiculous house prices, thanks to them all the young and mid generations are screwed..

The problem in this Country, people buy a house as a delusional investment instead of HOUSE TO LIVE IN !!!!

Last Saturday we went to see an EA, we told him we were looking for a detached house with storages, garage and reasonable size rooms basically a HOUSE.. Surpisingly the old man told us that none were like that, they are all tiny, without any serious living space, storages and often without what we were few decades ago calling a garden, unless you pay you are the nutter paying 700k.. He even told us we were better saving for few years and build our own house... That was a very nice talk with the old man, at least he confirmed our point, save cash!!!

Edited by Menie

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Good afternoon....If people want or need to sell they will accept a realistic offer from someone who has the funds available or who has a viable offer on the house they are selling......all that then needs to be done is the seller goes on to drop the price of the house they want to buy, for the same or a greater percentage, if you are a willing and able purchaser any seller would in today's market be a fool to turn them down.......this is the only way prices will fall.

A seller who refuses a decent offer from a decent buyer will not sell....so obviously they do not really want to sell, they are just wasting everybody's time. ;)

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I make it a point not to view a house if the EA comes out with bull about there being plenty of people interested, offers, etc - usually the houses are still on the market years later.

From an EA POV when you have usually Women sat in your offices crying and begging to get their 'dream house' then you are bound to end up thinking, IMPO, that all buyers and sellers are mugs.

I posted several years back about a woman begging an EA to accept the figure she had offered on a house, the EA sat there on the telephone supposedly talking to the seller who was supposedly turning it down because of a supposed better offer, and the woman in the office kept upping her bid.

Turned out the seller was someone I knew who had had no offers on their house up to that point. The ludicrous thing was that the buyer then actually pulled out and the seller was never told of any bids - they were somewhat angry when I relayed this story to them.

What a w*nk way to run a business.

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I make it a point not to view a house if the EA comes out with bull about there being plenty of people interested, offers, etc - usually the houses are still on the market years later.

From an EA POV when you have usually Women sat in your offices crying and begging to get their 'dream house' then you are bound to end up thinking, IMPO, that all buyers and sellers are mugs.

I posted several years back about a woman begging an EA to accept the figure she had offered on a house, the EA sat there on the telephone supposedly talking to the seller who was supposedly turning it down because of a supposed better offer, and the woman in the office kept upping her bid.

Turned out the seller was someone I knew who had had no offers on their house up to that point. The ludicrous thing was that the buyer then actually pulled out and the seller was never told of any bids - they were somewhat angry when I relayed this story to them.

What a w*nk way to run a business.

Yeah that the problem in this country, sheeples are ready to s**k to get their 'dream house', for most of them their dream house is sadly similar to the house from my previous post.. I am talking about a house to live in, a house where you got space, storage, a HOUSE.. Whithout any offence, lot of people around London don't have the same point of vue of what should be a house. At the end of the day if you got nutter ready to live in a sh*t hole, I won't cry for them... But I still think you must to be a muppet to end up crying and begging to get your 'dream house'..

Simple, that's not your budget, well you better to think to save more or to find an alternative by leaving the country and being able to afford a better, bigger and nice house..

Life is full of choices :)

Regarding the Seller story, when you sell a house you shouldn't wait for the EA to bring you the news, always stay in touch with them to know what's happening, I mean do you think they know more than you do? Blond EA, 20 years old....

My boss changed of EA coz they were useless..and ending up with a better one able to sell his house!

Anyway, some EA are good, often you will spot that's more the older ones that the younger ones.

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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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