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TheCountOfNowhere

Sold To Available...then Price Drops...

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In NN1 + 15 miles, over the last month or so there has been a deluge of properties going from Sold STC to Available.

I am now seeing these houses dropping in price!!!

Why didn't they drop the price when the buyers were pulling out, why wait till now ? If everyone in the chain agreed the drop the chain would have sold and everyone, apart from the nimby at the top of the pyramid scam, would have been better off.

e.g.

http://www.rightmove.co.uk/property-for-sale/property-16247091.html

01 November 2010

* Price changed: from 'Guide Price £375,000' to 'Guide Price £360,000'

* Status changed: from 'Under offer' to 'Available'

20 August 2010

* Status changed: from 'Available' to 'Under offer' [Found by n/a]

01 July 2010

* Initial entry found. [Found by n/a]

and

http://www.rightmove.co.uk/property-for-sale/property-27464494.html

02 November 2010

* Price changed: from '£264,995' to 'Offers Over £250,000'

14 September 2010

* Status changed: from 'Sold STC' to 'Available' [Found by n/a]

29 August 2010

* Initial entry found. [Found by n/a]

Edited by TheCountOfNowhere

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I just had my property bee fix earlier and I notice the exact same thing and even then I though it was odd. The price being reduced on the same day the listing gets modified back to Available from Sold SSTC. Weird. :blink:

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Why didn't they drop the price when the buyers were pulling out, why wait till now ?

Perhaps the "buyers" couldn't get funding for a McDonalds meal, let alone a quarter million pound home.

Then when the bad news has been delivered back to the vendors they want to make up for lost time in a falling market by adjusting their price.

Anecdotally, I've been speaking to a few EAs who have been showing "buyers" who were confident of their funding chances around houses only to find that was a "finger in the air" calculation made in 2007

Edited by exiges

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Chain collapsed are expected at this stage.

As soon as prices fall it only takes one person in the chain to decide they want a better deal, or, more likely, for their bank to value the house at less the what they were offering, and the whole chain collapses.

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In NN1 + 15 miles, over the last month or so there has been a deluge of properties going from Sold STC to Available.

I am now seeing these houses dropping in price!!!

Why didn't they drop the price when the buyers were pulling out, why wait till now ? If everyone in the chain agreed the drop the chain would have sold and everyone, apart from the nimby at the top of the pyramid scam, would have been better off.

e.g.

http://www.rightmove.co.uk/property-for-sale/property-16247091.html

01 November 2010

* Price changed: from 'Guide Price £375,000' to 'Guide Price £360,000'

* Status changed: from 'Under offer' to 'Available'

20 August 2010

* Status changed: from 'Available' to 'Under offer' [Found by n/a]

01 July 2010

* Initial entry found. [Found by n/a]

and

http://www.rightmove.co.uk/property-for-sale/property-27464494.html

02 November 2010

* Price changed: from '£264,995' to 'Offers Over £250,000'

14 September 2010

* Status changed: from 'Sold STC' to 'Available' [Found by n/a]

29 August 2010

* Initial entry found. [Found by n/a]

happened to me a while ago. pulled out @ 350k. offered less, they turned it down. when could not sell they reduced it and it sold for ~20k less. still think they got a good deal as they bought it for 240k in 2006. Glad we changed our minds and pulled out.

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In NN1 + 15 miles, over the last month or so there has been a deluge of properties going from Sold STC to Available.

I am now seeing these houses dropping in price!!!

Why didn't they drop the price when the buyers were pulling out, why wait till now ?

They probably did. The new price is possibly the "offer" that they had accepted and the deal fell through for some other reason than price

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They probably did. The new price is possibly the "offer" that they had accepted and the deal fell through for some other reason than price

I had that thought too. Maybe they think this is what people are prepared to pay so if they advertise at that they will get another buyer.....

Edited by TheCountOfNowhere

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They probably did. The new price is possibly the "offer" that they had accepted and the deal fell through for some other reason than price

+1

They accept a low offer. It falls through for whatever reason so now they think that someone else will probably pay this too so drop the price closer to the offer.

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Chain collapsed are expected at this stage.

As soon as prices fall it only takes one person in the chain to decide they want a better deal, or, more likely, for their bank to value the house at less the what they were offering, and the whole chain collapses.

Very good point, and something which will no doubt be of great help in destabilising prices as we move onwards and downwards.

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Not exactly a deluge but I have seen a couple do the same and come back on as available with a price drop.

It does seem odd that rather than just coming back on at the previous asking price, which they had achieved so would seem sound, that they come back on with a reduction.

I am guessing that either something costly turned up in the survey or more likely that the valuation came in below the asking price. Not sure if that means that buyers were unable to get the mortgage required or simply walked away.

Bearing in mind that these places have come back on with a reduction then it stands to reason that the vendor would have been prepared to negotiate so there possibly was none? If buyers had to drop out because they could not get the required mortgage then this means that the banks are pulling the strings rather than the buyers waking up.

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On the same subject, I was shocked to be passing my own pet over priced 3 bed house and found it had been "Sold":

http://www.rightmove.co.uk/property-for-sale/property-26723161.html?premiumA=true

Really, I don't understand how something this over priced can be purchased for £449,950 at this stage of the bubble bursting and economic collapse, it beggars belief that someone has seen this, thought it was a good deal and put an offer in! I know this has been on the market for ages..I dont have Property Bee at work sadly so I can't see the history, I know the For Sale sign has been up for well over a year!

Madness! :ph34r:

It will be interesting to see if this comes back on at a reduced price later on!

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On the same subject, I was shocked to be passing my own pet over priced 3 bed house and found it had been "Sold":

http://www.rightmove.co.uk/property-for-sale/property-26723161.html?premiumA=true

Really, I don't understand how something this over priced can be purchased for £449,950 at this stage of the bubble bursting and economic collapse, it beggars belief that someone has seen this, thought it was a good deal and put an offer in! I know this has been on the market for ages..I dont have Property Bee at work sadly so I can't see the history, I know the For Sale sign has been up for well over a year!

Madness! :ph34r:

It will be interesting to see if this comes back on at a reduced price later on!

I've seen this time and time again over the last 3 years.

Decent houses have sold despite being ridiculously over-priced, even over 2007 peak prices.

I think people are just stupid and/or have never lost out buying a house before and think they have made a great investment because they got 5K off the asking price. On the other hand, they may have offered 20% off and had it accepted.

It's very frustrating but unless you know the ins and outs then you are only guessing.

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In NN1 + 15 miles, over the last month or so there has been a deluge of properties going from Sold STC to Available.

I am now seeing these houses dropping in price!!!

Why didn't they drop the price when the buyers were pulling out, why wait till now ? If everyone in the chain agreed the drop the chain would have sold and everyone, apart from the nimby at the top of the pyramid scam, would have been better off.

e.g.

http://www.rightmove.co.uk/property-for-sale/property-16247091.html

01 November 2010

* Price changed: from 'Guide Price £375,000' to 'Guide Price £360,000'

* Status changed: from 'Under offer' to 'Available'

20 August 2010

* Status changed: from 'Available' to 'Under offer' [Found by n/a]

01 July 2010

* Initial entry found. [Found by n/a]

and

http://www.rightmove.co.uk/property-for-sale/property-27464494.html

02 November 2010

* Price changed: from '£264,995' to 'Offers Over £250,000'

14 September 2010

* Status changed: from 'Sold STC' to 'Available' [Found by n/a]

29 August 2010

* Initial entry found. [Found by n/a]

Its called following the market, DOWN or should i say chasing.

Edited by awaytogo

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Incidentally, how many people are viewing homes with the "mortgage in principle" statement, only to find in practice 90% of lenders are simply unable to loan money due to their own strict criteria?

The market is awash with broken promises, and pipe dreams.

don't part with your deposits guys. We are about to see interest rate rises :ph34r:

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Incidentally, how many people are viewing homes with the "mortgage in principle" statement, only to find in practice 90% of lenders are simply unable to loan money due to their own strict criteria?

so what is the "m i p" statement actuially based on then?

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....I think people are just stupid and/or have never lost out buying a house before and think they have made a great investment because they got 5K off the asking price. ....

Sounds about fair. Virtually no-one buys a house based on logic. They "love it" have to have it and then pat themselves on the back for getting it. Prices now are so utterly stupid most people have no comprehension of the money. "We only dropped 20 grand" they say - "not bad as things stand". If you point out that is a year's post-tax income they look at you as if you are mad.

This will not end well.

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so is it fair to say that people get a 'mortgage in principle' based on stated earnings, and then the valuation comes in UNDER what they need (and perhaps credit rating not so good as hoped) and can't get the mortgage?

Edited by Si1

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I've seen a few of these, but with a slight twist.

SSTC, then back on at a reduced rate ~ 10/15k off of a ~250k initial ask. But, rather than sit there at the new ask for any amount of time, they go SSTC again almost instantly, i.e. within a day.

Which smells to me like an accept on a 90-95% offer, but a EA relist to attract attention for another offer.

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so is it fair to say that people get a 'mortgage in principle' based on stated earnings, and then the valuation comes in UNDER what they need (and perhaps credit rating not so good as hoped) and can't get the mortgage?

They do a basic credit check, you state your earnings, what you owe etc and they give you the offer based on that. When the time comes to apply for the mortgage they then actually do the full checks, ask for bank statements, payslips and so on.

When I got a MIP a few months back they came back with an answer within an hour, they can only have done that with the most basic of credit checks. Both my wife and I have clean credit records and we were only "looking" for 2.75 joint income with a fairly decent deposit, but even so to come back so quickly hints the checks are not too detailed at that stage.

Whether it's actually of any benefit I don't know, I think it worked in our favour but I can see plenty of people being a little inventive with the truth on the original application and when it comes time to get the mortgage it fails. As I say we were not looking to borrow anything that I would consider stretched, but it wouldn't take much, the odd credit card here, or car loan there which wasn't originally disclosed to take somebody from getting the offer in principle to not getting the actual mortgage.

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I've been looking around the Staffs area +10 miles at the lower end of the market but have noticed an awful lot of heavily REDUCED properties (mainly slightly older Houses) by 25-35k recently (asking 85k-reduced by 30k etc)

The thing is these houses are only worth (Market value) of the asking price anyhow & that's without the inevitable 10% or more negotiated off in real terms , so REDUCED by Who , and by Who's Standards ?

I wouldn't consider buying one of these types but have def noticed it much more this last month or so .

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  • 142 Brexit, House prices and Summer 2020

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      • down 5% +
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