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AskFrank

People Still Trying To Make A Quick Buck!

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Ok, so I've been out and about the past two weeks, getting clued up on what we could purchase for our budget and the general mood of the housing market.

Many Estate Agents still appear to be deluded ...a lot seem pretty damn p*ssed off for some reason, polite but aggravated. Who knows why? Most of the EAs we have met so far state within the first 5 minutes that the vendor won't accept much below asking price and that there has been a lot of interest and offers flying about. I kid you not, it seems to me that they have all been told to say this now, and it's left me and my OH trying to not smirk or giggle everytime this old line is said.

One property had 3 offers apparently, including one cash buyer who offered £5k below asking price, which was flatly refused. That was on an empty house which will probably still be empty over the winter! I'll have to keep my eye on that one. The EA could have of course been lying to us...but I like to think we can trust our Estate Agents ;)

Saw another property yesterday, that was out in the sticks and very run down. In my defence it was an area I'm not familiar with, but this property stood out to me, so we went to have a look. The vendor admitted they had only been there a year and loved living there but had found another property (even though they were not looking). I didn't believe a word. If you love somewhere, you don't move do you or at least have a better excuse for needing to move? The desperation to move was written all over their faces. When I got home I decided to check out the historical house prices for that property and lo and behold, over the space of a year they had put the property on for a whole extra £50k than they had bought it for last year! The vendor also admitted that they had big plans for the property, hadn't done anything and the back of the property should be knocked down first!

After this experience, I'm beginning to question my own judgement about what properties are really worth. Maybe I should just go and hibernate for a little longer, before I get ripped off!

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Ok, so I've been out and about the past two weeks, getting clued up on what we could purchase for our budget and the general mood of the housing market.

Many Estate Agents still appear to be deluded ...a lot seem pretty damn p*ssed off for some reason, polite but aggravated. Who knows why? Most of the EAs we have met so far state within the first 5 minutes that the vendor won't accept much below asking price and that there has been a lot of interest and offers flying about. I kid you not, it seems to me that they have all been told to say this now, and it's left me and my OH trying to not smirk or giggle everytime this old line is said.

One property had 3 offers apparently, including one cash buyer who offered £5k below asking price, which was flatly refused. That was on an empty house which will probably still be empty over the winter! I'll have to keep my eye on that one. The EA could have of course been lying to us...but I like to think we can trust our Estate Agents ;)

Saw another property yesterday, that was out in the sticks and very run down. In my defence it was an area I'm not familiar with, but this property stood out to me, so we went to have a look. The vendor admitted they had only been there a year and loved living there but had found another property (even though they were not looking). I didn't believe a word. If you love somewhere, you don't move do you or at least have a better excuse for needing to move? The desperation to move was written all over their faces. When I got home I decided to check out the historical house prices for that property and lo and behold, over the space of a year they had put the property on for a whole extra £50k than they had bought it for last year! The vendor also admitted that they had big plans for the property, hadn't done anything and the back of the property should be knocked down first!

After this experience, I'm beginning to question my own judgement about what properties are really worth. Maybe I should just go and hibernate for a little longer, before I get ripped off!

Believe me, I'm having much the same experience.

I have just sold our property for what I reckon to be 2007+10% price to a cash buyer downsizer who had already exchanged on their house and had 4 weeks to find something before completion. We pulled out all the stops, got the solicitors moving and we moved into a renter last week, pocketing a 90k profit after fees/stamp duty on the price I paid May 2009.

Now I know I am sounding smug, but I completely realise I have been very, very lucky.

For the previous 9 months I had been feeling an impending sense of doom and thinking that this house price madness, at least in my area (BH23) cannot be sustainable.

So, whilst on my ridiculously low mortgage rate of 0.69% above base (deal ending now), I decided to throw all my spare money on making the house perfect to sell.

Believe me, the house was immaculate by the time I had finished and I secured the asking price in October within a week of being on the market for £430k completing on the final day of my mortgage deal so no redemption fee etc.

Why am I telling you this?

Because I cannot find a house that lives up to this one in this area by any stretch of the imagination. I have been scanning Rightmove now for the last 3 months building up a list of possibles (mostly still inappropriate) from selection of utter dross. None of these "possibles" are selling and none of them want to come down on the price.

We have been visiting houses at least around 2007 prices, if not 20% more. And yet none of them are presented well and no effort has been put in by these people to sell.

What planet are these people on?

The estate agents are just as bad - "this will only cause a shortage as people will just pull their properties off the market" etc. etc.

I think some of them now are in denial, and getting increasingly desperate.

A friend of mine, (an estate agent locally) privately tells me that things are bleak, but is hampered by his competitors. He valued beautiful cottage in a lovely hamlet locally at 500k, a competitor valued it at 750k, no prizes for guessing which one the vendor went with. He has now started turning away punters for being unrealistic because it does him no favours at all to advertise something at something stupid. Trouble is, he is running out of property to advertise, but believes that sooner or later agents will be going under, especially the stupid ones, and hopefully once these guys are out of the way, things will be advertised appropriately, otherwise none of them will be making any money in the short term. He thinks many are in denial.

Another point is, I think there are probably a lot of people who were on base rate trackers who's deals started 2 years ago just before the base rate started reducing who have been paying next to nothing for their mortgage like myself up until now. Their deals must be ending shortly and their repayments will be doubling or tripling when they return to the SVR.

Anyway, it looks like I will be spending the next year or so in rented whilst hopefully some sanity starts to occur.

Rant over.

Edited by The Green Manalishi

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Anyway, it looks like I will be spending the next year or so in rented whilst hopefully some sanity starts to occur.

Rant over.

I hope you find what you are looking for, but do you feel wealthier and more secure living with debt in a £430k house or debt free with £90k cash in the bank?

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I hope you find what you are looking for, but do you feel wealthier and more secure living with debt in a £430k house or debt free with £90k cash in the bank?

If I had been paying 1.19% in my mortgage and was now paying about 3-6% of the value in rent for where I am living now, I'd probably take the view it's costing me money to rent, but I have locked in my gains. He's probably got a lot more than 90K equity too, the 90K was just the profit .....

I have family in a similar position - can't find anywhere to buy at a sensible price - they've been mortgage free for a while, but now have a decent chunk of money burning a hole in their pockets and are struggling to play the biding their time game and are hating being tenants (for the first time in 40 years).

On the mortgages, there is also the point that I suspect a lot of people's deals didn't revert to SVR, they reverted to X above base for the remainder of their term..... so there will not, subject to rates going up a lot, be much point in moving or even overpaying their mortgage....

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I'm looking in hertfordshire therefore everything under 800k is basically a box with a nasty bathroom, dirt carpets, fake wooden floor and a nasty chipboard grease kitchen. Boxes come in all shapes and sizes sort of like houses but we can't afford those because of the corrupt politicians and banks. I've been making reasonable offers on boxes but always getting refused and the nutters always call you back saying something like we can't realistically knock 30k off a 390k box. I'm so fed up, every time I receive a call from an agent referring to a house I have to correct them with the term "box". Then when the property comes back on the market because the buyer can't get a liar loan they make the same bloody offer to me and the same bloody offers in excess rubbish. I went to see a newly built box in rickmansworth one of two architect designed narrow ass short style boxes, what a disgrace they were and a bit of interest. Offers in excess of my ass.

Maybe I'm losing my mind today.

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I hope you find what you are looking for, but do you feel wealthier and more secure living with debt in a £430k house or debt free with £90k cash in the bank?

To tell you the truth, I'm bloody terrified.

I had a fair amount of equity already, and therefore have 200k+ in the bank that I'm terrified I will lose should the world's monetary system implode/rampant inflation.

I am not particularly comfortable driving home from work to a house that doesn't feel like home either at the moment.

Having said that, I know I am in an extremely lucky position at 35 years of age!

Why do I feel so down!

(not looking for sympathy) ;)

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From a vendor's point of view, if they're not in a hurry to sell, then there's no need to reduce their price. From an EA's point of view, it's only worth trying to get vendors to reduce prices if that's likely to increase sales, and therefore commission. Reducing a house that won't sell at £195K down to £175K -and finding it still won't sell - isn't in the interests of EA's.

Edited by blankster

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To tell you the truth, I'm bloody terrified.

I had a fair amount of equity already, and therefore have 200k+ in the bank that I'm terrified I will lose should the world's monetary system implode/rampant inflation.

I am not particularly comfortable driving home from work to a house that doesn't feel like home either at the moment.

Having said that, I know I am in an extremely lucky position at 35 years of age!

Why do I feel so down!

(not looking for sympathy) ;)

So you have indeed make your own quick buck...now looking for another quick buck to make, you are as you say are in a very good position already....careful what you wish for. ;)

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To tell you the truth, I'm bloody terrified.

I had a fair amount of equity already, and therefore have 200k+ in the bank that I'm terrified I will lose should the world's monetary system implode/rampant inflation.

I am not particularly comfortable driving home from work to a house that doesn't feel like home either at the moment.

Having said that, I know I am in an extremely lucky position at 35 years of age!

Why do I feel so down!

(not looking for sympathy) ;)

£200k is a lot of money. If you are worried about monetary collapse I would try and hedge with some of it. Parking some in precious metals or shares or other currencies are possibilities but be aware that these are volatile and so you may lose a few percent of your nest egg from arbitary things. At the very least split it up among a number of banks to hedge against bank failure.

I imagine that going from a house which you are 'permanently' settled to a rented place isn't very nice. You probably feel down because of uncertainty.

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  • 138 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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