Vendor Stupidity

[tim123]

the following is going to auction:

http://www.rightmove.co.uk/property-for-sale/property-29025994.html

You can see from the history:

http://www.rightmove.co.uk/house-value.html?searchLocation=CT13+9AU&displayPropertyType=&bedrooms=&radius=0.0&sellersPriceGuide=Update+results

that it was purchased in 2007 for 158,500 and has been on sale at the extortionate price of 205K until Jan this year.

So now, because they didn't get any interest, it is going to auction at the price it should have been all along! (LR data says that it ought to be 5% down from purchased price).

It doesn't appear to be a distressed sale so didn't they think that reducing the price at the EA would have been better?

Nice house could be interested in bidding :-)

tim

[Kilham]

Be even more fun if it fails to reach guide price or even 100k

[mikthe20]

The guide price is not the same as the reserve price. Wouldn't be surprised to see that the reserve is well above the guide so, unless under threat of repossession, you might find the vendor is stupid enough not to take bids below £180k for example.

[miko]

There will be lots going to market down there , the big drug company is closing down lots of well paid jobs dissapearing .

[Pent Up]

I gaurantee the vendor has put a reserve much higher than that guide price!

[tim123]

Then it wont sell

these are all, IMHO better houses at lower prices (than 180K)

http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=POSTCODE%5E189886&insId=1&radius=0.25&displayPropertyType=houses&minBedrooms=2&maxBedrooms=3&minPrice=&maxPrice=170000&retirement=&partBuyPartRent=&maxDaysSinceAdded=&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&newHome=&auction=false&x=101&y=16

and they aren't selling

[plummet expert]

the following is going to auction:

http://www.rightmove.co.uk/property-for-sale/property-29025994.html

You can see from the history:

http://www.rightmove.co.uk/house-value.html?searchLocation=CT13+9AU&displayPropertyType=&bedrooms=&radius=0.0&sellersPriceGuide=Update+results

that it was purchased in 2007 for 158,500 and has been on sale at the extortionate price of 205K until Jan this year.

So now, because they didn't get any interest, it is going to auction at the price it should have been all along! (LR data says that it ought to be 5% down from purchased price).

It doesn't appear to be a distressed sale so didn't they think that reducing the price at the EA would have been better?

Nice house could be interested in bidding :-)

tim

Imagine buying this for £100k as a BTL and then mortgage rates return to around 8-9% - and they may not be long going there for BTL. The rent would not cover the payments by about..£200pm ish. That is where we are headed. It is one of the reasons why property in the UK can be regarded as well overpriced. The other is income multiples. If this very small, but pleasant home, is still 5 x av income, then it is far too much...innit.

[Tim Miller]

I gaurantee the vendor has put a reserve much higher than that guide price!

I guarantee the auction house sets the guide and it won't be more than 15% and far more likely 10% off the reserve.

[tim123]

sold today for 144K, so 10% over guide and 30% below original asking.

tim

[Sibley's Love Child]

sold today for 144K, so 10% over guide and 30% below original asking.

tim

[neil324]

Looks a nice house, remember the the fee's are normally higher when selling through an auction, sounds to me like they was in a bit trouble maybe.

[tim123]

so it sold for 10% less than the 2007 price but they were trying to sell for 2007 plus 30% (10% for each year). How many other deluded sellers are there out there? From what I have seen there are lots; all of them with the crocodiles ...

They seem to have done a significant refurb since they bought it adding perhaps 20K to the value.

They could have possibly sold for 180K last spring, but they were too greedy.

tim

[Harry Monk]

Looks a nice house, remember the the fee's are normally higher when selling through an auction, sounds to me like they was in a bit trouble maybe.

I can sum that trouble up in one word- Pfizers.

[The Masked Tulip]