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danlee74

Big Drops

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Was going to post this in the Bournemouth thread but thought it merited a wider audience.

This place ( http://www.rightmove.co.uk/property-for-sale/property-28955716.html ) only came on 18/01/11 at "Offers in the region of £125,000" and 04/02/11 dropped to "OIEO £89,950", about 30% in one month. I am not complaining, indeed I hope it is a sign of reality starting to kick in and that there will be more coming soon, but what do you all think the reasoning here is?

It is difficult to get a view on what the place is worth due to a distinct lack of decent photo's (looks like the 16 year old work experience kid took them whilst drunk!!) but I think either a. the place is a hole masked by the photos, b. distressed seller just wanting to be shot of it, or c. someone knows that the game is up and is looking to get ahead of the curve.

What does everyone else think?

What big reductions have happened in your area?

EDITED TO ADD: d. the place is obviously so overvalued in the first place and they are just fishing for a fool to go "Wow!" and take it at the new asking price?!!! Postcode for houseprices.co.uk - BH1 3JR

Edited by danlee74

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Was going to post this in the Bournemouth thread but thought it merited a wider audience.

This place ( http://www.rightmove.co.uk/property-for-sale/property-28955716.html ) only came on 18/01/11 at "Offers in the region of £125,000" and 04/02/11 dropped to "OIEO £89,950", about 30% in one month. I am not complaining, indeed I hope it is a sign of reality starting to kick in and that there will be more coming soon, but what do you all think the reasoning here is?

It is difficult to get a view on what the place is worth due to a distinct lack of decent photo's (looks like the 16 year old work experience kid took them whilst drunk!!) but I think either a. the place is a hole masked by the photos, b. distressed seller just wanting to be shot of it, or c. someone knows that the game is up and is looking to get ahead of the curve.

What does everyone else think?

What big reductions have happened in your area?

I would find out how long is left on the lease, as it may not be mortgageable

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I would find out how long is left on the lease, as it may not be mortgageable

Good point, although I should point out that I would not be looking to buy this place unless it really was dirt and I mean, really dirt cheap. However, the point is a good one to find out whether or not a short lease is the reason it is reduced so vigorously.

Also, clicked through to the agents website and it is actually Sold STC. Weird?

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Another one here ( http://www.rightmove.co.uk/property-for-sale/property-16977147.html?premiumA=true ) ... according to houseprices.co.uk, last sold 18/12/07 @ £129,000 - by the looks of it getting repossessed (hopefully a BTLer with no business plan rather than poor unfortunate who lost his/her job) at £76,000 (altho the agent cannot seem to make their mind up with a few changes since Oct-10).

Is this happening quite a bit or is Bournemouth experiencing a couple of random events?

EDITED TO change linky to property rather than search results!!

EDIT 2 to give postcode for houseprices.co.uk BH1 4EP

Edited by danlee74

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Probably ex-council, bought 15 years ago for 10k? If you got nearly 90k for that you would be laughing (literally)?

True enough ... that is option e. then!! Unfortunately the Flat number is not given on the property particulars and I'm damned if I am going to phone the agent and give them all my details at the moment!

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True enough ... that is option e. then!! Unfortunately the Flat number is not given on the property particulars and I'm damned if I am going to phone the agent and give them all my details at the moment!

What I really think it is, is the bank letting repo`s on to the market at a price they would be comfortable lending at? testing/priming the water so to speak. The banks know they will never loan en-masse again unless there is about a 50% drop IMO. Even at those prices you will make a substantial loss if you bought them now. Both properties will be eventually unshiftable or sell for about 30k IMO.

Edited by dances with sheeple

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Probably ex-council, bought 15 years ago for 10k? If you got nearly 90k for that you would be laughing (literally)?

If it's ex council bought 15 years ago there will be 110 years left on the lease.

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What I really think it is, is the bank letting repo`s on to the market at a price they would be comfortable lending at? testing/priming the water so to speak. The banks know they will never loan en-masse again unless there is about a 50% drop IMO. Even at those prices you will make a substantial loss if you bought them now. Both properties will be eventually unshiftable or sell for about 30k IMO.

Interesting theory.

Strangely enough there are three public auction properties from 14 matches on my daily search today as well as 6 price reductions (low number of matches due to it being Monday and me doing a "past 24 hours" criteria search)!

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Another one here ( http://www.rightmove.co.uk/property-for-sale/property-16977147.html?premiumA=true ) ... according to houseprices.co.uk, last sold 18/12/07 @ £129,000 - by the looks of it getting repossessed (hopefully a BTLer with no business plan rather than poor unfortunate who lost his/her job) at £76,000 (altho the agent cannot seem to make their mind up with a few changes since Oct-10).

Is this happening quite a bit or is Bournemouth experiencing a couple of random events?

EDITED TO change linky to property rather than search results!!

EDIT 2 to give postcode for houseprices.co.uk BH1 4EP

It`s happening around my way SE Wales ,repos advertised as we are in receipt of a offer of £x and invite offers over that amount then a week or so later the price goes up .But I have seen that a lot of them stay that way for a few months then the price drops below the original offer they were in receipt of {which is what the bank must try to achieve by law?} and the new lower price is probably the best genuine offer they had as I do not believe the first offer is a real offer but is just what the banks must try to recover to cover the debt owed by the mortgagee

I have seen a house sell for 30k less than the alleged original offer all be it after they were in receipt of other offer`s with each one being lower than the previous offer that you were invited to bid over,and we are talking one house starting at 120k and eventuly going for 87k after ten months on the market

Edited by long time lurking

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  • 284 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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