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anonguest

Tv Property Porn Has A Lot To Answer For...

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A house in a reasonably nice part of the world,

http://www.rightmove.co.uk/property-for-sale/property-32584376.html

In the 'cheaper' part of what is a generally expensive area (i.e in terms of what you usually get for your money, cost vs size), but otherwise nice? (I stand ready to be corrected on this)

BUT..... look at the recorded prices on housprices.co.uk. This one is No.15. Postcode WD7

http://www.houseprices.co.uk/e.php?q=mead+road+wd7

Pretty obvious, from when it was bought, they must have thought the 'worst was over', etc etc - and embarked on their get rich quick efforts.

So... after 18 months or so, and a lick of magnolia, they think it worth ONE HUNDRED AND THIRTY THOUSAND more. As far as I can tell they havent added to the size of the property? The decor (and possibly even the standard of it too) may be nice, but ONE HUNDRED AND THIRTY THOUSAND MORE!

WHY??!! would anyone pay that - for such little enhancement? Did the EA advise them this was a reasonable price? Are they selling through the same EA they bought it from? Did he 'suggest' back then what they might achieve with a lick of paint, etc?

Why not wait till another similar house on that stretch comes available - and paint it yourself for just a few thousand???

These examples of delusion tell me we have a wayyyy to go yet till houses are routinely priced sensibly.

If it was me? I'd go view it. Tell the EA I like it, BUT.....(explaining the above rationale) I'd give them, say, £20K above what they paid for it - to take into account the improvement costs they incurred. So I'd offer in the region of £300K. Any bets the EA would just laugh at you?

Edited by anonguest

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Tasteful enough inside, but what an ugly ex council house that is.

Looks like number 10 got a better deal according to that NetHousePrice link.

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Tasteful enough inside, but what an ugly ex council house that is.

Looks like number 10 got a better deal according to that NetHousePrice link.

+1 that's what I thought - looks like an ex-council house.

I fully agree with the OP - there is a still a lot of delusion out there for which property porn is partly to blame.

Here is another property: of the same ilk in my mum's village:

http://www.rightmove.co.uk/property-for-sale/property-18353292.html?premiumA=true

New build, bought on 13/08/2009 for 250k back on the market now for 270k with no improvements done to it except the garden.

On the bright side, it's been premium listed after a month - suggesting a lack of interest, maybe poeple are wising up.

I don't think I'm being unfair in my opion that people like this make me sick - thankfully (for them) I haven't bumped into them yet :) .

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For the first time ever (I just couldnt resist it), rather than just sit back and watch, I sent the EA concerned an email to voice my disgust.

"I note with interest the Mead Road property.

http://www.rightmove.co.uk/property-for-sale/property-32584376.html

Given that it sold for £270K less than 18 months ago, can you really expect anyone to believe that it has received improvements that genuinely add £130K to the price? A case of your clients having watched too many TV property programmes methinks?!

Either you are badly advising your clients or they are delusional in thinking a lick of paint and new flooring justifies such a pricing in such a market environment. Have they even added to the size of the property?

Genuinely interested to buy in that area, I will bide my time. I wish them luck in finding a sucker at this price!"

I doubt I will receive a response!

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A house in a reasonably nice part of the world,

http://www.rightmove.co.uk/property-for-sale/property-32584376.html

In the 'cheaper' part of what is a generally expensive area (i.e in terms of what you usually get for your money, cost vs size), but otherwise nice? (I stand ready to be corrected on this)

BUT..... look at the recorded prices on housprices.co.uk. This one is No.15. Postcode WD7

http://www.houseprices.co.uk/e.php?q=mead+road+wd7

Pretty obvious, from when it was bought, they must have thought the 'worst was over', etc etc - and embarked on their get rich quick efforts.

So... after 18 months or so, and a lick of magnolia, they think it worth ONE HUNDRED AND THIRTY THOUSAND more. As far as I can tell they havent added to the size of the property? The decor (and possibly even the standard of it too) may be nice, but ONE HUNDRED AND THIRTY THOUSAND MORE!

WHY??!! would anyone pay that - for such little enhancement? Did the EA advise them this was a reasonable price? Are they selling through the same EA they bought it from? Did he 'suggest' back then what they might achieve with a lick of paint, etc?

Why not wait till another similar house on that stretch comes available - and paint it yourself for just a few thousand???

These examples of delusion tell me we have a wayyyy to go yet till houses are routinely priced sensibly.

If it was me? I'd go view it. Tell the EA I like it, BUT.....(explaining the above rationale) I'd give them, say, £20K above what they paid for it - to take into account the improvement costs they incurred. So I'd offer in the region of £300K. Any bets the EA would just laugh at you?

Go and view it....view it twice...then offer £150, when the estate agent has a go at you...laugh and say, look at the historic prices and they vendor is taking the pi*s....they tell him he should be done for fraud for trying to sell something worth so little at that inflated price and you will be going to the local papers.

:lol:

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Tasteful enough inside, but what an ugly ex council house that is.

Looks like number 10 got a better deal according to that NetHousePrice link.

True, but is it worth 400k instead of the 242k that number 10 went for. A few months ago I would have thought that no one would offer anywhere near the asking price but recently I've seen a property that was bought for 680k in 2004 go for 925k despite having virtually nothing done to it.

It appears that there are plenty of buyers out there who are either ignorant of the previous prices or easily convinced that they should just pay what ever it takes to get their "dream" home.

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For the first time ever (I just couldnt resist it), rather than just sit back and watch, I sent the EA concerned an email to voice my disgust.

Given that it sold for £270K less than 18 months ago, can you really expect anyone to believe that it has received improvements that genuinely add £130K to the price?

Good for you - but it will be interesting to see what (if any) response you get, as you say....

I am absolutely gobsmacked at the number of EA's around here, who seem genuinely surprised that someone would look up the previous sold price!! In at least two cases, they actually admitted they wouldn't know where to go to find the information - and that was the actual blokes in suits, not the thicko Hyacinth Bucket old hags that they send out with the keys, to let you in (without exception, they know so little about the property they are "showing," when asked, that I'm surprised they even manage to find the f**king place)

One of the EA's really took the biscuit though. I emailed him about a property that had been on the market for at least 18 months, at a stupid price, pointing out that based on the last sale price it was a good £100K over the odds, and that since it had gone SSTC on (date 1) and fallen through on (date 2 - two months after the SSTC date, and six weeks before my email,) wasn't it about time they thought about dropping the price, because it clearly wasn't going to sell where it was....?

He rang me for a bit of a pissing contest, and came out with a thoroughly smarmy "You have a lot of time on your hands, don't you?" I pointed out I was actually very busy, but since I did have Nethouseprices and Property Bee, and a whole three minutes to check my facts before emailing him, it wasn't really that difficult to put two and two together, and conclude something didn't quite add up.

"What are they then?" told me pretty much all I needed to know. And he's one of the more experienced guys, with a very well-known and previously upmarket-only chain. And he's always moaning that "all the other EA's" are overpricing everything to get the instruction, and claiming that they only ever value realistically and to sell :D

Utter feckwits. It's hardly surprising vendors are in denial, when they get advice from so-called professionals, who don't know the bare basics of their own local marketplace....

B

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True, but is it worth 400k instead of the 242k that number 10 went for. A few months ago I would have thought that no one would offer anywhere near the asking price but recently I've seen a property that was bought for 680k in 2004 go for 925k despite having virtually nothing done to it.

It appears that there are plenty of buyers out there who are either ignorant of the previous prices or easily convinced that they should just pay what ever it takes to get their "dream" home.

The other half of a relatives semi was sold for £325k in 2007. It was bought for £407k in 2010 with no additional work done to it.

The relative chatted to the new neighbour just after he moved in and apparently he'd only just found out you could search for what people paid for houses before and was gutted when he found out.

Being the types who spend all day on the internet and obsess about prices you forget most people don't have a clue that such tools exist.

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The other half of a relatives semi was sold for £325k in 2007. It was bought for £407k in 2010 with no additional work done to it.

The relative chatted to the new neighbour just after he moved in and apparently he'd only just found out you could search for what people paid for houses before and was gutted when he found out.

Being the types who spend all day on the internet and obsess about prices you forget most people don't have a clue that such tools exist.

Its quite shocking at how sheeple just go along with what ever the EAs tell them and accept that if they can borrow the money then its got to be worth it.

That house locally which was bought for 925k at Christmas is going to be pulled down and rebuilt. Why were they unable or unwilling to negotiate on the price?

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Here's one round me:

http://www.rightmove.co.uk/property-for-sale/property-29771338.html

Last sold for 46.5K at the end of November 2010. Less than six months later, it's on the market again for over TWICE the price. So they have obviously improved it you think... until you read the blurb that says it's in need of 'updating'!

Seems nobody can decide if it has one or two bedrooms either.

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Interesting post - and agree that the EAs in question sound like complete fools. Who do they take us for? Idiots who have become so hardened to the property lies that we're going to open our cheque books up just to please their greedy clients?

HPC used to get the excellent views of 'Honest EA' - is he posting any more these days?

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There needs to be some sort of buyers guide that educates the morons into understanding the price they are paying when it comes to property. I've just been watching a local house which was SSTC for over two months come back on the market with an extra 10k on the asking price. Now someone with no knowledge of this will go and pay that hiked up price and this is effectively the essence of HPI.

Buyers need to learn how to use all the modern tools available to see price / sales history along with all the games sellers and estate agents are still playing.

Its very frustrating waiting for a market to revert to sanity when the buyers for that market do not understand how to value the asset or the prices being sought.

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Borrowers should be forced to see, physically, how much money they will have to pay back... NOT BORROW... pay back.

If they borrow 300k they should be shown a picture of 700k+..... or 3000 silver bars in 12 month's time. :P

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Borrowers should be forced to see, physically, how much money they will have to pay back... NOT BORROW... pay back.

If they borrow 300k they should be shown a picture of 700k+..... or 3000 silver bars in 12 month's time. :P

I actually agree on this (not the silver bit). I have only once, perhaps not coincidentally only recently, seen a prospective buyer do that sort of calculation, do a long hard think, take a hard gulp, and pull out of the purchase.

The comment later from him was that he and his partner both realised the ludicrous summ they were about to commit to spending to live in a two bed 'shoebox'. They worked out they would be hard pressed to spend anywhere near that much between now and retirement age if they just rented a similar category/quality property - particularly if they factored in cost of ownership related expenses that would almost inevitably arise over the following 25 years of mortgage payment.

I commended them on their wisdom/bravery. They are of course still looking to buy - just at more sane prices.

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One may as well ask why clause 13 (ii) of the Editors' Code [which all journalists have to abide by] does not include property as well as shares and securities?

http://www.editorscode.org.uk/...

Clause 13ii is framed to ensure that compliance with the Code would reflect compliance with the requirements of the Financial Services Act.

The object, of course, is to prevent the ramping of shares for personal gain.

But how many hundreds of thousands of hours of 'property porn' have we seen on television over the last decade, as house prices have been purposefully manipulated to rise by nearly 300%?

And how many of the hundreds upon hundreds of BBC executives, each paid, six figure salaries, own second properties which they rent out?

Surely that is a significant self interest?

For that matter, how many journalists, who report for the Daily's, ramping house prices for a decade have huge mortgages, and BTL properties?

How much of your advertising budgets were paid by property related companies during the 'boom' years?

This stinking hypocrisy is everywhere.

And what have you all done, when the greed ran out? Take any losses yourselves? No. Of course not.

Once a theif always a theif.

You've 'socialised' those losses. So everyone who does not own property, are having their earnings, taxes and Interest stolen, to pay to keep the banks assets, houses, massively overinflated, against all historic measures of affordability. Even though weve already been forced to waste tens upon tens of thousands in rent, paying offf your BTL mortgages.

Well done, you were part of the loop which pushed generations into debt slavery. Through complicated theft.

Of course it wasnt just the Media.

In 2009 When the Telegraph first broke the expenses scandal.

Gordon Brown and LABOUR forced a three line whip, to try to exempt MP's second home expenses from the Freedom Of Information act.

From being made public.

Sir Ian Kennedy, chairman of the new Independent Parliamentary Standards Authority (Ipsa) ruled that Ministers should repay profits on their second homes.

However, that only applies to gainsFROM November 2009!

So profits from massive House Price Increases UP TO November 2009, were locked in.

HPI was all cream for our elected officials.

[The BBC reported this as 'Ministers pay back money for Second Homes!']

[The BBC forgot to mention that profits from second homes needed to be backdated to 1997, or the beginning of an MP's tenure.]

The truth is that there was never any political will to enable the average person earning average wage to be able to afford an average house in a rising unregulated market, under a secret expenses system, where MP’s were all flipping houses, making hundreds of thousands in personal profits.

Not one MP represented the average wage earner during the boom.

It is not just that they used our money to profit, and paid no tax on the gains, it is also that it created a dangerous conflict of interest that meant that voting for policies which fed the house price bubble, for so many years, such as keeping IR too low for too long, CGT etc, also generated personal profits for them, in secret.

In any other profession this would be a criminal offence.

It is market manipulation. Far worse than insider trading.

Oh es, they'll make a show of paying back the money for the plant pots, and the picture frames, but the hundreds of thousands of pounds they pocketed, for their part in the biggest fraud/swindle in history? No chance. We'll let the poor and future generations pay for that. ]

Robespierre, Cromwell, Guy Fawkes.

These people genuinely had the right idea.

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I actually agree on this (not the silver bit). I have only once, perhaps not coincidentally only recently, seen a prospective buyer do that sort of calculation, do a long hard think, take a hard gulp, and pull out of the purchase.

The comment later from him was that he and his partner both realised the ludicrous summ they were about to commit to spending to live in a two bed 'shoebox'. They worked out they would be hard pressed to spend anywhere near that much between now and retirement age if they just rented a similar category/quality property - particularly if they factored in cost of ownership related expenses that would almost inevitably arise over the following 25 years of mortgage payment.

I commended them on their wisdom/bravery. They are of course still looking to buy - just at more sane prices.

I actually meant coins (as in silver will rocket)... hit the wine too early today.

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Go and view it....view it twice...then offer £150, when the estate agent has a go at you...laugh and say, look at the historic prices and they vendor is taking the pi*s....they tell him he should be done for fraud for trying to sell something worth so little at that inflated price and you will be going to the local papers.

:lol:

The EA's and local papers are 'blood' brothers!

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There needs to be some sort of buyers guide that educates the morons into understanding the price they are paying when it comes to property. I've just been watching a local house which was SSTC for over two months come back on the market with an extra 10k on the asking price. Now someone with no knowledge of this will go and pay that hiked up price and this is effectively the essence of HPI.

Buyers need to learn how to use all the modern tools available to see price / sales history along with all the games sellers and estate agents are still playing.

Its very frustrating waiting for a market to revert to sanity when the buyers for that market do not understand how to value the asset or the prices being sought.

Not only that but many EA's are quasi-bankers!

The bank's EA chains manipulate the housing prices in their area in conjunction with lending.

(Remember the practices Banks started where they wouldn't let you view the house till you had a session with the banks (inhouse front company) 'mortgage advisor'?)

Edited by erranta

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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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