Priced To Reflect Market Conditions

[exiges]

http://www.rightmove.co.uk/property-for-sale/property-14784852.html

Funny because the price still looks high to me. Still, at least they're acknowledging the problem, even if they're doing nothing about it.

EXCEPTIONAL VALUE - PRICED TO REFLECT MARKET CONDITIONS Situated in one of Cheshire's finest elevated locations enjoying dramatic and remarkable views - a beautiful country house nestling in the Peckforton Hills and set in grounds extending to .63 of an acre. Reception Hall, Dining Room, Drawing Room, Morning Room, Breakfast Kitchen, Office. First Floor : Master Bedroom with En-Suite Bathroom, 3 Further Bedrooms and Family Bathroom. Extensive range of outbuildings. Beautifully private, mature and landscaped gardens. Delightful private location yet within walking distance of village amenities.

[DTMark]

http://www.rightmove...y-14784852.html

Funny because the price still looks high to me. Still, at least they're acknowledging the problem, even if they're doing nothing about it.

Says a lot about what's happened that, as I look at that (absolutely gorgeous) it actually looks cheap to me. Not cheap in nominal terms, just comparables.

Here's one half a mile from us:

http://www.rightmove...y-18892875.html

Most of the properties here look very, very much more attractive than that does. It's directly on a road (admittedly, a single track one that passes through the village). 715k? Get real..!

Edited June 23, 2011 by DTMark

[Venger]

http://www.rightmove...y-14784852.html

The Hollows, Pennsylvania Lane, Burwardsley, Chester CH3 9PJ

Last sale: £375,000 Sale date: 18th Nov 1997

Zoopla Estimate: £936,067

http://www.zoopla.co.uk/home-values/burwardsley/pennsylvania-lane/

[200p]

We need to consider the type of seller. Perhaps it is owned by an elderly retired couple, or even just the widow who must downsize. Sure they can hold out for £1m, but they can't wait. If it was bought in 1997 for £375K, lets assume the mortgage is paid off by half (or if it is a recently made widow, it would be cleared from the insurance). They have good sufficient income from their pensions and need no more. They would like to live closer to town, as there is two buses a day (or even none), just to be closer to the GP surgery and shops. My father in Law is actually in a similar situation.

I know I would myself rather clear the mortgage and have cash to buy a bungalow or retirement flat, ASAP, rather than deal with the emotional rollercoaster of chains collapsing, offer withdrawals, no show viewings etc. After a quick sale, there would probably be £100K left over, more than enough for a few holidays and funds for an emergency.

[Realistbear]

Since when was 0.63 of an acre described as 'grounds'. How can you 'nestle' in that?

About 20 years ago when the Chelsea brigade were fashionable you would refer to them as "grinds" and the structure would be a "hice."

All of that mispronunciation seems to have faded a bit with SamCam's rough Essex twang.

[@contradevian]

Says a lot about what's happened that, as I look at that (absolutely gorgeous) it actually looks cheap to me. Not cheap in nominal terms, just comparables.

About the cost of two Docklands slave boxes.

[Venger]

We need to consider the type of seller. Perhaps it is owned by an elderly retired couple, or even just the widow who must downsize. Sure they can hold out for £1m, but they can't wait. If it was bought in 1997 for £375K, lets assume the mortgage is paid off by half (or if it is a recently made widow, it would be cleared from the insurance). They have good sufficient income from their pensions and need no more. They would like to live closer to town, as there is two buses a day (or even none), just to be closer to the GP surgery and shops. My father in Law is actually in a similar situation.

I know I would myself rather clear the mortgage and have cash to buy a bungalow or retirement flat, ASAP, rather than deal with the emotional rollercoaster of chains collapsing, offer withdrawals, no show viewings etc. After a quick sale, there would probably be £100K left over, more than enough for a few holidays and funds for an emergency.

It's changed again on Rightmove. From Offers Over to Guide Price £599,950

Being close to the GP surgery and shops is quite important for all ages. It has a small village but lots of rural villages are in decline with post offices and butchers closing.

Consider younger buyers who might be looking to upsize. Whoever owns the house now probably works from home going from the pic of the home office. Fine if you as buyer also can work that way. No neighbours to keep an eye on each other, or your house whilst you're out or away. Only a few other big houses dotted around the area.

Narrow lanes with no street lighting, pic 14. How do the kids get home from school? No problem if you can pay around the £599,950 asking price and only one of you needs to work fulltime, with a second car. Or if you're happy to let the kids walk from any bus drop off point down those country lanes, which probably ice up in Winter weather. Few other family homes nearby for the kids to make friends with and go out with on evening and weekends without a car drop off and collect. Lawns to maintain. It's not a problem if buyers can pay the asking prices and not struggle for money thereafter but fewer are in that secure position today. When more of these houses in the rural sticks owned by elderly downsizers will have to lower their asking prices if they want to sell. Crash.

[DTMark]

Having lived in a rural area for a few years - it's another world. Before I moved here I'd have asked all the same questions. So this tickled me a bit. So some answers in the context of our village...

Being close to the GP surgery and shops is quite important for all ages. It has a small village but lots of rural villages are in decline with post offices and butchers closing.

Our village doesn't even have a shop. The neighbouring village (half an hour's lovely idyllic walk) has a GP surgery and a small shop (think Royston Vasey - not quite that bad though). The GP comes over here once a week to see patients at the village hall. The nearest town is five miles away and well over an hour's walk.

Consider younger buyers who might be looking to upsize. Whoever owns the house now probably works from home going from the pic of the home office. Fine if you as buyer also can work that way.

There aren't any younger buyers round here largely because of the prices. Working from home is only possible if you can get an internet connection (these days, unless you're e.g. an artist, painter, decorator, manual craft - which quite a few are). That's the sacrifice we had to make, I'm a web developer and I have to get by with a 3G modem. No cable here. It only does 6Mbps. That said, it's better than half of the UK gets down a landline. That's because hardly anyone else uses the cell so I get almost the full speed.

No neighbours to keep an eye on each other, or your house whilst you're out or away. Only a few other big houses dotted around the area.

You'd be surprised just how much people in rural areas look out for each other. Honestly. If you meet someone outside the house walking past or in a lane, you greet and say hi. It is rude not to. Completely the opposite of urban areas and most especially London. It still has a sense of community. That said, one of my own concerns is burglary as you highlight exacerbated by old wooden original character windows you could pop open with a crowbar in seconds.

Narrow lanes with no street lighting, pic 14. How do the kids get home from school?

Same here. Some walk to the bus stop and get the bus the five miles. Most are driven by the housewife (not sexist - just true). If it's dark or going to be when you get back, you take a torch. I'm not joking. You have to take a torch to go to the pub at night. (Or simply drive home drunk as sadly a lot of people in rural areas do thinking they won't get caught)

No problem if you can pay around the £599,950 asking price and only one of you needs to work fulltime, with a second car.

That would be the case for a significant number round here. The man works, the woman stays at home and does a bit of flower arranging at the village hall, or rides their horse past my window up the lane. Price not a problem. Significantly higher number of self employed people and business owners than average.

Or if you're happy to let the kids walk from any bus drop off point down those country lanes, which probably ice up in Winter weather.

Bit of character building Actually, it's only people in urban areas who are convinced that a paedophile lurks on every corner.

Few other family homes nearby for the kids to make friends with and go out with on evening and weekends without a car drop off and collect.

I suspect that does drive the 18 - 20 year olds mad round here. Young kids play together in the village park behind the hall.

Lawns to maintain.

Gardener.

It's not a problem if buyers can pay the asking prices and not struggle for money thereafter but fewer are in that secure position today. When more of these houses in the rural sticks owned by elderly downsizers will have to lower their asking prices if they want to sell. Crash.

The point about downsizing is doubtless true, and I do get a sense that some rural dwellers seem to think their actually quite small 3 bed semi is a palace in an idyll worth a fortune. But that's not just rural dwellers

Not meaning to pick fault - just giving you an alternate perspective. Many of the drawbacks you mention are in fact key selling features for the demographic of this area: above average affluence, above average age, unusually high number of business owners - hence in some cases why the price isn't such a problem. That said the house round the corner from us appears to be about 300k overpriced in my book.

We couldn't afford to buy here.

[Venger]

The point about downsizing is doubtless true, and I do get a sense that some rural dwellers seem to think their actually quite small 3 bed semi is a palace in an idyll worth a fortune. But that's not just rural dwellers

Not meaning to pick fault - just giving you an alternate perspective. Many of the drawbacks you mention are in fact key selling features for the demographic of this area: above average affluence, above average age, unusually high number of business owners - hence in some cases why the price isn't such a problem. That said the house round the corner from us appears to be about 300k overpriced in my book.

We couldn't afford to buy here.

Thanks for giving me a better idea of how you find it, and how it is for others rural dwellers you know.

Some of these owners who have formally been affluent, above average age, must be experiencing a change in financial circumstances with business pressures, and not enough new successful business owners to pay the current asking prices. With elderly sellers who just want to downsize and can afford to lower their asking prices being a driver? .

I've not got anything against living somewhere rural but have never done so. You seem to love rural living, but can't afford to buy, admit there are few younger buyers because asking prices are too high. If you're going to buy somewhere on the rural side like that you'd want to have a reserve of money and enough income to have a second car, potter around, as many older rural home owners have been able to do in the past.

The sellers in the first RM link have cut their asking price by £180K from February 2010 looking for a buyer. I suspect rural homes in good areas could be prone to harder value falls than in suburban homes in good areas. Or where crash really begins at the mid and upper end of the market. Yes key selling features and all lovely, if enough buyers can afford to buy and sustain the lifestyle and extra costs.

[SaintJay]

nice.

[DTMark]

Thanks for giving me a better idea of how you find it, and how it is for others rural dwellers you know.

Some of these owners who have formally been affluent, above average age, must be experiencing a change in financial circumstances with business pressures, and not enough new successful business owners to pay the current asking prices. With elderly sellers who just want to downsize and can afford to lower their asking prices being a driver? .

I've not got anything against living somewhere rural but have never done so. You seem to love rural living, but can't afford to buy, admit there are few younger buyers because asking prices are too high. If you're going to buy somewhere on the rural side like that you'd want to have a reserve of money and enough income to have a second car, potter around, as many older rural home owners have been able to do in the past.

The sellers in the first RM link have cut their asking price by £180K from February 2010 looking for a buyer. I suspect rural homes in good areas could be prone to harder value falls than in suburban homes in good areas. Or where crash really begins at the mid and upper end of the market. Yes key selling features and all lovely, if enough buyers can afford to buy and sustain the lifestyle and extra costs.

With everything that's happened, in particular the low interest rates and the differing effects of CPI inflation on differing groups of people (generally hitting the poorest hardest) the impression I get is that the group of people least affected by all of this are those who were affluent already, hence why sales of larger and more expensive properties seem to have held up better. London being a case in point (so not an urban/rural divide, more a cheap/expensive divide)

I'm on the parish planning committee. I don't delude myself that if I were to strongly argue for more housing in the area, especially affordable housing, I wouldn't get very far.

On that topic, however, three (wonder why they bothered) new Housing association homes were recently built in the village.

In the 80s, a small development of homes was built as "affordable homes" (so not character properties, actually very large but plain looking new builds which look really odd because they have no windows on one side - bet that was part of the condition, they must not overlook anyone else). I'd guess they'd sell for 300k plus now.

With regard to rural generally and typically for rural areas which outly cities, and the whole of the South West - again, not racist, just my opinion (I won't write "fact") a lot of what's holding up these property values is the phenomenon of White Flight.

What I think will potentially cripple house prices in some of these areas is where the sacrifices you have to make become too great - for instance, peak oil might well result in a whole swathe of villages becoming ghost towns - those furthest from employment and major conurbations.

With respect to the downsizing - I'm not sure how true that is for many people. I don't think it has been a major factor so far, but as we carry on trashing the currency until a loaf of bread costs £10 I think the dynamic you speak of will eventually come to pass.

Finally, determining house prices in areas like thse can be very tricky, never has it been more true that a house is worth what someone will pay for it (subtlety: not what people can afford to borrow for it - that's key) and some initial valuations are laughable. One property here - a lovely 3 bed semi overlooking nothing - started at 650k years ago and believe it went for something like 485. The same "hangover dynamic" which prevents realistic valuations (the halcyon days of being able to sell for "your price") is just as true in rurals as urbans.

[R K]

http://www.rightmove...y-14784852.html

Funny because the price still looks high to me. Still, at least they're acknowledging the problem, even if they're doing nothing about it.

Pretty sure that house was on one of the 'House' shows. Quite probably a 'house in the country' of whatever it was called. The buyer didn't like the squashed in aspect and the fact that the 'land' I think was across the road in that field.

[Venger]

Those market conditions slowly becoming more favourable to buyers.

Price changed: Guide Price £599,950 £515,000

http://www.rightmove...y-35140523.html