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Are Sellers Becoming More Realistic?

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Viewed a house in SE9 the other day after my enthusiastic (and nice) EA called me...

"It's on at £350K, but they are open to offers as they have found a bigger house they want to buy...." says the EA.

I viewed the property (link below) without checking out its sale history... and it had been reduced to £335K on the day I viewed already.

http://www.rightmove.co.uk/property-for-sale/property-30475366.html

Checking the previously sold price for this house, I discovered it went for £310K in August 2007 - somewhere near peak prices.

The house next door went for £292K a few months ago (a high price for this type of house IMHO).

So it looks to me that, despite all the recent media coverage about house prices decreasing, sellers are still stuck in the mindset that they will still be able to make a profit, even if their house was bought at peak prices back in 2007.

Hmmmm...

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Viewed a house in SE9 the other day after my enthusiastic (and nice) EA called me...

"It's on at £350K, but they are open to offers as they have found a bigger house they want to buy...." says the EA.

I viewed the property (link below) without checking out its sale history... and it had been reduced to £335K on the day I viewed already.

http://www.rightmove.co.uk/property-for-sale/property-30475366.html

Checking the previously sold price for this house, I discovered it went for £310K in August 2007 - somewhere near peak prices.

The house next door went for £292K a few months ago (a high price for this type of house IMHO).

So it looks to me that, despite all the recent media coverage about house prices decreasing, sellers are still stuck in the mindset that they will still be able to make a profit, even if their house was bought at peak prices back in 2007.

Hmmmm...

You can only really say that sellers are being realistic, when they sell.

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Behind the latest uptick in Rightmove's asking price index was the fact that sellers clearly believe that the decline in prices sparked by the credit crunch has gone on long enough and they are ready for the 10% YoY increases again. How wrong they are!

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Well my neighbours have just sold their house for 3k more than they bought it for at peak. Well, they've got the offer in a letter today. I know because it was popped through my door by mistake and I could see the figure through the envelope.

They had it on the market for 11k more than they paid for it and I know they accepted the offer, so I guess you could say they are being realistic ;)

Edited by General Congreve

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Well my neighbours have just sold their house for 3k more than they bought it for at peak. Well, they've got the offer in a letter today. I know because it was popped through my door by mistake and I could see the figure through the envelope.

They had it on the market for 11k more than they paid for it and I know they accepted the offer, so I guess you could say they are being realistic ;)

Just wait until the mortgage valuation comes in - your neighbours are in for a rude awakening.

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Just wait until the mortgage valuation comes in - your neighbours are in for a rude awakening.

Yep. in my area only about 10% of the properties on the market are selling, mainly because any slightly overvaluation above 2003/2004 price always fall at the door step of the lenders. I am seeming deals falling through at prices even I feel were actually reasonable (I am talking about 20%-25% off 2006 prices).

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Viewed a house in SE9 the other day after my enthusiastic (and nice) EA called me...

"It's on at £350K, but they are open to offers as they have found a bigger house they want to buy...." says the EA.

I viewed the property (link below) without checking out its sale history... and it had been reduced to £335K on the day I viewed already.

http://www.rightmove.co.uk/property-for-sale/property-30475366.html

Checking the previously sold price for this house, I discovered it went for £310K in August 2007 - somewhere near peak prices.

The house next door went for £292K a few months ago (a high price for this type of house IMHO).

So it looks to me that, despite all the recent media coverage about house prices decreasing, sellers are still stuck in the mindset that they will still be able to make a profit, even if their house was bought at peak prices back in 2007.

Hmmmm...

Update:

The EA called to find out what I though after viewing the property.

I was very frank with him, saying the property was very over-priced....

Looks like it worked to a certain extent, as the price has come down again – now £320K

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Sellers reaction; 'dam dam dam yet another buyer who can use the internet ... all I need is that one cash buyer who has never heard of google.'

The sellers in London should state specifically 'Cash buyers only who haven't heard of internet !!'

Look at this property in NW1.

I remember these new builds being advertised for a long time last year for about £1.3m I think.

They actually went for about £950K.

1 8/04/2011 £950,000 Ter. F No Map 5, Sunny Mews, London, Greater London, NW1 8DZ See current value of 5, Sunny Mews

2 11/04/2011 £950,000 Ter. F No Map 2, Sunny Mews, London, Greater London, NW1 8DZ See current value of 2, Sunny Mews

3 01/04/2011 £999,999 Ter. F No Map 1, Sunny Mews, London, Greater London, NW1 8DZ See current value of 1, Sunny Mews

4 28/01/2011 £950,000 Ter. F Yes Map 4, Sunny Mews, London, Greater London, NW1 8DZ See current value of 4, Sunny Mews

5 26/01/2011 £975,000 Ter. F No Map 6, Sunny Mews, London, Greater London, NW1 8DZ See current value of 6, Sunny Mews

6 16/12/2010 £980,000 Ter. F No Map 3, Sunny Mews, London, Greater London, NW1 8DZ See current value of 3, Sunny Mews

Now one of them's on the market again for £1.65m.

It takes just one idiot for all these properties to increase in value by about 73% (in the sellers' mind anyway).

I have seen examples where one idiot pays way above the going rate, and every property on that street that comes on

the market has that new valuation plus more.

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The sellers in London should state specifically 'Cash buyers only who haven't heard of internet !!'

Look at this property in NW1.

I remember these new builds being advertised for a long time last year for about £1.3m I think.

They actually went for about £950K.

1 8/04/2011 £950,000 Ter. F No Map 5, Sunny Mews, London, Greater London, NW1 8DZ See current value of 5, Sunny Mews

2 11/04/2011 £950,000 Ter. F No Map 2, Sunny Mews, London, Greater London, NW1 8DZ See current value of 2, Sunny Mews

3 01/04/2011 £999,999 Ter. F No Map 1, Sunny Mews, London, Greater London, NW1 8DZ See current value of 1, Sunny Mews

4 28/01/2011 £950,000 Ter. F Yes Map 4, Sunny Mews, London, Greater London, NW1 8DZ See current value of 4, Sunny Mews

5 26/01/2011 £975,000 Ter. F No Map 6, Sunny Mews, London, Greater London, NW1 8DZ See current value of 6, Sunny Mews

6 16/12/2010 £980,000 Ter. F No Map 3, Sunny Mews, London, Greater London, NW1 8DZ See current value of 3, Sunny Mews

Now one of them's on the market again for £1.65m.

It takes just one idiot for all these properties to increase in value by about 73% (in the sellers' mind anyway).

I have seen examples where one idiot pays way above the going rate, and every property on that street that comes on

the market has that new valuation plus more.

We have that problem we've had a couple of 2 bed flats sq ft 543 and a niehbour 719 sq ft ours is 1089sq ft, a previous 2 bed 543sq ft flat sold for £250,000 in Jan 2011but the prices are all over the place.

http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=POSTCODE^1069393&insId=1&radius=0.0&displayPropertyType=&minBedrooms=&maxBedrooms=&minPrice=&maxPrice=&retirement=&partBuyPartRent=&maxDaysSinceAdded=&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&newHome=&auction=false

Some say the flats are over priced others think we're being silly coming on to the market £100-200 under the £560-460 price per sq ft than some others currently that are trying to sell or sold in Jan.

We're thinking just to be realistic as to what we need to buy in the North so what we do lose here we can manage better up in the North of England.

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The sellers in London should state specifically 'Cash buyers only who haven't heard of internet !!'

Look at this property in NW1.

I remember these new builds being advertised for a long time last year for about £1.3m I think.

They actually went for about £950K.

1 8/04/2011 £950,000 Ter. F No Map 5, Sunny Mews, London, Greater London, NW1 8DZ See current value of 5, Sunny Mews

2 11/04/2011 £950,000 Ter. F No Map 2, Sunny Mews, London, Greater London, NW1 8DZ See current value of 2, Sunny Mews

3 01/04/2011 £999,999 Ter. F No Map 1, Sunny Mews, London, Greater London, NW1 8DZ See current value of 1, Sunny Mews

4 28/01/2011 £950,000 Ter. F Yes Map 4, Sunny Mews, London, Greater London, NW1 8DZ See current value of 4, Sunny Mews

5 26/01/2011 £975,000 Ter. F No Map 6, Sunny Mews, London, Greater London, NW1 8DZ See current value of 6, Sunny Mews

6 16/12/2010 £980,000 Ter. F No Map 3, Sunny Mews, London, Greater London, NW1 8DZ See current value of 3, Sunny Mews

Now one of them's on the market again for £1.65m.

It takes just one idiot for all these properties to increase in value by about 73% (in the sellers' mind anyway).

I have seen examples where one idiot pays way above the going rate, and every property on that street that comes on

the market has that new valuation plus more.

Being London there is normally more than the idiot or 3 running around with more money than sense. Kings new clothes springs to mind.

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  • 285 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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