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More Sellers Having To Turn To Price Cuts

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Seen it this morning with £25k knocked of the asking price of a house in our area of interest. Funny thing is if they had done it 3 - 4 months ago I might have been interested but can now see the feint outline of a recession in the distance so won't commit.

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A mate put in a offer on a ex council semi 10% below asking and it was excepted by the vendor ,and was then told buy the ea that they would not put it sstc as they believed the terrace house he was selling to fund the purchase of the semi, was over priced and he had no chance of selling at that price,and the price they thought he would get for it would not leave him with enough equity to finance the purchase of the semi

The worm is turning if you ask me, the spring bounce did not happen and it `s all hands to the pumps now as there are many ships in danger of sinking :)

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A mate put in a offer on a ex council semi 10% below asking and it was excepted by the vendor ,and was then told buy the ea that they would not put it sstc as they believed the terrace house he was selling to fund the purchase of the semi, was over priced and he had no chance of selling at that price,and the price they thought he would get for it would not leave him with enough equity to finance the purchase of the semi

The worm is turning if you ask me, the spring bounce did not happen and it `s all hands to the pumps now as there are many ships in danger of sinking :)

Think that is half the problem, people see other houses that are now reduced, and think they can get a free upgrade as they think their house is still worth top of the market prices. Until people are forced to sell a crash is unlikely, it will happen one of two ways.

1. interest rates go up to combat inflation meaning people can no longer afford the higher mortgage.

2. Inflation remains at a high level for 5yrs plus with little wage inflation to match meaning people have to pay more for food, fuel etc so cant afford the mortgage.

Problem is scenario 1 is recoverable and is the norm, scenario 2 is a whole new ball game and with hyper inflation buisnesses start dropping like fly's as people spend all their income on the essentials and there is no profit anywhere, all the money goes to importing products like food, the wealth drains out of the country.

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Mortgage advisor 'friend' of mine used to dismiss any notion of a HPC. Lives in a new build in a dodgy town, not the nicest of areas. Bought it for £215,000, spent around £40,000 on it and loved to tell me how it was now worth £275,000. He has just put it on the market for £249,500. Identical house sold in May this year for £225,500. Will be interesting to see what he gets for it (if it sells, market is flooded here with similar properties).

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Think that is half the problem, people see other houses that are now reduced, and think they can get a free upgrade as they think their house is still worth top of the market prices. Until people are forced to sell a crash is unlikely, it will happen one of two ways.

1. interest rates go up to combat inflation meaning people can no longer afford the higher mortgage.

2. Inflation remains at a high level for 5yrs plus with little wage inflation to match meaning people have to pay more for food, fuel etc so cant afford the mortgage.

Problem is scenario 1 is recoverable and is the norm, scenario 2 is a whole new ball game and with hyper inflation buisnesses start dropping like fly's as people spend all their income on the essentials and there is no profit anywhere, all the money goes to importing products like food, the wealth drains out of the country.

Aye I realise that but the point I was trying to make [badly] is that the EA`s are talking the market down which smells a lot like desperation the kite flying season is coming to a end :)

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no one round my way has a 40k cash deposit.

I don't think I'm round your way, but I've got a deposit more that double that. No-one's having access to it at these prices though...

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We were just chatting over on the Wales sub-forum about 20% below asking prices now being increasingly accepted in Swansea, even some EAs advising offers to come in below 20% or admitting that is now the norm.

One EA even going so far as to say to put in offers 20% below because the bank valuation will come back 30% below.

I am arranging viewings.

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We were just chatting over on the Wales sub-forum about 20% below asking prices now being increasingly accepted in Swansea, even some EAs advising offers to come in below 20% or admitting that is now the norm.

One EA even going so far as to say to put in offers 20% below because the bank valuation will come back 30% below.

I am arranging viewings.

So houseprices only go up because of stupid buyer offers and not what banks will lend them?

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We were just chatting over on the Wales sub-forum about 20% below asking prices now being increasingly accepted in Swansea, even some EAs advising offers to come in below 20% or admitting that is now the norm.

One EA even going so far as to say to put in offers 20% below because the bank valuation will come back 30% below.

I am arranging viewings.

Now you're talking! Let's have some of that in CF15.

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Think that is half the problem, people see other houses that are now reduced, and think they can get a free upgrade as they think their house is still worth top of the market prices.

Just this week a friend who I otherwise respect was complaining that he'd found this lovely house, just what he wanted, and had an offer of 20% under asking accepted.. But was thwarted by his inability to sell his house at no discount.

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Posted this in Anecdotals yesterday...

London...

A guy at work was a bit upset 6 to 8 months ago. He was renting a 2 bed place he called 'cheap' having been in there for eight or so years and reckoned when they (him and girlfriend) moved out they would have to pay substantially more rent and his landlord had just informed him he was going to sell the place.

Anyway, the Landlord put it on the market for 250K. I thought that was amazingly cheap for London, but he reckons it needs a shed load of work done on it and is in crappy location.

Workmate plucked up the balls and made an offer of 200K. Which was rejected because the landlord was wanting 250K. I've just found it on Rightmove, now currently advertised for 240K. They rang him up today and told him he could have it for 210K! Sounds like workmate was dreaming, because he said he wasn't even sure he could get 200K.

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  • 337 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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