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johna999

Sister Sold Her House

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Not that it is sold (STC), but the price and how.

I've been posting in the 'house prices in your area' forum and felt it was right to go to a bigger audience now.

I've been banging on the last 6 mths about house prices and the state of the market to my sister. I have been playing close attention as I want to move to the same area my sister lives, and the market (Reading) isn't great. At the same time a girl I was seeing worked in an estate agents at weekends and gave me good insight into things (be it the other end of Reading). Her view was that houses in good areas were selling but those in not so good areas were stagnant. (Sadly we broke up recently)

To cut a long story short. My sister put her house on the market 6 days a go, had a viewing on the wednesday, 5 on saturday and 1 on sunday. Got a bid today 2k off asking (price 228k - 3bed), due to the interest the EA budged them up to 1k off asking. I'm in a state of shock and feel quite embarrassed. I didn't want her to get hurt or dissappointed so was always negative, but it has worked out really well, I'm over the moon for her. BUT for me I'm feeling a bit worried. I'm firmly in the HPC camp. I'm encouraging her as much as I can to negotiate a sizeable discount on the house they look to buy as her feedback is that the ones they are looking at have been on the market for a long time and the EAs tell them they have had few viewings. BUT she seems em,barrassed to offer anything less than 2-4% below.

HOWEVER, on the postive side (from my wanting to buy perspective)..... a couple of houses in the same area (but not the most popular ie my sister's area) dropped 5k and 8k recently (both to 204k).

It seems my ex was right. Its about location. The good houses are doing well, the not so good are struggling big time. My way of thinking is that it is a good idea to pay a premium for something that wont have an issue shifting at a later date. A lot of the houses I have been monitoring have been on the market for mths and mths and that's the last thing I want looking to the future.

lots to think about...............

Thoughts?

Edited by johna999

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It seems my ex was right. Its about location. The good houses are doing well, the not so good are struggling big time. My way of thinking is that it is a good idea to pay a premium for something that wont have an issue shifting at a later date. A lot of the houses I have been monitoring have been on the market for mths and mths and that's the last thing I want looking to the future.

lots to think about...............

Thoughts?

Well, a keenly priced house in a decent location will always sell - even in the depth of a recession (and we ain't in one of those at present.) £228k isn't a huge amount of money for someone on decent pay, especially if they have a decent deposit or cash from a prior sale of their own home. Split that mortgage two ways across two wage earners and it's even cheaper.

However, a few keenly priced houses which sell quickly don't make a market. Most of what I see on Rightmove for my area hasn't shifted in 6 months plus, some after quite large drops. Why? Because they are still stupidly overpriced. But keenly priced properties are still selling - it's just that there are very few of them around.

My own sisters place sold last year for £350k. It was a huge house, but they had to drop from the £420k estimate they originally were given. And they only had one offer, off someone who was forced to relocate because of his job. But then all you need is one buyer...

Nomadd

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I knew I needed to sell my house this summer before things got too difficult , firmly believing in a hpc ,bottoming in 2007, I sold my house for £21000.00 over the asking price within 2 weeks which completely contraindicated my statements to friends and relatives about hpc. there will allways be properties that people want and are willing to pay , for which could prove in isolation that housing prices are stable or on the increase, but we need to compare this to the many properties within the area i lived that are still for sale despite large reductions in price.

It is easy to end up feeling like an old testament prophet warning everyone that the end of the world is nigh "mend their ways" , "reduce their debt" , "sell up and rent " and looking like a lunatic .As the evidence that most people see or look for is to comfort themselves not to worry themselves as the truth of a hpc and the coming economic turmoil is painfull .

So I wish you and your family good luck but her house sale like mine are just a blip on the edge of the hpc.

Edited by doom and gloom merchant

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Well, a keenly priced house in a decent location will always sell - even in the depth of a recession (and we ain't in one of those at present.) £228k isn't a huge amount of money for someone on decent pay, especially if they have a decent deposit or cash from a prior sale of their own home. Split that mortgage two ways across two wage earners and it's even cheaper.

However, a few keenly priced houses which sell quickly don't make a market. Most of what I see on Rightmove for my area hasn't shifted in 6 months plus, some after quite large drops. Why? Because they are still stupidly overpriced. But keenly priced properties are still selling - it's just that there are very few of them around.

My own sisters place sold last year for £350k. It was a huge house, but they had to drop from the £420k estimate they originally were given. And they only had one offer, off someone who was forced to relocate because of his job. But then all you need is one buyer...

Nomadd

That's the worrying thing. I didn't think it was priced sensibly. Looking at nethouse prices, same house down her st last Dec sold for 229k BUT had an extension. Identical house street along (but a through street and nearer shops) asking price 216k (we don't know what it sold for) and this was 2 mths a go. Its one of the mosty sort after areas in the woodley part of Reading. For me the the rooms were too small (house about 10yrs old I think not too sure but modern ie small living place), in fact the agent didn't take any internal photoes as to quote them 'nothing special love, if you had a 6k kitchen then we'd have taken a photo of that'. But it did have a really good sized garden (compared to others down the st and the 216k one). I think it was a good house, aren't any others similar to it in the same location on the market at present. I hate to use that quote, but its location, location, location. In terms of the buyers, young couple with a child, sold their 2 bed place.

Edited by johna999

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That's the worrying thing. I didn't think it was priced sensibly. Looking at nethouse prices, same house down her st last Dec sold for 229k BUT had an extension. Identical house street along (but a through street and nearer shops) asking price 216k (we don't know what it sold for) and this was 2 mths a go. Its one of the mosty sort after areas in the woodley part of Reading. For me the the rooms were too small (house about 10yrs old I think not too sure but modern ie small living place), in fact the agent didn't take any internal photoes as to quote them 'nothing special love, if you had a 6k kitchen then we'd have taken a photo of that'. But it did have a really good sized garden (compared to others down the st and the 216k one). I think it was a good house, aren't any others similar to it in the same location on the market at present. I hate to use that quote, but its location, location, location. In terms of the buyers, young couple with a child, sold their 2 bed place.

Well, there you go. I don't think 228k in Reading is a huge mortgage. Easy commute into London for a decent salary for one or two people. And even if the price drops 10-15% over the next few years, that's still not a huge loss. Add the fact that they've also sold a property themselves, and you have your answer.

But, like a said, it doesn't make a market.

Nomadd

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It seems my ex was right. Its about location. The good houses are doing well, the not so good are struggling big time. My way of thinking is that it is a good idea to pay a premium for something that wont have an issue shifting at a later date

Thoughts?

This is exactly why house prices haven't been seen to fall by much in the nationwide figures yet, because the only properties that are selling, and by definition those that make the figures - are those which people are still willing to pay premiums for.

If all the properties which AREN'T selling right now were reduced in price to their true value in today's market, then we would be seeing the house price indices falling FAST.

It's all about volumes. In the housing market, they collapsed towards the end of last year - look at the Land Registry and you will see volumes are much lower than they were a few years ago.

Buyers have largely woken up to the new market reality, but sellers haven't.

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I think it was a good house, aren't any others similar to it in the same location on the market at present. I hate to use that quote, but its location, location, location. In terms of the buyers, young couple with a child, sold their 2 bed place.

I think an important point is that the property was sold to a couple with a child. They may be planning more children and need the space - I know that I'd be motivated to buy if I had children. The chances are that they sold their previous place for a decent profit. The difficulty will come when the 2 bed FTB places don't sell and people can't move up.

I was in Tilehurst this weekend visiting friends who are moving house. They had no problem finding interest and gaining offers (c210k - ludicrous for a small three bed in chav central) but had three offers in a row fall through as the prospective buyers failed to sell their places.

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  • 301 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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