Jump to content
House Price Crash Forum
iLegallyBlonde

Would You Still Step Of The Property Ladder Today Or Is It Too Late ?

Recommended Posts

We have a house in Stratford upon Avon that we moved out a year ago because it was too small for the 5 of us, although having seen what we can buy for the same money I wonder whether it was as bad as i thought at the time.

Anyway we were lucky and found tennants who have rented the house for a year, it now looks like a bomb site but I guess a lick of paint and carpet cleaned it be ok.

The house is valued at between £300 and £285k, we go for £285k would accept £275k and ask the agents to go for it.

Fastforward to Friday afternoon when I get a call from the EA, there have been no viewings on the house this week, would we consider dropping the price to £249k. We do drop the price and within hours the mortgage advisor at the EA branch has put in an asking price offer.

We are in rented at the moment, a beautiful house we could never afford to buy, the rent is OK, landlord is great. The school my children can attend because we are renting in the catchment is excellent.

If we move back into our home we'd have to pay for private education as we've missed the best schools in the area now and obviously the house was too small.

However I'm terrified to sell at what I consider to be £35k - 19% less than it's value especially when I look around here and see that people in rubbish area's with frankly awful houses are expecting to achieve more than I am asking for our lovely one.

WWYD ?????

Share this post


Link to post
Share on other sites

would we consider dropping the price to £249k. We do drop the price and within hours the mortgage advisor at the EA branch has put in an asking price offer.

(Let's out a big Hmmmmm.........)

Share this post


Link to post
Share on other sites
Fastforward to Friday afternoon when I get a call from the EA, there have been no viewings on the house this week, would we consider dropping the price to £249k. We do drop the price and within hours the mortgage advisor at the EA branch has put in an asking price offer.

I'd instruct another agent.

Share this post


Link to post
Share on other sites

Suggest paying a local buildings surveyor to give you a truely inpedendant valuation.

How much rent were you getting??

Somebody else had suggested that but it's only worth what somebody will pay isn't it ?

We got £850 a month rent (the IO mortgage is £950) but tbh we aren't the sort of people that can cope with it being rented out, I cried when I went back into the house after the tennants had left.

Share this post


Link to post
Share on other sites

Why not check www.houseprices.co.uk and see what other properties on the street sold for to give you an idea of market value.?

Share this post


Link to post
Share on other sites
However I'm terrified to sell at what I consider to be £35k - 19% less than it's value

Better to sell at 19% below your theoretical value than 60% below: personally almost every bad financial decision I've made has been to hang on to some investment after it dropped in the hope of seeing another increase, only to see it fall much further...

If you think that a trebling of house prices in six or seven years is sustainable, then keep it: if you don't then sell it. Your choice.

Share this post


Link to post
Share on other sites

We live near Evesham, a few miles SW of Stratford. I have been observing prices falling in the Midshires (West Midlands) more so than most areas in the UK and would be inclined to sell at £249,000 as we have serveral friends who have had their homes on the market for a year without any action whatsoever.

I wouod counteroffer at somewhere between the offer price and asking price. However, in a buyers market this may not be so easy.

We have owned our own home since 1977 but are happily renting in Warwickshire for about 2/3rds of a mortgage. Its scary to watch the market eroding when you own but feels wonderful if you are renting.

I agree with you about renting your own home out--too traumatic.

Share this post


Link to post
Share on other sites

Somebody else had suggested that but it's only worth what somebody will pay isn't it ?

We got £850 a month rent (the IO mortgage is £950) but tbh we aren't the sort of people that can cope with it being rented out, I cried when I went back into the house after the tennants had left.

It may be worth asking the EA to show you other houses in the area and establish for yourself what the place is worth in the current market. Also checking houseprices.co.uk as already said.

You could get an independent valuation, but at the end of the day you're the one responsible for deciding if it's a fair price in the current market.

I know a FTB who has just paid full asking price, about 15k over the stamp duty threshold.

So there are still fools out there!

Share this post


Link to post
Share on other sites

there have been no viewings on the house this week, would we consider dropping the price to £249k. We do drop the price and within hours the mortgage advisor at the EA branch has put in an asking price offer.

We do drop the price and within hours the mortgage advisor at the EA has put in an asking price offer!?????!!!!!!!!!!????!!!

Are you mad!!!?? Get a new EA! (and report first lot to the ombudsman, if they're part of the scheme (or not). It stinks to high heaven.

Share this post


Link to post
Share on other sites

We do drop the price and within hours the mortgage advisor at the EA has put in an asking price offer!?????!!!!!!!!!!????!!!

Are you mad!!!?? Get a new EA! (and report first lot to the ombudsman, if they're part of the scheme (or not). It stinks to high heaven.

Yeah, that's shocking!

Share this post


Link to post
Share on other sites

First thing is , if you are prepared to sell at 249 (which you seem to be because you lowerd the price) then who cares where the money is comming from but on that note i would hate to think that ive been shafted by a no qualification blood sucking EA so... what i would do

Go to a different EA's and get a value off them infact go to as many EA's you have locally and invite them all to take a look and value it, it may seem like a hassle but we're talking tens of thousands of pounds... its worth the hassle. Do some research into prices in your area, most areas are falling so it maybe wise to bail out now anyway.

Something that would niggle at me would be the though that the EA has deliberatly kept away buyers and suckerd you into dropping the price just so they can buy it.

That being said, no duobt its grossly over valued due to the boom so really you should be happy with your quarter of a million pounds because i doubt thats what you paid for it. The EA in question sounds sensible by telling you to reduce the price if it has has no viewings after all thier job is to sell the thing the only cause for concern is that its a EA thats offered on it.

Again though if you are happy with 249 which you said you were by lowering the price to that then sell it to what ever mug will pay up.

Share this post


Link to post
Share on other sites

First thing is , if you are prepared to sell at 249 (which you seem to be because you lowerd the price) then who cares where the money is comming from but on that note i would hate to think that ive been shafted by a no qualification blood sucking EA so... what i would do

Go to a different EA's and get a value off them infact go to as many EA's you have locally and invite them all to take a look and value it, it may seem like a hassle but we're talking tens of thousands of pounds... its worth the hassle. Do some research into prices in your area, most areas are falling so it maybe wise to bail out now anyway.

Something that would niggle at me would be the though that the EA has deliberatly kept away buyers and suckerd you into dropping the price just so they can buy it.

That being said, no duobt its grossly over valued due to the boom so really you should be happy with your quarter of a million pounds because i doubt thats what you paid for it. The EA in question sounds sensible by telling you to reduce the price if it has has no viewings after all thier job is to sell the thing the only cause for concern is that its a EA thats offered on it.

Again though if you are happy with 249 which you said you were by lowering the price to that then sell it to what ever mug will pay up.

We paid £225k for it so we haven't exactly made a killing in 5 years but we would still be up on the deal, I think i might wait until January and try a different agent.

Thanks

Share this post


Link to post
Share on other sites

We paid £225k for it so we haven't exactly made a killing in 5 years but we would still be up on the deal, I think i might wait until January and try a different agent.

Thanks

Never go through a single EA. They will not work hard for you, and may be representating another party's interests rather than yours.

btp

Share this post


Link to post
Share on other sites

We paid £225k for it so we haven't exactly made a killing in 5 years but we would still be up on the deal, I think i might wait until January and try a different agent.

Thanks

Some people would argue that 25 thousand pounds for doing absolutly nothing isn't to bad at all but i have to admit a ~10% increase isn't extortionate considering the boom we've just witnessed :) . Personally i wouldn't wait until january to get a revaluation if you do then you will never know if that EA was trying to pull one over on you the market will have changed a little by then. Its not to much effort to get the slime balls in to give you a valuation :)

Share this post


Link to post
Share on other sites

Some people would argue that 25 thousand pounds for doing absolutly nothing isn't to bad at all but i have to admit a ~10% increase isn't extortionate considering the boom we've just witnessed :) . Personally i wouldn't wait until january to get a revaluation if you do then you will never know if that EA was trying to pull one over on you the market will have changed a little by then. Its not to much effort to get the slime balls in to give you a valuation :)

Thats 10% before inflation. 5 years compounded general inflation is more than 10%. To sell with only a 10% increase in 5 years and you have made a loss.

Share this post


Link to post
Share on other sites

We do drop the price and within hours the mortgage advisor at the EA has put in an asking price offer!?????!!!!!!!!!!????!!!

Are you mad!!!?? Get a new EA! (and report first lot to the ombudsman, if they're part of the scheme (or not). It stinks to high heaven.

Got to agree with the above.

Look Terrified you have been put through the "emotional ringer"

How do I deduce that? Well for a start your choice of forum name and the thread title says it all really....Or Is It Too Late.....panic panic panic

Failing to sell your house last time around, but having no fears that the market would correct, you rent it out. Fast forward 12 months, the emotions of seeing your house "distressed" and you NOW do have concerns that in all probability the market is headed downwords. And the house is in a worse state than last time you tried to sell it, plus it looks even worse because it is empty....panics begining to set in now.

You get the house valued, 285K to 300K and to the Estate Agents amazment you say ....put it on at the lower valuation BUT I'll take 275K for it OK.........................Oh dear wither you told him about your concerns about the market or not, he has you down for a panicing/distressed seller.

But lets take it one step further............he has a colleague activley seeking a house like yours................and maybe nobody does show interest in arranging a viewing........there again maybe potential buyers did, but were told for some reason or another viewings were not possible right now......well I dare say you can work the rest out.

So now is not the time to make rash decisions. Sit down take deep breaths hold and exhale...... I think your agent is screwing you....and you will pay him a commision for the privilege

Pay for an honest market valuation yourself [no need for a full structual] take the house of the existing agents books. Refuse to pay any costs or fees whatsoever on threat of reporting him to the ombudsman or, at the very least going to the local press. [that should quieten him, as mud has a habit of sticking] then put it up with another agent.

Because if "that" Mortgage Advisor wants your house ....he wants your house......period....... which ever agent sells it.

Regards other advice on this thread, people will offer what they believe is fair advice, but remember any action that involves sellers reducing prices..... subconciously encourages most on here to believe their own take on the market is correct. [going down] I'm not saying they are out to give you bad advice, I just saying it will for the most part be tainted by their perception of where they think this market is headed.

Myself, I agree with the broad concensus on this site that this market is indeed headed down as we ourselves STR'ed in March this year. But I do think you possibly could get another 10K or more for your house.

Selling at 250K or over adds 3% Stamp Duty to the overall cost. Selling at 269K with you offering to paying the FULL SD gives you 261K which is 12K over whats on offer now. Selling at 275K a buyer would end up with SD on top paying 283K+. So your house selling at 269K SD paid means it is now 22K cheaper to a buyer than 275K +SD. But at the end of the day it has to be your decision.

And that notwithstanding, I must agree with what Mark G said regards the pitfalls of hanging on to an investment hoping a "perceived or actual" loss can be corrected by holding on to it, when in fact the losses grow.

But like I say, only you can make that decision because whatever it is you will be the one who lives with it.

Good luck

Edited by Catch22

Share this post


Link to post
Share on other sites
Guest muttley

The problem here is the 250k threshold for stamp duty.At 249k the buyer pays 1%.At 251k the buyer pays 3%.

That's £2,490 v £7,530.

So I doubt you'll get the 10k extra.

Maybe you should counter with 270k and you'll pay the stamp duty.Or maybe just offer to pay the stamp duty.

Just a thought.

Share this post


Link to post
Share on other sites

The problem here is the 250k threshold for stamp duty.At 249k the buyer pays 1%.At 251k the buyer pays 3%.

That's £2,490 v £7,530.

So I doubt you'll get the 10k extra.

Maybe you should counter with 270k and you'll pay the stamp duty.Or maybe just offer to pay the stamp duty.

Just a thought.

Yes this has been suggested too, tbh I think a lick of paint and clean carpets will make a world of difference but I take your point.

Share this post


Link to post
Share on other sites

The house is valued at between £300 and £285k, we go for £285k would accept £275k and ask the agents to go for it.

Fastforward to Friday afternoon when I get a call from the EA, there have been no viewings on the house this week, would we consider dropping the price to £249k. We do drop the price and within hours the mortgage advisor at the EA branch has put in an asking price offer.

A classic case of Stamp Duty Threshold Chasm Effect:

http://www.housepricecrash.co.uk/forum/ind...showtopic=13099

It's unlikely to sell for between £250K and £270K so if it won't sell above, it will have to be sold below.

Share this post


Link to post
Share on other sites

The problem here is the 250k threshold for stamp duty.At 249k the buyer pays 1%.At 251k the buyer pays 3%.

That's £2,490 v £7,530.

So I doubt you'll get the 10k extra.

Maybe you should counter with 270k and you'll pay the stamp duty.Or maybe just offer to pay the stamp duty.

Just a thought.

Bugger...... I've just altered my first post somewhat suggesting a pricing plan [because of the 250K Stamp changes] and then I realise there is another page to this thread where it is already under discussion boobies5.gif

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 339 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.