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Corruption

Ludicrous Prices Still Coming Onto The Market

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Im still seeing dreadful property coming onto the market higher than the 2007 selling price and in this case 20% higher then a similar one bizarrely sold for several months ago.

160K for a tiny 1 bed terrace bungalow (a staggering £4000 per m2)

http://www.rightmove.co.uk/property-for-sale/property-30848568.html

Now we all know estate agents are all wnkas but surely they cant be stupid enough to be pricing property so high they know it wont sell and pay the high advertising costs for several months until they have to drop the price ..... or are they? ... as this will inevitably lead to them going bust (which i would love to see).

The property market has gone from the ridiculous to the absurd.

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The property market has gone from the ridiculous to the absurd.

Same here. 1-bed divorcee flats/boxes now start @ OIEO £110K and I've seen a 2 bed end of terrace 'starter' home up for £325K. Even park homes are similarly stupid with £150k not being unusual.

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One good thing is threads like this will lead to many clicks - making the vendor think they are getting loads of genuine interest :)

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Try inner London NW8 .... one bedroom apartment, superb investment potential, ideal first time buy ..... £650,000

London has something going for it though i agree the price is insane, but Verwood is some hillbilly overgrown housing estate in the middle of nowhere with no decent jobs for 20 miles or more.

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i see lots of high prices , but not as nearly as many going under offer.

But if they arent selling then agents are wasting vasts amounts of advertising money, this is the part of the puzzle i cant get my head round as at the end of the day they must have some sense to be in business ... or maybe it is I who is stupid to think they wont sell!

I know there is a fine line between making sure they get the vendor on board and coming up with a price that they could sell at, but i could list dozens of property similar to that renovated garage that are coming on for way more then theyve ever sold for.

And i doubt too many agents have put money away from the boom years to see them through months of few sales.

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Seen my "first" wtf moment with a nice(ish) detached house that failed to sell at 180K last year with 2 different agents at different occasions, relisted last week with a new agent at 240K some 6 months since last withdrawn. Irvine valley, East Ayrshire. It won't sell at this price.

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But if they arent selling then agents are wasting vasts amounts of advertising money, this is the part of the puzzle i cant get my head round as at the end of the day they must have some sense to be in business ... or maybe it is I who is stupid to think they wont sell!

I know there is a fine line between making sure they get the vendor on board and coming up with a price that they could sell at, but i could list dozens of property similar to that renovated garage that are coming on for way more then theyve ever sold for.

And i doubt too many agents have put money away from the boom years to see them through months of few sales.

If they don't value high they don't get the clients custom. I guess its value high then try and manage down the clients expectations

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If they don't value high they don't get the clients custom. I guess its value high then try and manage down the clients expectations

I think they would prefer to have 10 properties on their books and sell 2 of those, if that's the only way they can get a sale.

Over value to get people to sell, then try and mark them down. Out of the 10, 1 or 2 may bite.

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They have to list at higher and higher prices on rightmove. If they don't then the asking price index will go flat - or even start to fall.

Public expectation of a crash has increased significantly: a drop in average asking prices on rightmove may be all that's needed to trigger the chain reaction of price falls necessary to make it happen.

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I would guess that the Rightmove pricing structure includes packages such as "pay x per month to advertise x many properties". With so little coming on to the market at the moment the EAs probably have masses of spare advertising which they might as well use up, and valuing high means they win the business over other EAs.

They can always encourage the vendor to drop the price after a couple of weeks with no interest - I've seen one just this morning dropped by 10% since it came on in May.

That said, some of the valuations are utterly ridiculous. I wonder how many of these are people who actually "need" that price, and how many are just greedy ******ing *****.

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but Verwood is some hillbilly overgrown housing estate in the middle of nowhere with no decent jobs for 20 miles or more.

I didn't realise we were playing the game of snap!

The two main employers here are the papermill and the local Asda. Oh, and there's also the state (if you include the two big (anti)social housing estates), the perma-temp traveller sites (lots of "self employed") and about 4 or so nail bars.

In fact it's a really nice area really. If you're unemployed that is.

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Try inner London NW8 .... one bedroom apartment, superb investment potential, ideal first time buy ..... £650,000

http://www.rightmove.co.uk/property-for-sale/property-30737178.html

Wonder what the sound proofing is like in this $1M flat? I think you can take a guess LOL.

The sound of every footstep of the upstairs neighbour can be quite soothing when your trying to get to sleep...

Also, are the floral sofas included?

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Also, are the floral sofas included?

What? Do you want the moon on a stick as well? It's only 24 times average salary, what do people want?

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This is how it ends, with people just being really silly.

It's crack up.

Asking prices rising like this - whilst on the independent (no bomad) young professionals side there is deepening retrenchment on what they can (lending) and will pay for house prices.

And a guy at Pimco seemingly applauding central bank interference to protect VI house values and give them higher returns on equities - while independent young people find it harder and harder against these house prices.

Let's hope some on his winning VI side of locking in super-high prices, don't decide to take advantage and cash out, whilst the going is good, followed by other VI at lower prices - to constrained buyers.

Simple example: If a homeowner has negative equity on his house, there are two ways to fix it. The bank can haircut the mortgage to “restore” equity, or the market value of the house can go up – “recover” would be the polite word – above the value of the mortgage.
Moralists would argue for the former; enlightened macro policymakers try to engineer the latter.

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