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The Masked Tulip

Head-In-The-Sand House Sellers Refuse To Admit Market Has Cooled And Wildly Over-Value Properties By £74,000

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Sellers are now wildly over-valuing their houses by around £74,000 – forcing buyers to barter them down, analysis shows.

A study found that Britons selling their properties refuse to admit the housing market has cooled and mistakenly believe they are sitting on a goldmine.

Buyers must now increasingly treat asking prices as a starting point for negotiations as sellers demand silly prices, it is claimed.

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Buyers must now increasingly treat asking prices as a starting point for negotiations as sellers demand silly prices, it is claimed.

My god, what is the world coming to when you can't trust the asking price to represent the true value of the asset? Next they'll be telling us that used car salesmen deliberately over-inflate the prices on their forecourts. It's unthinkable.

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So if the average UK house is 180k (despite the average UK income being ~27k - ~7 PE!) they need to knock off 1/3 of the price.

Sounds about right.

The difference between prices listed on Rightmove and the Land registry sales prices is eye opening.

Most the RM asking prices for my home town are >200K.

Most of the actual sales are <150K.

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I've just done my weekly check of new properties on Rightmove from SE to Cardiff via Bath and have done this check for the past few years. Seems the SE has gone completely mental and 2 bed terraces suddenly on at approx £290K in the past week yet if you go down the M4 to Cardiff you can get a 2 bed terrace for not much more than £100K. It seems to me all the government "help" has pushed up prices at the lower end ie FTB/BTL. There are no reductions in the SE or Bath and a few in Cardiff yet at the top end in each location I look at there seem to be one or two.

Maybe the point of HTB etc was to push up the bottom end and get younger people deep into debt as they have time to pay it off and at the same time reduce the "spread" of asking prices from top to bottom of the market.

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I've just done my weekly check of new properties on Rightmove from SE to Cardiff via Bath and have done this check for the past few years. Seems the SE has gone completely mental and 2 bed terraces suddenly on at approx £290K in the past week yet if you go down the M4 to Cardiff you can get a 2 bed terrace for not much more than £100K. It seems to me all the government "help" has pushed up prices at the lower end ie FTB/BTL. There are no reductions in the SE or Bath and a few in Cardiff yet at the top end in each location I look at there seem to be one or two.

Maybe the point of HTB etc was to push up the bottom end and get younger people deep into debt as they have time to pay it off and at the same time reduce the "spread" of asking prices from top to bottom of the market.

I quite like Cardiff, but in my (perhaps deeply disturbed) world a 2 bed terrace *anywhere* wouldn't warrant 70k. It is a capital city I guess though, and of course there is that certain cache in living in the vicinity of Charlotte Church's parents' Bed and Breakfast.

Of course, such places are currently £500k on Mill Road in Cambridge.

Anecdotally, I turned two boomers off BTL today in the local library, and we had a great chat about how stuffed the young are by all this, including a scathing b*tch sesh about 'Help to Rent'. Very nice chaps they were too - we bonded over the free to read copy of the weekend FT, which has a nice article on why Buy to Let is for idiots in the money section. Lovely morning.

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I've just done my weekly check of new properties on Rightmove from SE to Cardiff via Bath and have done this check for the past few years. Seems the SE has gone completely mental and 2 bed terraces suddenly on at approx £290K in the past week yet if you go down the M4 to Cardiff you can get a 2 bed terrace for not much more than £100K. It seems to me all the government "help" has pushed up prices at the lower end ie FTB/BTL. There are no reductions in the SE or Bath and a few in Cardiff yet at the top end in each location I look at there seem to be one or two.

Maybe the point of HTB etc was to push up the bottom end and get younger people deep into debt as they have time to pay it off and at the same time reduce the "spread" of asking prices from top to bottom of the market.

Too big and different an area!

I track my local + next local home towns.

RM, listed in the last 7 days.

I also use houseprices.io to see what has actually sold in the last quarter.

Asking prices and getting prices are on very different plants and have been for the last 10 years.

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Endowment Effect

What endowment?....that was spent years ago.......just the same as spending tomorrows pensions today.....the long-term soon catches up to become the short-term. ;)

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I think you need a visit to mr googles house, winkie.

The endowment effect is our habit of overvaluing what we own.

Edited by Digsby

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I think you need a visit to mr googles house, winkie.

The endowment effect is our habit of overvaluing what we own.

Cheers......maybe they do it to make them feel better.....only to make them feel a lot worse when the truth be known. ;)

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