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Vendors Increasing Their Asking Price

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I'm trying not to make this just sound like a rant so I'll ask it as a genuine question... Is there any rational explanation at all as to why, when a property fails to get any interest at a certain price does the vendor think it's a good move to actually increase the asking price?

This particular one is in Anglesey where latest LR figures show prices have actually dropped 4.8%, it's been on for £95k for around 6 months, obviously had no interest at all, so they've decided to re-market it at £115k...

Old price - https://www.houser.co.uk/2-bedroom-terraced-for-sale-llangaffo-gaerwen-ll60-6lu-p106718777

New price - http://www.rightmove.co.uk/property-for-sale/property-54366785.html

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Happens all the time. Using propertybee I've watched stuff sit on the market for literally years, and every 6 months the estate agent will add another £10k or more to the price because prices are going up. The most annoying thing is that, more often than not, it eventually sells.

Edited by repetitive bleats

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I'm seeing it more and more frequently, this is just one example that I've highlighted.

The even more bizarre examples are where vendors seem to be showing signs of common sense and start to gradually recuce their asking price.. but when it still doesn't sell at the reduced they price they seem to suffer some kind of 'mental episode' and whack it straight back up to the original price (or even higher in some cases!)

Selling houses really does seem to turn even the most sane, level headed individuals into irrational nut jobs.

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I think they do it because they think that people are searching for a property within a price band and miss theirs whilst searching.

For example if you believed that people were searching for a house between £150k and £200k and yours failed to sell that £145k, then moving the price up by £5k might get a couple of viewings.

Alson in the summer you can put the price up so you can reduce it in the autumn, just like Tesco.

All boloxology really. If it ain't selling it's because it's too expensive for the location.

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It's been happening for a while now in the areas I have been looking in. The house fails to sell at one asking price often after going "under offer", then it suddenly appears again and relisted at a higher price.

The difference is that in my areas the prices have been rising so I assumed that the EA had convinced the sellers that it was now "worth more" and it didn't matter that their original buyer had pulled out (or whatever).

I was also wondering if buyers are putting in offers at x% under the asking price so seller in that area had been advised to advertise it at the higher rate.

On house I viewed recently went "under offer" very quickly then came back on the market. I went to view it and was told that the buyer was taking too long to complete and the sellers wanted to find a new buyer. It didn't feel right to me. Something was ringing alarm bells.

Then by magic the house went "under offer" again. I phoned the EA and was told that the original buyer had decided to hurry up after all.

The EA had maybe used the ruse of putting it on the market again in order to scare them. The extra price was to try and convince them that it had gone up in value.

Edited by Flopsy

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Happens all the time. Using propertybee I've watched stuff sit on the market for literally years, and every 6 months the estate agent will add another £10k or more to the price because prices are going up. The most annoying thing is that, more often than not, it eventually sells.

certainly true in Cambridge...

This house on a street I've been watching for the last few years has increased from 250k to £357k in 5 years, nothing has been done to the house, it looks like its gone SSTC

depressing

http://www.zoopla.co.uk/property-history/19-whitehill-road/cambridge/cb5-8lu/25957047

http://www.zoopla.co.uk/property-history/19-whitehill-road/cambridge/cb5-8lu/33733343

http://www.rightmove.co.uk/property-for-sale/property-45217210.html

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I think there may be a rational justification

1) They want to upsize. They believe they will need to sell for £90k in order to do so. They get offers lower than this, so don't accept. They would just leave it at the initial asking price, but they decide they now need to sell for £105-110k (maybe prices have gone up in their desired area, they realise they will need more money for modernising/decorating, can't borrow so much etc.). They realise achieving this price is unlikely, but if they don't they won't move.

I suspect the majority are a lot more delusional and really believe their house is worth (as if this is fixed) the asking price though.

2) They get low offers (£80k or lower). They assume buyers don't decide what it is worth, but they decide how much to knock off.

Offer 75 if asking for 95, so maybe offer 95 if asking for 115.

I wonder if this more likely to be effective if people know the price history. You can see the price changes on zoopla. In the old days when it was just newspaper ads and in the agent's window these changes wouldn't be so obvious. Maybe they are trying to sell to someone who doesn't use the internet!

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