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stuckin2up2down

I Might Have Become A "i'm Not Giving It Away Person"

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I think I've become the kind of person I hate.

Currently about to STR in bubbly Bristol. The estate agent that seems honest reckons its gone up about 7-8% a year in the last few years. The EA that overvalues and is part of a big chain says it has gone up 12%+ a year.

The overvalued EA sold one similar to mine a few months ago for 5k off their overvalued price.

I'm 90% leaning towards putting it on at the higher value, even though I know on paper it is ridiculous but if they could achieve it as they have done a few months ago. If I sold it for the lower price, I do feel like I would of lost money.

I know I know. This housing cancer is so easy to fall victim to.

Am i looking out for my own interests or falling victim to HPI madness?

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There's no doubt a buyer at various points on a demand curve, further down the curve, the longer you'll wait for someone who values it at the over-valued price. Depends how quickly you want it sold.

Personally, if I was in your position and I was going STR, considering (although I'm theorising) your position is that HPC is inevitable in the coming months, wouldn't you want to take the first offer you can, especially in a bubbly area.

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I would put it on high-ish and be prepared to accept an offer close to what you think it's worth if one comes your way. I've been going round offering v low (-20% sometimes) on properties I might want to see what happens. They can only say no and I don't care if they feel insulted :). A very useful feature on RM is the prices sold data. You can see what the seller paid for it and prices other properties in the same road sold for recently plus pictures of these to assess their state of decor etc.

Some properties seem to be vastly overinflated IMHO. This is Wiltshire area by the way which seems to be bubblicious at the moment.

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I thought about suggesting to the other half STR because we're in London and our house "has increased" by £100,000. But renting around here is way more expensive then our mortgage and this includes adding house maintenance etc. We have one child in school so would like to stay in the area.

But if you could see how ridiculous the prices are around here, it is very tempting to STR!

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There's no doubt a buyer at various points on a demand curve, further down the curve, the longer you'll wait for someone who values it at the over-valued price. Depends how quickly you want it sold.

Personally, if I was in your position and I was going STR, considering (although I'm theorising) your position is that HPC is inevitable in the coming months, wouldn't you want to take the first offer you can, especially in a bubbly area.

Well seeing as I have no where to move to, i'm not in a huge rush to move. Thinking about putting it on high, then can always reduce it. People do like to feel they have got a discount.

The problem you face is that prices could rise 5% to 10% between you selling and buying thus leaving you with a rather large bill.

Yep thats the problem. However I own outright so this will give me alot of cash. Then planning to get something cheap at auction.

You need a price drop of 5% just to buy back the exact same property the next day ... SDLT, fees, moving costs etc and this also assumes that the interest on your capital can generate the same rate as the rental cost (say 4%). So really in one year you need a 10% fall and 4% YoY to make it worth while.

Well around here isn't a +10% fall likely? I want to move anyway.

I would put it on high-ish and be prepared to accept an offer close to what you think it's worth if one comes your way. I've been going round offering v low (-20% sometimes) on properties I might want to see what happens. They can only say no and I don't care if they feel insulted :). A very useful feature on RM is the prices sold data. You can see what the seller paid for it and prices other properties in the same road sold for recently plus pictures of these to assess their state of decor etc.

Some properties seem to be vastly overinflated IMHO. This is Wiltshire area by the way which seems to be bubblicious at the moment.

I have no idea why anyone would feel insulted with offers below. Once I sell i'll probably do the same as you!

EA seem to value the state of decor alot, I'm half thinking about doing the odd jobs that they say needs doing. Easy money if it gets me 20k more on the price! I thought things like that didn't matter too much.

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Well seeing as I have no where to move to, i'm not in a huge rush to move. Thinking about putting it on high, then can always reduce it. People do like to feel they have got a discount.

Yep thats the problem. However I own outright so this will give me alot of cash. Then planning to get something cheap at auction.

Well around here isn't a +10% fall likely? I want to move anyway.

I have no idea why anyone would feel insulted with offers below. Once I sell i'll probably do the same as you!

EA seem to value the state of decor alot, I'm half thinking about doing the odd jobs that they say needs doing. Easy money if it gets me 20k more on the price! I thought things like that didn't matter too much.

If you're spending hundreds of thousands of pounds you aren't going to want to then have to spend more money and go through the hassle of sorting these things out yourself. It's also a lot easier to stick £20k on the mortgage than find the cash to have work done after you've spent all of your money on the deposit and legal fees.

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If you're spending hundreds of thousands of pounds you aren't going to want to then have to spend more money and go through the hassle of sorting these things out yourself. It's also a lot easier to stick £20k on the mortgage than find the cash to have work done after you've spent all of your money on the deposit and legal fees.

problem is, will the market crash in the time it takes to do it?

Think im just going to take the 20k hit.

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