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FedupTeddiBear

Banks' surveyors downvaluing houses by up to 30%

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Mods, please move to Anecdotals if needed.

We recently arranged an appointment with a mortgage advisor at one of the big high street banks and a very sensible lady she was. We told her that we were enquiring after a possible mortgage as we are looking to buy within the next few months. So far we have put in one offer (15% under asking) that was met with derision by the EA and the vendor and she firmly replied that we must NOT be tempted to increase our offer and should continue putting in offers with similar or even larger discounts as buyers are now in control. She quite openly told us that their surveyors have recently been valuing properties at up to 30% under "market value" as house prices in the area are falling and the bank in question is expecting further price falls. She said that these low valuations are being applied to almost all remortgage applications. This is around Berks / Hants / Surrey border, so a relatively expensive part of the SE. 

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I bet you won't have T.C.O.N. asking for this thread to be moved!

Anecdotally I know of one house belonging to an acquaintance in that part of the world, it was put up on Facebook to great fanfare (and no sale) this time last year and has quietly reappeared on rightmove at £50k less than last time. So, about 12% off last year's price.

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1 hour ago, FedupTeddiBear said:

Mods, please move to Anecdotals if needed.

We recently arranged an appointment with a mortgage advisor at one of the big high street banks and a very sensible lady she was. We told her that we were enquiring after a possible mortgage as we are looking to buy within the next few months. So far we have put in one offer (15% under asking) that was met with derision by the EA and the vendor and she firmly replied that we must NOT be tempted to increase our offer and should continue putting in offers with similar or even larger discounts as buyers are now in control. She quite openly told us that their surveyors have recently been valuing properties at up to 30% under "market value" as house prices in the area are falling and the bank in question is expecting further price falls. She said that these low valuations are being applied to almost all remortgage applications. This is around Berks / Hants / Surrey border, so a relatively expensive part of the SE. 

still does not bring us back to pre HTB prices though 

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23 minutes ago, longgone said:

still does not bring us back to pre HTB prices though 

I agree but its a start.  Sales seem to be stalling round here (Reading) so it tallies with the OP's post. 

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Who's buying at these prices?

 

Investors, no chance.

BTLers, only if the have no brains.

The young, what with, magic beans

Downsizers, probably, people moving from a boom area to a cheaper are...only if they can sell.

 

Its not a market, its a crime scene

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11 hours ago, TheCountOfNowhere said:

Who's buying at these prices?

 

Investors, no chance.

BTLers, only if the have no brains.

The young, what with, magic beans

Downsizers, probably, people moving from a boom area to a cheaper are...only if they can sell.

 

Its not a market, its a crime scene

And yet buying they are.

I'm in North London, and took a walk to pick up my car after an MOT yesterday as the weather was nice. Passed at least half a dozen houses along the way, and all had "SOLD" plastered on the boards.

No idea what the achieved prices are until a few months from now, I guess. But still, I didn't pass anything that hadn't sold pretty quickly.

Depressing, but true, I'm afraid. :(

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2 hours ago, Nomadd said:

And yet buying they are.

I'm in North London, and took a walk to pick up my car after an MOT yesterday as the weather was nice. Passed at least half a dozen houses along the way, and all had "SOLD" plastered on the boards.

No idea what the achieved prices are until a few months from now, I guess. But still, I didn't pass anything that hadn't sold pretty quickly.

Depressing, but true, I'm afraid. :(

I know of two couples that put houses up for what I thought may have been too much within the last couple of weeks. One was inheritance, the others were second steppers. Both sold within days both for asking price. The second steppers have got the house they wanted... at full asking price and after an interrogation from the EA about their position. Essex 

Edited by locky82

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Anecdotal from Essex - a good friend is trying to sell his parents house and as well as failing to sell at auction they got a low-ball offer from some builders after the event at about 60% of their expected price.  They now face holding on for a better price or getting out before the winter - nobody wants to have to nurse an empty house through the winter.

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14 minutes ago, dougless said:

Anecdotal from Essex - a good friend is trying to sell his parents house and as well as failing to sell at auction they got a low-ball offer from some builders after the event at about 60% of their expected price.  They now face holding on for a better price or getting out before the winter - nobody wants to have to nurse an empty house through the winter.

Where abouts? 

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15 hours ago, dougless said:

I agree but its a start.  Sales seem to be stalling round here (Reading) so it tallies with the OP's post. 

I can vouch for a similar observation in my area of Reading where asking prices are roughly 10% down from peak, but lots of "sold-sstc" signs around - but this doesnt mean a sale has actually transacted.

I remember overhearing a solicitor (who's company did conveyancing) back in 2009ish and surveyor were doing the same then but maybe not so much because they thought 30% might be likely, but more a case of covering their back with some safety margin. -

In short, my guess is surveyors have no idea what prices will do (they mainly reference local Land Registry records and regurgitate them) so over protecting themselves, but are clearly spooked all the same.

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29 minutes ago, nightowl said:

I can vouch for a similar observation in my area of Reading where asking prices are roughly 10% down from peak, but lots of "sold-sstc" signs around - but this doesnt mean a sale has actually transacted.

 

Definitely, a house on the corner from me has had a 'SOLD' notice outside since we had the first lot of snow this year! 😂

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1 hour ago, locky82 said:

I know of two couples that put houses up for what I thought may have been too much within the last couple of weeks. One was inheritance, the others were second steppers. Both sold within days both for asking price. The second steppers have got the house they wanted... at full asking price and after an interrogation from the EA about their position. Essex 

But have they completed yet?

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25 minutes ago, Si1 said:

But have they completed yet?

No neither have exchanged yet. Literally went on in the last few weeks. I was surprised by the price and speed that they stc’d as its clearly on the way down. Especially the inheritance house - needs plenty of updating. 

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3 hours ago, locky82 said:

My manner!! I’m surprised, must be cluney square 

I have to say - I find your manner objectionable.

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13 hours ago, Nomadd said:

And yet buying they are.

I'm in North London, and took a walk to pick up my car after an MOT yesterday as the weather was nice. Passed at least half a dozen houses along the way, and all had "SOLD" plastered on the boards.

No idea what the achieved prices are until a few months from now, I guess. But still, I didn't pass anything that hadn't sold pretty quickly.

Depressing, but true, I'm afraid. :(

You must have missed the news about sales volumes collapsing and London prices going down the pan :lol:

 

Your EA branch will he shut soon which means you'll have no internet access.

 

Happy days.

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9 hours ago, locky82 said:

No neither have exchanged yet. Literally went on in the last few weeks. I was surprised by the price and speed that they stc’d as its clearly on the way down. Especially the inheritance house - needs plenty of updating. 

:lol:

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13 hours ago, TheCountOfNowhere said:

Your EA branch will he shut soon which means you'll have no internet access.

And we wonder why this site has lost so many posters.. ..Even the Bears amongst us get labelled as EAs. 😲

I'm looking to buy in Altrincham (in the NW) at the moment. If you can provide links to decent houses in decent locations with decent price reductions - to match your reality-distortion field - then please go ahead. People like myself, Venger and many others can't seem to find them..

Maybe your EA's office is the only one with such properties on it's books? As I say, I'd love to see these dramatically reduced properties as soon as you can arrange the viewings. Your fat commission awaits. 🤑

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On 06/07/2018 at 08:36, Nomadd said:

And yet buying they are.

I'm in North London, and took a walk to pick up my car after an MOT yesterday as the weather was nice. Passed at least half a dozen houses along the way, and all had "SOLD" plastered on the boards.

No idea what the achieved prices are until a few months from now, I guess. But still, I didn't pass anything that hadn't sold pretty quickly.

Depressing, but true, I'm afraid. :(

Depressing for who?......the ones wanting to sell, escaping while they can......will be very depressing for those  buying at the wrong high price.😉

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11 minutes ago, winkie said:

Depressing for who?......the ones wanting to sell, escaping while they can......will be very depressing for those  buying at the wrong high price.😉

It's pretty clear he's referring to people who want to buy but can't afford to at current prices! Can you show me a previous post where you've predicted to future and been right? That is what gets me about this site, the fact that everybody is so certain despite being constantly wrong for so long? And also why would an EA come here, other than for shits and gigs? 

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On 06/07/2018 at 08:36, Nomadd said:

And yet buying they are.

I'm in North London, and took a walk to pick up my car after an MOT yesterday as the weather was nice. Passed at least half a dozen houses along the way, and all had "SOLD" plastered on the boards.

No idea what the achieved prices are until a few months from now, I guess. But still, I didn't pass anything that hadn't sold pretty quickly.

Depressing, but true, I'm afraid. :(

Exactly so.   Let's not indulge in wishful thinking.  Show me proofs.

_3inn1Qups6gIPLtwKBnF10YezRC_urR0ElMLX9p

3 hours ago, Nomadd said:

And we wonder why this site has lost so many posters.. ..Even the Bears amongst us get labelled as EAs. 😲

I'm looking to buy in Altrincham (in the NW) at the moment. If you can provide links to decent houses in decent locations with decent price reductions - to match your reality-distortion field - then please go ahead. People like myself, Venger and many others can't seem to find them..

Maybe your EA's office is the only one with such properties on it's books? As I say, I'd love to see these dramatically reduced properties as soon as you can arrange the viewings. Your fat commission awaits. 🤑

I was around that way the other week.  There's a HPCer who commented that it makes London look a bit cheap, when you look at prices against general incomes.   And I see few SE/London type higher-paying employment positions around.  So many of the larger companies and firms are down South.

o/t We went for lunch at a nice pub in Wilmslow, and there was a team of young executives on big table next to us.  Conversation was just pleasant and relaxed.  A few of them were talking about life in London, and it was only after a while that it became clear they were each just trying to project they were informed about London, but that their main base was in the NW.  

After their meal things got a bit more serious.  It became clear that a likeable young mid-30s guy was their sub-boss, and he had called them together for a meal to give them an open situation report.  The mid-30s guy was talking about his own main boss; Michael this and Michael that, and recounting all his decades of successes.   It turns out all the plans they had been making for some expansion were now off the table.  More complicated that they initially expected.  More costly than they thought.  He then began discussing downsides, where they go from here, how to continue (work).  Then he moved it toward optimism, and how they can really grow if they break new markets, and that they are niche so can do so.

Then it went back to downsides and I had to laugh when one guy said, "Well I think I'm safe because you haven't mentioned me yet." - and the sub-boss said "Well we certainly need you more than anyone, it's just that we don't have the money to pay you."  (Laughter).

Afterward they left and got into the sub-boss car.  A brand new 2018 SUV (they are £70K base price for base model, and it was specced up), just like my own but mine has a few years on it and was £16K.

Being honest though, house prices just went up and up and up last few years, by £100Ks.   It's been hard BTL activity since 2013 as well.  I also know of a couple who bought 6-7 months ago at something around £650,000 near Alty.  No idea how they got the money.  They're not high level.  And it's a really ugly house.  Maybe parents.  Yet the money has been there, people paying really really high prices, making their choice.  Reality.

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4 hours ago, Nomadd said:

I'm looking to buy in Altrincham (in the NW) at the moment. If you can provide links to decent houses in decent locations with decent price reductions - to match your reality-distortion field - then please go ahead.

My appointment was at a private health facility in Altrincham.

One of the senior medical staff came into reception while I was waiting, and she was telling someone else how good a private senior-care home-visit company was with her own elderly mother.   

I just don't seem to be able to stop hearing about them lately, and even seeing them, with their satchels, going into and out of very expensive houses.   Been told they are £22 per hour and minimum of 2 hours a visit.  They are not cleaners, but do company, general help, making some arranging of food and taking their clients out to places (fuel is extra on their price).  Business for that sector might be booming.

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  • 301 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%



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