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Boughtin95

Head In The Sand Time For Vendors?

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I've come to the conclusion that your average man/woman in the street believes all of the hype regarding rising house prices, despite evidence to the contrary staring them, literally, in the face.

One family in my street put their house on the market around 6 months ago for £224,995, this was around £20k more than similar/better positioned properties had sold for at the peak.

Six months down the line, the house is still for sale but now at the price of £204,995, the ceiling price for similar properties in the street.

I noticed yesterday that the house directly opposite, of exactly the same design, but with a smaller front garden and half the parking space and imo the worst location in the street, had also gone up for sale and with the same EA. The price? £214,995!

I find it astonishing that people can't see the obvious.

I'll watch with interest as they compete with each other and continue to chase the market down.

<_<

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Similar story here.

One house was originally put up for sale (about 3 years ago now) for £160K. It didn't sell and stuck around for months even though the market was still relatively health at that time.

They put it up with another EA for £182K!!!!. It has been sat around for well over a year - 15 viewings and no offers.

3 or 4 houses have now come up for sale on the same road but with smaller gardens - asking prices all around the £205K mark!!!!!

FFS how stupid are people?

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Well round here the market is, unbelievably, picking up. A house opposite me sold in December after over a year on the market (so neighbours tell me - I'm fairly new here.) A similar house further up the street (bigger because it has just had an extension) went on the market a week ago for 50k more. Sale Agreed sign went up about 3 days after the For Sale sign.

We've either had our 'crash' and HPI is back or this is a temporary blip with some built-up demand coming out.

All I can say is - this happened in the last crash too - little bursts of activity - but this time the VIs seem to have a much better and consistent game plan.

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Guest Guy_Montag

These people are not being stupid, they are doing what they are following the advice they are given.

If you are told you will get x for your house, you will ask for x, especially when your only experience is house prices going up. Most people don't know the market, & rely on their estate agent (a paid advisor) for help (otherwise why bother with estate agents at all?)

If after a several months your house has still not sold, and you are in no hurry, why drop the price, house prices, in your experience, only go up, so the longer it goes without selling, the more you will get when it finally does sell. It's not that your house is overpriced it's that you've not found the right buyer.

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Guest Winners and Losers

I have said this before, the EA's (especially when things are looking desperate) ramp up the price to "buy the listing" - this is common practice in Australia. There is also a element of "trying it on". Vendors are attracted by the high market value also and think, well we'll give it a go. Afterall, 'prices never go down'. Eventually, i.e. after 6mths with no takers, they the EA rolls out the patter about the market being slow, other similar houses going for less, blah blah blah. Remember, "buying the listing".

That simple eh?

No forced sellers = High Asking Prices

Only forced sellers' will drive prices down.

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Well round here the market is, unbelievably, picking up. A house opposite me sold in December after over a year on the market (so neighbours tell me - I'm fairly new here.) A similar house further up the street (bigger because it has just had an extension) went on the market a week ago for 50k more. Sale Agreed sign went up about 3 days after the For Sale sign.

We've either had our 'crash' and HPI is back or this is a temporary blip with some built-up demand coming out.

All I can say is - this happened in the last crash too - little bursts of activity - but this time the VIs seem to have a much better and consistent game plan.

You can't define a crash. No prices are written down as the "current price"

All you need is one buyer with the money and who is prepared to pay it.

Bigger houses are hanging around as Mervin King warned there is no inlfation to pay of mortgages as there always has been.. so a few can move, but most are sideways movements, I'e relocation.. to that end all you have to do is sell and use the money to buy a similar.. The ladders are harder but this part of the market is the last to break..

Okay..

All of you, does anyone know of anyone who has upsised their property recently, bought a bigger place?

I don't and I think that it is weird..

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You can't define a crash. No prices are written down as the "current price"

All you need is one buyer with the money and who is prepared to pay it.

Bigger houses are hanging around as Mervin King warned there is no inlfation to pay of mortgages as there always has been.. so a few can move, but most are sideways movements, I'e relocation.. to that end all you have to do is sell and use the money to buy a similar.. The ladders are harder but this part of the market is the last to break..

Okay..

All of you, does anyone know of anyone who has upsised their property recently, bought a bigger place?

I don't and I think that it is weird..

I don't disagree with you but, as I say, I am depressed to report a definite surge in activity in the 350k to 450k range - the very price range that has been marooned for the last two years. The house I posted about went on at £389,950. It's an extended 4 bed estate clone with bugger all garden left (following the extension).

Further up the road is a bigger place - up at £459k ever since we moved here in September. Gone Under Offer in the last week. I can't see what fundamentals have changed - I just think it is pent-up demand - lots of people have not been able to move over last couple of years and, slowly, there has been less property on the market. Just have to hope this is blip - I can't see what can keep it going.

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I think the problem is that the strategy for putting a property on at a higher price and waiting for the market to catch up has worked well for the last few years. The average seller can recall nothing before John Major.

In a falling market which I’m not convinced we are in yet the only way of getting a sale is to price your property where it’s going to be in six months time.

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One person (friend of my wife) 'tried it on' in our road last year.

Top price for the road was £560K, but the peak was past. She asked £650K and sold for £648K (wtf?)

I wonder what the buyers think now, since 5 similar terraced houses in the same road have sold, all for less than £480K?

Sometimes trying it on can leave you rich (woman emigrated to Oz, so ample opportunity for throwing it all away again...!)

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Terrace house down to road sold for £107k 3 months ago so naturally this house I'm renting and is soon to be put on the market is worth £135k even though it's on the same row of houses and is in poor condition needing some serious repair work done to it. When I pointed this out I was told this house is in a better location and so is worth more. I can see how being 200 yards closer to the school and near by raliway track can increase a houses value so much.

Edited by HomeAlone

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These people are not being stupid, they are doing what they are following the advice they are given.

If you are told you will get x for your house, you will ask for x, especially when your only experience is house prices going up. Most people don't know the market, & rely on their estate agent (a paid advisor) for help (otherwise why bother with estate agents at all?)

If after a several months your house has still not sold, and you are in no hurry, why drop the price, house prices, in your experience, only go up, so the longer it goes without selling, the more you will get when it finally does sell. It's not that your house is overpriced it's that you've not found the right buyer.

Guy_Montag, I think you're right. People don't really go off and do a load of research, they believe what their agent tells them. At some point, though, the agents will have to price to sell or they will go bust. Will the sellers believe them then?

frugalista

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Guest Guy_Montag

Guy_Montag, I think you're right. People don't really go off and do a load of research, they believe what their agent tells them. At some point, though, the agents will have to price to sell or they will go bust. Will the sellers believe them then?

frugalista

Having said people will just listen to the agent & not do any research, I think that might be a slight over simplification. I fear that in at least some cases people will go to a different agent hoping to get a better valuation:

"But my house <i>is</i> worth 350k, Mrs. Miggins sold no. 25 for £325 in August 2004, that was 2 years ago and <i>mine</i> is nicer"

"Yes, but houses round here are not going for that much now"

"Your sacked!"

From this point of view it is in the interest of the agent to keep their valuation as high as possible. People seem to equate valuation with what they will receive.

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Head in the sand time for vendors?

Not while people are still buying.

Want a mortgage 8 times your salary? Sign 'ere. Luvly jubbly!

Want another 20K on your credit cards? Fill in the form. Nice one!

Fancy a Jag? Go on! Mew! You're rich! House went up 20K last week. My EA told me so! Streuth!

Everybody finks I'm rich! I'm such a success!

Ah! Must apply for another credit card tomorrow!

post_13_1139756537.gif

post-67-1140111515.gif

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At some point, though, the agents will have to price to sell or they will go bust. Will the sellers believe them then?

I have spoken to two recently who have tried to do just that - but the vendors won't budge. I also know of several houses that have been on the market for the best part of a year, the vendors not accepting anything below their asking price - hence no sale.

In essence, Yes - many vendors have their heads rammed firmly somewhere (and it might not be in the sand).

On the other hand one vendor I know had to beg her EA to drop the advertised price. Make of that what you will...

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http://www.rightmove.co.uk/viewdetails-851...t=buy&ep=via_sl

This house came on the market at £330k before Christmas and they turned down our cash offer of £300k, I think we'll eventually offer £270k, this time next year :) Just a shame they are making me move twice when we could all just get on with it, but nevermind !

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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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