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munimula

My Parents: An Insight To Greed And Stupidity

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My parents have just put their house on the market. I'm finding it very interesting to see at close hand the emotions that sellers go through when trying to sell.

They bought a 3-bed bungalow in Cornwall for £280K in mid 2003

The EA valued it at £450K - £475K but said that £450K was realistic.

Put on the market now at £475K

The price is crazy but they won't see it and maybe they will get a buyer but they aren't exactly queueing up as they have been led to believe they would be.

When I asked what they would sell it for - '£450K, maybe £425K'

I said I think £395K would be a very good price to achieve.

'Oh no, we couldn't sell it for that as we wouldn't have enough to do what we want to do'

I pointed out that it will sell for what it is worth to someone and nothing more, that in fact what it will sell for is what it is worth, not the figure that they put on it. But that won't be enough for their plans :huh:

I think this is very indicative behaviour for majority of sellers and goes some way to explain why prices will move down slowly over many years, housing is afterall very illiquid and whilst many here would like to see a quick crash IMO it just isn't going to happen. The bottom of this market is 10 years away.

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I think this is very indicative behaviour for majority of sellers and goes some way to explain why prices will move down slowly over many years, housing is afterall very illiquid and whilst many here would like to see a quick crash IMO it just isn't going to happen. The bottom of this market is 10 years away.

But surely the market price is set by the houses that sell, not the ones that don't. Though Rightmove and others would like us to think differently. Hence if owner-occupiers refuse to sell when the prices fall, the market price will be set by such things as "auction by order of the mortgagee" et cetera.

Billy Shears

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I think this is very indicative behaviour for majority of sellers and goes some way to explain why prices will move down slowly over many years, housing is afterall very illiquid and whilst many here would like to see a quick crash IMO it just isn't going to happen. The bottom of this market is 10 years away.

All your parents need is one muppet and they will get the price that they are wanting - people on here may not like this theory but until we run out of muppets paying a fortune for houses in this country (of which there is an aparently endless supply - of muppets that is) then prices are going to continue to go up....

Edited by lulu

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I think this is very indicative behaviour for majority of sellers and goes some way to explain why prices will move down slowly over many years, housing is afterall very illiquid and whilst many here would like to see a quick crash IMO it just isn't going to happen. The bottom of this market is 10 years away.

All your parents need is one muppet and they will get the price that they are wanting - people on here may not like this theory but until we run out of muppets paying a fortune for houses in this country (of which there is an aparently endless supply - of muppets that is) then prices are going to continue to go up....

At last, someone gets it. You don't need everyone to be able to afford a house to make houses affordable.

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In my road terraced houses go for £450K-500K.

Last year some muppet paid £648K for one.

Since then we have had a few sales around the £460K mark.

Currently two are on the market for around £650K (one has now dropped to £630K).

I bet we'll see them sit on the market all through the peak season, dropping by small amounts, then at the start of the summer holiday quiet period they'll be taken off the market.

People WILL NOT drop significantly from a very high initial expectation. In this case they will need to lower their prices by at least £150K (!) to get some offers (unless the muppets get their cheque books out again - obviously there was at least one out there!).

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Ok i'm in cornwall

So where is it between Padstein and Wadebridge?

I'll have a quick hunt on rightmove a minute,, the same is happening where i am a bit up the coast

overpriced houses just sticking some on the market 18 months or 2 years now, do they drop the prices??

NO well put them up!!! :lol::lol:

Oh well theres nowt stranger than folk!!

Phil :P

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All your parents need is one muppet and they will get the price that they are wanting - people on here may not like this theory but until we run out of muppets paying a fortune for houses in this country (of which there is an aparently endless supply - of muppets that is) then prices are going to continue to go up....

Yes, they are literally waiting for a muppet to come along and pay the price. Even they know that the price is stupid but they are hoping that there is someone stupid enough to pay it. In there favour is a very limited supply of housing in the area.

They've heard that there were some good city bonuses in London this year!

Edited by munimula

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Yes, sadly I think this attitude of "can't sell, won't sell" is prevalent. People have come to expect the value of their homes to subsidise their lifestyle.

The people who won't sell now because "they won't get the price they want" will be those who eventually dump their houses at whatever price the market determines when the economy goes tits up and they lose their jobs or come to retire and downsize.

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My parents have just put their house on the market. I'm finding it very interesting to see at close hand the emotions that sellers go through when trying to sell.

They bought a 3-bed bungalow in Cornwall for £280K in mid 2003

The EA valued it at £450K - £475K but said that £450K was realistic.

Put on the market now at £475K

The price is crazy but they won't see it and maybe they will get a buyer but they aren't exactly queueing up as they have been led to believe they would be.

When I asked what they would sell it for - '£450K, maybe £425K'

I said I think £395K would be a very good price to achieve.

'Oh no, we couldn't sell it for that as we wouldn't have enough to do what we want to do'

I pointed out that it will sell for what it is worth to someone and nothing more, that in fact what it will sell for is what it is worth, not the figure that they put on it. But that won't be enough for their plans :huh:

I think this is very indicative behaviour for majority of sellers and goes some way to explain why prices will move down slowly over many years, housing is afterall very illiquid and whilst many here would like to see a quick crash IMO it just isn't going to happen. The bottom of this market is 10 years away.

You say greed and stupidity without telling us what your parents plans are. Presumably they need to find somewhere to live and even if downsizing/relocating, they will have to shell out a fair proportion of what they get for their current house in a new one and hopefully have a bit left over to enjoy life with. Maybe it's not greed and stupidity but just looking after themselves in a dog eat dog world.

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At last, someone gets it. You don't need everyone to be able to afford a house to make houses affordable.

But you need modestly above average earning FTBs to be able to afford a home and make the system work, at the moment they cannot. (and that's at peak earning power). Your blinkered demographics don't tally.

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Ok i'm in cornwall

So where is it between Padstein and Wadebridge?

I'll have a quick hunt on rightmove a minute,, the same is happening where i am a bit up the coast

overpriced houses just sticking some on the market 18 months or 2 years now, do they drop the prices??

NO well put them up!!! :lol::lol:

Oh well theres nowt stranger than folk!!

Phil :P

Yep, it's between Padstein and Wadebridge

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You say greed and stupidity without telling us what your parents plans are. Presumably they need to find somewhere to live and even if downsizing/relocating, they will have to shell out a fair proportion of what they get for their current house in a new one and hopefully have a bit left over to enjoy life with. Maybe it's not greed and stupidity but just looking after themselves in a dog eat dog world.

The reason I called it greed and stupidity is that my mum hates living there, hasn't taken to being so isolated and she really doesn't want to spend another wintere there. But at the same time she says she will refuse to sell the house for less than £450K even though she believes that is probably overvalued.

The reason they need the money is they have no pension provisions, my dad is a very low earner and they want to release some cash to do something with or buy a B&B

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It has been said many times on the site, but until there are enough "forced" sellers prices will only move down slowly.

But with rising unemployment, decreasing btl profitability, rising mortgage defaults and a gradual squeezing of disposable incomes together with the traditional forced sale due to death things will speed up but I think it will still take 5 to 6 more years to hit bottom.

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But you need modestly above average earning FTBs to be able to afford a home and make the system work, at the moment they cannot. (and that's at peak earning power). Your blinkered demographics don't tally.

Yeah, even my gran (78) pointed out that house prices in 20 years time might not be as high as they are today because with an average family size now approx 1.3 - where are the future FTBs going to come from that need all the houses in the UK? Don't rely on the incoming immigrants to prop up the prices.

Is it this one??

Any thoughts??

Phil :ph34r:

I'd rather not say

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Is it this one??

Any thoughts??

Phil :ph34r:

*sobs* Don't show me lovely houses in cornwall I can't afford.

I just have to remind myself that coastal living is going to be very unpopular over the next few years...

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The reason I called it greed and stupidity is that my mum hates living there, hasn't taken to being so isolated and she really doesn't want to spend another wintere there. But at the same time she says she will refuse to sell the house for less than £450K even though she believes that is probably overvalued.

The reason they need the money is they have no pension provisions, my dad is a very low earner and they want to release some cash to do something with or buy a B&B

So it's a question of either having the money or staying put in an area your mum dislikes then? At some point, the emotional cost of living where they are will greater than the financial cost of accepting a lower offer but IMO in the current market, nothing lost by trying to get as much for the house as they can, especially as they have no pension provision. I think you are being a bit harsh.

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Don't forget we're a quarter point raise away from a crash.

Also don't forget that "house" is the only toy we have to keep us British entertained.

If it goes tits up we have nothing else to fall back on.

So the Bank Of England DO target the house market after all.

First by slowing it down to make sure it doesn't blow up before the general election.

And an emergency RATE CUT just before HPI fell through the net last August.

If I was an Estate Agent or a Sun Reader or a King Of Somewhere I would be getting my CV out, dusting it off, and getting a PROPER JOB.

Edited by megaflop

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So it's a question of either having the money or staying put in an area your mum dislikes then? At some point, the emotional cost of living where they are will greater than the financial cost of accepting a lower offer but IMO in the current market, nothing lost by trying to get as much for the house as they can, especially as they have no pension provision. I think you are being a bit harsh.

I agree, they should try and get as much as they can but they want to move and therefore should be prepared to sell the house for what it is worth and not state that they won't let it go for less than £425K.

Remember, they bought it for £280K in mid 2003. It's currently valued £195K higher!!

Lets consider they added some value and it went up 25% mid 2003 - mid 2004 then that would put the price around £395K which is what I think is a more realistic selling price.

Why should the house be worth £195K more since mid-2003? Why should they believe this? They do and like other sellers they are refusing to believe that it might not be worth this.

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The reason they need the money is they have no pension provisions, my dad is a very low earner and they want to release some cash to do something with or buy a B&B

This is exactly what is going on in UK.plc today. Folks with little or no earning and no pensions want to use their property as ATM machines for the rest of their lives.

This is all at the expense of the next generation - no wonder Nulab are so happy - less demanding pensioners to worry about.

This will result in social unrest...

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But that probably leaves his mum and dad the rest of the year at least in which to sell.

Unlikely.

They're flying off the shelves. So it will be about nine weeks I'd have thought, no?

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So it's a question of either having the money or staying put in an area your mum dislikes then? At some point, the emotional cost of living where they are will greater than the financial cost of accepting a lower offer but IMO in the current market, nothing lost by trying to get as much for the house as they can, especially as they have no pension provision. I think you are being a bit harsh.

agree entirely

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This is exactly what is going on in UK.plc today. Folks with little or no earning and no pensions want to use their property as ATM machines for the rest of their lives.

This is all at the expense of the next generation - no wonder Nulab are so happy - less demanding pensioners to worry about.

This will result in social unrest...

A new BBC programme is devoted to downsizing;

With a reported one in three British househunters thinking about giving up the rat race for a life in the slow lane, an exciting new commission for BBC Birmingham's Documentaries and Contemporary Factual department will show viewers how to 'downsize' and transform their lives.

http://www.bbc.co.uk/pressoffice/pressrele.../downsize.shtml

Yesterday two gay men wanted to sell a house for £225K and use the £100K equity to buy somewhere to live and start a paintballing business

Edited by munimula

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  • 335 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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