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bpw

Are Estate Agents (or Realtors In The Usa) One Step Ahead Of Us?

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Bubb mentioned in an earlier posting that it looked like an estate agent in London was hyping the price of his old house to offset the real falls in value. This seemes to be happening here in Houston as well. A few months ago I was looking at town houses in one small area that were all priced at around the 300k USD level. This matches the property tax valuations for houses in the area (as you can see in the link below when you enter 'Taft' as the street name)

http://www.hcad.org/records/real.asp?search=addr

Over the past few months I have noticed the prices jump by around 100k, when I asked a realtor about the asking prices, he had little response other than to say 'make an offer of what you think the property is worth'. When I pressed and asked whether the asking price was reasonable I was told 'it's worth what you are prepared to pay'. He is obviously representing the sellers, and I don't hold it against him that he is being devious. I am wondering, however, whether Realtors are now hyping up the prices to offset the fact that people are offering significantly under the asking.

Do others have concrete examples of over hyped prices?

Finally - I have taken my own advice and started making offers on houses in the UK - all at 20-25%% under the asking. You should all do the same.

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Not really relevant, but it is nice to hear a street name from Houston I recognise. :)

I lived on Garrott (off Hawthorn, just south of Westheimer) for 3 months one summer in the 80s and not far south of Taft.

Interesting area, and so much nicer than those miles and miles of 'burb. And there were some nice old colonial-looking timber houses round there.

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Interesting area, and so much nicer than those miles and miles of 'burb. And there were some nice old colonial-looking timber houses round there.

Ah, but the houses in the 'burbs tend to be bigger, cheaper and have more land... eg http://www.circlepix.com/tour.htm?id=381100&mls_tour=1

The link is actually my house, I was planning to move off the lake and to a bigger place as we have just had another child.

However, despite what various relators will try to tell you (eg Houston prices still going up!), the market is getting stagnent and there are a lot of houses for sale. The buyer for mine pulled out 24 hours before the close (after he had paid for all the surveys etc, he lost his buyer the same day so wasn't in a postion to go forward). I declined the 'helpful' suggestions to slash the price to get a quick sale, or consider a bridge loan - the new house isn't worth that much to me! A small bit of remodelling, and a fence to keep the kids out of the lake and stay here will do fine!.

That said, the house price difference between Houston and the UK is still huge! - I doubt I get much more than a shoe box sized place in London for the same money!.. Hopefully the UK will correct itself soon as we would like to relocate back, but the house prices and exchange rate make it a bad idea at the moment!.. (Although, of course, I do realise that even if there is a HPC - I'll never get a house this size, on a lake, for the same money back home!)..

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I saw it a couple of times earlier this year - e.g. a house was on at £425,000 for 6 months, then went up to £475,000. A few weeks later is had been reduced to £450,000. Then it went off the market. Not sure if it sold or not.

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I have taken my own advice and started making offers on houses in the UK - all at 20-25%% under the asking. You should all do the same.

Why offer 25% below when proces will likely fall 40% below the top? It would still result in a large over payment. Better to rent.

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Why offer 25% below when proces will likely fall 40% below the top? It would still result in a large over payment. Better to rent.

Are you serious, if a house is £100K at the peak (today), you are saying it will be £60K at the bottom - that's means it's 66% higher priced today than it will be at the bottom ..... - sorry no, just don't buy that.

I also wonder whether any of you actually do go in and offer what you say you do on here - if a house is £400K and you go in and view it and then say £300K not a penny more, or in the more extreme cases, £250K, whether any of you have actually managed to buy a property or have managed to secure a second round of viewings with that agent - in all honesty, are you genuinely doing this and if you are, are you doing it to find a desperate seller or for the craic ?

Edited by Rachman

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I have made a couple of offers on properties in the UK. One was 599k and I offered 475k, the other a similar price. In one case the estate agent kindly rang me in the USA to say there was still a chance to buy but that someone had offered significantly over the asking price. I politely said it wasnt worth it, and that it made property overseas seem more attractive. She paused and I said goodbye. Of course the property is still on the market and I shall make the offer again after a few months.

I base my '20-25% under' strategy on what I think the property is worth and what I can afford. I also know that a couple of years ago this was the game in many US cities where prices were inflated by realors to counter the effect of people thinking it was a buyers market. At some point there will come a time where the pendulum swings to the buyer - I hope!

While this may end up being a futile approach, there is a small chance it will work. I would suggest you all do the same since it costs very little time, and may start to make estate agents and owners less inclined to continue bloating UK house prices. Just imagine if all buyers did the same.......

high house prices are symptom of peoples misguided willingness to pay.

Are you serious, if a house is £100K at the peak (today), you are saying it will be £60K at the bottom - that's means it's 66% higher priced today than it will be at the bottom ..... - sorry no, just don't buy that.

I also wonder whether any of you actually do go in and offer what you say you do on here - if a house is £400K and you go in and view it and then say £300K not a penny more, or in the more extreme cases, £250K, whether any of you have actually managed to buy a property or have managed to secure a second round of viewings with that agent - in all honesty, are you genuinely doing this and if you are, are you doing it to find a desperate seller or for the craic ?

Edited by bpw

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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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