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munimula

Ea Refuses To Keep Neighbours House On Books

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The neighbour of my gfs mum in Walsall has had his house (4-bed detached) on the market for considerably over a year.

In that time the price was reduced from £265k to £225k and all the tricks like 'open days' have been used. No sale has been achieved.

However, the owner has turned down several offers and now the EA has taken his house off their books. Basically because he's not willing to accept what the house is actually worth and what someone can actually afford to pay for the house.

An interesting insight into where we are and the reason that this guy is trying to sell is that he's divorced his wife and nobody has been living in the house for over a year. This should be a 'forced seller', someone that will sell at whatever cost but he just can't let go of the fact that his house was once 'worth' £265k.

It is a good example of why house price falls are so sticky on the way down.

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The neighbour of my gfs mum in Walsall has had his house (4-bed detached) on the market for considerably over a year.

In that time the price was reduced from £265k to £225k and all the tricks like 'open days' have been used. No sale has been achieved.

However, the owner has turned down several offers and now the EA has taken his house off their books. Basically because he's not willing to accept what the house is actually worth and what someone can actually afford to pay for the house.

An interesting insight into where we are and the reason that this guy is trying to sell is that he's divorced his wife and nobody has been living in the house for over a year. This should be a 'forced seller', someone that will sell at whatever cost but he just can't let go of the fact that his house was once 'worth' £265k.

It is a good example of why house price falls are so sticky on the way down.

Maybe he should try £125,000 - probably what it will be worth in 2011!

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It is a good example of why house price falls are so sticky on the way down.

True.

This bloke will sell for whatever he can get when he has to. He obviously isn't under sufficient pressure to sell yet.

If he had half a brain however, he would realise that the longer he leaves it, the less he'll get.

It is heartening that an estate agent is taking this stance. They must have spent a fair bit of time and money on this client and got nothing back. It makes sense to cut their losses.

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The neighbour of my gfs mum in Walsall has had his house (4-bed detached) on the market for considerably over a year.

In that time the price was reduced from £265k to £225k and all the tricks like 'open days' have been used. No sale has been achieved.

However, the owner has turned down several offers and now the EA has taken his house off their books. Basically because he's not willing to accept what the house is actually worth and what someone can actually afford to pay for the house.

An interesting insight into where we are and the reason that this guy is trying to sell is that he's divorced his wife and nobody has been living in the house for over a year. This should be a 'forced seller', someone that will sell at whatever cost but he just can't let go of the fact that his house was once 'worth' £265k.

It is a good example of why house price falls are so sticky on the way down.

Guy next door to me had his flat on sale for ages for £130,000. The sign is now down and he and his wife are still there. They are retired so I do not get any pleasure from their situation. Heard him talking to a neighbour months ago about how now is a "bad time" to sell. The utility value of these flats, if that is the right word, is IMO £30 - £40,000, and if this guy had been smart in August (he would have had to be reading this site) he probably could have sold it for £80,000 or even £100,000, but the idea that a flat or house is "worth" x amount has become very pervasive over the last few years and seems to block peoples rational faculties. I don`t think the neighbour of your gf`s mum really needs to sell, and will probably hold out until tin foil hats for babies becomes a trend. My neighbour may just be seeing his retirement pot turning to dust, and it is serious and sad if that is the case. People really need to get themselves a financial education, and pay attention to past trends, and dangerous bubbles in markets, instead of swallowing all the crap that the VI`s trot out.

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The neighbour of my gfs mum in Walsall has had his house (4-bed detached) on the market for considerably over a year.

In that time the price was reduced from £265k to £225k and all the tricks like 'open days' have been used. No sale has been achieved.

However, the owner has turned down several offers and now the EA has taken his house off their books. Basically because he's not willing to accept what the house is actually worth and what someone can actually afford to pay for the house.

An interesting insight into where we are and the reason that this guy is trying to sell is that he's divorced his wife and nobody has been living in the house for over a year. This should be a 'forced seller', someone that will sell at whatever cost but he just can't let go of the fact that his house was once 'worth' £265k.

It is a good example of why house price falls are so sticky on the way down.

Good post MM. This confirms my belief that we are in a HPC in terms of sales volume and seller's over-inflated expectations.

The meaty nominal falls will only materialise when people like this HAVE to sell i.e. unemployment, illness, etc.

This bubble will take years to deflate.

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Men (in particular) are not always that keen to sell their house when going through a divorce.

When I was a student I rented, with a couple of mates, a granny annex in a very nice suburban house near Virginia Water in Surrey (v prime stockbroker belt).

The owner (his wife had left him) had had the house up for sale for ages.

Being students we were complete slobs. He didn't mind. Every potential purchaser would take one look at us in the annex and then tell the agent they weren't interested. The longer the house was on the market, the longer he could stay living there.

So divorcing men are forced sellers of a kind. They are forced into looking like they want to sell.

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Guest KingCharles1st

Since I started posting on this site- I have always given the same advice- DONT CHASE THE MARKET DOWN.....

I couldn't be arsed to give it anymore- if they won't listen- they are going to loose SO MUCH- like I did in 91-92- or whenever it was exactly

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Men (in particular) are not always that keen to sell their house when going through a divorce.

When I was a student I rented, with a couple of mates, a granny annex in a very nice suburban house near Virginia Water in Surrey (v prime stockbroker belt).

The owner (his wife had left him) had had the house up for sale for ages.

Being students we were complete slobs. He didn't mind. Every potential purchaser would take one look at us in the annex and then tell the agent they weren't interested. The longer the house was on the market, the longer he could stay living there.

So divorcing men are forced sellers of a kind. They are forced into looking like they want to sell.

I laughed when I read this, you are spot on with your analysis of divorced men.

I know I am one of them :lol:

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Good post MM. This confirms my belief that we are in a HPC in terms of sales volume and seller's over-inflated expectations.

The meaty nominal falls will only materialise when people like this HAVE to sell i.e. unemployment, illness, etc.

This bubble will take years to deflate.

In normal circumstances, possibly. But given that the credit crunch has made it far more difficult for even the most stupid FTB to stretch themselves & get onto the 'ladder' with a 125%/ lie-to-buy loan and what with BTL all but dead in the water, I think the bottom rung has been pulled away. That affects the whole market severely and the denial will soon be replaced by fear.

The meaty falls, I suspect, will happen quicker and faster than before...

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Good post MM. This confirms my belief that we are in a HPC in terms of sales volume and seller's over-inflated expectations.

The meaty nominal falls will only materialise when people like this HAVE to sell i.e. unemployment, illness, etc.

This bubble will take years to deflate.

I agree that the house price crash is already here. the deadline though for being able to negotiate the price down and get a sale must have passed 3 or 4 months ago? So surely now with credit tightening and withdrawl of mortgages, and on top of that the added complication of needing to be a really good credit risk (most of the sheeple are out of the game here), we have a situation where many properties will in effect never be sold for anything more than at least half their "value". The sheeple just need to realise and understand what has happened, and realise their LOSSES. However I think that the crash will be very swift, getting well under way this year (being widely reported as a crash I mean) and I also think that the array of debts many people hold put the wider banking system at danger of collapse. Many many people I predict will be forced to let the bank take the house off them, and they will just default on the loans and the outstanding mortgage?

Edited by dances with sheeple

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Good post MM. This confirms my belief that we are in a HPC in terms of sales volume and seller's over-inflated expectations.

The meaty nominal falls will only materialise when people like this HAVE to sell i.e. unemployment, illness, etc.

This bubble will take years to deflate.

It is incredible that with all the bearish news around that people still don't think house prices will fall.

My gf (a nurse) told me that just yesterday one nurse was telling another that she absolutely must get on the housing ladder, that renting is a complete waste of money that she 'doesn't agree with renting at all' and that it doesn't matter what she can afford she must buy.

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In normal circumstances, possibly. But given that the credit crunch has made it far more difficult for even the most stupid FTB to stretch themselves & get onto the 'ladder' with a 125%/ lie-to-buy loan and what with BTL all but dead in the water, I think the bottom rung has been pulled away. That affects the whole market severely and the denial will soon be replaced by fear.

The meaty falls, I suspect, will happen quicker and faster than before...

It is shocking how quickly credit is being tightened.

Just yesterday I read that The Mortgage Works (Nationwide) removed it's 100% mortgages and now requires a 25% deposit

In one day it went from 100% to 75% LTV :o

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An interesting insight into where we are and the reason that this guy is trying to sell is that he's divorced his wife and nobody has been living in the house for over a year. This should be a 'forced seller', someone that will sell at whatever cost but he just can't let go of the fact that his house was once 'worth' £265k.

House prices have become so distorted that most people have a lifetime of savings in equity currently without having had to save a penny. Most people see this as theirs already and the thought of having to save real money to offset any falls in equity is a strong motivator not to sell, especially because everyone knows in the long term houses always go up! I think this has caused the stickyness in prices so far but we are only a few months away from the panic phase imo.

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I laughed when I read this, you are spot on with your analysis of divorced men.

I know I am one of them :lol:

It`s a strange world, I am witnessing this the other way round. My brother in law ( Nice fellow) is desperate to sell since splitting with my sister. He has managed to drop the price by 10% on a 3 bed semi in Surrey. She will not budge anymore, He has even offered to make up any difference she will lose if they drop the price even more. She used to be a mortgage advisor and should no better. Been on the market now for 6 months, lots of viewings and near offers but they both have to agree and she won`t.

As they say you can choose your friends.... but family!!!! :unsure:

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In normal circumstances, possibly. But given that the credit crunch has made it far more difficult for even the most stupid FTB to stretch themselves & get onto the 'ladder' with a 125%/ lie-to-buy loan and what with BTL all but dead in the water, I think the bottom rung has been pulled away. That affects the whole market severely and the denial will soon be replaced by fear.

The meaty falls, I suspect, will happen quicker and faster than before...

But they won't sell it because they don't have to.

Until their hand is forced, you will not see substantial cuts. Stagnation will prevail.

This is a screaming "sell" signal to every homeowner that wishes to exit.

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In normal circumstances, possibly. But given that the credit crunch has made it far more difficult for even the most stupid FTB to stretch themselves & get onto the 'ladder' with a 125%/ lie-to-buy loan and what with BTL all but dead in the water, I think the bottom rung has been pulled away. That affects the whole market severely and the denial will soon be replaced by fear.

The meaty falls, I suspect, will happen quicker and faster than before...

Agreed, most mortgage resets are due within the next 18 months. As long as credit remains restricted things will move pretty quickly. Most people will be able to survive for about 6 months then there'll be the time it takes to repossess. The bottom should be approaching in about 2010-2012. Al IMHO of course.

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I have been watching a few houses in my area that are well and truly stuck, not shifting, price lowered, still not shifting. Now identical properties are coming onto the market in the same street and the asking prices for these houses are above those that wont sell, they are still trying to sell at last years prices. It'll take time, but when the another house on the street comes onto the market and then another and another these sellers will realise they are not going to shift their property until their price becomes more competetive. I think at the moment a lot of sellers have the view that things will improve with the Spring.

Edited by crashlanded

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It`s a strange world, I am witnessing this the other way round. My brother in law ( Nice fellow) is desperate to sell since splitting with my sister. He has managed to drop the price by 10% on a 3 bed semi in Surrey. She will not budge anymore, He has even offered to make up any difference she will lose if they drop the price even more. She used to be a mortgage advisor and should no better. Been on the market now for 6 months, lots of viewings and near offers but they both have to agree and she won`t.

As they say you can choose your friends.... but family!!!! :unsure:

I'm worried that we're going to see a similar situation in my wife's family. They rented out their late father's home and now as a result of family squabbles are selling it. However even though they've got an offer they are still not biting the arm off. Well it looks like an awful lot of equity is going to get lost.

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I have been watching a few houses in my area that are well and truly stuck, not shifting, price lowered, still not shifting. Now identical properties are coming onto the market in the same street and the asking prices for these houses are above those that wont sell, they are still trying to sell at last years prices. It'll take time, but when the another house on the street comes onto the market and then another and another these sellers will realise they are not going to shift their property until their price becomes more competetive. I think at the moment a lot of sellers have the view that things will imporove with the Spring.

Absolutely, in Devon where parents live - two new build 4-bed town houses have been on the market for £250k for over 6 months, no change in price and no sale.

Then a couple of weeks ago one of them reduced to £235k and in the same week another one, identical hits the market at....£265k

That's how stupid people are

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Agreed, most mortgage resets are due within the next 18 months. As long as credit remains restricted things will move pretty quickly. Most people will be able to survive for about 6 months then there'll be the time it takes to repossess. The bottom should be approaching in about 2010-2012. Al IMHO of course.

I don't think we'll see the bottom for a lot longer; what I was suggesting was a quick, sharp drop followed by minimal growth for many years.

Monty, you talk about people not needing to sell as if they are the key to this HPC. I disagree. I feel the momentum and sheer scale of all that's going on around them will make them largely irrelevant. They can hold onto their houses for as long as they like, but it won't stop the prices falling.

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I don't think we'll see the bottom for a lot longer; what I was suggesting was a quick, sharp drop followed by minimal growth for many years.

Monty, you talk about people not needing to sell as if they are the key to this HPC. I disagree. I feel the momentum and sheer scale of all that's going on around them will make them largely irrelevant. They can hold onto their houses for as long as they like, but it won't stop the prices falling.

I agree, and this ties in with my previous post, I think a lot of pressure will come people cashing in on a once in a lifetime windfall.

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I agree, and this ties in with my previous post, I think a lot of pressure will come people cashing in on a once in a lifetime windfall.

Please explain what the windfall is.

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Since I started posting on this site- I have always given the same advice- DONT CHASE THE MARKET DOWN.....

I couldn't be arsed to give it anymore- if they won't listen- they are going to loose SO MUCH- like I did in 91-92- or whenever it was exactly

My observations too

Have a member of my family who is emigrating in 6 months. He's put a high asking price based on a dumb straight-line extrapolation of rising house prices from previous years, and ramping by Foxtons. I have explained that there will be a constant negative news flow from now until the sale and withdrawal of credit from the market meaning less money to support prices, and what he should do is price lower to ensure a quick sale. Even consider offers above a very low minimum asking price and conducting a sealed auction for interested buyers - still under no obligation to accept the winning bid if it's not high enough, so what is there to lose?

I predict years of negative rental income and the hassle and strain of being an overseas landlord. As well as increased difficulty in buying a house where he's emigrated if he still has outstanding mortgages here. And the prospect of financial ruin if mortgage rates rise significantly.

He is in complete denial

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I don't think we'll see the bottom for a lot longer; what I was suggesting was a quick, sharp drop followed by minimal growth for many years.

Monty, you talk about people not needing to sell as if they are the key to this HPC. I disagree. I feel the momentum and sheer scale of all that's going on around them will make them largely irrelevant. They can hold onto their houses for as long as they like, but it won't stop the prices falling.

We're looking at marginal pricing here. The vast majority of people will simply not believe that there key asset has fallen by 10-20%. They will therefore not cut the price or pull it from the market.

HPC will be determined by the much smaller number of people who HAVE to sell i.e. death, divorce, unemployment, relocation. It is these people who will lead the market down the substantial nominal falls i.e. 20%+.

Once they have established the the fundamental price then we will have the proper HPC. Lack of mortgage funding alone will not get us there.

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I predict years of negative rental income and the hassle and strain of being an overseas landlord. As well as increased difficulty in buying a house where he's emigrated if he still has outstanding mortgages here. And the prospect of financial ruin if mortgage rates rise significantly.

He is in complete denial

Think you're spot on.

In the North East House Price forum, I've been keeping a track on movement within city centre (NE1 postcode) properties since Feb 20th using Property Bee. Linky link here to see my full findings.

In short, these are the current results after one month and a day...

244 properties for sale in NE1

25 properties have had their asking prices reduced since Feb 20 (10.2%)

Average asking price reduction since Feb 20 is 6.8%

The number of properties for sale in NE1 are rising, but one tenth of the market has cut its asking price and only by 6.8% on average in each case.

Denial. Denial. Denial. It will take ages for them to come down.

And they will come down significantly - assuming this flat on sale for £265,950 is a "desirable executive crashpad", desirable executives really only earn about £30,000 in Newcastle at the top end. With a 10% deposit at 3.5 times earnings, the market dictates it can't really sell for more than £120,000. At present, with a 10% deposit, it is at 8.5 times earnings.

Madness, I tell you.

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  • 293 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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