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Elizabeth

I'm Not Going To Drop The Price Any More

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Walking behind two blokes talking and one of them was confiding to the other that he had dropped the price once but he wasn't going to drop it again because that was what he wanted for it. Later in the conversation turns out the profit is around £120K. I know I shouldn't eaves drop but this seems to be the crux of it. People stamping their feet not accepting that they can't take a profit on every business deal, simply because this is what they 'want'. Any others have experience of "won't drop, don't want to?" Denial territory (and very toddler like)

Edit: did I mention. The guy said the house had been on the market for 3 months and might be on for another 6 but someone would buy it eventually because he "couldn't see why they wouldn't" - that sounds like waiting for the "spring bounce" to me. I think that June next year is going to be the reality check and it will slide from here down and then we will see another real plunge.

Edited by Elizabeth

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Yeah I've heard it too at first hand.

Blokes daughter said her Dad "wouldn't drop, and why should he?"

The old sod has been in it for 12 months and put laminate flooring down. He's asking 20k over what he paid.

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Free market = discretionary seller can choose not to sell. That's why the collapse will be driven by distressed sellers.

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Yeah I've heard it too at first hand.

Blokes daughter said her Dad "wouldn't drop, and why should he?"

The old sod has been in it for 12 months and put laminate flooring down. He's asking 20k over what he paid.

20K for laminate flooring? My must be nice. Hope its not cheap blonde wood - that is so very "London turn of the 21st century".

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Free market = discretionary seller can choose not to sell. That's why the collapse will be driven by distressed sellers.

And this will cause the discretionary sellers much distress as they watch their equity vanishing. :lol:

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Doesn't matter.

Round here, there're plenty of people who will drop 'em to sell - and every 2 days, someone sells in my postcode. Admittedly one comes back on but they're trying!

Way I see it is - the people such as those you overheard don't really have houses for sale so I discount them.

I have an old pair of shoes I love that I won't sell for less than £1000. Noone will buy them. Are they REALLY for sale?

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And this will cause the discretionary sellers much distress as they watch their equity vanishing. :lol:

:lol::lol::lol: Except that they won't realise it till 3 months after they've lost it and have to take an ever lower price because the indicies lag so far behind the reality.

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The distressed ones will drop first and then force the discretionary to either become distressed sellers or sit it out.

Honestly I do not understand why people cannot see that dropping is a good thing, less interest and stump duty for a start.

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20K for laminate flooring? My must be nice. Hope its not cheap blonde wood - that is so very "London turn of the 21st century".

Actually I lied. I just did a little check and he's been in it for just over 24 months (and added laminate flooring) and he wants £37,500 more for it:

http://www.rightmove.co.uk/viewdetails-174...=3&tr_t=buy

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Free market = discretionary seller can choose not to sell. That's why the collapse will be driven by distressed sellers.

Think what this means....

Places with the most distressed sellers will fall the hardest and the fastest and of course the opposite will be true.

So place with the most new builds, 100% mortgages, high multiples, BLT's and with the most recently purchased properties are the proverbial toast.

Established areas with low property churn, with large property equity, high owner occupation will be - well as safe as houses...

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Established areas with low property churn, with large property equity, high owner occupation will be - well as safe as houses...

No, it means that those people will be largely unaffected by the value of their houses dropping, but drop they will.

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Guest happy?
Yeah I've heard it too at first hand.

Blokes daughter said her Dad "wouldn't drop, and why should he?"

The old sod has been in it for 12 months and put laminate flooring down. He's asking 20k over what he paid.

Laminate flooring = stone cladding.

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£167k for a 2-bed bungalow in Middlesbrough :o

He bought it for £130k in '06. When are these people gonna realise that the market's dropped? Especially in places like Boro!?

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No, it means that those people will be largely unaffected by the value of their houses dropping, but drop they will.

it definitely doesn't mean largely unaffected.

it means that they are not forced to sell.

but being forced to live in a house that you really would rather not for the next ten years, or 20, isn't a minor thing.

it just means that they can afford all the losses and inconvenience involved without going bankrupt.

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No, it means that those people will be largely unaffected by the value of their houses dropping, but drop they will.

Kind of true, but we are talking about people not selling here...

My parents road of 50 ish houses have never had a property sell for a lower price than a previous sale in the 35 years they have been there. So technically house prices have never fallen there. However of course there have been years when no properties have sold at all.

I think its going to be real easy to get a 50% reduction on a property after this crash has completed but only if you want to live in a new build flat in Nottingham (or someone similar) if you want a 3 bed house in W4 finding a 10% reductions will be tricky...

Edited by Neitherland

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it definitely doesn't mean largely unaffected.

it means that they are not forced to sell.

but being forced to live in a house that you really would rather not for the next ten years, or 20, isn't a minor thing.

it just means that they can afford all the losses and inconvenience involved without going bankrupt.

I'm sorry but if people are 'forced' to stay in a house that they don't want to be in then they can't 'afford' the losses. If they could afford it they would just sell for whatever the market said their house was worth and then get on with their lives.

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Actually I have to take my hat off to Elizabeth for starting this thread.

This is the main reason the whole HPC is grinding (or has already ground) to a halt. I suppose it's the denial phase. I can't WAIT for the anger phase to start (or is it the panic phase). I don't really know if the Kubler-Ross model is all that relevant to what the future holds.

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I think its going to be real easy to get a 50% reduction on a property after this crash has completed but only if you want to live in a new build flat in Nottingham (or someone similar) if you want a 3 bed house in W4 finding a 10% reductions will be tricky...

I think you'll be surprised. One effect of an abnormally long boom has been that the indebtedness has been spread far and wide. There are people all over the place in very precarious financial positions.

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I have an old pair of shoes I love that I won't sell for less than £1000. Noone will buy them. Are they REALLY for sale?

I have a Rover for sale. The garaged offered me £500 for it but I want £17,000. I'll be buggered if i'm taking less than it's worth. I'm not giving it away you know!

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Guest Steve Cook
Free market = discretionary seller can choose not to sell. That's why the collapse will be driven by distressed sellers.

yep

Further hikes in interest rates, rising costs of essentials and rising unemployment

The first is debatable

The second and third are inevitable

Edited by Steve Cook

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  • 395 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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