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munimula

Family Friend Just Had Valuation Nearly £100k Below Last Year

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My mum who is STR on my advise and total HPC convert told this family friend last summer to get on and sell their house.

Their husband wanted to do the house up before selling. So almost one year on and lots of money spent on new kitchen, loads of hard graft later they get their EA valuation last week.

'Market for £325k with a realistically achievable sale price of £285k'

They had been expecting to sell for around £370k as that was achieved by neighbours in late 2006.

Imagine, you've spent all that money and all that hard work for absolutely nothing and now your house is worth 25% less :o

They have just retired, wanted to downsize because house is too big and expensive to afford on pensions.

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Our neighbours have made the same mistake. House on market for 18 months now. Over-priced to start with. Viewings but no offers.

As a result they decide to upgrade kitchen and various other mini projects.

They are no longer even getting viewings.

I think they would now get an offer £150K below current asking price.

Current asking price (unchanged from 18 months ago) £645K. No one sane would pay more than £500K.

I tentatively asked about reducing price. They are not going to as they need the "extra money" to fund a retirement purchase.

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I tentatively asked about reducing price. They are not going to as they need the "extra money" to fund a retirement purchase.

But they don't because thier next place will have dropped in value too.

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Our neighbours have made the same mistake. House on market for 18 months now. Over-priced to start with. Viewings but no offers.

As a result they decide to upgrade kitchen and various other mini projects.

They are no longer even getting viewings.

I think they would now get an offer £150K below current asking price.

Current asking price (unchanged from 18 months ago) £645K. No one sane would pay more than £500K.

I tentatively asked about reducing price. They are not going to as they need the "extra money" to fund a retirement purchase.

These people are going to be left so far behind. A time will come when perhaps they do need to sell but by then there will be a massive gap between achievable sale price and what they think it was once worth.

More forced sellers required to show people what houses actually now sell for. They are on the way with the deteriorating economy. Saw another shop closing down in Bournemouth yesterday - a kitchen utensils shop.

There is a house for sale where I grew up in Devon. It's now been on the market for 3 years!!!! And the seller hasn't reduced the prices once. That place is now worth 30-40% less than what he's asking for it.

Edited by munimula

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But they don't because thier next place will have dropped in value too.

They are just plain greedy and in denial.

One good thing to come out of the impending slump will be to wipe the smiles off these people with god-complexes, megalomaniacs and control freaks. They will come to understand that they were living in a delusion - maybe then the country will be worth living in.

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They are just plain greedy and in denial.

One good thing to come out of the impending slump will be to wipe the smiles off these people with god-complexes, megalomaniacs and control freaks. They will come to understand that they were living in a delusion - maybe then the country will be worth living in.

replaced by the 'i didnt get stung got out in time' gloaters? Doesn't matter what time of year it is, xmas, new year, summer holiday, pricks are always pricks.

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Current asking price (unchanged from 18 months ago) £645K. No one sane would pay more than £500K.

And in terms of the original post - no-one is going to pay 285k, it'll be 250k for them. I'm guessing I'm not the only 250k vulture, circling the stamp duty band threshold, looking to pick off the juiciest house for 250k, once the market has finally keeled over and died.

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These people are going to be left so far behind.

These people are still probably laughing. Most people who are retirment age will have bought their houses for about ten quid, thirty or more years ago. Even if the market falls, they're still looking at making a massive profit. Life is still good for them. A lot of them will have final salary pension schemes as well! And will retire at 60! I hate them (LOL!)

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These people are still probably laughing. Most people who are retirment age will have bought their houses for about ten quid, thirty or more years ago. Even if the market falls, they're still looking at making a massive profit. Life is still good for them. A lot of them will have final salary pension schemes as well! And will retire at 60! I hate them (LOL!)

R4 thjis morning was saying final salary pensions are deep in the red and few companies will be able to pay them as the economy continues to erode. Not many will escape "The BIG ONE" (cue reverb box with 300ms echo delay followed by hideous "evil genius laugh").

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Its not only the young and feckless who MEW you know. Unless they had a few quid, where do you think they got the money to 'do it up?'

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This is driving me nuts and never stops amazing me.

I started a baby group when I had my son in 2005 and have kept friendly with a few Mums, one has just had a new baby and started a new group.

She was sympathetically telling us of a a couple of new parents who are desperate to move.

They put their tiny flat on the market when she discovered she was pregnant which would have been about 10 months ago and have had ONE viewing.

They are now desperate as their one bedroom is so small they cant fit a cot in it as well as their bed.

Me. They need to drop the price

Her. They cant they have put it on for what they need to in order to afford bigger place.

Me. They wont sell if they dont markets falling

Her. They cant afford to.

Me. They'll have to stay there then!

Her. They cant its too small

ARRGH!?????

I did get into a conversation but you can guess what it went like, do you remember the song theres a hole in my bucket? why cant people see it? what is this brainwashing? what will it take to switch the light on in these people heads?

Local EA is Still overpricing houses, they are all sat there, i put in an offer 2 months ago for a perfect house, divorcing couple, for 20% under they wouldnt even hold a conversation with me, its dropped by 6% and still on...oh and I would now offer 30% under.

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My son knows someone who works in an Estate Agents, she was telling him that when she goes out to do a valuation she has been told by her boss to tell the client that they can expect it will take 2 years to sell their house.

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And in terms of the original post - no-one is going to pay 285k, it'll be 250k for them. I'm guessing I'm not the only 250k vulture, circling the stamp duty band threshold, looking to pick off the juiciest house for 250k, once the market has finally keeled over and died.

No youre not, me too, and were not vultures, we just didnt over stretch ourselves with an io mortgage that would never be paid off.

I kept in my means, have put up with renting for a year and a half and added to my savings, sold my juicy Jag when oil was going up and bought a Ford- cash, at a time when my neighbours bought a BMW and 4x4 - I'm guessing on credit. I am living in my means, on real money, the only debt I'll have is a mortgage at a price I can afford.

If I cant afford it I cant have it, I'd say a vulture was one who swooped in with borrowed cash to feast on things he neither needed or could afford and is now looking round at who is going to bail him out.

A quarter of a Mil is plenty to pay for a family home.

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Over on The Times website the Property section has articles about people spending thousands to do up their houses and not getting any return on it.

I very very very rarely watched any of those property porn programmes on the telly but I caught a few where they had houses that could not sell because they were simply old - buyers seem to expect even a 100 year old house to look like a brand new show-house in this recent bubble frenzy - and got people to come round and view the house when it was still in its knackered state.

Anyhow, I saw a few progs where some 'experts' went in and got the sellers to spend money doing up this, that and the other. They then invited the same viewers back round to view it again and time and time again you heard them - usually the female but sometimes the male also - saying really stupid things like "I don't like the colour of the carpets" or "I would not have chosen that colour wall paint".

I mean, they had the opportunity to buy the house cheaper and therefore do it up themselves the way they wanted but, because of this 'show-house' thing, they waited until it was done up, was more expensive and then whinged about it.

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I remember last time late 80s/early 90s when I put in offers on two houses I really liked which were rejected as being too low, (maybe 20% under). They both eventually sold much later and for less than I had offered. I told this story recently to a young EA who had no experience of those times; I think I saw a little flicker of understanding.

PS And of course I eventually found a nicer house cheaper that had been for sale for 18 months. So there is no need to rush now!

Edited by Sold OK

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Guest KingCharles1st

I can top this- A few months ago I was chatting to this woman from a dating site, and we got on pretty well, up to the point she asked me if I would be interested in doing up a property she wanted to buy and to sell it for more money. Well, I told her "look yo have got to be completely crackers if you do this now at this point in the cycle- and she got seriously arsey with me- took it as a personal insult, told me I didn't have a clue- property always makes money etc, I then find out she has the cash to do this- probly a rich family, and SHE IS GOING TO DO IT ANYWAY and before barring me from her MSN launched into a fairly vitriolic attack. :blink:

I truly wonder if she decided to go ahead with the project- if she had waited 12 months, she could have got hassle free interest on the money, and been able to buy TWO similar pro-per-dees, "my life" etc.

Edited by KingCharles1st

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Looking at Nethouseprices I'm forced to concur with the account of a friend who lives in a road where houses peaked around £330k. He told me two door down went for £297k earlier this year (this is south-coast central). That's a clear 10% reduction. I happen to know the son of the vendor who has been in property for at least 12 years funding his exploits w/ a personal injury compensation. That same son-of-vendor also has a 'degree' in Town & Country planning. No matter what you think of that as a degree, chances are you'd imagine he knows a little about property. My feeling is his parents took his advice, cut the ask and cut again until the thing sold.

Meanwhile the friend who lives two doors down from this sold property (£297k) tells me another neighbour has been marketing a property in the same road for £340k. It has one less bedroom. It has been on the market for 11 months. The couple who own it have separated and supposedly "need" to sell.

Thanks to Greenstuff. Yep, we all know the feeling.

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Well, that's cyclical markets and bubbles for you.

My advice to vendors is the same as the advice they gave me when I complained about being born too late to afford a home: tough shit.

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replaced by the 'i didnt get stung got out in time' gloaters?

Not this time. This is bigger than all of us. We are ALL going down together this time. :(

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But they don't because thier next place will have dropped in value too.

As they're downsizing the reductions work against them. They would have been better selling high and buying high, rather than selling low and buying low. Lump sum remaining is hugely reduced if you downsize in the trough.

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Over on The Times website the Property section has articles about people spending thousands to do up their houses and not getting any return on it.

I very very very rarely watched any of those property porn programmes on the telly but I caught a few where they had houses that could not sell because they were simply old - buyers seem to expect even a 100 year old house to look like a brand new show-house in this recent bubble frenzy - and got people to come round and view the house when it was still in its knackered state.

Anyhow, I saw a few progs where some 'experts' went in and got the sellers to spend money doing up this, that and the other. They then invited the same viewers back round to view it again and time and time again you heard them - usually the female but sometimes the male also - saying really stupid things like "I don't like the colour of the carpets" or "I would not have chosen that colour wall paint".

I mean, they had the opportunity to buy the house cheaper and therefore do it up themselves the way they wanted but, because of this 'show-house' thing, they waited until it was done up, was more expensive and then whinged about it.

This is what used to cheese me off with these properrty programmes - up until about 7 to 8 years ago it was always a Golden Rule when selling or buying that the interior decoration was irrelevant to the the selling process and a complete waste of time and moneybecause purchasers would always do the house up in their own style anyway - then gradually the scenario began to change and suddenly people wanted as you say a showhouse -where even the bathroom tiles made a difference to the prospective sale...

Edited by Wires 74

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caramba,nice name,did you read a lot of tintin as a child?

Who is tintin?

Caramba is a Spanish word and according to my dictionary means "good gracious" or "how strange" or "for crying out loud". Just thought it represented the housing market!

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Doing up bog standard properties is a mug's game.

Sarah Beeny has shown over and over again that if you make a profit by buying a 3 bed terrace and putting in new kitchen, windows and bathroom etc., the profit, if any, comes courtesy of a rising market.

The only way you make real money developing property is if you get lucky enough to buy the cheapest house in a road full of expensive properties - and you can extend it.

Around here, over the last few years, it has been a formula. Buy tiny £300k bungalow on 200' plot, knock down, build 4/5 bed detached house costing £250k and sell for £650k. The 100k profit comes courtesy of the market moving up in the meantime. The real profit taking into account fees etc. is considerably less.

But they are still at it. Two bungalows in a local road have recently sold at auction and have been flattened. The planning permission notices are up. Maybe the people who bought them haven't noticed the three 4/5 bed detached houses up for sale in the same road - two of which are new and have been sitting there now with For Sale / To Let signs outside for months.

They just don't get that they are overpaying by £100k for the bungalows now.

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Not this time. This is bigger than all of us. We are ALL going down together this time. :(

yup I'm going down, can't wait, baby on the way, for sale sign up, flooring to put down, damp proof course to sort out, skirting boards maybe redo the kitchen.

I'll not be as ******ed as others, and have been posting here long enough to know i should have got out ages ago. but end of the day the house i was in was big enough for us as a couple, its only now I've gotta upsize so, just timing i guess.

I'm on the good ship brittania housing crash navigated by the drunken captain birdseye brown, he guided us right into the iceberg because he's first off the ship in his gold plated speedboat! with our passports biometric data and travelers cheques.

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But they don't because thier next place will have dropped in value too.

It doesn't work that way round.

When upsizing:

£100k - your house value

£75k - after a 25% drop

£160k - house you wanted

£120k - 25% drop on house you were after

Would have cost you £60k to upsize, now costing you £45k

When downsizing:

£400k - your house value

£300k - 25% drop

£200k - house you were after

£150k - 25% drop on house you were after

£400-200k = House + £200k in the bank

£300-£150k = House + £150k in the bank

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  • 401 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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