Thursday, June 7, 2007

Ever wondered why asking prices for houses keep going up?

Foxtons: Houses for sale

I first noticed the house shown in this link on the market last year at £750,000. It didn't sell. About 6 months ago, they increased the price to £850,000. It still didn't sell. I recently saw that they have increased the asking price again - to £950,000. (It has been on findaproperty and rightmove - does anybody know of any way of accessing past price listings on either of these?) The house is a wreck and remains unsold. It is a very interesting selling strategy to say the least. It clearly hasn't helped to sell this house, but it sure will have contributed to the impression of house price inflation in its local area.P.S. As I have always said, Foxtons are disreputable sharks!

Posted by royston @ 10:56 AM (422 views)
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10 thoughts on “Ever wondered why asking prices for houses keep going up?

  • speculatorone says:

    Royston I agree with you. I have posted similar comments on this site (not to that extent). In my area Northamptonshire there are several properties in the £300 to £500K mark that have not sold for over a year, they change agent, and they slaps on another £25 to £50K!

    I would also be interested to know if you can check the market history..

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  • speculatorone,

    This house has not changed agents – Foxton’s have hiked the price by £100,000 twice in the past year!

    I think estate agents are rigging the market. They are sacrificing some ‘non-selling’ properties in order the scare buyers into buying. Their strategy artificially creates the impression of house price inflation. Buyers buy because they are scared that prices are going to move even further away from what they can afford.

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  • I have a similar but much worse experience. The Estate Agent DOUBLED the price, 950k to 1900k, house still not sold. However, some houses are selling at a much higher initial price. Most houses have been increased by about 30% in my area (Finchley, London) within a 6 months time and some have sold at a much increased price. As long as some are selling, there will be no end to this mania. We just have to wait for this to work itself out and then a much worse crash will occur.

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  • fahrenheit451 says:

    It’s hideous, 5 bedrooms, and what’s that growth on the back, the “Family Room” and extended “Gallery”? kitchen. That last bedroom in the attic is just an excuse for a boxroom and would be better as loft storage. … Words nearl fail me “good Grief Charlie Brown !!!

    http://maps.google.co.uk/maps?ll=51.365505,-0.343944&z=17&hl=en&t=h

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  • I think it’s safe to say “that estate agents” add on a significant amount to their valuations. I’d personally like to see them go under ASAP and
    a few house bricks through their fornt windows for good measure.

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  • speculatorone says:

    Royston,

    Another ploy used is to leave up SOLD signs. I have noticed they have done this throughout several villages where they install a sign at the bottom of a lane or on a main road. One particular agent is guilty of this. Plus I noticed it is the fly by night agents, where all staff resemble second hand car salesmen/women, not the RICS agents. I think this sums up the problem with agents, they are not professional and undertake no training, apart from how to be a good bully!

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  • In a conversation with my brother recently, he described a flashily dressed, male, 20-something as being “dressed like an estate agent”. I knew exactly what he meant. 10 years ago, you would have said “dressed like a second car salesman”. Interesting how society evolves!

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  • bidin'matime says:

    Have you played the video – they even had Stephen Hawking doing the voice-over…

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  • “… demand more…”. Think it says it all really. Read ” … rip off more …”

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