Saturday, September 13, 2008

Do you want to sell your house?

Sarah Beeny: 'It's simple. If you really want to sell, you have to drop the price'

Sarah Beeny's new website to help people get on with their lives. What a sensible lady. "And, she believes, the current crisis could have been predicted. It is perhaps no coincidence that her company has not added to its buy-to-let portfolio since 2005, although it still renovates properties. "Three years ago it was really obvious that this was about to happen," she says. "It's very frustrating that you just have to sit back and hope that the Government or banks will sort it out.""

Posted by cornishman @ 12:44 PM (4076 views)
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25 thoughts on “Do you want to sell your house?

  • little professor says:

    The decline of the market has made the latest round of filming Property Ladder more hair-raising. Although the producers do little to hide their contempt for the naïvety of the first-time developers featured, one of the programme’s ironies has been that even the most lunatic renovation schemes have made a profit in the great swell of the boom. They would have made more money had the participants listened to Beeny but, at the end of each episode, the tears, tantrums and bad tiling usually add up to a five-figure sum.

    All that is about to change: “There are some tricky messes,” says Beeny with just a hint of schadenfreude. “There are a couple of shows in which they come really unstuck. It’s awful because they had such faith and belief.”

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  • I think that Property Ladder is in direct contrast to the latest series of Location, Location, Location. The are being re-run on more4 in the afternoons. One the other day had a almost annoyed Kursty tut-tutting when her minnions (clients) dared to suggest they offer 10% under the asking price. They did and were turned down.

    Sellors (and pompous posh property pornstars) are in denial about falling prices, right up until they realise they just can’t find a buyer.

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  • Sarah Beeny the acceptable face of property porn,now says the current crisis could have been predicted 3 years ago, but that did not stop her from continuing to broadcast her highly successfull show.I wonder how many people where persuaded to become “propery developers” after watching them? Whilst Beeny and her brothers quietly stopped adding to their BTL Portfolio.
    She says in relation to the governments Special Liquidity Scheme
    “What about the £50billion released by the Bank of England to lenders five months ago to improve liquidity? “Where’s it gone?,” Beeny demands. “They would have been better off just handing it out to home owners.”
    She may be a successfull property developer and BTL landlord,but her grasp of economics and the reasons for the UK’s continued Boom & Bust in housing is obviously very limited.
    Any Fool could have made money in property between 95 and 05 because of the failure of government poilcy to prevent this damaging bubble from happening.
    Sarah Beeny and many others have made an absolute fortune in the last 10 years and it looks as though she will continue to make a killing in the downturn with her clever new website completingchains.com.
    Unfortuneately the cost of their success is likely to be met by the vast majority of the UK population for generations.

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  • sold out @ 3..

    She may have few scruples with regards to the bubble but Beeny does have other assets though !

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  • Frankly, that completingchains website is a bloody brilliant idea. Speed up the market and move the risk from the smart ones trying to get on with things forcing the dumb ones who hold on to the lies they’ve been told over the years to either cut their prices along with the market or be left out in the cold. It will speed the correction and dampen the overshoot. Well done Beeny

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  • mark wadsworth says:

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  • Hurrah for Beeny’s assets!

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  • Wowwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwsa

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  • So she stopped investing in 2005. Yet still egged on idiots to “develop” property. This has the unmistakably foul stench of hypocrisy.

    Her new venture has merits though. Anything that encourages vendors and EAs to begin the necessary cuts is welcomed IMO.

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  • Aherm………The Bust will reflect the size of the Boom!

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  • mark wadsworth says:

    Sold Out, an economics genius she is not, but she has grasped the fundamental truths that we cannot all get richer by selling properties to each other for ever more inflated values; every boom is followed by a bust; and, falling prices are not necessarily A Bad Thing.

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  • last_days_of_disco says:

    Well we now know where she invested her money!

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  • gives new meaning to the term “double fronted”

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  • last_days_of_disco says:

    I feel that actually there is a parallel here:

    You enlarge and enlarge when you can easily sell yourself because you still have your looks (the bubble). Then in later years when you are losing your looks (the market is collapsing).

    You either:

    1. Pay more money to downsize. (sell at a loss and lose a lot of money)
    2. Or end up a grotesque with a broken back. (go bankrupt spectacularly and live in poverty)

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  • Well, I have to give her some credit just for being the few public figure admit that “sellers need to drop price”.

    Interestingly, although a lot of people talk about HPC, few public figure has so far said “sellers need to drop price”. I guess that would be too personal and the homeowners may shoot them. They would rather use alternative words like “you house price will recover in the LONG TERM.”

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  • Yes, at least she didn’t use a silly euphemism such as a “softening market”.

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  • it_is_going_with_a_bang says:

    I was thinking of making a serious comment but Mark has somewhat clouded my thoughts with that pic.

    Public figures generally won’t say anything negative about property as they fear being blamed for anything that subsequently happens.
    They all know and probably most hope for large property drops but they won’t say anything.

    As for her completing chains stuff – the market already does that of its own accord in my opinion.

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  • Gloom Boom Dooom says:

    SARAH BEENEYS CHAIN HOW IT WORKS

    In a chain of five houses ranging in asking price from £100,000 to £500,000, the owner of the most expensive property will lose £150,000 if prices drop by the predicted 30 per cent. The cheapest property would fall to £70,000, which is within reach of many first-time buyers. Completingchains.com would negotiate a £10,000 discount on the most expensive property. The buyer of that house, having saved £10,000, can discount his home by £15,000, the next buyer by £20,000 and so on until the same £70,000 first-time buyer price is reached. However the minimal impact on equity for all buyers in the chain means that it is less likely to fail.

    IF YOU ARE A FIRST TIME BUYER THIS IS AN OPPORTUNITY TO GUZUNDER AS THE CHAIN IS SET UP AND EVERYBODY READY TO GO – FIRST TIME BUYER SHOULD DEMAND A DROP OF ANOTHER 20k AND MAKE THE REST OF THE CHAIN PAY –
    WHY SHOULD THE FIRST TIME BUYER SAVE THE BACON OF OTHERS WHO MADE HUGE PROFITS IN THE PAST FROM FIRST TIME BUYERS
    LET CHAINS BE BUILT BUT FIRST TIME BUYERS AT THE LAST MINUITE NEGOTIATE THE PRICE DOWN – YOU CAN AFFORD TO WAIT FOR THE NEXT PROPERTY
    WITHOUT THE FIRST TIME BUYER THE CHAIN WILL COLLAPSE – THE CHAIN MIGHT WORK IF THE FIRST TIME BUYER IS GIVEN A MASSIVE DISCOUNT SAY 60 PERCENT

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  • Sold out > One thing that I noticed about Property Ladder was that Beeny *always* regarded the boom as an abberation. She was always pointing out just how stupid people were being, and much money they were throwing away on the stupid things they were doing, or simply the amount of time they were taking, to do up their properties. And, she always seemed just a little annoyed that they *still* came away with a profit, simply because of the freakish way the market happened to be working at the time. There was *always* an undercurrent – going back further than 2005 – of “I’d never have gotten away with this sort of thing when I started out” and “You are in for one hell of a shock the next time you do this and the market isn’t so buoyant.”

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  • She certainly has a huge pair of Knockers,nice photo Mark.
    My point is that only 6 months ago she was saying along with all the other VI’s,that there would be no crash,just prices stagnating etc etc blah blah blah.
    ,now just because she is finally facing up to the reality of the crash and making some sensible comments about sellers droping their price (which i applaud) doesn’t mean we should give her a big slap on the back.Compared to krusty,there is no contest, but lets not forget that Beeny and many others like her have made an absolute killing in the property bubble, and we are ALL now going to bear the cost of this for years to come.A few pics of her ample bosom can never compensate for the hardships we are ALL likely to face.

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  • sold out, I do agree – she’s only recently come round to facing up to reality.

    Krusty would never be able to do that.

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  • …thats the thing about Beeny’s hugely inflated assets…

    …they might look solid today, but in a few years they’ll drop like a stone:)

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  • “In a chain of five houses ranging in asking price from £100,000 to £500,000, the owner of the most expensive property will lose £150,000 if prices drop by the predicted 30 per cent. The cheapest property would fall to £70,000, which is within reach of many first-time buyers. Completingchains.com would negotiate a £10,000 discount on the most expensive property. The buyer of that house, having saved £10,000, can discount his home by £15,000, the next buyer by £20,000 and so on until the same £70,000 first-time buyer price is reached. However the minimal impact on equity for all buyers in the chain means that it is less likely to fail.”

    Unless I’ve misunderstood the concept, I really don’t see this idea working. Why would the second buyer in the chain be happy to pay £490k rather than £350k?? Also, I can’t see people being happy with the guy in the big expensive house only having to drop his price by 10k while the young couple have to drop theirs by 30k. This might sound great to the FTB and the retiree at the top but I think the people in the middle will feel hard done to and pull out.

    Maybe a better idea would be to create a similar website that brings people together in the chain and shows how much equity each person has in their house. That way, everybody would know who actually CAN’T drop their price and who’s just being a GREEDY old codger!

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  • Strong Coffee says:

    I cannot see how completing chains will succeed. What is being proposed is that while the rest of the market adjusts and house prices fall; a group of people get together to pay what are by comparison inflated prices for their houses. If they come to sell in the next three to five years they have absolutely no chance of recovering their sale price. Traditional chains do not exist any more – people look to sell before they start looking themselves – people move into rental and off the property market while they look – which all means chains are very much shorter and the market is completely fractured. There may not be a first time buyer at the bottom of every chain. What would stop someone selling a house under this scheme simply make themselves the bottom end of the chain, say thank you very much for maintaining my house price – and then go and buy a real bargain in the wider market?

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  • Will you sad people please stop going on about Beeny’s physical attributes (apart from anything else she was probably pregnant when that shot was taken) and get back to the nitty gritty. And how about recognising that not all second time (plus) sellers are the devil incarnate, just ordinary people trying to move for jobs, schools, family etc etc and profiting – or not – from the vagaries of the market.

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