Thursday, October 23, 2008

Sellers are still in denial

Home sellers have 'unrealistic market expectations'

The Rightmove index of estate agent asking prices continues to decouple from reality with a 1% increase in asking prices last month. Sellers are continuing to ask for more money in the hope that any discounts are negotiated on the basis of the higher asking price. In reality, if you aren't on the first one or two pages when sorting lowest price first, buyers aren't going to even look at your property.

Posted by jonb @ 09:30 AM (957 views)
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12 thoughts on “Sellers are still in denial

  • mark wadsworth says:

    Hee hee, not the people two doors up from me, they’ve dropped the asking from £795k to £700k, that looks like a 12% drop to me. I’ll put in a cheeky offer of £420k when I get round to it.

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  • japanese uncle says:

    mark wadsworth

    Are you prepared to pay 420K for what will most likely be reduced to 220K in a couple of years? When offer is accepted, you will be legally obligated to pay the money.

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  • not legally obligated at offer stage in the UK – not until exchange of contracts; hence the practices of gazumping and gazundering.

    Offer £420k initially, then on day of exchange reduce your offer to £220k ‘due to falling house prices’

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  • JU – how do you arrive at “When offer is accepted, you will be legally obligated to pay the money”? I’m not with you on this one – I believe Mark will be operating under English Law as he’s based in South East (Essex area) – Exchange of contracts is what really matters surely?

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  • In Scotland, an offer is legally binding. In England and Wales, it’s only legally binding if made at auction and accepted on the fall of the hammer, otherwise, exchange of contracts is legally binding. I don’t know about Northern Ireland.

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  • In Scotland, an offer is legally binding. In England and Wales, it’s only legally binding if made at auction and accepted on the fall of the hammer, otherwise, exchange of contracts is legally binding. I don’t know about Northern Ireland.

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  • Sellers expectations are derived from the papers they read and the estate agents they speak to. Notwithstanding that, they want the highest prices possible.

    Sellers are being led to believe in a quick “V” shaped recovery by the market. This is supported by most mainstream TV news coverage.

    I suspect few on this site will support that view!

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  • Alan – this one is definitely going to be “I” shaped for a couple of years, followed by “L” shaped. No doubt we will eventually return to “WWW” shaped though – hahaha!

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  • I think it will be sort of И_И_И_И_ shaped.

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  • mark wadsworth says:

    @ JU, what D&G and Jack C say.

    It’s not like they’ll accept off hand anyway. £420k is about a 40% drop from what they’d have got a year or two ago, so it seems about right to me.

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  • mark wadsworth says:

    In fact, that property was bought for £440k in 2002 and for £515k in 2005.

    So assuming out time machine is going back to 2002, £420k still looks about right to me. They’ve only lost 20% of their original cost.

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  • It seems to me that it would be so easy to convince any seller at the moment that they should not accept what they will see as rediculously low offers.

    Just say – the market is not falling it’s simply frozen due to the lack of credit available.

    Not until the credit market frees up will they realise that they should have taken the low offer and rented until everything was clear once again.

    (
    Nethouseprices.co.uk -> Sold Prices -> SW1P 1H
    under Ambrosden Av & Thirlby Rd one may see the rising price of 100a Ashley Gardens
    I think this is now on the market at 725K – the buyers at the very top of the market (well maybe slightly after) are trying to get out now [and going for a profit too] – bless them.
    )

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