OK, so if house prices have moved steadily DOWN in the last year then HOW...(47 Posts)
It's not mad if they can get the money they want for it, is it?
And btw, it's not up to the agency, they can advise but the seller decides, and often thinks it's worth a chance.
People can ask for whatever they like, you don't have to pay it (and indeed I doubt anyone will).
The agency is doing it because they tell people what they want to hear, the agent that is truthful probably won't get the business, even though the one who is lying will have their work cut out reducing it over the next 6 months.
Or maybe some idiot with more money than sense will come along, there's plenty of them out there.
We looked at a house in June 07 which was on at £350k, which sold for £345k its back on at £360k having dropped from £369k, it's been on the market for months now.
But surely it's unlikely that the agents haven't given them the valuation for the property? why would anyone ignore the agents to such an extent? they would know that they wouldn't sell if it was too too high iyswim.
Houses are worth what someone will pay for them. That is the only criterion. There is no such thing as a high, low or fair price, except in the buyer's mind.
They are clearly unhinged. Don't let it bother you.
have come to the conclusion a lot of people selling houses are utterly mad.
(Except of course for any mnetters currently selling who I'm sure have emininently sensible sale prices & realistic expectations! )
I read the other day that asking prices have gone up recently and have noticed that quite a few houses in my area have put up their prices this week ... some have been on the market for months - some for a year - so I just can't figure it out. It's not selling at X price, so why do you think it will suddenly sell at X+5k !!!
House up the road from us was bought in 2006 for 250 000 - which was too much even then. so last year the vendors decided to put it on the market at ......offers over 250 - yeah right because people are just lining up with offfers that take them into the next stamp duty band!
8 months later it hasn't sold - and they've reduced it to 245!!!! They're very thick or very optimistic!
Don't get me started
There is a seasonal blip, also encouraged by various economic factors atm, or so dh keeps reassuring me (we're about to exchange, then rent).
Most people eventually come down, if they've started at silly prices, or else they do'nt sell: we have, because we didnt' ask for too much. Over the road (smarter decor, but naf north facing garden instead of nice south facing one) is on for substantially more than us and hasn't had a sniff of an offer. We had three.
That said, we've just seen a house today on at utterly insane price, compared to others nearby, and yes people are still trying for what they can get: they just mostly won't!
Often it is the estate agents who give completely unrealistic estimates. I guess its just to tie you in to a contact and then advise you to drop the price before their exculsive contract expires.
Its not the asking price that matters. Its what houses are actually selling for that matters. Selling price are down 25% from peak but asking prices are not.
Loads of houses round our way are on for more than the peak selling prices in August 2007. None of them are selling - they just sit there until the owner gets desperate enough.
Very few houses are selling because not many sellers can afford to or are just unwilling to drop their price.
Your neighbours could have put their house on at £121k over what they bought it for and it STILL would not sell.
Don't let it worry you.
Well the asking price does matter in that psychologically those venders unless forced to sell by circumstance will not drop 25% so the whole thing is a farce and a waste of everyones time.
The EA's only get paid when they sell a house so they are wasting their time and money, the banks won't offer mortgages on over valued properties so their time and money is wasted too and none of this pantomine is helping the OP or the economy recover.
It's a mexican stand off and a case of who will blink first.
People across the road from us couldn't sell for a year - took it off the market - have seen the seasonal blip and put it back on for 15% MORE than they couldn't sell it for previously. Oh how we're all laughing! Mind you, if someone pays that then well done them....but I doubt it as we've not see a mass of buyers beating a path to the door!
Mexican stand off is a good description.
As abetadad says, it's what they are actually selling for that matters, not what the list price is. Friends of mine just bought a house and on the website it says £310,00 but we know they offered a cheeky £55,00 under that and got it! So, that won't come to light until the figures are available...and then the penny will drop.
Betadad is right you can ask what you like whether you get it is another matter!Houses have no intrinsic value it is all determined by economics employment interest rates etc I think prices will fall very sharply after this summer when winter 09 into 10 continues in the same way people will have to realise the partys over
Well kind of Jeanie Jean or will others look and think oh it's sold and not look at the actual selling price ?
I guess we're all used to doing research online for absolutely everything but at least 50% of the population have never made an online purchase so would they then go and offer £300k thinking that they'd better get in quick as things are selling ?
Also if the vendors wanted £250k for the house in the first place, then they are laughing and your friend thinks they got a bargain but did they and who on earth pays £5k over the stamp duty threshold
It's all most strange unchartered waters at the moment.
Well someone might buy it if they have a rush of blood to the head - there's a reason this stage of the cycle is called the suckers' rally! People buy all the way through crashes, right from the top to the bottom.
It's spring. Estate agents are suffering from a lack of stock to put on the market and so will talk up 'recovery' just to get something to sell. Can't blame them - they will go out of business (and are) if they can't convince people to sell. And at this point in a crash this is sellers' final opportunity to take advantage of those buyers who do fear things are about to take off again.
Also EAs will be telling sellers that buyers are expecting big discounts, so to take this into account in the asking price. As a buyer it's hard not to be a bit swayed by asking prices, so if you get a 25% discount on the asking price you might feel you have a great deal - when really you are still paying a peak price. If nobody falls for it they will either have to take it off the market and stay there or submit to much bigger falls in autumn.
* quiet gnashing of teeth **
It's all extremely frustrating.
Round my way houses have been standing empty for a year or more as the greedy unrealistic vendors hold out for 2007 prices. It's just selfish - there are so many families in inadequate accommodation.
F*tons round my way are just having a complete laugh. It's like they think no one will look up nethouseprices.com and realise that they've valued their stock at 10% ABOVE all time peak prices for the road.
I viewed a place that apparently expected to make 50% return on 4 years ownership. Do these people not watch the news?
I guess we'll be going back into rented. Small consolation is that renting is cheap and getting cheaper.
We have sold ours & accepted an offer just £6k below the asking price. We did not overprice ours which I think is reflected in the high offer in the current market. I live in a very expensive area & tbh a lot of the houses that are for sale are ugly but people will pay a premium for them. Incidentally there is a semi-detached on the market close-by, on for £475k & last sold in 2005 for £405k. WTH?!!!!!!!!!!!!!!!!
kif - you mention something I have also noticed.
Agents and vendors seem to think that by adding 10% to peak 2007 asking prices and then 'agreeing to drop the price 10% for a quick sale' is the way to go. Well let them hang on the market - renting is getting cheaper very day and house prices are still falling as well.
LovingtheSunshine - the comments in the RICs survey back up what you say. Sensibly priced houses in good condition are moving quickly and selling at near the asking price - but are in short supply.
Lots of overpriced rubbish just hanging about on the market and many people just holding off putting their house on the market in the hope prices will start going back up.
This is going to be a long drawn out crash.
DwayneDibbley - I know what you men about 1950s decor - do people never decorate? We refuse to rent anything that is not pretty modern now. We have even done a bit of minor decorating in some houses in exchange for a longer lease.
I am 46 (DW 45) and have owned a house and at the rate we are going I will hit 50 before we do. Not against the idea but just never got round it due to circumstances.
From talking to people in the property industry, current prices of older houses can be fairly accurately estimated by taking 25% off the peak August 2007 price in the street or area you are interested in. For recent new build flats take 50% of the orignal 'new' sales price - many are being sold as repossessions at auction or by private sale in whole blocks by developers who are desperate.
Not may vendors actually willing to accept that low a price at the moment - only really forced sellers, repossessions or probate sales.
Websites like Rightmove (along with many others) have the sales prices for each house sold to a private buyer since 2000 in each street in England & Wales (not sure about Scotland).
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