To think current home sellers are living in a fantasy world?

[CanStopWillStop]

We are looking for a new home (out of necessity unfortunately!) so I am now deeply buried in Rightmove.

The most significant pattern I'm noticing is that dozens of sellers, who according to Land Registry bought their properties in 2019/2020, are listing their homes at £100-200k more than they paid two years ago.

Considering the current dire outlook for mortgages &cost of living etc, AIBU to think that this is absolutely ludicrous money they are chasing?

I understand some people may have remortgaged or are looking to upgrade but a £100,000 mark up on a 3-bed bungalow you've lived in for a couple of years is mind-blowing to me. What's happening here? Greed? Desperation? Do they really think people can actually get mortgages on overvalued properties? AIBU?

Where I live there are selling overnight for well over the asking ..

I'm sorry but I'm going to take what I can to get to my dream house .!

This probably explains why I keep seeing so many sold properties being put back on the market months later... crazy times.

Where I live there are selling overnight for well over the asking ..

It was like that here at the beginning of the year, I walked away from one that we went 50k over on. It's another story now.

Brothers house just sold for £20k over asking, Valuation done first time buyers sailing through without issue so far. They manage to get 15 grand knocked off the asking price of the one that they’re buying but the vendor still made 70 grand in less than 18 months.

they are going ahead with the purchase because they have very secure roles and they have the first part of the mortgage locked in at something ridiculous like 1.5 so the additional borrowing at 3% is still peanuts.

obviously this is anecdotal and it’s one scenario but I doubt it’s terribly unusual.

Yes we had an estate agent over value ours. We ended up knocking 15k off ourselves as it was overpriced and couldn't get people through the door. Glad we did because we due to move in couple of weeks, if we had left it we would never sell now. I know it's not the same as 200k but for our area it made a difference

If you’re moving up the ladder it literally makes no odds that you reduce yours as long as you buy and sell in the same market. If there is this fictitious house price crash the only people that are gonna get smashed are those that will receive less inheritance let’s be honest so the sympathies minimal there at the best of times but as a byproduct of that of course they’ll be less money to fund social care so either way the first time buyers/younger generation are going to be paying.

Why??

Again. Nothing has a price until you either want to buy it or to sell it.

Those moving up the ladder types with secure jobs? Have you any comprehension of the LEVEL of recession we are about to enter. NOTHING is safe in this climate.

I suspect this sentence might have been the clincher?

Competition for houses not in a shit hole area is crazy and will only get worse

I mean, it’s not necessarily greed. We bought our home as a new build in 2018. Didn’t expect to make any significant money on it and infact would always have been happy to walk away with what we put in; it was just somewhere to live until we found our dream home.

Then life happened, had DS, covid hit, etc. We decided to stay put for a while and needed to remortgage this year. NatWest’s surveyor came and valued the house at £100k more than what we paid for it and we couldn’t believe it, until we looked at other houses in the area on RightMove and realised they’d all gone up proportionally too.

There’s nothing to say the prices will stay there of course, but if we were to decide to sell now, what would be the sense in me ignoring that valuation and putting it on for less than it’s apparently worth? That’s really not greed IMO, it’s common sense 🤷‍♀️

I wasn’t meaning the NW 1 though! Every are in the country (and every country ) has shot hole areas!

A house we looked at in 2018 that sold for 465k was sold in 2020 for £675k. All they had done was put a wood burning stove and an Aga in.

We bought in Jan 2020. Just had house valued for 205k more than we paid for it. We have spent 60k on upgrading it and have changed every room, new boiler, electrics etc. but even so….!

I genuinely would urge anyone considering buying now, to WATCH THIS FILM. It should be obligatory viewing. Particularly if you don't really understand economics as it's entertaining, but it explains what led to the crash and the exact same thing is happening here right now.

It's got Ryan Gosling and Brad Pitt?

The Big Short - film about housing crash 2008

I live in an unremarkable seaside town. Someone up the road has just put their small Victorian mid terraced house on at just under £800,000. Utterly baffling.

It’s a strange attitude when people like OP think that others are living in a fantasy world. A house is worth what someone will it for it. OP, if you cannot afford it or your offers are being rejected, then you need to manage your own expectations. If they are overpriced, they will come down in value or be take off the market. No one has an obligation to sell you a house at a price you think is reasonable.

What’s your point? The market crashed and then picked up again and house prices are way higher today then they were before 2008. People trying to time the market rarely win. They mostly end up regretting not buying when prices were lower.

@whenwillthemadnessend

don't get me started…
every estate agent I have ever come across has been as bent as a nine bob note

snakes 🐍

Supply is still short though. Bungalows in particular are always in high demand. Recent article in BBC highlighted how brand new estates in North West being bought up by Hong Kongers. This is a small island. There may be a small re-adjustment, but supply and demand will always dictate price.

@aboutanidiot You realise the big Short is a fictional film yeah for entertainment it’s not a documentary 🙄
We don’t play The Wolf of Wall Street to people on their first day as an introduction to banking and finance 🙄🙄

They bought at peak prices. The global economy crashed. People paid 1 mill for houses worth peanuts when they tried to sell.

If you cannot see that UK bonds are at risk of becoming junk bonds, that the market will crash, that the housing market is inflated, that we're headed into a recession with almost no more borrowing power, you're deluded!

It's like a perfect storm.

Are you 2 years old or something?

I'm pretty sure it's about as much as some posters are able to understand.

aboutanidiot

You sound a bit desperate. 🤣

Except the UK economy is about to bottom out so there is nobody in the world who wants to live here right now. Sure, when it bottoms out and people have ended up destitute and we start to come out of recession in 2 years time, then it might be a place to buy.

Luckily I don't have to worry too much. I'm trying to warn people. Take it or leave it!