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Original poster

Starting to feel "the rage" about house prices.........

28 replies

Becaroooo · 28/10/2011 14:48

...I mean, its madness!

I live in Derbyshire. Smallish village. Good trasport links but nothing special.

There have been several houses recently that have come back on the market (chains fallen through etc) and they are coming back on at a higher asking price than they were originally!!!!

Now, if house prices are falling month on month (which they are) then surely they shold be coming back on at, oh I dont know, less ????

I think the market is really weird atm

OP posts:
mousesma · 28/10/2011 14:50

Are the markets weird though or are people just really unrealistic with their listing prices.

levantine · 28/10/2011 14:52

It is, I agree
We're on the market. The area we are looking at is getting more and more expensive. Average thirties semis that were £350 two years ago now on at £550. We actually viewed about three houses in August. None of them sold, one is now rented out and two off the market. I don't get it.

levantine · 28/10/2011 14:53

Estate agents are overvaluing and there is so little on that anything within a desired catchment area is being sold anyway. Anything not in school catchments seems to hang around forever.

levantine · 28/10/2011 14:53

being bought anyway that should say

Original poster
Becaroooo · 28/10/2011 14:54

I honestly dont know mouse

I would like to blame the EAs for doing it but if the vendor is adamant EAs arent going to turn away business, are they?

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noddyholder · 28/10/2011 14:55

We have been looking for a few months had several offers rejected and these houses went on to sell. out of 7, 5 have fallen through and come back to us saying they will take our offer now! But we are waiting until January. prices are falling and I think the true price reversal which was delayed due to silly interest rates and QE will start in earnest next year.

Original poster
Becaroooo · 28/10/2011 14:58

noddy Really? Interesting! I am seeing that too...houses being SSTC then after a few months coming back on the market. Chains seem very vulnerable atm.

Hope it works out for you!

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Original poster
Becaroooo · 28/10/2011 15:03

It just makes me soooo cross!

We viewed a house last month. 3 bed det with garage. Needs ALOT doing to it (new electrics, new boiler, bathroom, kitchen, complete re-decoration you get the idea!)

EA took us round. On at £170k. Been on at that price for over a year.

I took a look and told the EA that it wasnt even worth £140K, let alone £170K!! She agreed Why is she not telling her client this???? Why arent they telling vendors that what they need to do to sell is drop their prices, realise its not 2006/7 anymore and be realistic

Aarrghhhhh.......what a waste of time!!

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noddyholder · 28/10/2011 15:04

Sellers are so cheeky! We sold in july/august and had a bidding war! After it got silly I took what I considered a good offer that could proceed even though the other buyer wanted to keep going but I knew that would not help once the valuer came in and down valued it! But we can't seem to buy. We made one offer on a place only 3% below asking. After hearing nothing for 2 weeks!!!! they got back to us and said could they keep the offer on the table while they worked abroad and kept the house marketed for 6 weeks and if they had no better offers wold take ours!Shock.The agent who sold ours thinks we are better in rented he says it is dire atm

SansaLannister · 28/10/2011 15:13

It's because the government insists on punishing us savers to preserve people who took on too much debt through their own irresponsibility.

We're in rented and staying that way.

alabamawurley · 28/10/2011 15:40

Becaroooo, its not that the market is wierd - rather that there are high levels of delusion on the part of vendors; most of which stems from a misunderstanding of what drove prices up in the first place - increasingly easy access to credit.

For example did you know that by 2007, almost half of all mortgages were provided without any proof of income. Almost half!! And now banks are lending more carefully, many vendors are sat waiting for their golden goose to arrive in the form of an asking price offer funded by a generous and not overly fussy lender.

The Land Registry house price data (it's by far the most comprehensive HP survey - yes I'm a stats geek Blush) was released today and apart from London, actual selling prices have fallen everywhere in England and Wales compared to this time last year. So unless wages shoot up (unlikely) or banks start throwing money at borrowers again (even more unlikely) these people will be holding on to their depreciating assets for some time yet.

re. EAs - can't blame them for overvaluing really. They either give an honest appraisal and probably lose the instruction or inflate it and then have an outside chance of talking the vendor down later...

Yep, I've noticed more chains breaking in the last couple of months - don't know whether it's surveyors down valuing, banks tightening up lending or buyers getting cold feet though. Any thoughts?.

JeanBodel · 28/10/2011 15:55

As someone who works in an EA, can I just say that some vendors insist on their house going on at an inflated price, even when we have given them an honest and reasonable valuation.

With the markes as it is we're not in a position to be able to turn away the business, so we have to take on their houses and market them at a stupid price, knowing full well the price will have to drop substantially for them to sell.

Gonzo33 · 28/10/2011 16:04

My friend is an EA JeanBodel and he totally agree's with you.

I am putting my house on the market in February and I am definately taking his advice in relation to how much it will sell for and putting the house on at a realistic price.

Unfortunately I have no choice but to move because our family has now outgrown our home and ds needs a stable education now.

Original poster
Becaroooo · 28/10/2011 17:42

jean I am sure that is indeed the case but the EAs arent actually helping the vendors - and buyers - are they???

I know a couple who have taken the EAs valuation as gospel....now the EAs are pulling their hair out as this couple have had 2 £2k under asking offers and rejected them both!!! (no mortgage, both retired, no great need for the extra £2k)

Makes me weep

Sold our house in the summer and instead of listening to the EA (who I thought was a bit mad with his valuation) put it on at a very competitive price and it sold in 3 days.

Surely its common sense to look at the local market, see whats moving, look at prices for similar houses etc???

OP posts:
gazundered · 28/10/2011 17:58

I agree Beccaroo.

Why are agents taking these over priced houses on to their books?

plupervert · 29/10/2011 21:14

There. Is. No. Pressure. To. Sell.

This is not a real market.

timidviper · 29/10/2011 21:24

I'm in the NW and DH and I were only saying today that prices look lower in our local paper. Maybe it's just affecting the north!

Original poster
Becaroooo · 30/10/2011 14:30

That must be it, plup !

Stuff has gone down here since 2006/07 but its still high IMO.

timid The market in the SE and south is very bouyant AFAIK...

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RandomMess · 30/10/2011 14:37

I'm in the SE and everyone I know who is trying to sell and buy is having a nightmare no-one seems to be able to sell, lack of any offers let alone silly ones!

BeattieBow · 30/10/2011 14:46

my house that I sold in London in Summer 2006 for £730K is now back on the market for £1.2 m Shock. they've not done much to it - new kitchen and bathroom and underfloor heating from what I can see. I've moved back to London and have hugely lost out (expected to a bit, but not this much). Haven't seen much evidence of price drops/levelling out here, but of course where I moved to, the prices have dropped

noddyholder · 30/10/2011 14:47

beattie hellooooo! Did you get my text? Was worried Hope you are ok xx

Original poster
Becaroooo · 30/10/2011 14:48

Beattie

random Hope things pick up for you.

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mateysmum · 30/10/2011 14:55

Same here in the South West. Houses are coming on at ridiculously inflated prices, based on what the vendor paid in 2006-08, plus they want payback for any "improvements" and won't accept that life's not like that anymore.
Whilst the good, realistically priced properties are selling quickly, others are being reduced by 50-70k. Or, one house I really like has been withdrawn because the vendors can't afford to take what the house is really worth. They had 2 people interested but still wouldn't sell.
The EA's tell me vendors are just going with the EA who offers the highest valuation.
We've been looking for a year and can't find the right thing at the right price.

RandomMess · 30/10/2011 14:56

Fortunately we are not buying or selling (can't afford to upgrade!) just shocked at how bad it is around here.

SazZaVoom · 30/10/2011 15:01

My sister is in the SE and can't sell even though willing to take lower than asking price offers.

I think people are expecting to have to take large reductions on their asking prices as this is becoming more the norm in this climate, so in turn they are inflating the prices to compensate Confused. Barking!