The market in the West Midlands - caht with friendly EA today

[Springforward]

Just thought I'd pass this on, as I found it sodding infuriating helpful. I had a looooooooong chat with a friendly EA today.

Apparently, in my region a property either sells almost instantly or is likely to be on the market for months and months.

Nothing - at all - is going for asking price.

There are loads of vendors testing the market, who aren't that bothered about not selling.

The only successful sales are those with a motivated vendor.

Now I've written it down it looks so bloody obvious compared to our own experience - we have, in attempting this purchase, lost two repos to higher bidders, lost another property to valuation survey, failed to get a mortgage on one with a structural defect, and had three vendors pull the house from sale once we made our initial offer without giving us a chance to make a higher offer (and a fourth on the basis of our feedback, even though they knew we were interested).

I asked the EA what we were doing wrong, to bring all this bad luck to our door - she said she's got loads of potential buyers on her books having the same experience!

Hmm. We're still looking anyway, maybe the next one will be ours....

How frustrating.
We are in WM too and decided to get out of the market and rent for a while to let it all calm down. Couldn't be happier :)

West Mids here too. A tough market to sell in. We had so many insultingly low offers it wasn't true (and house was not over priced, but buyers seemed to think we should give it away) - this has also been the experience of other people I have spoken to. We have finally sold (for the second time), over asking price, but I'd probably agree with your EAs summary - either sells straight away, or is around for months.

Out of interest Blackduck, what % reduction was your most insulting offer? (We've never offered less than 90% of asking price - just wondered what others are doing.)

Oh, and second question Blackduck - did you do an "offers over" price? We did, it stopped the lower offers coming in, but we did get the figure we asked for offers over IYSWIM.

We did offers over first time round and didn't get any. Lowest below asking was over 25%and was clearly not serious as they went no further (same with other two really low offers) we had several approx 5% lower, ended up in biding war and offer over asking price.

Whereabouts in the W Mids are you? I only ask as I'm another W Midlandser (but in N Worcs rather than Bham or Black Country) and about to lurch in to the terrifying world of house purchasing and selling.... just wondering if it's as bad here...

Brum here, but moving to Worcs. where moving to I'd say market more buoyant, although seems to have slowed down recently.
Crap weather hasn't helped either.

Hi there we are in Sutton Coldfield and I would agree with the estate agents, either houses sell very fast or linger for months on the market. I think the key to it is realistic prices. There are lots of houses put on way over price that I could predict will not sell, and they haven't. It's a good area to live with lots of outstanding schools and I think this helps a lot with the desirability. We are pondering going on the market next spring, having bought at the bottom of the recession in 2008 it would be interesting to see how much it's valued at!

What I have noticed here is lots of houses going on the market now for what they sold for in 2007. The EA said that these were the ones most likely to fail at valuation if they went near asking price as the lenders have become far less willing to take a chance, in a static/ falling market.

I guess that's where we got it right then, didn't price at 2007 values, but below. Our problem was a lot of buyers who seem to think every house is over valued and every seller desperate (to be fair the half packed boxes probably didn't help) hence lower offers. We do live in an area where there is a predominance of a certain type of buyer.....

Probably. We tend to look at Zoopla for guidance, and have bought Hometrack online valuations before offering, which helps us to check if we're being reasonable with the offers TBH.

Completely agree with that picture. We have been trying to buy for 2 years now.
Have had 2 full-price offers rejected and 1 at 4% below rejected (been on market 9 mo)
We have no chain, mortgage agrees and in place. WTH?

Ketuk, sorry for your troubles but glad to hear we're not alone! Did you find out why the asking price offers were rejected?

Yes- 1 went to a developer, the other went to someone who went over asking price (was at stamp-duty barrier, so we didn't)

Sorry- have started a new thread, to find me a house, if anyone wants to (and knows Birmingham)

the third, the vendor just doesn't really want to sell tbh, just took forever to get back about the questions we had etc.

Hmm. We're currently really interested in a house but my gut feeling is that the vendor isn't actually all that bothered and will be a nightmare transaction. Even the EA is telling us they are rubbish at talking to them. We must be moved by Christmas now, so although the house is great, we're really not sure. Looking at another tonight thouhg.

Springforward - where are you looking?

Could someone tell me how much below 2007 prices properties are achieving?

My PIL live in a lovely village near Stourbridge. It's a fantastic 3 bed house with a big garden, 2 minutes from open countryside.

We want them to come closer to us in the South East (they are in their mid to late 70s). They have said they would like to live in a flat, as this would have less maintenance, so should be affordable, near us.

MIL won't sell "at a loss" by which she means less than her house was once worth, rather than what they paid for it, and spent on it. We are going up there this weekend, and it would be useful to know. (This whole thread is really useful, actually.)

According to Nationwide's calculator (www.nationwide.co.uk/mortgages/calculators/housepriceworth.htm), a house in DY9 9HT (random Stourbridge postcode) is worth 10.33% less than in Q4 2007.

Thing is 10.33% less than 2007 may look good in a couple of years!

spring- are you moving to get into a specific school? I think I have seen every property in bham at least 5 times, if you want some ideas

Thanks RChechire. I agree with you, and am also concerned that prices in the SE are at least holding, so the price to change will only increase.

We're looking in Shropshire - and yes, we have a list of school catchment areas we'd really like to get into! We've got a shortlist going now, not great but then there's no such thing as a perfect house I guess, but never before in a purchase have we had to think so hard about whether the vendor actually wants to move or not.

I have abandoned the idea of a perfect house.

Actually, I'm starting to abandon the idea of a vaguely okay house

Yup. I'd now settle for one we can afford, with a willing vendor, in catchment area, not on a shared drive though that's now soooo negotiable and mortgageable!