House valuation - help please!

[labsarelife]

House valued at 450k in Aug 2017. Out on at 440k. Few viewings. Reduced to 415k after 12 weeks, end of Oct. Had about 6 viewings since but no offers. Phoned agent yesterday and asked bluntly, what price will we sell it at. Answer, try from £350/375k! Person from the same estate agency that originally suggested marketing it at 450k, with a view to attaining 425k.
I am dumbfounded, speechless, upset and frustrated. Our future projections were based around 400k minimum.
If you have experience of this industry, please can you comment as to how ludicrous you find this (or not!)
Thank you.

[wowfudge]

???! You're putting words in my mouth.

[Molly1969]

How am I putting words in your mouth?

[wowfudge]

To think your area is immune is just wishful thinking

I never stated that.

Jumping to conclusions might be a better way to put it.

[Molly1969]

Thank you for accepting that the London crash will hit the rest of the country, and is has probably already started hitting the Op's area, judging by her experience. Her estate agent would have known crashes spread out from London and that the OP did not have the luxury of trying for a record price before the crash hit her area.

[NewImprovedNinja]

TROLLY MOLLY more like. You might have had problems with the company you used but that's no reason to make such silly generalisations. Also, you were particularly unkind to the OP and really should apologise for your nasty comments.

We sold 4 years ago in the UK and our local Estate Agents happened to be a women only practice. I found them extremely courteous and helpful, especially when they did the viewings.

[Molly1969]

NewImprovedNinja
The market was very different 4 years ago, people paying silly money and bidding up prices to unsustainable levels. The market is now crashing, and it is a very different environment. A lot of people will be underwater, perhaps by a lot of money.

[aRespectableBureaudeChange]

I don't see it as unprofessional - they are reacting to the changing circumstances - and giving you advice on what price may actually spark interest to shift it.

However, it is unprofessional that EA have overvalued in previous years to win new instructions. Due to ease of access to low cost credit available - people have not looked at whether that extra 20% is reflecting anything tangible, other than people outbidding one another with easy credit which, in the case of btl, they are only servicing the interest element of.



Gold standard for the Btl that created this bubble is that they never pay the debt off - they just borrow against a 25% deposit and hope for ever increasing prices to remortgage and release equity and buy up other properties.

The changes have been in place since 2015 for the btl and are beginning to finally bite, which is why the market has changed - it was happening anyway without Brexit - Budget 2015 started the process of removing advantages for btl against first time buyers.

Yes the property will be worth less, but the next step won't be such a strecth to borrow as that will reduce by the same amount - in time, when people realise what is happening.

[NewImprovedNinja]

Mine was not sold for silly money as I didn't live in the south east so kindly fuck off with your annoying generalisations.

[wowfudge]

I'm taking everything you post with a large pinch of salt Molly. I do not accept "the London crash will hit the rest of the country". Many other areas have never reflected London to start with.

[Molly1969]

NewImprovedNinja
Income multiples are absolutely ridiculous everywhere in the country. They are just beyond ridiculous in London and the SE. House prices are now crashing back down to earth.

[Molly1969]

wowfudge
You are going to be in for a shock when you discover how much selling prices are currently crashing.

[Changednamejustincase]

I don't really think it should be that much of a shock to the average person that their house isn't worth almost half a million. Half a million!
The average wage is around £30,000. Unless a person owns a feudal estate why would that be a shock?
What did you pay for the property OP?

[wowfudge]

Am I? There's not much that shocks me. I get monthly updates of Land Registry sold prices so I'm fairly well-informed.

[aRespectableBureaudeChange]

I have noticed in the Press over the last few years an increase in the "not making a return on your London rental? - Look North, West, East" etc.....

So I do think that this time the London bubble has filtered out to places it would not previously have impacted - with btl buying up "cheap" properties and renting them out to locals - who then can afford a larger deposit on their move up.

I think a reverse ripple is in play and coming out of Central London and slowly beginning to reach outer zones.

All ok until the London buyers begin to realise they were last to the party at the "local village" and only people they can sell on to are locals - on local wages. Sounds a bit League of Gentleman - but is true.

[Molly1969]

wowfudge
Well, you will know that my mother put her house on the market for £700k (3 identical agent valuations) about 2 years ago, and accepted £550k last month. That is over 20% below her original asking price.

[Alwayscheerful]

What was the feedback from the viewings? is there anything obvious that needs changing presentation wise? De clutter? Neutral paints, de-personalise, carpet in the bathroom? Sorry to ask the obvious but skim read the thread and didn't notice anyone checking?

[aRespectableBureaudeChange]

Land Registry figures are always a few months out of date. EA are reacting to current market and upcoming interest rates, btl leaving market by 80% etc.

It has all been playing out since 2015 and EA are either very ill informed (a distinct possibility) of government policy and economics at play - or they've just rode the largest credit wave to the 'nth' degree and now waking up to what constitutes value to a real person on an earned wage.

The sort of buyers who actually wants to repay the mortgage and potentially own the property one day - rather than just pay the interest, remortgage and rent out to younger generation.

[WheresMyMuppet]

You are going to be in for a shock when you discover how much selling prices are currently crashing.

I've literally just accepted an offer. In London. For asking. I was not shocked. I did not encounter any "charlatans". I chose an agent I felt were well informed and who ultimately did a good job for me.

[WheresMyMuppet]

Well, you will know that my mother put her house on the market for £700k (3 identical agent valuations) about 2 years ago, and accepted £550k last month. That is over 20% below her original asking price.

Sounds like it was probably overpriced. Two years ago everything was still crazy!

[WheresMyMuppet]

I'm out of this one. Reasonable discussion with different viewpoints, knowledge based advice and experience based opinion are one of the great things about MN.

Sadly this thread has been lead away from that! Hope you get to where you want to be OP.

[Molly1969]

aRespectableBureaudeChange
House prices have been the victim to a massive credit bubble that is now bursting. People cannot afford anywhere near the silly prices that are being asked. The estate agents have surfed that credit bubble and made a lot of money out of it, but they were always fully aware it was just a bubble, given they often arrange the mortgages. They should have warned the OP that the market was on the turn, and she only had a short time before the ripple hit her area; and so advised her to price her house for a quick sale, before the crash arrived on her doorstep.

[aRespectableBureaudeChange]

Sadly Molly has some relevant points to make, but will make people switch off and just see the rudeness. Bit of a shame.

[Molly1969]

WheresMyMuppet
"Overpriced", yes, just like the OP's house and probably the house the OP wants to buy.

[jennyj123]

Ah the old value it high to get the instruction then slash the price to get an eventual sale and the Estate Agents 1% commission. When we sold our 2 bed flat valuation range was an incredible £100k from around 7 or so estate agents. We didnt go for the highest value as we did not believe it was realistic at all. Unfortunately EA's dont really care and only want the instruction for their commission, they know most people just go with the highest price but the market has changed and has slowed massively. Glad we didnt go in really high as we sold fairly quickly. Recently prices have been steadily falling in 2017 and 2018. New properties are listed on at 2015 prices then reduced and reduced until taken completely off the market. Only thing selling is priced low or realistically, if you really need to move just reduce price by £1k a week, it will sell eventually.

[Molly1969]

WheresMyMuppet
And for the record, I think my mother was being stupid, greedy and naive to ask £700k originally, and I thought the agents were wrong to suggest it (very respectable national companies). And, yes I was also stupid for not following my instincts to advise her that I thought it was overpriced.