Why don't people reduce if the house isn't selling?

[donttellmehesalive]

Around here, it's a buyers market now. Everything has been on for months, lots coming back on, most reduced. I've only seen one sold in the past month in my price range.

But I'm fascinated by those properties that went on in the second quarter, were wildly overpriced, and are still there or reduced by a tiny amount. Some houses have come on in the past week for more than they were on for in March or April.

I always assumed they were people who were chancing their arm and didn't really care if they sold or not, or would only move if they sold for a lavish amount.

But I was recently talking to a neighbour who has been on for a year. She went on when everything was selling, but for about £100k more than the house was worth. Over the year, she's reduced by about £10k per month. It's now £120k less than it was on for last October, but there still isn't any interest and she says she's desperate to downsize and move near family. Why not price to sell in the first place? Do people take bad advice from optimistic agents, or what?

I wonder too @donttellmehesalive if they just aren't aware what people may be looking for now in a house or the work they'd expect to do?

When my elderly relatives were alive they would go round to a friend's for coffee but friend would have similar decor and circumstances. They'd probably only see the kitchen, living room and maybe the loo! There's no way they'd have seen bedrooms. They haven't got the Rightmove habit so won't have spent the hours I have staring at other houses .

Massive generalisation of course. But I have also noticed with my Mum, who has just done some work to the house she bought last year, that she found having workmen in totally overwhelming and struggled with the disruption. I doubt she'll do anything else to improve the house now.

I do think you get to a point where you are not interested in more renovations eg upheaval, money could be spent on different things. Also it's normal for different generations to have different tastes surely?

Also I think when my house is finished this time the kitchen will be new and the bathroom will be new both of which of it expect to last for a minimum of 10 years and maybe minor repairs carried out as we go, most normal people do not change big ticket items for fashion or because they fancy something different in complete contrast to Instagram .

I drive past this place in the way to my in laws - I’ve been curious about it ever since the for sale sign went up. Those carpets!

It’s a beautiful house though but those carpets cost an absolute arm and a leg back in the day and are in immaculate condition

Most older folk haven't fallen victim to the disease of social media and consumerism. They don't care what other people think and won't waste their money on vanity projects, twigs and simple words and phrases scattered around the house.

Why are people unrealistic about the price of their house?
-estate agents mislead them
-everyone anchors off the high in their minds
-whatever they are buying into us also over priced
-for regular people, their home is their biggest asset and undervaluing it would be a catastrophic mistake

Why are gardens nice but interiors tired in the homes of the elderly?
-gardens are a joy, keeping up with fashion becomes a bore
-gardening takes personal effort while interior decor takes money and pensioners don’t usually have high income

At the end of the day, decor is relatively easy to deal with. No need for planning permission, paint is cheap, I’d want to pick my own kitchen anyway, etc.

Actual buyers and actual sellers make the market. Not people who wish they could sell and wish they could buy. We’ve always bought for more than we’ve thought it was worth and sold for less. I think it always feels that way to get to a price that will clear the market.

@Mariposa123 much of the fixtures and fitting look to originate from the 80’s. Would be a fortune to update. Here is another one close by, yes it only has half an acre rather than an acre but it’s in far better condition and £100k cheaper.
www.rightmove.co.uk/properties/126760949?utm_campaign=property-details&utm_content=buying&utm_medium=sharing&utm_source=copytoclipboard#/&channel=RES_BUY

We bought just before covid at 800k for. 5 deb detached.

It was very run down. We have spent 2 years refurbishing. New kitchen bathroom. New windows. Doors. Boiler rads. Floors etc. The whole lot Spent about 60k so far

Houses in my village are now trying to get 900-a
Million for semis with less beds. It's absolutely ridiculous.

We plan to stay long term so can ride it out.

I think when it comes to gardens belonging to older people, they sometimes hire gardeners to do the work for them? I know my elderly neighbours across the road do this in the summer months anyway. Not sure what the inside of the house is like!

I've had an offer accepted on a house recently, it's owned by a single man, maybe early 60s. He raised his son there as a single parent and is now downsizing. At our viewing he made jokes about the decor and fittings etc, so was fully aware of its condition and said that he wasn't too bothered about updating.

It seems he has been on top of general maintenance over the years, though i guess older adults than this may not be as on the ball with these things any more. I've attached a pic of the kitchen and bathroom for your viewing pleasure. I look forward to updating them to my own style!

Surely no agent, given current conditions, would be advising anyone to do that

Agents get a percentage of the listed price not selling price - so yes they do over inflate prices.

Exactly this. I’ve lived in my house 23 years. I’ve completely refurbished it over the years but I have no intention keeping it up to fashion. People always rip out kitchens and bathrooms when they move in. I’m happy with my probably dated kitchen And decor. But then I spend my money on cruises, travel, weekend away rather than material items. Each to their own.

I suppose with gardens, I've noticed with elderly neighbours - they hire a gardener weekly or fortnightly to do the bigger heavier things like lawn mowing or hedge trimming. Then they themselves enjoy pottering around for an hour or two a day doing some dead heading.

Garden is then an enjoyable place to spend time and looks lovely.

That isn’t true at all they get a percentage of the sale price so it is in no way in their interests to talk the market down. Equally a bird in the hand is worth two in the bush so you better off selling three of them at 10k below the asking price than one at full price.

People always rip out kitchens and bathrooms when they move in. I’m happy with my probably dated kitchen And decor. But then I spend my money on cruises, travel, weekend away rather than material items. Each to their own

for many people it’s not either or, but there is no need to justify it, it’s your house, you should have it as you please. Yes if significantly dated it will have an impact on the sale price you achieve, but that’s a choice. Generally the cost of maintaining one’s home is recouped on selling. Not doing so costs on selling and generally more than the cost of maintaining would have been in the first place.

@Iliveonahill i’ve bought four houses and never once ripped any kitchen or bathroom out. However, if I’m buying one with 1980’s fixtures and fittings (as the one I have linked up the thread has) I don’t expect to pay the same price as a fully modernised house.

Well that's fair enough, I can't stand those trends.
However, that isn't really what we are talking about; 30 year old kitchens/ bathrooms are not what most families want.
In addition, basic maintenance has often been forgotten.
That's entirely the owner's choice but they should reduce the asking price accordingly.

People definitely don't always rip out everything when they move in. Most people can't afford to do this straight away.
You can spend your money on travel, etc rather than the house but will then need to reduce the asking price accordingly.

But that has been the point, for the last four years people have not had to drop their price to reflect the taste of their kitchen and bathroom.

And actually if you remember those Sarah Beeny programs all those years ago where people would spend 60 grand in the place up from top to bottom and then make 62 grand profit that they would’ve made from market conditions moving if they not so much has picked up a paintbrush my understanding now is that the asking price reflects the condition of their house.

“adding value” hasnt been mentioned for years, thank goodness

Taste is different to 30 or 40 years old. Those sort of places have been marketed for lower prices, even in the last 2.5 years boom and definitely now.

It's bonkers. This is up and you'd have to finish a job that the owners clearly didn't want to finish! www.rightmove.co.uk/properties/127599848?utm_campaign=property-details&utm_content=buying&utm_medium=sharing&utm_source=whatsapp#/&channel=RES_BUY

i think uou have misunderstood, house prices have reflected the condition for decades and decades. A dated tired house has always been much cheaper than an identical house in good condition.

this doesn’t mean dated tired properties don’t escalate in value over time, of course they do. As the value of money also changes, what you can buy for a pound now is much less than you could buy for a pound thirty years ago , plus areas become more desirable etc.

and a dated kitchen, bathroom or decor leads people to think other maintenance has also been neglected.

so A made up example would be a well Maintained property fetches 150k. But it’s poorly maintained tired identical house next door struggles to get 100. But the owner of the dated house would have bought it for 50 grand 20 years ago and is making 50 grand profit.

the owner of the maintained house also bought for fifty grand 20 years ago and spent 30 grand doing it up, they get that 30 grand back and 20 more.because they are selling it for 150. So they make 70 grand profit and get the 30 back they invested in doing it up

The Sarah beeny program focused on quick turn around houses. Someone buying, renovating and selling. Flipping it, that’s a very different discussion.

There's a place near me for almost 400k. Every single room is in need of renovating. It is straight out of the 70s. Absolutely staggering and so dispiriting to think this is the state of the market.

When I look at the pictures on RightMove, I just look for the electrics. Very often you have a bedroom with one double socket, or sockets in the skirting boards, or no visible sockets. Indicates a new owner is in for the cost of a rewire. Estate agents always say ‘That’s reflected in the asking price’ anyway.

Sockets in skirting? Can you explain, please?