Are sellers being unrealistic??

[foursquares]

Saw a property on Tues, made an offer of £425k (£15k under asking). Offer rejected, as buyer is looking for offers above £440k. Property listed in May. Apparently, no other offers received property yet.

Given house prices haven't really moved much since 2022 (post covid & stamp duty holiday), the number of properties on the market is at 12 year high, there's been a fall in buyer enquiries, mortgage costs are rising and there's an expectation of further interest rate rises..

Appreciate this is an emotive topic, but are sellers totally deluded??

Yes, exactly. Excellent post.

So the property which has been on the market since May is on at £440k but they want more than that. So why did they not market it for the figure they wanted to achieve or a little above that to allow for a lower offer?

If you love it, I would leave the offer on the table for a week but actively view other things, particularly through the agent they are on the market with so that they know you are a serious, active buyer.

Yes IMO it’s crazy. It’s a very small percentage below asking price. My house is much more modest but the sellers were exactly the same, I made an offer that was 6% under the asking price and that was rejected. I counter offered 3.5% below asking price and they still didn’t accept. I walked away and they came back to me about 3 months later to see if I was still interested. They still, at that point asked if I would increase my offer and I was honestly really shocked at their stubbornness when dealing with a house that hasn’t sold and such small percentages. They accepted the 3.5% below eventually and no one else made a single offer as far as I’m aware. I paid a bit more than it was worth most likely and I think it would have taken them a long time to sell but it was worth it to me personally. Of course they don’t have to sell do they but I think the estate agents should put a set price and state no offers below £440,000 will be discussed if they’re that set on what they will accept. It’s a waste of their time as well surely?

Not everywhere has dropped in price. My neighbour has sold her house for 200k more than I bought mine for a year ago. But where we live has become very popular and there is huge demand and very little supply.

One of the biggest delusions one the market imho is pricing houses that need extensive work as if trades still charge like it's 1999🙈

This made me chuckle..contacting you again and asking if you would increase. The real issue is estate agents deluding buyers that their houses are worth £x, when they know full well that is isn't 2020.

Some sellers are totally deluded

many properties for buyers to choose from, new houses have stalled in price, but some sellers are totally delusional as prices used to go up and up and they have missed the boat

I think that’s another Covid set expectation - I remember during the property craze then that there would be very little price difference between done up and needing work (and definitely not a “how much it would cost to do up” difference). It was all basically just price per square metre in the post code.

Your logic holds together well, and honestly the sold-data scarcity tells its own story - when sellers won't meet the market, fewer things complete, so the comps dry up. It's a sign you're in a street full of holders, not that you're missing evidence.

One thing in your favour: £425k against a £375k comparable from 2023 is already about a 13% uplift in a market that by your own account hasn't moved since 2022. So your offer isn't cheeky, it's arguably generous - which is worth remembering if the agent tries to make you feel like a time-waster.

The only thing I'd add to the valuation is the Land Registry sold prices for the postcode (free, and more complete than the portals' sold sections), plus checking what similar places are actually completing at now rather than asking. But it sounds like you've already done the thinking that matters: you know your number and why.