Propery prices falling so why won't sellers budge?

[nkf]

If you want to move, it makes sense to sell. Right. And on paper, it can be a good thing because the gap between house 1 and house 2 might be less if prices are falling. But although people know that, they won't drop their asking price. I know at least two people who are desperate to sell. Need to leave London but they won't drop the prices significantly. What are waiting for?

When new builds start falling it affects other prices quite quickly as building companies like that base their prices on land values.Also they need to get some sold usually to finish off the rest.Bovis homes have announced a 86% drop in sales since january today which is huge.There is a development near brighton station where a 3 bed luxury appartment that would have been 350 -400 last year is now 245.

Noddy slightly off topic but I know you are Brighton property expert and you have just bought. What do you reckon is a realistic price for this house? I think v overpriced.

www.rightmove.co.uk/viewdetails-18887671.rsp?pa_n=1&tr_t=buy

I pulled out of that house!Survey shocking.That house is worth about 250-275 imvho.There was one a few doors from it that was on at 350 earlier this year and then sold but fell through and is 330 now but not budging!It looks lovely though and is in a nice location.

Actually is 310 now and i think at one point was 375.

Noddy tell me more re survey - did you make an offer?

sorry my message was unclear I pulled out of the house i had bought not the house in the picture

And......which agent has the other one?!

wyatts

Noddy I am confused now! You think the house in the pic is worth 250- 275? *nd you pulled out of buying the house a few doors away?

I think if it'd on at £340k then 30% off = 100k so I'd offer 225k and be prepared to go up to £250 tops. But I always say that on these threads!

We are moving into a rental place next month that's costing us 2K a month. It was listed for sale for 725K but the sale fell through and the owners are desperate to move to get into a catchment area.

For us as first time buyers, we're just going to sit it out, keep saving, and hopefully snap up a bargain when the market hits the bottom

Most people selling want to buy another house. They are not willing to gamble on accepting a really low offer incase they can't get a low offer accepted on their next property. Prices have been falling for less than a year. It takes time for people to get their heads round this.

ALso, just as it was unrealistic when prices were rising: "well, this identical house on our street sold for £50,000 more than [we secretly thought our house was worth] so our house must be worth that as well" - to use that as some kind of proof of what houses are worth is fairly meaningless unless your buyers are very gullible or desperate to buy because they feel prices are spiralling out of their control.

OTH, in a buyer's market the arguement "well this identical house on your street sold for £50,000 less than you are asking so that is proof of its real worth" just doesn't compute because there will always be some people who need a quick sale (bereavement, divorce, emigration, change of job) and to use their low price as a barometer for all other prices in the neighbourhood is unrealistic.

But that is in a nutshell what causes boom and bust in housing market.

Amen.

foothesnoo - apols for butting in, but I know the Bton market quite well and the house is round the corner from me .
Noddy (sorry for speaking for you!) didn't offer on either, but responded to your comment that she had bought a house in Bton recently

As Noddy says, there is one just along from the one you have linked to that is on for 310k, down from 375k, then 350K.

Both houses are terraced, and there is a big, steep slope at the back, so gardens are not huge and may be a bit overshadowed.

I personally think that they are overpriced at over 300k. They do look quite roomy, and are a bit different from the typical Bton terrace, but the area while ok, is not highly regarded, and cars do tend to race on that road (to get onto the estate further up and around the hill).

A year ago, then I would reckon that they might go for 35ok, but with houses on Ditchling Rd now on the market for around the 350k (not all, some), then no-one is going to pay over 300k to live on the 'wrong side'.

As to the OP - yep people either don't need to sell, or can't face 'losing' money by accepting a low offer. I do think a lot of sellers in Bton just don't get it yet, and asking prices aren't going down here because they think Bton is some sort of bubble. They will end up chasing the market down methinks...

Noddy and Listers - what do you think a 4 bed terrace, 2 double, 1 single, 1 attic conversion + shower room, smallish garden but not courtyard, on Dover Road BN1, should go for nowadays?

Non-basement eakamoose?

If so, I would expect it to be on for about 365k, but I wouldn't want to pay more than 300k tbh. Hwr, I just wouldn't buy at all at the mo. I just am not sure whether prices are coming down, or if they are going to crash big style with a big recession. Until I feel clearer, I wouldn't want to put money into property which could well be worth a lot less in 2 years time. While Bton prices are logical for the typical ex-London market, they really are very high for poor quality housing stock. You really don't get much for your money here, and areas are really polarised by price which isn't reflected in the actual house. A year ago, you would pay an extra 100k+ for a house 3 streets away from another - mad!

Sorry - that's prob not very helpful is it?

Just wondered, while we're on a Brighton tangent - does the secondary school lottery system seem to have had any affect on house prices?

No, its interesting Listers. Thanks for replying. The owners are friends of mine. They think its worth £400, £450 at the peak last summer. Just goes to show, doesn't it? (am not planning to share your opinion with them btw).

How could you possibly tell, when combined with the price crash? Too many things to factor in.

SPTP - I haven't really thought about it too much as not much is shifting anywhere at the mo! I have to say though that the lottery pretty much reinforced the status quo. Houses that were in the 'good' catchments still are, those that were 'maybes' for the good catchments were not so well priced, and if now not in the catchments, then the price deferential is probably slightly more. Those never likely to be in the good catchments are still a lot cheaper than than thei would otherwise be.

I am not sure about the effect on Westdene and Prestonville though, but for the main, I would say not much change. Houses still overpriced all around, but some areas much more overpriced than others!

Thanks Lister I made a right mess of that explanation!Have come back from holiday to lots of messages and reductions!Also a fair few re available.Dover road houses are sweet but not worth 400.There are houses in the preston pk area now between 299 and 350 in better roads so soon people will have to re adjust.I think they are not selling at a premium around here because the schools are not a dead cert any more.

Thanks Noddy and Lister. That house looks roomy inside which is why I was tempted to go and have a look - also like the idea of the basemement, plus the garden does look quite big in the pic (all things which are hard to get in 5ways area!)

Sorry your house fell through Noddy, I guess the longer you look the more of a bargain you may get though.

How funny! As a dover road resident i would suggest that a 4 bedder would prob go on the market for about 370. We are considering moving out of brighton but are worried that prices in brighton seem to be plummeting whilst in other areas in sussex the prices are only dropping by 4-5 % (according to property snake). Not that sure what to do for best.

The house in stanmer looks v nice.

We sold in London just in the nick of time. We exchanged in August and suddenly the prices had dropped so much that if we had waited later than early summer to sell we would have been forced to stay put. I know more than one couple who had to rent their house out and rent somewhere else instead of selling and buying. They were forced by scary drops. Ironically there are more and more houses up for sale, even here, in the West Midlands. People are so scared that prices will drop further they are selling, but they are not prepared to drop much, though. Just curious to see when we, the chain-free ones, will turn up and view. Luckily the research we did paid up and prices are very reasonable here. I love the area too and don't miss London one bit. Also it helps our rental home is very nice so we are not forced to buy too soon. I hated the idea of going into rental instead of buying but it's worth moving twice!

Well, I just offered £200k on a £280k house in need of complete modernisation, and was promptly knocked back by the EA. Apparently, "all properties nowadays are priced to reflect the current market." [hmmm]