Vendors kidding themselves right?

[NorthernLurker]

There's a house just come on the market up the road from us. Being nosy I've looked it up on Rightmove. They bought it two years ago for 249,999 - which was too much then and is the highest price a house on this street has ever fetched. Now they are marketing it as 'offers above' 249!!! Who are they trying to kid? Do they seriously expect that somebody will pay extra stamp duty etc and pay more than the house was worth two years ago? I don't subscribe to the apocalyptic predictions of some - but even I think these people are living in la-la land!

[Jampot]

i looked at a house 18 months ago which was on the market then for 250k and sold in August 07 for 237k. It's back on the market at 250k! hmm...

[MamaChris]

But (as a buyer/seller in this market), even if I saw "offers above 249", I would expect to be able to offer 220ish, and get it for 235 max. (I haven't been successful with my haggling strategies tho!)

How much did prices rise in 2006-7? They've fallen by 10% since then, but perhaps they really are back to 2006 prices?

[findtheriver]

Well it won't sell will it?

I agree, some vendors just seems nuts.

House prices have fallen - it's an undeniable fact. The only reason a house would retain it's value or even go up, is if it has something unique, a specific point which makes it hold it's value. eg if it's an amazing house right on the coast with wonderful sea views, and in an area where new building is not going to happen, then yes, something like that would sell because it's a rarity. There will always be a very limited number of properties like that, and there will always be people who want them.

Anything else is subject to market forces.

[JustPoppedIn]

No prices still not back at 2006 prices, not in area anyway. And my FA told me our area had been in a 'bubble' and not hit as hard as surrounding areas.

[noddyholder]

Silly.No one can accept it esp agents who harp on about bubbles and recession proof houses while the economy falls apart around us.Just because asking prices are static in an area doesn't mean thats what they are worth.Get a surveyor a realistic agent and a mortgage compnay in and I think you'll find 2006 price would be a miracle.There are no immune bubbles no matter how good the local school is or how desirable it once was everywhere needs to fall and will.W ehave just bought and we complete nest week but had keys today to go round and measure a few things.When i picked the keys up the secretary said I can't believe you got that house for that price but the agent said 'I can'So everyone knows but some just don't admit it.

[critterjitter]

I think the problem is that people who bought in the last couple of years are looking to get out of the market having recouped what they paid for their house, plus estate agents, solicitors and stamp duty costs. In their own minds, they probably think that this is fair, compared to say last year when it seemed that just about everyone was making stonking profits....

I know that when I've done a Zoopla on the many overpriced properties that have just sat on Rightmove and PrimeLocation for months now, virtually all of them were bought within the past 18 months or so.

Psychologically, I don't think some of these vendors are able to accept making a loss on their properties. Even though, they may well be able to get out of the market faster by making a relatively small loss now, rather than hanging on with the idea that a buyer might come along who will cover all their costs etc.

[KatieDD]

It's not their fault for years I've been laughed in the face at by people, estate agents etc who honestly believe that property only goes up, they weren't being twats, well they were, but even though history proved otherwise they couldn't believe they would ever lose money on a house.
I have a tale, nearly wet myself, made an offer, pointed out to the people that yes it was less than they wanted but so would the house they were trading up to be, so everybody wins really. She said straight faced but I need the extra cash to pay for my holiday.
So I say straight faced, you expect to do nothing but live in a house, wear out the fittings, electrics, boiler with daily use and then sell it to me and I pay for your next holiday as well ?
She didn't like that at all {grin]

[clam]

But did she accept the offer?

[KatieDD]

Unfortunately not But she's a forced seller, I've not yet met a forced buyer so she will blink first and if not there will be other houses, would have just liked to get on with it IYSWIM.

[critterjitter]

KatieDD
Does she know that you know she's a forced seller? (IYSWIM?) Why is she a forced seller? Just wondering how long she can hang out for!

[critterjitter]

www.thisislondon.co.uk/standard/

20% off London house prices!

[oranges]

Do you know, we just made an offer on a house that was less than 10pc off asking price, and vendor was really arsey about it. BUT we have a 50 per cent deposit and were told by mortgage lenders that WE still can't borrow more than the amount for our offer, so we can't go up, even if wanted to. I think it's going to kick in soon that people just can't borrow the amounts to keep prices so high - its not a matter of buyers being cheeky, just what they can afford.

[noddyholder]

Hang on everyone!We exchanged yesterday complete friday only 3 weeks from start to finish.A bloody miracle and nearly 30% off last summers price and 22% off asking!

[oranges]

Wow Congratulations! I'm still scared prices will shoot up again (we are looking at nice bits of north london)

[expatinscotland]

congrats, noddy!

[noddyholder]

thanks can't wait to get out of here all my clothes are rotted away in the damp and we have all had a permanent cold Do not move to a basement anyone it is horrible

[KatieDD]

Oranges, the only way prices are going is down, this bail out has actually made things worse because they will have to raise taxes to pay for it so we'll all have less money in our pockets.
That vendor did you a huge favour getting arsey over 10%, you should now offer 20% less or you'll be kicking yourself for a long long time.

[jumpingbeans]

Good luck noddy, happy moving!!

[noddyholder]

I have a feeling this bailout will stabilise things and lenders have more or less been told to lend at last years capacity and considering the public are holding the purse strings atm and banks have been bailed rather than left to go under I think the whole thing will kick off again soon for a year or two anyway

[dinny]

Noddy, do you think proces will continue to fall into 2009 after this bail out?

not sure when we should start looking to buy....

[FimboGotAxed]

The house we wanted to buy last year (someone else got in first before ours sold) has just come back on the market for £359k. Last year it was on at £345 and the current owners paid £340 for it.

I think the current vendors are in la la land personally.

[noddyholder]

I think it may fall a bit more and then stabilise.It depends at what scale and level the mortgage companies start lending again.If they come up with any good deals people will still buy we are mad about owning in this country.

[dinny]

wonder how long it'll fall for...bet there'll be a surge in Jan

[noddyholder]

If banks start lending again it will start again.It was never about price for most people they seemed willing to pay almost anything but when funds dried up they stopped.Most estate agents are selling nothing atm but admit there are loads of people who would buy if they could get a mortagge so god knows what will happen next.

[dinny]

God, wonder if we shuldn't hang about then...???