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Property/DIY

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Original poster

help! are we selling too cheaply? and is the market picking up??!

37 replies

vannah · 05/02/2009 21:36

because we have just been told that we are...
our flat was on last spring for 375k, by autumn we had reduced it to 340k and by xmas 320k, we have had an offer finally for 295 and accepted it as we thought prices would continue to plummet however there are tons of 'sale agreed' boards all over our road suddenly, we have had so many viewings since jan...and a 'friendly' agent (not ours) but one we had it on with before just called to say we are should be careful as the market is suddenly picking up.

I would dismiss this normally but it does coincide with whats happening ie tons viewings, prices that im looking at in our area have gone up... and we are selling our flat in a prime road at 80k less than the original price. A solicitor told me that i was lucky to have an offer yesterday, but Im now confused...
anyone?
thanks

OP posts:

Littlefish · 05/02/2009 21:41

I will watch this with interest. We've just had our house valued by three estate agents for much lower than we expected . All three said that they didn't expect the market to start recovering for the rest of this year, and they expected further drops.

ProfessorCalculus · 05/02/2009 21:55

House prices have started to rise, I heard on the news. But I can't remember what the source was.

expatinscotland · 05/02/2009 21:58

starting to rise. in a recession that is starting to spin out of control and when successive interest rate cuts have done nothing to stop it and most property was over-inflated by up to 30%?

i wouldn't count on it!

i'd take the money and run, tbh.

fishnet · 05/02/2009 21:59

Not to put a dampener on it but the report was the halifax report and it says that there is still a longterm downward trend despite average selling prices being slightly higher in January. Nationwide report says now 17.2 per cent lower year on year (which means even more from peak in Summer 07). BBC website has details

Things still have some way to go and the economic situation is not going to help.

GivePeasAChance · 05/02/2009 22:01

Take the money and run !

choosyfloosy · 05/02/2009 22:03

Take the offer IMO and don't be spun off your path by this. Sales agreed can fall apart again. I would agree it's picked up a little bit but I would be amazed if there's any serious rise in prices at all at the moment.

fishnet · 05/02/2009 22:15

Viewings will always naturally pick up after christmas since its a "christmas out of the way, new start to the year" time.

We've looked at a few houses since Christmas but would not consider putting in offers anywhere near the asking prices (most of which haven't dropped since 07 around here).

I think this report will do more harm than good. Vendors will focus on the headline and not read the rest of the report which says downward trend still and litle chance of imminent recovery and so even if they were thinking of being realistic about their prices they will suddenly start holding out again. Therefore nothing sells because vendors focus on the bit saying no recovery and thus the current stalemate gets even worse.

Very little is selling. The only things selling are those houses where vendors are being realistic. Buyers are tempted to look around because of the low mortgage payments but most will want a bargain to persuade them to buy.

namechangedforadviceplease · 05/02/2009 22:17

IMHO sales in Jan have picked up in Jan because

*Vendors are more realistically priced
*The festive period compels people to do 'something' to rejuvenate their lives, book a holiday buy a house etc
*people that have sold and are trying to out wait a crash got really pissed of living in rented places over Christmas
*There were barely any properties to view in Nov and Dec making buyers impatient so when people put them on for sale in Jan buyers leapt thinking there might be another drought.

I am no expert, just a FTB that has been closely monitoring the market but there have been lots of sales in this month definitely.

Original poster

vannah · 05/02/2009 22:19

many thanks...

OP posts:

diedandgonetodevon · 05/02/2009 23:03

I would say it depends how urgent your sale is. If you need to move soon, take the money. If not then there is less to lose from waiting.

sunshineandshowers · 06/02/2009 14:28

Number of recesions where house prices have risen is NONE. House prices will not be at 07 peak levels for years and years. TAKE THE MONEY and cross your fingers and toes it doesn't fall through.

lalalonglegs · 06/02/2009 18:43

No and no.

Rangirl · 06/02/2009 18:50

To be honest (and I speak as someone involved in the property business for 20 years) I don't think anyone really knows what is going to happen.I would concentrate more on the staus of your purchaser,sre they ready to proceed etc

ProfessorCalculus · 07/02/2009 00:26

A friend whose DP is a mortgage broker and has had no work for months has had three mortgages to arrange just in the last week. I think things are definitely picking up.

WideWebWitch · 07/02/2009 10:24

I don't think the market is 'picking up' - I tihnk some buyers are coming out of the woodwork but the proof will be in the pudding eg completions. House prices went up TWO HUNDRED PERCENT! They will continue to go down imo and revert to something closer to 4 x joint incomes.

Sensible article in The Guardian about it last week.

WideWebWitch · 07/02/2009 10:25

Oh and people may have made offers in Jan (which is where these 'picking up' figures have come from) but if banks don't lend money on these or sustantially down value houses (eg won#t lend what the vendor is asking for) then the sales won't go through. something is only SOLD when the money's changed hands, not when the offer's been made.

Guadalupe · 07/02/2009 10:31

If you have been trying to sell since last spring and have an offer from a commited buyer and you are keen to move I would take the offer tbh.

How much do you think you'd be able to put it up by, and is it worth the risk?

Guadalupe · 07/02/2009 10:32

Agree with WWW. There have been quite a few sold signs going up round here that are then for sale again.

Wonderstuff · 07/02/2009 10:34

I think they are starting to reach the lowest value tbh, I think that people are finally being realistic about value, definitely don't think that the prices are going up! What prices are new builds going for? Round here the newbuilds are cheaper than the resale property, imo this is because the builders are being realistic but vendors aren't.

Take the offer!

navyeyelasH · 07/02/2009 10:35

www do you have that guardian article by any chance?

popsycal · 07/02/2009 10:37

can i do a quick hijack since there are some vfolks around who know there stuff

we are desperate to move as we are bursting at the seams here and need to move closer to boys school too.

we are lucky that we have a small mortgage (

popsycal · 07/02/2009 10:38

omg my typing, spelling etc
ds3 here with me

Wonderstuff · 07/02/2009 12:52

The assumption is that the percentage increase will be similar across the market so if prices rise 20% your 100K house will rise to 120K but your200K house will go to 240K, so trading up a good thing if you can afford it at the moment...

WideWebWitch · 07/02/2009 12:54

transactions up doesn't mean anything

WideWebWitch · 07/02/2009 12:59

popsycal, I would take the view that you should move IF

a) you need to and want to
b) you can sell for more than you owe and
c) you are happy that if you sell for X% less than it's 'worth' (given that ANYTHING is only worth what anyone will pay for it!) then you think you can get the same discount on where you buy - so you have to drop 25% say but that doesn't matter if you also get 25% off your purchase
d) you can afford the mortgage even if rates go up by quite a bit

I really would forget about future value, almost, as long as all the above is fulfilled. What you DON'T want is to pay £100k, say, for something that is worth £20k in five yrs time because if you then need to sell in 5 yrs you will sell, pay back the £20k you got for it(or whatever your mortgage is) and STILL owe the remainder but have no asset to show for it.

So on a house that's on at £180k I'd offer 30% less as a starting point and be prepared to go up a bit.

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