sales are up! why?

neverdespairgirl

0james0 wrote: »

Imagine though your house has been on the market for 8 months .... you get an offer of £130k, you know your house is worth more but its the only offer you've got/ had.

If, in 8 months, the only offer is £130k, then surely the house isn't worth £150k. If it were, someone would pay £150k.

ManAtHome

0james0 wrote: »

If we got 10 fully qualified surveyors to value your house and they all came back in and around the same figure it would be pretty safe to say that was accurate.

Might not be official, but would be accurate.

justpurchased wrote: »

James they will not listen to your rational coments.

Rational??? You can line up as many "qualified" people as you like - if they aren't risking their money, their opinion is worth squat! You may have noticed a number of posts recently where EA and mortgage provider "valuations" have had more than a slight difference of opinion...

mewbie_2

neverdespairgirl wrote: »

If, in 8 months, the only offer is £130k, then surely the house isn't worth £150k. If it were, someone would pay £150k.

I don't know who is worse off in this imaginary worth scenario. The seller who has sold under what they thought it was worth (that's probably all sellers btw), or the buyer who at the time perceives they have got a bargain, because it cost less than the seller thought it was worth.

As prices continue to drop, the buyer will presumably have to adjust their idea of the bargain they got, and the seller may perhaps be happy to have got more than the new worth.

Jeez. I wish I hadn't bothered with that - sure you do too.

I do hope 'Jeez' doesn't offend anyone.

mr.broderick

neverdespairgirl wrote: »

If, in 8 months, the only offer is £130k, then surely the house isn't worth £150k. If it were, someone would pay £150k.

Interesting, let's say i put an offer in of £225k for a house for sale at £240k and is accepted..Surveyor turns up for mortgage valuation and values property at £200k. What's it worth?

dopester

mr.broderick wrote: »

Interesting, let's say i put an offer in of £225k for a house for sale at £240k and is accepted..Surveyor turns up for mortgage valuation and values property at £200k. What's it worth?

Depends if you have your own money to buy it, or whether you need to borrow it from the bank.

Like ManAtHome said... that scenario you've outlined has already happened, and been posted about by at least one person on the forum who wanted to buy (complaining about how the bank wouldn't lend them enough money and so had stopped them buying at the higher valuation rofl)

mr.broderick

dopester wrote: »

Depends if you have your own money to buy it, or whether you need to borrow it from the bank.

Like ManAtHome said... that scenario you've outlined has already happened, and been posted about by at least one person on the forum who wanted to buy (complaining about how the bank wouldn't lend them enough money and so had stopped them buying at the higher valuation rofl)

Well unfortunately i couldn't buy a house cash so a house wouldn't be worth what i would be prepared to pay for it then.

ManAtHome

mr.broderick wrote: »

Interesting, let's say i put an offer in of £225k for a house for sale at £240k and is accepted..Surveyor turns up for mortgage valuation and values property at £200k. What's it worth?

Depends how much dosh you have for the deposit...

nembot

As a seller, I was suprised to see how many potential buyers are still around. However, the three offers in the last couple of months have all ended in the buyers not being able to get a mortgage.

Chris2685

Bloody hell, you lot sure can argue about unknowns... No one knows what is going to happen in the future. For all you lot know, the government could win the Euromillions lottery and then Englands would be winnings again!

IveSeenTheLight

neverdespairgirl wrote: »

If, in 8 months, the only offer is £130k, then surely the house isn't worth £150k. If it were, someone would pay £150k.

I think what the OP is inferring is that buyer at the moment want to protect themselves from negative equity or future price falls. Why should they buy for 150K now, when they can buy for 130K in 12 or 18 months. They therefore can negotiate to pay under the market value to secure the property at a future price

If all data (surveys etc) shows that the estimated value is 150K and they manage to buy for 130K then they have on paper a 20K margin (not including deposits etc)

If then the property drops a further 10% in the next year , they will still have paid less than what it is valued at and thus not into negative equity

I highlighted the bit above about paying a future price and in a falling market this means paying less than what it is worth.
Similarly why in a rising market, people were willing to pay more than the market value as they believed that there house would be worth that in a year or two.