sales are up! why?

mewbie_2

Problem is...

I buy a 'bargain' at 130k now. That is the price of the house. Goes on Land Registry at that price. Seller wanted 150k.

In one year's time I want to sell property. Let's assume they have dropped 20k over that period. I market at 130k. Potential buyers check sales history, and make a simple calculation - 130k - 20k = 110k.

I could keep the original estate agent sales guff (don't we all), and try to persuade buyers that is was really worth 150k, but I got a forward price of 130k. I don't think they'll buy it, in any sense of the word.

justpurchased

mewbie wrote: »

Problem is...

I buy a 'bargain' at 130k now. That is the price of the house. Goes on Land Registry at that price. Seller wanted 150k.

In one year's time I want to sell property. Let's assume they have dropped 20k over that period. I market at 130k. Potential buyers check sales history, and make a simple calculation - 130k - 20k = 110k.

I could keep the original estate agent sales guff (don't we all), and try to persuade buyers that is was really worth 150k, but I got a forward price of 130k. I don't think they'll buy it, in any sense of the word.

Why sell your home after a year?
I think what a lot of people do not want to accept here that most people can afford a 10% 20% even 50% plus drop as they have the equity in there house. Will they want to sell it lower than there perceived value though! I doubt it.

IveSeenTheLight

Maybe, but I would not buy if considering selling in 1 years time.
Now I know peoples circumstances can change butm in my opinion when buying a property, you should be planning to be in there for 3-5 years at least

lesley1960

After having a very very slow 5/6 months at the start of the year we since have been fully booked doing removals and are booked up into September ( traditionally very busy time anyway) .......Its not just us other local firms are busy too

mewbie_2

lesley1960 wrote: »

After having a very very slow 5/6 months at the start of the year we since have been fully booked doing removals and are booked up into September ( traditionally very busy time anyway) .......Its not just us other local firms are busy too

Do you think they are owners or renters who are moving?

justpurchased

lesley1960 wrote: »

After having a very very slow 5/6 months at the start of the year we since have been fully booked doing removals and are booked up into September ( traditionally very busy time anyway) .......Its not just us other local firms are busy too

They wont like that Lesley, prepare to be called a liar or mad. Or worse they will criticise your spelling and grammar:cheesy:

neverdespairgirl

IveSeenTheLight wrote: »

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

I understand that. But if the place has been on for 8 months, and the only offer is £130k, then, in my view, that is the market value.

justpurchased

neverdespairgirl wrote: »

market value.

The word missing in your statement is current, every one knows at the moment first time buyers have now got deposits but can not get a mortgage easily. That could change in another 8 months as mortgage lenders are lowering LTV's. In 5 years it could be worth £200k+ you dont buy a house and try and sell it straight away do you, thus making it below it future value. in the end if it is a home does it matter!

0james0

neverdespairgirl wrote: »

I understand that. But if the place has been on for 8 months, and the only offer is £130k, then, in my view, that is the market value.

You missed a crucial bit in my post. "Imagine though your house has been on the market for 8 months and you've been reducing it throughout" So lets say in the example this house came on the market 8 months ago at £180k and has reduced each month inline with market reductions.

dopester wrote:

There certainly is. Especially when I have good cause to believe we are entering a major deflationary period.

I agree with you on that, but for the right people buying a home is still a good option as long as you buy sensibly and at a good price.

Read a post from IveSeenTheLight a few up, explained the scenario better than I did.

We're not saying house prices are on the rise or that the economy is not in trouble, we're saying that for the right people buying a HOME is still a workable and realistic option. -even without a deposit. Its a home, its not like buying a pair of trainers or a lump of gold. There is so much more attachment when buying a house.

annie123

just an update on my start of this thread...........2 more offers in today both within 5% of asking prices, 1 agreed 1 pending but they will prob accept, (they have a second viewer from another poss buyer on sunday).
one buyer w/d due to "evening standard report saying prices dropped by !0%" etc over the last year..........they only just noticed which planet have they been on?

Not many new properties coming onto the market, but should get better next month, it usually does.