Diary of a London Estate Agent

do_it_today!

opps I mean NOT adding up

justpurchased

do_it_today! wrote: »

With respect pickles I haven't heard of anyone offering £10 for a house I know I haven't, its a two way thing here and the fact is a large majority of vendors are NOT realistic about what their house is worth in TODAY's market end of story. The whole situation has come to ahead because all that loose lending we have had access to in the last couple of years has disappeared.

I cant speak for all of the UK but even when two people have a job, have 20k deposit and little or no debt yet still struggle to buy a modest 3bed property in a scruffy part of London or even just out of London something is adding up here .

I agree, but also I think the people who are not realistic about price are not the ones who need to sell, they are a bit more speculative of the market "if it goes for that great if it doesn’t then I will stay"
Difficult for estate agents marketing them but the vendor will always want to get as much as they can for a property (even if it is above current market expectations, it may be lower than their perceived value)

pickles110564

do_it_today! wrote: »

its a two way thing here and the fact is a large majority of vendors are NOT realistic about what their house is worth in TODAY's market end of story.

Who is defining what Todays market is?
If all the HPC crew say that houses are worth 30% less than 2007, why are the vendors not selling at this price?
Maybe it is not true that they have fallen this much, Houses are still selling in my area and at 2007 prices.
Problem on here is that everyone thinks all areas will behave in the same way, this is not the case.
I think that buyers are NOT realistic about the true market state, if they cant afford at the price the vendor wants then tough luck, stop moaning and do something contructive to get to a price the vendor will accept.

Generali

pickles110564 wrote: »

Who is defining what Todays market is?
If all the HPC crew say that houses are worth 30% less than 2007, why are the vendors not selling at this price?
Maybe it is not true that they have fallen this much, Houses are still selling in my area and at 2007 prices.
Problem on here is that everyone thinks all areas will behave in the same way, this is not the case.
I think that buyers are NOT realistic about the true market state, if they cant afford at the price the vendor wants then tough luck, stop moaning and do something contructive to get to a price the vendor will accept.

It takes 2 to make a market. If buyers and sellers have different ideas about the value of something, it won't sell (or won't be bought if you prefer).

It's not a case of anyone being realistic about anything, it's about what you're prepared to pay or to accept in payment.

pickles110564

Generali wrote: »

It takes 2 to make a market. If buyers and sellers have different ideas about the value of something, it won't sell (or won't be bought if you prefer).

It's not a case of anyone being realistic about anything, it's about what you're prepared to pay or to accept in payment.

That is exactly what I am saying, buyers need to pay what vendors are requesting then you 2 will tango.

justpurchased

Generali wrote: »

It takes 2 to make a market. If buyers and sellers have different ideas about the value of something, it won't sell (or won't be bought if you prefer).

It's not a case of anyone being realistic about anything, it's about what you're prepared to pay or to accept in payment.

I agree, but I can’t see either side buckling unless they have to

do_it_today!

pickles110564 wrote: »

Who is defining what Todays market is?
If all the HPC crew say that houses are worth 30% less than 2007, why are the vendors not selling at this price?

At this point 30% is abit drastic....

Maybe it is not true that they have fallen this much, Houses are still selling in my area and at 2007 prices.

Are they really? - not so in my area - but saying that maybe prices in your area in 2007 were more realistic than they were in my area at that time.... I dont know - what I do know is that an 80k leap in house prices over one year is not realistic - I have examples of this in my area!

Problem on here is that everyone thinks all areas will behave in the same way, this is not the case.

Agreed - areas are different

I think that buyers are NOT realistic about the true market state, if they cant afford at the price the vendor wants then tough luck, stop moaning and do something contructive to get to a price the vendor will accept.

People don't have to sell and so wont - but at the same time I dont have to buy either and I'm certainly not going to pay an inflated price for a property just because someone has seen misguided people do it in the last two years and feel they can get the same money too...
and to be fair I haven't seen any oh my god I must buy this house at all costs :j type properties and live here for the rest of my days atm (perhaps this is because these type properties have owners that dont want to or need to sell!) and maybe this is why I'm not rushing to slit my own throat!
Anyway im not part of the HPC crowd but lets keep discussing :T

pizzagirl

pickles110564 wrote: »

, buyers need to pay what vendors are requesting .

Er......what? If that were the case prices would never fall. Rather it is vendors who need to be realistic given the current mortgage famine and the end of irresponsible lending by banks.

do_it_today!

pizzagirl wrote: »

Er......what? If that were the case prices would never fall. Rather it is vendors who need to be realistic given the current mortgage famine and the end of irresponsible lending by banks.

Exactly:money:

Cannon_Fodder

pickles110564 wrote: »

That is exactly what I am saying, buyers need to pay what vendors are requesting then you 2 will tango.

what tosh! (a bit harsh, perhaps, but that's what it made me say out loud!)

why do buyers HAVE to pay what's been asked?

just as a seller has the right to refuse to sell if they are not happy, so a buyer can choose not to increase their offer, if they are not happy.

in time, the seller may decide they've had enough of hanging out for top-dollar, and seek to negotiate.

equally, the buyer may decide that is the best house for their needs, and prices have not dropped like they had hoped on some alternatives, so re-visit that house.

then, you might get to compromise and start negotiating towards both parties being happy.

I realise some people put up for sale "on a whim", to "test the market", but months of keeping the house tidy, being available for viewings or having to go out for the agent to do the viewing, is not much fun.

so IMO its sellers who have to make their minds up, do they want to sell or not, if the answers is yes, take the best offer/negotiate as hard as you can, then negotiate hard with your next purchase.

sure I've seen this (below) mentioned before, what stage do we think vendors are at, currently?

http://en.wikipedia.org/wiki/K%C3%BCbler-Ross_model