Asking prices just havn't moved !?!?

mean_momma

neverdespairgirl wrote: »

I've had trouble for some time understanding this "nice places aren't for sale / on the market" or "nice places don't drop in price".......
....... Quite big reductions in asking price there - 20% off.

Therre are always exceptions to the rule and these are hardly normal times.

One charming feature of the current market that causes sales to fall through is 'gazundering' whereby the buyers suddenly reduce their offer at the last minute, just when they think that the seller is hooked. Only a desperate seller would fail to tell the buyers to get lost. Why should someone thinking of selling willingly take on a market place where buyers expect rock bottom price, plus a further discount, plus cut-throat tactics in the final stages? Better to sit it out until some sort of stability returns, with static prices and more equality between buyers and sellers.

skap7309

neverdespairgirl wrote: »

I've had trouble for some time understanding this "nice places aren't for sale / on the market" or "nice places don't drop in price". Can't see it in my neck of the woods.

Exactly NDG, over time ALL properties will reduce in value as the money to fund them just is not there anymore and is unlikely to be seen again.

skap7309

mean_momma wrote: »

Therre are always exceptions to the rule and these are hardly normal times.

One charming feature of the current market that causes sales to fall through is 'gazundering' whereby the buyers suddenly reduce their offer at the last minute, just when they think that the seller is hooked. Only a desperate seller would fail to tell the buyers to get lost. Why should someone thinking of selling willingly take on a market place where buyers expect rock bottom price, plus a further discount, plus cut-throat tactics in the final stages? Better to sit it out until some sort of normality returns.

Have you ever heard of gazumping? It was rife during HPI so why is it wrong/different this time.

Thing is momma after watching Newsnight last night 'normality' may never return. Their words not mine.

Gorgeous_George

skap7309 wrote: »

Have you ever heard of gazumping? It was rife during HPI so why is it wrong/different this time.

Thing is momma after watching Newsnight last night 'normality' may never return. Their words not mine.

Because gazumping was wrong ad gazundering is equally wrong. I would use neither as a house buying strategy. However, if my lender reduced my mortgage offer due to a market downturn, I might have to reduce my offer for a potential property that I was buying.

Gazumping had no excuses.

GG

mean_momma

skap7309 wrote: »

Have you ever heard of gazumping? It was rife during HPI so why is it wrong/different this time.

Thing is momma after watching Newsnight last night 'normality' may never return. Their words not mine.

Yes, it is a bit of a Wild West out there. All the more reason to batten down the hatches, if you will excuse the cliches.

Yes, gazumping was rife, and wrong, especially when it cost the disappointed buyers in fees, but we are unlikely to see much gazumping nowadays.....Perhaps laws will be brought out to put an end to both.

kennyboy66_2

skap7309 wrote: »

Steve, it is not any of those. The thing is we are in this silly situation where no one will sell unless they have to. Now, what do they expect to achieve? Stay in their existing house FOREVER? Over time, of course people are going to want to move, regardless of the situation. They want to get on with their lives etc.

Those silly sellers eh ?

Perhaps you should team up with the "bond vigilantes" and force them to sell for 20% less than their asking price.

There is no end of research about how people don't like taking a percieved loss. This applies to shares that have lost value ("I paid £x, they must recover), and it applies in another form in retail promotions ("Buy 2, save 50p" - have you ever wondered why its not advertised as "buy one - pay 25p extra").

Equally it applies to people who are looking to move house.
They know what the percieved value of their home was a year ago and that becomes a real stumbling block to sell for a realistic price now. Yes they might be looking at another property that might have fallen by as much or more - but they will know the history of prices in their road much better than anywhere else. The fear of losing out will outweigh the potential gain.

Why do people, many who have waited for many years to buy ('they want to get on with their lives etc' afterall), think that voluntary sellers are incapable of waiting as well ?

It ain't logical but thats people for you. Booms happen, busts happen, because of human behaviour, not governments or banks.

People will sell in the end, but it will take years and years.

kennyboy66_2

skap7309 wrote: »

Have you ever heard of gazumping? It was rife during HPI so why is it wrong/different this time.

Thing is momma after watching Newsnight last night 'normality' may never return. Their words not mine.

Each practice is equally odious, but I would imagine the Gazumping will always be much more common (over the property cycle) - the final two parties 'win' - the seller and the over bidder, the loser being the party whose original offer was accepted.

In Gazundering there is always going to be a loser - the seller. Unless you are desparate to sell, 98% people will just refuse to deal.

"'normality' may never return" - the medias definition of never stretches to 5 years at the most. I would be astonished if I didn't see another UK property boom in the next 25 years.

mean_momma

kennyboy66 wrote: »

Those silly sellers eh ?
Why do people, many who have waited for many years to buy ('they want to get on with their lives etc' afterall), think that voluntary sellers are incapable of waiting as well ? People will sell in the end, but it will take years and years.

Pros and cons of voluntary selling now:

Pro - you can get sell your houser cheaply, whilst buying a similar bargain
Con - your house would have to be really, really cheap
Con - you would have to find the replacement first
Con - the new seller might not agree to a discount
Con - you might get gazundered and not be able to afford the replacement
Con - if you found a real bargain, you might even get gazumped
Con - it will cost thousands in stamp duty/hips/fees
Con - prices might drop even further so you might be wasting money by not waiting for the market to bottom out

Any more 'pros'?

ad9898_3

Gorgeous_George wrote: »

If sellers want to sell, they will reduce their asking price.

Equally, if buyers want to buy, they will increase their offers.

Disagree with this, it should read.

If sellers want to sell, they will reduce their asking price.

Equally, if buyers want to buy, they will ask the seller to reduce, if they don't they will just look for another house.

Another myth is 'the shortage of housing', this will become more apparent as BTL'rs are forced to sell. You can check Rightmove, it seems in most areas, it doesn't matter what you want, flat, terrace, semi or detached, there is a huge amount to choose from.

chucky

ad9898 wrote: »

Disagree with this, it should read.

If sellers want to sell, they will reduce their asking price.

Equally, if buyers want to buy, they will ask the seller to reduce, if they don't they will just look for another house.

Another myth is 'the shortage of housing', this will become more apparent as BTL'rs are forced to sell. You can check Rightmove, it seems in most areas, it doesn't matter what you want, flat, terrace, semi or detached, there is a huge amount to choose from.

this one is also applicable for many people

Equally, if buyers want to buy, they will ask the seller to reduce, if they don't they will increase their offer. If this isn't accepted they will just look for another house.