Property Bee - Overpriced Homes

pandamonia

Is it just me or are there still 80% of the homes on the market today priced like its 2007?

On my property bee i have homes that have been on the market for over a year and they are trying to sell at the same price as they were in Jan 2008, even with discounts they have only knocked off a couple of thousand.

the average discount looks to be about 5% !?

if they discounted the 17-18% drop from peak these homes actualy start to look like ok value but considering the 15% further fall to go then maybe they dont? ive even got proof that they only paid 70k for the house in 2004 and now its up for 160k?

isnt it about time they got with the program and helped the market move along a bit..

mramra

Not sure how big a problem it is, but there are people who can't afford to drop prices without slipping (or slipping further) into negative equity.

I think this is a fairly major factor causing the current stagnation in the market.

SGE1

Completely different question which has just sprung to mind: when a seller advertises a property at a certain price, say "From 300,000" (not auctions), does that mean that they won't accept anything under 300k, that that's already a fairly low price, and that the seller's hoping for a little bidding war? Or are sellers expecting an offer below the benchmark?

mitchaa

Are you certain you are in a down 17-18% area? Perhaps your area is an area where prices have only dropped 5%?

This would be my 1st thoughts The country as a whole is down on average 18%, doesn't mean diddly squat though as it's not location specific.

Your 15% further falls is a fantasy, it is made up on hope......As of yet we have not invented the technology that allows us to see into the future

Additionally i suspect the vast majorities will sit tight and ride the storm, meaning all these dream affordable homes that people are expecting, may never appear.

chewmylegoff

SGE1 wrote: »

Completely different question which has just sprung to mind: when a seller advertises a property at a certain price, say "From 300,000" (not auctions), does that mean that they won't accept anything under 300k, that that's already a fairly low price, and that the seller's hoping for a little bidding war? Or are sellers expecting an offer below the benchmark?

it probably means that they haven't had any offers and are trying to be a bit unconventional.

anyway, the whole "offers over" thing doesn't stop you from putting in a lower bid. it can only be rejected.

i've seen things go along the lines of

1) £400,000
2) reduced to £370,000
3) offers over £350,000
4) reduced to £350,000

etc etc

dougs

pandamonia wrote: »

On my property bee i have homes that have been on the market for over a year and they are trying to sell at the same price as they were in Jan 2008

yes, I have that too. Several of the properties in my saved properties bit are now approaching a year+ on the market and, except for one or two that have knocked a token 5k off (these are properties in the 350-400k region BTW), they are still listed with the same asking price. Madness!

I just keep them there for curiosity now to see when, or indeed if ever, these sellers will wake up and realise what the current market is like. Have they all had their heads in the sand for the last 12 months :rolleyes:

pandamonia

mitchaa wrote: »

Are you certain you are in a down 17-18% area? Perhaps your area is an area where prices have only dropped 5%?

This would be my 1st thoughts The country as a whole is down on average 18%, doesn't mean diddly squat though as it's not location specific.

Your 15% further falls is a fantasy, it is made up on hope......As of yet we have not invented the technology that allows us to see into the future

Additionally i suspect the vast majorities will sit tight and ride the storm, meaning all these dream affordable homes that people are expecting, may never appear.

Well there are realistic sellers which have lowered their prices in line with the market 15-20% and still cant sell! but then these people who have been selling for over a year who havent.

the further falls are looking very very likely. look at bank LTV requirements, lack of FTB mortgages and ever tightening credit! not to mention 1-2k fees to pay for new mortgages. mortgage products being removed from the market and increasing job losses.

if a 18% off prices from peak already when the news wasnt that bad just imagine the falls that are coming in 2009

Also regarding your comment on negative equity. these homes have A LOT of equity in them as u can see from the land registry

silvercar

In my area there are some people who are still living in 2006-07, prices sky high and others who are desparate to sell and keenly priced.

One road you can walk down and see a couple of semis priced lower than the much smaller terraced houses. All because the semis are urgent sellers and the terraced can't accept that they need to lower prices to sell.

pandamonia

whats more funny to see is new build 2 bed apartments more expensive than 3 bed semi's

mean_momma

dougs wrote: »

yes, I just keep them there for curiosity now to see when, or indeed if ever, these sellers will wake up and realise what the current market is like. Have they all had their heads in the sand for the last 12 months :rolleyes:

Unfortunately, I suspect that these sellers realise only too well that the properties they aspire to buying are similarly (over?)priced. Selling cheaply in the current market conditions will get them nowhere, unless they wish to take the risk of maybe or maybe not finding a similar bargain to purchase.

moneysavinmonkey

An estate agent told me not to be put off by any houses I see listed with high prices as "the agent just probably hasn't had the balls to tell the vendor to lower it yet - but they will definitely look at any offers"