Seller expectations too high?

tara747

As the title says really.

Homeowners have got so used to the 'HOUSE PRICE BOOM' headlines, they have been tracking the increasing value of their house and have mentally banked all the lovey jubbly 'equity'. A lot are in denial and can't bear the thought of their unearned notional paper wealth disappearing. Are their expectations too high?? Expecting us FTBs to pay a king's ransom and take out a 35-year mortgage for a shoebox flat or a two-bed terrace in a dodgy area. Now, let me just consider that one for a moment... um, no ta.

The rest of us have a more realistic idea of what a house should be worth, and simply refuse to pay (or can't borrow, in the case of some who will someday thank their lucky stars) the still-ridiculous asking prices.

Northern Ireland prices fell 34.2% in 2008 and are still falling, some sellers are deep in denial here but some have moved into the 'acceptance' phase.

pandamonia

tara747 wrote: »

As the title says really.

Homeowners have got so used to the 'HOUSE PRICE BOOM' headlines, they have been tracking the increasing value of their house and have mentally banked all the lovey jubbly 'equity'. A lot are in denial and can't bear the thought of their unearned notional paper wealth disappearing. Are their expectations too high??

The rest of us have a more realistic idea of what a house should be worth, and simply refuse to pay (or can't borrow, in the case of some who will someday thank their lucky stars) the still-ridiculous asking prices.

Norhern Ireland prices fell 34.2% in 2008 and are still falling, some sellers are deep in denial here but some have moved into the 'acceptance' phase.

i agree with you totally, lookin on proertybee i see people on the market 60 weeks not moved in price lol. wonder how long it will take before they accept?

Troubled_Joe

In other news: Pope still Catholic

skap7309

Rightmove report asking prices: -7.30% YoY.

Land Registry report sold prices: -13.5% YoY.

See avatar for details.

housesitter

Troubled_Joe wrote: »

In other news: Pope still Catholic

Pretty much. I agree with the OP but that's just life.


When I've bought and sold things second hand, I hold out when I'm selling and bargin down when buying.
Key is finding people who are weak enough to cave in. It's what salesmen do for a living.

Bide your time, you'll find someone who is distressed enough to make that jump back to reality.

sympatex

Boom on the way up, sticky on the way down! I think.

Every vendor (and buyer) will have different time scales, some won't need to sell, like wise some don't need to buy. It's matching a need to sell with a don't need to buy where the buyer is prepared to walk away and the vendor doesn't want to lose a sale. That's when they tumble. Need to buy people proper up the market although restrictions on credit and an overburden of debt is forcing prices down anyway irrespective of what people want.

It was only 18months ago when 100% mortgages were still in mainstream and that meant people would pay the booming prices because someone else could easily borrow whatever to outbid, and 'sod' the consequences...18months on that decision is being taken out of buyers hands. The banks (computer) says no.

domcastro

housesitter wrote: »

Bide your time, you'll find someone who is distressed enough to make that jump back to reality.

Don't have to be distressed to sell. The people I'm buying from have taken a loss (bought in jan 2004). But the house they are buying is a distressed sale - divorce. It was on for 350k in April, Reduced to 299 in October - I reckon they got it for under 275.

So really, my sellers have a "gain" - the loss on the one they are selling is much less than the "gain" they are making on the one they are buying

mitchaa

tara747 wrote: »

As the title says really.

Homeowners have got so used to the 'HOUSE PRICE BOOM' headlines, they have been tracking the increasing value of their house and have mentally banked all the lovey jubbly 'equity'. A lot are in denial and can't bear the thought of their unearned notional paper wealth disappearing. Are their expectations too high?? Expecting us FTBs to pay a king's ransom and take out a 35-year mortgage for a shoebox flat or a two-bed terrace in a dodgy area. Now, let me just consider that one for a moment... um, no ta.

The rest of us have a more realistic idea of what a house should be worth, and simply refuse to pay (or can't borrow, in the case of some who will someday thank their lucky stars) the still-ridiculous asking prices.

Northern Ireland prices fell 34.2% in 2008 and are still falling, some sellers are deep in denial here but some have moved into the 'acceptance' phase.

I actually think some buyer expectations are too high.

Some buyers expect sellers to sell their properties to take into consideration further drops in the market:rotfl:

You only need to read half the drivel that is sprouted on here to confirm this, ''house prices have dropped 20%, so i'll offer them 40% under then'':rolleyes:

Those who can afford their mortgage and that have bought in the last 5yrs or so will simply just sit tight and ride the storm. I think some future buyers think there will be bargains and houses galore.....The houses need to be put up for sale 1st

leftieM

It's not like that in NI mitchaa. It doesn't seem to matter how much people read about house prices falling by 30%, they still think it doesn't apply to them.
When we were selling 18 months ago we had a particular viewing. I talked to the people, who had a house to sell themselves (downsizing), and we were all muttering about the falling prices and how you had to be realistic etc. They put in an offer 10k under asking but 10k more than the other offer we had. It turned out that they insisted on putting their house on the market at 25k more than the valuation they had because "the neighbours had sold for that 6 months ago". They never sold their house.
As for the supply side - the market is awash with houses bought as investments. These houses are losing money every month for the owners. I'd say many don't have the luxury of holding on to them until 2016 (the predicted date that the market will return to it's peak levels here).

Rochdale_Pioneers

I think a lot will depend on where you live and what you live in. We bought a large 3 bed semi in phase 1 of a 3 phase development. Various people bought from new and put them on the market after 6 months hpoing for a quick profit. They failed to spot the other phases which at the time were still under construction - for what they wanted you could buy brand new for less.

So now that all 3 phases are up a couple of the wannabe-profiteers are still sat with their houses for sale, the price now cut all the way back to what they paid. And they're still not selling, because the house market in Teesside has ground almost completely to a halt.

As for us we've just watched the last of our equity float away - oh no! We've "lost" £45k!!!!! The house is now worth what we paid for it. Even with prices still settling downwards I don't care - no plans to sell it in the next few years and the prices of family houses will recover because ultimately demand still outstrips supply - or will do once mortgages become available agaain.

If on the other hand you bought one of these city centre flats that were going for silly money until not very long ago, you are frankly screwed. The market for such properties only ever existed in buy-to-let form, the developers building them en mase knowing they can sell them off plan to people putting them straight off to rent. Now that buy to let is effectively dead, how many of these small one or two bed flats will be sold to anyone?

housesitter

domcastro wrote: »

Don't have to be distressed to sell. The people I'm buying from have taken a loss (bought in jan 2004). But the house they are buying is a distressed sale - divorce. It was on for 350k in April, Reduced to 299 in October - I reckon they got it for under 275.

That's just bumping the distress up the ladder. Someone is distressed and you're benefitting from it, but indirectly.
Makes me feel better actually