4 months later and sellers still in denial

ukcarper

“ 1) Those chancing it at a price over valuation who feel they may get lucky. ”

I think quite a few people may just put their houses on the market with the thought that if they can get a really good price they will sell and if they don’t they aren’t particularly bothered.

Also what price do you market your house at a lot of people on here are expecting you to drop by a substantial amount so do you offer your house at a reasonable price or leave it high and accept much lower offer.

princessamy86

Also what price do you market your house at a lot of people on here are expecting you to drop by a substantial amount so do you offer your house at a reasonable price or leave it high and accept much lower offer.

That's a really good point, I'd be interested to see what people on here think is the best thing to do. If a house comes on the market now, should it be priced accordingly, or should they go higher and allow for a drop? All the offers coming into the office this week are frankly ridiculous, £135k on a £200k house which has already been reduced from £225k!!! I appreciate they should probably take a lower offer but that takes the biscuit. I think some people have very unrealistic interpretations of the market.

QTPie

princessamy86 wrote: »

That's a really good point, I'd be interested to see what people on here think is the best thing to do. If a house comes on the market now, should it be priced accordingly, or should they go higher and allow for a drop? All the offers coming into the office this week are frankly ridiculous, £135k on a £200k house which has already been reduced from £225k!!! I appreciate they should probably take a lower offer but that takes the biscuit. I think some people have very unrealistic interpretations of the market.

If a house isn't priced "reasonably" then it just isn't going to get any interest int he first place... There is a house that I am interested in that is on at an asking price of 20% over the current market value... (and has been like that for the past 9 months). We probably will view it at some time, but in no hurry (we will finish the sale of our current property - should be completed by the end of the month), then sign a 6 month rental contract, then take our time looking and haggling. IF that house had been on a reasonable price, then we WOULD be looking now. The house I have in mind IS a very desirable house, but it has not gone under offer because the sellers have not priced it realistically (and or not accepted reasonable offers): their choice.

I think it is true... there is AT LEAST one post a day on here that says "the house we are interested is on at £nk, what should we offer? 10% less? 20% less?". Unknowledgable people do not have any appreciation of how to value a house... although, at the end of the day, the buyer is trying to achieve the lowest price and the seller is always trying to achieve the highest price that they can. If the buyer's and seller's expectations are ever going to come close to meeting, it is likely to be around the "sensible selling price" for that property in that area at that moment in time (assuming that we are "average joes" - attempting to get on with our lives).

If a desirable house is priced reasonably, then a sensible buyer is going to offer a sensible price for it. If the house is not particularly desirable and/or the seller is in a rush to sell, then they may have to consider silly offers...

There are a lot of people trying it on at the moment (both buyers AND sellers)... so most sales that actually proceed (and complete) will be where people are being sensible.

QT

princessamy86

If a desirable house is priced reasonably, then a sensible buyer is going to offer a sensible price for it. If the house is not particularly desirable and/or the seller is in a rush to sell, then they may have to consider silly offers...

100% agree with that! Think the problem is that some sellers still have that "we're aware of the recession, but it doesn't apply to us because our house is much nicer than hers down the road" attitude. Been to a lot of valuations where I've suggested a price and the vendors have almost recoiled in horror, but I'm trying to go for 6 week sale prices as there's just no point in their house gathering dust on my wall. If people want to sell, I think a sensible attitude would be lovely QT! Unfortunately I seem to be predominantly surrounded by slightly crazy people (also some lovely unlucky ones), shame we don't have a magic wand! :rolleyes:

besonders1

The biggest problem is when what a seller describes as a "silly offer" becomes the "going rate" or new generation of prices, then offers will be a an awful lot less than that. I think some sellers need to discover the "biting point" of which the market starts moving, I would suspect that would be 2005 prices at this moment. Although some houses are still for sale at 2007, no one knows exactly what offers have been accepted as EAs won't disclose this, you can only rely on their "word of mouth" (which probably would not be true anyway - as they'll say the market is fine! LOL) as the Land registry is often 6 months behind.

QTPie

princessamy86 wrote: »

100% agree with that! Think the problem is that some sellers still have that "we're aware of the recession, but it doesn't apply to us because our house is much nicer than hers down the road" attitude. Been to a lot of valuations where I've suggested a price and the vendors have almost recoiled in horror, but I'm trying to go for 6 week sale prices as there's just no point in their house gathering dust on my wall. If people want to sell, I think a sensible attitude would be lovely QT! Unfortunately I seem to be predominantly surrounded by slightly crazy people (also some lovely unlucky ones), shame we don't have a magic wand! :rolleyes:

They just aren't motivated to sell... even if it wasn't a recession, they would still probably be "optimistically" priced... sometimes you see people on here who have put their house on the market, but haven't even really thought if they ACTUALLY want to move yet :rolleyes: (crazy world!).

I don't know what type of houses you are looking at, but the higher end of the ladder (those bigger family houses) are the ones LEAST likely to price sensibly: they, more often than not, REALLY are in no rush to move and will attempt to stick it out. If they don't sell, then they probably don't really care.

AT the end of the day, it is all about motivation... personally I think that people are aren't motivated to sell shouldn't be on the market - it is a waste of everybodies time and effort (including estate agents').

Keep looking, keep viewing, keep offering and eventually it will work out

QT

QTPie

besonders1 wrote: »

The biggest problem is when what a seller describes as a "silly offer" becomes the "going rate" or new generation of prices, then offers will be a an awful lot less than that. I think some sellers need to discover the "biting point" of which the market starts moving, I would suspect that would be 2005 prices at this moment. Although some houses are still for sale at 2007, no one knows exactly what offers have been accepted as EAs won't disclose this, you can only rely on their "word of mouth" (which probably would not be true anyway - as they'll say the market is fine! LOL) as the Land registry is often 6 months behind.

But judging that "biting point" is sooooo hard! You often don't realise it until you are past it.

Some vendors just have very little intention of actually selling: as buyers, we have to identify these properties (often the ones we actually want!) and accept it

QT

rent_and_buy

I just dont think there are that many buyers out there, we have had our house priced really low campared to others in our area for the same style properties and we ae not prepared to drop it anymore.

We have not had one offer and the other houses in the area have hardly dropped in price, thats why we are going to rent, if we sold it for any less, i feel it would be hard for us to get reductions on the houses we are looking at.

Its risky renting, but its something i have always wanted to try and do, but never had the bottle to, but we are all set, house is off the market and we are hoping to get tennants in later in the month.

Having spoke to the agent today he reckons a lot of people are doing the same, and the rental market is a lot busier than the sales.

princessamy86

I'm an EA, talking about when I go out to suggest what they put their house on market for and they look at me as if I have sprouted 2 heads! I just don't want the house if the vendors aren't motivated, they seem motivated enough to shout at me when they have no viewings but then won't reduce the price as they don't want to "encourage silly offers"! Agree with besonders, 2005 is where we're at roughly and there's a lot of people who need to accept that. My vendor who wants to put price up £30k because he has added DG really needs to come back down to earth!

princessamy86

Having spoke to the agent today he reckons a lot of people are doing the same, and the rental market is a lot busier than the sales.

Very very true, at least you can move on and try again if things get any busier.