Want to sell? Then why cling to yesterdays valuation?

spuds_2

I think the points mentioned above are true, but there are other factors too. Most vendors would say they 'need' a certain price to move up to the next property. They may have budgeted say, an extra £50k on top of what they think their house will sell for. If they don't see the higher priced houses falling in price, they are reluctant to drop the price of theirs. I think many sellers don't want to risk selling their house to a 'low' offer, only to find that they cannot afford the kind of house they want. They would rather stay put.

So there is a bit of a stalemate in prices in some areas I would say, with only bereavement sales, repossessions, and those desperate to sell dropping the asking price significantly. I think this will gradually change as houses that are new on to the market may be more realistically priced.

chickmug

Year in year out whatever the market conditions you have the same mix of sellers.

1) Chancing it too high.

2) Trying to get it right.

3) Forced to sell to to extenuating circumstances.

The same mix but in differing ratios!!!!

I guess it is freedom of choice for sellers but I have seen some extraordinary cases of greed. Like a wife teminally ill but whose husband refuses to price according to the prevailing market, to get a sale, as he wants a minimum amount out. That was on £700,000 with no mortgage. I felt like saying do you want to wait for the top price and have a dead wife or do you want to sell quickly and have soem quality time until your wife dies. His wife wanted to sell up move to her dream bungalow and have the last months of her life there. This is the worst case but many similar.

QTPie

Simple, some people just aren't that motivated to sell...

They would rather stay on the market for 12/24 months for the chance of "getting lucky" and aren't too bothered if they don't...

If the seller is motivated and the house is good, then it will sell. If the seller isn't motivated, then...

QT

pawpurrs

I think you will find that most people that come on this forum are not clinging to yesterdays valuation, from what I have seen most of us here, are fully aware with what is happening in the world, and are happy to sell for todays valuation, however we may not be so happy to sell for todays price minus 30% for future falls, if we sell today we want to get todays price.
As in a rising market we wouldnt expect todays price plus 30% for future price rises.
Agreed there are a lot of properties on the market for 2007 prices but they are more likely to be head in the sand people than vistors to this forum.

chickmug

pawpurrs wrote: »

but they are more likely to be head in the sand people than vistors to this forum.

A rather good point you make in that visitors to this forum are NOT typical of the people that agents see day by day

lostinrates

pawpurrs wrote: »

I think you will find that most people that come on this forum are not clinging to yesterdays valuation, from what I have seen most of us here, are fully aware with what is happening in the world, and are happy to sell for todays valuation, however we may not be so happy to sell for todays price minus 30% for future falls, if we sell today we want to get todays price.
As in a rising market we wouldnt expect todays price plus 30% for future price rises.
Agreed there are a lot of properties on the market for 2007 prices but they are more likely to be head in the sand people than vistors to this forum.

As I've mentioned, a house I was looking at came into my price range at a price 40% below 2008 valuation on Friday. It had an offer on in that day. On Saturday it had a cash offer, lower, but immeadiately proceedable. I know this because we called to view on monday . The sale was not forced, the EA said the vendors had a second house bought cash but wanted to make good on something acheivable rather than hold out for much longer (on market 11 months I think) and the house was already very keenly priced comapared to comparables which are sticking. This was a house at what I consider the higher end of the market.

I think the thing is that to sell the prices are not now 'future' prices but are beginning to be todays prices I'm very sorry for people selling, and wish them good luck.

QTPie

pawpurrs wrote: »

I think you will find that most people that come on this forum are not clinging to yesterdays valuation, from what I have seen most of us here, are fully aware with what is happening in the world, and are happy to sell for todays valuation, however we may not be so happy to sell for todays price minus 30% for future falls, if we sell today we want to get todays price.
As in a rising market we wouldnt expect todays price plus 30% for future price rises.
Agreed there are a lot of properties on the market for 2007 prices but they are more likely to be head in the sand people than vistors to this forum.

And many of us, from around here, having sold at reasonable (today) prices would really like to BUY at reasonable (today) prices too

QT

besonders1

One thing we all most remember is that there will always be people that need to sell and that the prices would need to come down at some point otherwise, no one would be able to move house which is not what anyone who has their house on the market would want. I think buyers that wait the longest will get their home the cheapest. Sellers may set the prices but they don't control the market. From past experience of the last crash of which I did see plenty of over priced houses for sale in the early 1990s, but the longer they had it on the market the harder it was to sell Most of the sellers actually lost more money as they admitted that they tuned down higher offers thinking they would it would go up in vlaue. I must admit that I do feel sorry for buyers that bought in 2007/8 as many feel there is no hope in recovering their negative equity. House prices have gone up over 6 years very steeply a lot worse than they did in the early 1990s. Therefore they are almost guarenteed to drop sharply.