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Debate House Prices
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House Valuation Q for Homeowners
Comments
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It has risen in value/fallen by less than average.Ok, the point of this is that there is an economic/psychological theory. This was demonstrated originally by some guys who went along to a pin (you know those enamelled badges) convention and gave away one of 2 pins randomly to people for completing a simple task. They then asked people if they wanted to swap the pin they had for the other one. Most people refused to swap.
The idea that was generated is that people value more highly what they already own (thus didn't want to swap for the other pin - despite them being of equal value) and my prediction was that more people would think their houses had fallen by less than average as a result.
The prediction is borne out by the votes although we don't really have a statistically valid sample. Thanks for indulging me.
The obvious real-world use for this theory when it comes to house prices is that in a falling market people will tend to chase the market down as they believe their house is worth more than similar ones.
It's probably a let down really. Thanks again to everyone who voted.
Like post 14.;)
Can I have a pin please.:D
Luckily in selling I did take of 10% of 07 valuation. Fortunatly business as taught me when you want to make a transaction you have to keep emotion out.
But fully agree with your post the vast majority will chase the market down as they belive they have done more than next door etc and it is worth more.
The truth is in a falling market you may have but you still need to price realisticaly if next door aint selling.:)
Sorry for the edit gen I think it was after the thanks so hope you still agree.0 -
Like post 14.;)
Can I have a pin please.:D
Exactly like post 14. It's why I didn't reply to it!
Unfortunately I'm hoarding enamel due to a thing I read on the internet (www.enamelrampers.com) so I am unable to provide you with a real pin. You can have a virtual pin though (it's a copy of a gift from Obama to the President of Iceland in fake diamondite and 18 carat copper):
0 -
Like post 14.;)
Can I have a pin please.:D
Luckily in selling I did take of 10% of 07 valuation. Fortunatly business as taught me when you want to make a transaction you have to keep emotion out.
But fully agree with your post the vast majority will chase the market down as they belive they have done more than next door etc and it is worth more.
The truth is in a falling market you may have but you still need to price realisticaly if next door aint selling.:)
Sorry for the edit gen I think it was after the thanks so hope you still agree.
I do still agree. It's an interesting theory I think (and Daniel Finkelstein is a very interesting read IMO - he was a psephologist for the Tories prior to 1997).0 -
It has risen in value/fallen by less than average.I do still agree. It's an interesting theory I think (and Daniel Finkelstein is a very interesting read IMO - he was a psephologist for the Tories prior to 1997).
Always been in to psychology and sociology.
If you can understand how people or groups think it makes it very easy to deal and sell to them. Not that I would use such things on people or groups, oh no not me.;)0 -
It has fallen in value by the same amount as the national average.We remortgaged in September 08.
Exactly a year before an identical house in our cul de sac (all built in the 90's - so think "little boxes") sold for £265,000 and not in great condition.
Our house with the addition of a conservatory and newly decorated was valued at £215,000 a year later.
A drop of just under 20%.
Neighbours house has been on the market for two years, they';d been asking £265K, then £250K now £225K and they are really just chasing the market down. Still not a jot of interest.
Realistically These houses are not worth much over £200K now which I still think is expensive for a 2 bed semi rabbit hutch.
When all this has come to an end and we can look back historically I expect these house to bottom out around £150K to £160K which is far more realistic....that would then mean a drop from peak of around 40%-45%.
We'll see, we'll only know the answer in hindsight.
Fortunately my mortgage is £70K which is peanuts compared to a lot of people, so none of it really matters as I have a nice home...0 -
Whats one of them then?
A psephologist is someone who studies how and why people vote and the impact it has on election results.
A Tory is a member of the Conservative Party. Either a cruel and heartless beast with only his own interests at heart or a clear thinking pragmatist willing selflessly to lead the country to the sunlight uplands of a new prosperity depending on who you ask.0
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