What "might" it be worth now......?

1984ReturnsForReal_2

dopester wrote: »

Well I didn't know all this about the appeal of barn conversions for a big premium.

I do know there are lots of rural pretty properties about, and sellers chasing a lot less money in the market.

Maybe some of the people who aren't needing mortgages are actually the ones trying to sell now... to try and escape falling values and cash up?

You so know it...

ShelleyC_2

PasturesNew wrote: »

There are a few things at play here:
- it was new, now it's second hand
- there is a falling market
- you don't know how much they NEED to sell -v- WANT to
- barns are limited availability in some areas
- what was the quality of the conversion anyway

Difficult to put a price on it. We'd need to be RICS valuers with an intimate knowledge of your actual local marketplace.

How much is it worth to YOU?

It's funny I thought the second hand thing too but my friend laughed at me saying its a bl00dy barn and previously housed cows!

Its funny you mention the RICS thing. You're so right. An attempted purchase of a different barn conversion. I'd offered £410,000 and the surveyor said excellent condition but overvalued and said it was worth £350,000. I was mad at the time but he actually did me a huge favour and spotted the falling market before I had (Sep 07) It's still on the market for £375,000.


PS I know I was daft not to have spotted impending doom in 2007 but I didn't so

ukcarper

Isn’t the reason new houses lose money because all the white good, carpets etc that were included in the sale are now second-hand. Plus the incentives builders offer were included in the price.

System

Rollerball wrote: »

It's not going to be worth much more than £300K in a few months' time in my opinion

Wow, a 7%(ish) drop per month?


mmmnnghh.

amcluesent

>Is it this one?<

Gah! That's hideous, the worst sort of Focus DIY fixtures and fittings for that 'Life On Mars' era style, and it's not a barn conversion - it's a cow-shed conversion. There's no hight in any of the spaces and you're bang next to the farm.

lostinrates

Sometimes threads just catch you in a different way, this is one for me. I have largely ignored the norfolk property market my entirely life, apart from about 10 years ago when in preparation for graduation and considering post grad education in the commutable area I briefly tried to see what I could get for £250k in Norfolk and Suffolk. I didn't go ahead and I didn't choose that route, but it just made me realise how the market has changed in ten years.

chewmylegoff

Joeskeppi wrote: »

Wow, a 7%(ish) drop per month?


mmmnnghh.

just because they paid £390,000 for it when they bought it, doesn't mean that the market value was £390,000. it could just mean they're gormless overpaying idiots - in the same way that if i buy a £1 coin from you for £2, doesn't mean the market value of the coin is £2.

dopester

chewmylegoff wrote: »

just because they paid £390,000 for it when they bought it, doesn't mean that the market value was £390,000. it could just mean they're gormless overpaying idiots - in the same way that if i buy a £1 coin from you for £2, doesn't mean the market value of the coin is £2.

Well you've chosen one example where people and markets stay quite rational. Few people are going to get involved in a mania or bubble of buying coins with a known face-value for more money every year.

Your explanation though does hold true for markets and market-value, for many other items people buy for ever higher prices, including for property.

It doesn't take that many "gormless overpaying idiots" buying homes for more money, each month, every year, year-after-year, to cause all house prices to increase in value at the same rate, or to rise in value further still.

In 2001, some buyer comes along and buys a terrace in a street for a new record price any terrace before was bought for on the street. Say £7,200 more. Not only does that house have a new market-value, but the rest of the houses on the street are lifted in perceived value.

All the existing owners think, "Well my terrace is near enough the same, or better, so mine must be worth that or more."

The semis on the slightly nicer street around the corner get lifted upwards in value as well. Well if new buyers are paying that for one of those terraces, then our nicer homes were about worth that before, so they must be worth more now, and the market and the EAs agree. And on it goes.

The effect of one-buyer agreeing to buy at a higher price than property sold for before, is what causes the market-value of all property to keep rising. When the new buyers to the market keep buying property at higher prices, month-after-month, year-after year.

dopester

Friday, 20 September, 2002, 23:00 GMT 00:00 UK
Growth of property paper millionaires

"The rapid pace of house price inflation
over the last few years has led to a
significant increase in the number of
property paper millionaires."
- Martin Ellis, Halifax

http://news.bbc.co.uk/1/hi/business/2271167.stm

My contention, is each year, due to the fewer active buyers in the market paying more for houses on the "rungs" below, every month, it has pushed more home up to be worth over £1 million.

Even for owners who don't have their homes on the market and up for sale. Just living in them, for decades, happy at finding they now live in homes worth more than a million pounds, with the values pushed up by the constantly higher amounts active buyers are buying houses for.

Fast-forwarding to 2007.

Property boom trebles £1m-plus homes
Simon Lambert, This is Money
22 September 2007

The effect of the property boom has been revealed by a new report showing that the number of homes selling for more than £1m has almost trebled over the past five years.

Almost 6,200 homes in England and Wales sold for seven figure sums in the year to the end of June according to Halifax Estate Agents - a huge increase on the 2,250 sold in the year to June 2002.

Bolstered by rapidly rising house prices the amount of £1m-plus properties in England and Wales has reached around 88,000 from 30,000 five years ago.

http://www.thisismoney.co.uk/mortgages/house-prices/article.html?in_article_id=424564&in_page_id=57

chewmylegoff

dopester wrote: »

The effect of one-buyer agreeing to buy at a higher price than property sold for before, is what causes the market-value of all property to keep rising. When the new buyers to the market keep buying property at higher prices, month-after-month, year-after year.

it's undoubtably a factor, but i think that saying Mr X paid Y for house Z therefore house next door to Z is now worth that much and can definitely be sold for that amount is a gross oversimplification of what actually happens.