Home owners are in danger of overestimating properties by average of £35,000

lostinrates

Dithering_Dad wrote: »

Are they thinking of moving?

Yes. They have raised that if we remain in UK they would liketo come with us. There plan would be to downsize and have a granny annexe and then spend a few months a year renting somewhere warmer whilst they are so able, and when they are not they will be close so that helping them is easier.

(the problem is, though they say downsize they kind of mean they want three beds, two/three bathrooms, two receptions. I tenetatively suggested that the amount they propose to spend might not cover this: but it is all a very tentative plan

baileysbattlebus

It's interesting that people are perceived to always over value their house.

About 3 years ago we looked into remortgaging our house - we didn't in the end -

The bank asked us what we thought the house was worth - £275k I said, with fingers crossed. Surveyor came out and the valuation was £375k - quite a surprise I can tell you. We hadn't looked at property for 13 years so had no real idea of what anything was selling for/worth. Our house was/is our home and what it was or wasn't worth was pretty irrelevant. About the same time my daughter and her partner were looking for a house and I was shocked by the asking prices.

The street we live in has only had 7 sales in the last 16 years and 3 of those were the same house. The houses are nearly all different - and there are 19 of them.

I think unless you live in an area with a lot houses that are very similar it is quite difficult to estimate the value of your house, especially if you have lived in it a long time. Well it was for me, I didn't have a clue.

Really2

Dithering_Dad wrote: »

I think if you asked anyone in the street what their house was worth, they probably wouldn't have a clue and would overestimate. It's no difference with estimating the value of houses, cars or any other expensive item - unless it's your job to know, you have no real idea.

I'm sure that if we did think of selling up, the estate agent would quickly put us right about the house's value and then we'd have to make the decision on whether it was worth selling at that price or whether to stay put.

Thats a good point and points to the reason why this happens.

If you ask somone the value of something they are not looking to sell they will always over estimate. It is natural because if someone then replied I would give you that they then have something to think about.

It is the same of any asset if you are not looking to sell you would want an over market price for it to sell now. Be it a car or a house, the extra cost involved always make you think it is worth £XXX,XXX to me, and that is the important bit, it is how much it is worth to that person at that time not the open market value.


If you asked someone who was looking to sell the value of their house I dare say it would be closer but still overstated as people always leave in margin for maneuver on house sales.

Dithering_Dad

lostinrates wrote: »

Yes. They have raised that if we remain in UK they would liketo come with us. There plan would be to downsize and have a granny annexe and then spend a few months a year renting somewhere warmer whilst they are so able, and when they are not they will be close so that helping them is easier.

(the problem is, though they say downsize they kind of mean they want three beds, two/three bathrooms, two receptions. I tenetatively suggested that the amount they propose to spend might not cover this: but it is all a very tentative plan

That's something we've considered for my parents (mrs Dither in an orphan) especially as they get older. I thought you were quite young though (in your 20's?), so would be surprised if your parents were at the age where they needed you close?

JayScottGreenspan

Don't 90% of people think they are a better than average driver?
Same sort of thing I guess.

purch

They should have asked me what I think mine is worth !!!

That would have forked up their 'average' :eek:

WhiteThierry

Pobby wrote: »

Thought this quite interesting.
http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/houses.stm

this explains quite a lot, wakefield where im hoping to buy has only decreased 4.2% over the year, based on 411 sales. i had noticed asking prices are staying the same, although very few seem to be selling. The 1 that did sell in my area went from 110000 to 90000 and sold in a week, i guess if sellers were realistic they'd get a much quicker and probably higher sale. ps does anyone know the website that lists all hoses sold and the prices on it.

lostinrates

Dithering_Dad wrote: »

That's something we've considered for my parents (mrs Dither in an orphan) especially as they get older. I thought you were quite young though (in your 20's?), so would be surprised if your parents were at the age where they needed you close?

I am now no longer in my twenties

My sister was ad adult when I was born. I hope for the vigour of my mother at her age when I was born

Pobby

I have been receiving some good support from a HPC user about an area which we are considering retiring to. I am really surprised at some of the asking prices. Quite reasonable in the main.

Strange to say that it is fairly close to a town that is way, way higher. His advice was to really haggle. He said that quite a few folk are offering full price as it does appear to be quite cheap. There is also a lot of new build over supply ( surprise ).

blunt_crayon

Pobby wrote: »

Thought this quite interesting.
http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/houses.stm

I don't think that BBC thing can be right?!? I looked at my area, Chelmsford, and it says that the average property is down -6.5% in the past year. Then I looked at the annual figures for individual property types:

Detached: -9.7%
Flat: -12.6%
Semi: -16.0%
Terraced: -14%

Where have they got -6.5% average from those figures??