Yikes - what a price increase!

JennyW_2

I live in Surrey. Have just noticed a one bed home in my road up with a sold sign up (been on market for 2 weeks) - up for £182,500 :eek: I had one of these 5 years ago which I sold for £105,000 (what an increase.....)

I'm selling my 3 bed semi for £235,000 - why would someone pay £182,000 for 1 bedroom

sarah_elton

Well you don't know what it actually sold for.

And people who are mortgaging themselves to the hilt to scrape up the price needed for the bottom rung, and have no way to afford the extra £50k for 2 more bedrooms...

JennyW_2

well to get a sold board up in 2 weeks, probably wasn't far off the asking price. I sold within 2 1/2 weeks and only accepted £3.5K under the asking price. Houses go quickly around here

meanmachine_2

JennyW wrote:

I'm selling my 3 bed semi for £235,000 - why would someone pay £182,000 for 1 bedroom

If you can find a greater fool, then you can sell your place for any amount.

If people think the only way is up - and why wouldn't they after ten years of rises? - then they're prepared to pay stupid money.

The same principle works in reverse, however. Falling prices encourage more falls...

Surrey's always going to be fairly desirable, although the market has been pretty flat for the last 2-3 years, with only a recent "pick up".

I wouldn't pay that price, but then I'm not a fool.

herbiesjp

you could always check on other similar properties, and what they have sold for, via this link:

http://www.nethouseprices.com/index.php?con=sold_prices

royalsteve

meanmachine wrote:

If you can find a greater fool, then you can sell your place for any amount.

If people think the only way is up - and why wouldn't they after ten years of rises? - then they're prepared to pay stupid money.

The same principle works in reverse, however. Falling prices encourage more falls...

Surrey's always going to be fairly desirable, although the market has been pretty flat for the last 2-3 years, with only a recent "pick up".

I wouldn't pay that price, but then I'm not a fool.

I know what you mean....im looking for a 4 bed house in Earley, Reading (where I live at the mo), but there are some idiots paying whatever to get into this area.....a 4 bed in my road went for £520000, when it should have been £450000.....it has 1 bed more than our 3bed semi yet ours will market for about £320000....maybe i could sell ours to this idiots friend for over £400000......I heard theyre from London....so no surprise there then!

Milky_Mocha

Makes me wonder: do the mortgage valuations also come up with these prices? A mortgage company wouldn't lend that much if they didn't think the property was worth that much would they? Unless these are cash purchases?

JennyW_2

I had a walk past the house in question today, and it hasn't even got double glazing :eek:

charlie007

The mortgage people will agree if you have a big deposit to cover the amount they think is the overspend on the property.

bunking_off

Well, according to Nationwide, a property in "outer south east" worth £105k in Q1 2001 would be worth £189k now. Perhaps your neighbours have undersold?!? NB the UK average would have increased to £205k....

UK_Landlord_2

prices in newcastle have trebled in the last 5 years.

80k house in 2000 no selling for 240+ even after the recent drop of 20-30k