Hilarious! People in my area are increasing their asking price!

Dan:_4

nearlynew wrote: »

This time next year, prices will be lower than they are today.

no guarantee this time?

IveSeenTheLight

Dan: wrote: »

You first said this back in July last year, must be some massive rises coming in the next 3 months according to your 100% guaranteed prediction!!

Surely you mean massive falls in the next 3 months for his scenario to unfold.

Doctor_Gloom

fimonkey wrote: »

I've jsut got to laugh, have these guys not heard of property bee? Do they only ever read the press that says HP can only rise? Are they oblivious to the state of teh economy?

On Rightmove, in my area (BH23) and 1/4 mile around, a search properties priced over 100K (no point looking below that figure, its all mobile homes) will show at least 5% of owners have INCREASED their price,.. most of them since the budget too!

Oh how it makes me laugh... I will laugh even harder if they actually manage to sell - Good on them if they do (it won't be to me).

Is this happening anywhere else?

Yes, these are very clever people. This is how their thought processes work:

My house is worth x
But I can't sell it for x.
Therefore my house must really be worth more, I know, I'll try to sell it for x+y
But it still won't sell, I'm really confused now.



:wall: :wall: :wall:

IveSeenTheLight

lostinrates wrote: »

a friend of ours has recently exchanged on a home that was bid up 20% from an optimistic asking price....some people can just make amazing financial decisions, others just aren't very MSE.

I know a colleague who bid something like 6.8% above the asking price and was 8th out of 10 bidders.
Waiting a couple more months to see what it actually sold for but wont be surprised if it is about 16% higher than the asking / valuation price.

http://forums.moneysavingexpert.com/showpost.html?p=30895185&postcount=18

fimonkey

Of course the clever sellers put their home on for a lower than average price and then sit back and enjoy the bidding war that ultimately happens as everyone chases the 'bargain' and the price eventually ends up higher than other similar properties asking price. If I were selling in this climate that's the tactic I'd take....

NearlyNew, its the same in my area, most of the increases are on properties that have been on the market for a while...

.. and if buyers aren't cheking out soldprices ansd propertybee then more fool them.. a fool and his money and all that.

And for the record, my gamble is on prices to bump along about this level for another year, .. until interest rates rise and the impact of higher taxation is felt.

bodgerx

nearlynew wrote: »

There's a few in my local area.

The funniest part of it is that they are houses which have been on the market for almost a year.

Greed and stupidity is a wonderful combination.

Jokers.

Same in my area as well. A few have been put up that have been on for at least 6 months. One of them has been on for a year and has just increased from 200K to 215K. What is the motivation behind this decision? Just because some other more attractive properties are selling quickly doesn't make yours worth more if it hasn't gone for the price its currently on...

nollag2006

fimonkey wrote: »

...Do they only ever read the press that says HP can only rise? Are they oblivious to the state of teh economy?

What press coverage would that be ? Only a fool would say that house prices ALWAYS rise.

Typically house prices rise steadily over time with corrections every 10 - 15 years, as that which occurred in 2008.

fimonkey wrote: »

...at least 5% of owners have INCREASED their price,.. most of them since the budget too!

Wow ! So a whopping great 5% of vendors think the stamp duty cut and the recovering economy might mean that their house price might have recently risen?

You are surprised at this ? Seriously?

fimonkey wrote: »

Is this happening anywhere else?

Yep.

House prices are up almost 10% over the past year ...

http://www.nationwide.co.uk/hpi/historical/Mar_2010.pdf

... and rising!!

Do keep up ... there's a good bear

:beer:

marc-h_2

I think agents must be suggesting to vendors that their house isn't selling because of lack of buyers in the market, rather than price. So naturally after a sustained increase in prices they would think that they should increase their price. In their minds reducing the price wouldn't help as the right buyer would buy it at the new higher price. I can't say I agree with the logic but that is what I would guess at.

harrup

fimonkey wrote: »

I've jsut got to laugh, have these guys not heard of property bee? Do they only ever read the press that says HP can only rise? Are they oblivious to the state of teh economy?

On Rightmove, in my area (BH23) and 1/4 mile around, a search properties priced over 100K (no point looking below that figure, its all mobile homes) will show at least 5% of owners have INCREASED their price,.. most of them since the budget too!

Oh how it makes me laugh... I will laugh even harder if they actually manage to sell - Good on them if they do (it won't be to me).

Is this happening anywhere else?

It is in SW England.

But here is the thing ..... I personally know 2 properties which didn't sell until they hiked up the price. Hard to fathom , but this is what happend.

Example 1 was an idyllic 2 bed bungalow. Would have needed lots of repair work but the setting and garden was specacular. On for 305K, didn't sell for 8 months.

The vendors increased the price to 325 one month ago, changed agency and it was sold almost instantly.

Example 2 : a 3 bedroom detached house: didn't sell for 345, didn't sell for 325, the moment they put the price up to 365 it was sold.

I think what may have happened was that EA told those vendors that they had to price the property "realistically" and "competitvely". The vendors obliged and then only got offers galore way below the AP which they didn't accept. Frustrated, they eventually hiked up the price in order to achieve what they wanted all along.... which I presume was 305 and 325.

This way the buyer felt they got a "good deal", and the seller got what they wanted in the first place.

Just a guess, mind you.

nollag2006

Good to see house price rises now seem to be spreading out from outside the South East