We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
3 beds have been overpricing the market
pault123
Posts: 1,111 Forumite
Most of the estate agents i've spoke to all agree prices are pre 2004 levels in most areas. But many people persist in asking 2007 prices. Majority of these are 3+ bedroom houses, who know they can fetch more of a premium with the extra space they offer but there becomes a point where you just browse rightmove and think HOW GREEDY there living in a dream!
The false 3 bed prices increase the 2 bed prices who try and minimise their increase in mortgage, thus the first time buyers cannot then afford the 2 bed prices. If 3 bed prices all dropped down to their true level the whole market would start up again as the key FTB element could get on the ladder.
All the houses which sell in my area at the moment are in the key region of £20k-£30k less than the 3beds which sit there for over a year.
I've just sold my house in 30 days by being realistic with asking price, the knock down I took was reflected in my knock down offer on the overpriced 3 bed we offered for, who then offered a knock down on the house they wanted to bring that to realistic levels. A chain of 3 houses all proceeding through a sale. All because estate agents and vendors were realistic the boom is over.
The false 3 bed prices increase the 2 bed prices who try and minimise their increase in mortgage, thus the first time buyers cannot then afford the 2 bed prices. If 3 bed prices all dropped down to their true level the whole market would start up again as the key FTB element could get on the ladder.
All the houses which sell in my area at the moment are in the key region of £20k-£30k less than the 3beds which sit there for over a year.
I've just sold my house in 30 days by being realistic with asking price, the knock down I took was reflected in my knock down offer on the overpriced 3 bed we offered for, who then offered a knock down on the house they wanted to bring that to realistic levels. A chain of 3 houses all proceeding through a sale. All because estate agents and vendors were realistic the boom is over.
0
Comments
-
Post thanks, interesting very.
Down prices houses good. Rethink prices all down better.0 -
Most of the estate agents i've spoke to all agree prices are pre 2004 levels in most areas.
Very anecdotal and not reflected when looked at the LR details.
Your anecdote may of course be true and indeed you will have helped to reduce prices in your area.
A sold house in a street is used in the data to value similar houses in the same area.
That said, in general and going by the data produced by actual sold prices by the LR, house prices have indeed been increasing.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
A house price cannot be 'false'.
A valuation can be wrong (too high or too low) but once the deal is struck, the price is very real.
If sellers are greedy it is only because gullible buyers encourage them to be so.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Gorgeous_George wrote: »A house price cannot be 'false'.
A valuation can be wrong (too high or too low) but once the deal is struck, the price is very real.
If sellers are greedy it is only because [STRIKE]gullible [/STRIKE] there are sufficient competition (buyers) [STRIKE]encourage [/STRIKE] for them to be so.
GG
Put my own slant on your sentence:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Sounds like the OP may have sold his house too cheap and is trying to reassure himself.0
-
Looking where somebody I knew recently bought a new build, it's an extra £100-150k per bedroom. And that's not in a rich area.0
-
IMO flats are still overpriced. 2 bed flats in Liverpool are as much as a 3 bed semi in the suburbs.0
-
Sounds like the OP may have sold his house too cheap and is trying to reassure himself.
The knockdown I took, didn't effect me in the slighest as the house above me knocked theirs down by more and the house above that matched the increased known down. After all was done the upper end of the chain were then at 2004 prices.
The point is though there are still 70% of 3 beds in my area at £20-£30k higher than they should be, and they sit on the market with no movement, some for over a year.
If all 3beds+ were corrected by this amount, 2 beds could correct and they'd be a lot more transactions0 -
The knockdown I took, didn't effect me in the slighest as the house above me knocked theirs down by more and the house above that matched the increased known down. After all was done the upper end of the chain were then at 2004 prices.
The point is though there are still 70% of 3 beds in my area at £20-£30k higher than they should be, and they sit on the market with no movement, some for over a year.
If all 3beds+ were corrected by this amount, 2 beds could correct and they'd be a lot more transactions
I would have thought in a free market that the price you pay for your new house is completely independent of the price you sell your old house at. Still if it makes you feel better.0 -
Everything in a free market is only worth what people are willing to pay for it. This applies to houses, diamonds, gold, chocolate....
If people aren't willing to pay a price the product won't sell and the price goes down. If people continue to buy then the price stays the same or increases if demand rises - supply and demand are the driving forces.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601.1K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards