Is the market that quiet?

tyllwyd

But it doesn't work that way with houses - for one thing, the land and the labour and materials won't come for free, so it has a certain basic value, unless it is on a cliff edge and going to vanish in the next year. And having a roof over your head has a certain value, so if the OP can't buy a house equivalent to his own for the offer he's been made, then he is going to decide to stay where he is.

ILW

tyllwyd wrote: »

But it doesn't work that way with houses - for one thing, the land and the labour and materials won't come for free, so it has a certain basic value, unless it is on a cliff edge and going to vanish in the next year. And having a roof over your head has a certain value, so if the OP can't buy a house equivalent to his own for the offer he's been made, then he is going to decide to stay where he is.

True, but that does not mean that the house is financially worth any more than the highest offer that has been made.

Cannon_Fodder

tyllwyd wrote: »

- for one thing, the land and the labour and materials won't come for free, so it has a certain basic value,

Not always.

http://www.guardian.co.uk/business/2010/mar/02/detroit-homes-mortgage-foreclosures-80

"Detroit homes sell for $1."

"Joan Wilson, an estate agent in the north-west of the city, whose firm is offering a three-bedroom house on Albany street for $1"...


Or, 80% off and still cannot shift them;

" On the opposite side of Lawley Street Jim Feltner and his workers were clearing out a property seized by a bank. "I used to be a building contractor. I was buying up places and doing them up. Now I empty out foreclosures. I do one or two of these a day all over the city," he said. "I've been in Detroit 40 years and I've watched the peak up to $100,000 for houses that right now aren't worth more than $20,000 tops. I own a bunch of properties. I have 10 rentals and I can't get nothing for them, and they're beautiful homes." "

When_is_the_reset?

Idiophreak wrote: »

Bit of a nasty post, really.

You wouldn't put an item on ebay and accept the first offer because "that's what it's worth". Similarly, it's perfectly reasonable to reject the first offer you get on a house if you think it's worth more.

It was stated in the OP that they were looking to sell at a loss, so it's clear from the outset that OP's looking at damage limitation, not profit.

If you'd bothered to read properly instead of writing your clever little jabs, you could have actually contributed to the discussion.

I don't think it is a nasty post; the truth sometimes hurts.

Everyone knows that it has nothing to do with the football, heatwave, snow, ice, loose gunmen or whatever they are blaming today. It is simply the economy is in a mess, people are nervous of the future and house prices are way too high.

If the OP cannot afford to sell for less then they will have to stay put and wait for things to change.

Idiophreak

When_is_the_reset? wrote: »

I don't think it is a nasty post; the truth sometimes hurts.

But the truth *isn't* that a property is only worth what the *first offer* anyone puts in on it is.

The truth *isn't* that the OP thinks the have any "right to make a profit".

So if you take the "truth" out of jonewer's "truth hurts" post, you end up with "hurts" - in other words a bunch of misguided, vindictive rambling.

tyllwyd

Cannon_Fodder wrote: »

Not always.

http://www.guardian.co.uk/business/2010/mar/02/detroit-homes-mortgage-foreclosures-80

"Detroit homes sell for $1."

...
Or, 80% off and still cannot shift them;
....

Well, I'd say Detroit is the economic equivalent of houses built on the edge of a cliff that crumbled away. OK it can happen, but unless you're the sort of person that has an attic full of tinned food and a shotgun just in case, not a situation most people plan for.

And I bet you'd find it difficult to sell a second hand car at a good price in Detroit, but thats not the same thing as saying that all second hand cars in the UK are overpriced.

Cannon_Fodder

So changing economic circumstances can affect the "intrinsic value" normally placed on property...fine. I think that is one of the concerns that is causing uncertainty in the market at the moment (without getting all tinfoil-hat about it).


As for crumbling into the sea... http://news.bbc.co.uk/1/hi/england/10539650.stm

Tower owner says it is sellable now...(he hopes)

But it didn't sell at auction, guide £475k because best offer was £360k...will he come to regret that if there's a big storm that washes away some of the defences this winter ?

Jowo_2

I know it depends on many variables, including the area, good pricing and so forth. But I get the impression from my pals with properties up for sale that the market has pretty much fallen off a cliff.

One had 30 viewings over the past 3 months for their 2 bed period flat, no second viewings and no serious offers apart from one where the buyer would be lucky to get a 1 bedroom ex council flat for the sum their offered. Their flat is up for sale in their area with about 60 others in that price band so plenty for a serious buyer to choose between. The estate agent says the number of properties put onto the market has more than doubled over the last few months but the number of sales remain static, that they experienced a signficant lull as the election approached, and a surge of properties put on once HIPs were scrapped and it was announced CGT may double.

Another was told the agent (prior to signing up with them) that they had loads of buyers in the area seeking that type of family property and he'd get 6 proceedable buyers through the door in the first week it was marketed and that he had some active viewers with an interest in that particular part of town. In order to expedite the sale, the owner put it on for less than the agent suggested and did a thorough analysis of competing properties to ensure they were offering more for less (charging same as other 3 beds but offering a bigger garden,second bathroom and closer to station) for the same money and less in price than the other properties up for sale in the street that are smaller. 10 days later (after signing the contract) the estate agent managed to host a single viewing. The other properties in their street cut their price to match my friends. They are currently competing with about 35 other 3 bed houses in the same postcode.

So I'm sure it's not the picture everywhere but for my pals, it's the case that there are hardly any active buyers and lots of properties up for sale.

shirlgirl2004

jonewer wrote: »

Obviously you were wrong to reject the offer. Your house is only worth what someone will pay for it, and if someone offered to pay £14k less than your asking price, then thats what its worth.

Sorry to be blunt, but you dont have an automatic right to make a profit when you sell your house.

But the OP doesn't know what "someone "will offer. We spoke to a vendor whose house was on the market for £725k. We said we'd view but only if the vendor would take £675k. The vendor agreed that would be acceptable. As it was the house wasn't worth £675k TO US but after about 2 months it went sold and I noticed recently it sold for £705k. Clearly the house wasn't worth only £675k because someone was willing to pay £705k, the vendor didn't know that when we agreed £675k as the price in principle though. On your assumption they'd have dropped the price to £675k and lost out on £30k.

jockosjungle

How about a link to the house on rightmove?

Some people are holier than thou telling FTB's that the days of 100% mortgages are over and they need to save but the truth is that such people never put up 25% deposit on their houses.

It'll take a while to FTBs to save up a decent deposit on a £160k house, so maybe you are being a little impatient.

Any special reason why you need to sell?

R