It's obviously overpriced

olias

I started off putting this in a response to another thread, but thought it wasn't really relevant there and so thought I would start a new one.

I disagree with what a lot of people say that in the current market if a house doesn't sell quickly then it must be overpriced). There are a lot of reasons why houses aren't selling at the moment - uncertainty in the market, worry about rate rises, banks not lending etc etc. There are also local reasons for example my property is in a very small town, with quite a static population. If not many people are moving into or out of a location, or trading up, then properties will not sell as quickly as in a larger town or city or one with a more fluid population. Any house (indeed any commodity at all) will sell if you discount the price enough, doesn't neccesarily mean that the original price it is valued at is not what its worth.

Obviously if you are desperate and there are reasons that you have to sell, then there are arguments for dropping the price substantially. If not, and your property is priced sensibly after due examination of the local market and several EA valuations, the I would say don't do it. This is your biggest investment and is also a business transaction and as a seller it is only right that you should try to get the best price possible.

After all, if pc world dropped the price of their Laptops to £50, sure they would sell shed loads, but does not mean that they were not worth £400.

Expecting a lot of flack for this thread, but I'm fed up of the, 'it's obviously overpriced' brigade.:D

Olias

ocalllo

i have to agree with you.

we live in a small village and we definitely didn't think our house was over priced, but still we have reduced it twice as we want to move.

the EA says people are just not buying in our village at the mo. After the HIP was canxd there was a flurry of houses going on the market, now my next door and 2 down the other side are all up for sale.

But still nothing selling

Nixer

But price really is just what someone else is willing to pay for it. So if no one wants to buy it now it is overpriced (it might also be a dump that wouldn't sell for £1 but that's unlikely). Doesn't mean that no one will wish to buy it at that price at any point in time, but obviously that isn't much help to someone who wants to sell now.

I get rather sick of people who leave their house at the same price for months on end, then move agents, keep it at the same price and won't entertain the idea of an offer. Several round here on for a year or more. Yes, I'd like to buy somewhere, am I going to pay £350k for a 2 bed house? Nope, not even round here.

And yes, if PC World drop laptop prices to £50 (assuming that they can still make a profit), then of course they aren't worth £400. They might have been worth £400 to the people who previously paid that. For some people they still wouldn't be worth the £50. There's no such thing as objective worth.

mynameisdave

MadnessOfHPC wrote: »

I have to agree with you too. Housing is never overpriced when you consider it's one of the most basic facilities to living a happy contented life. How can you put a price limit on shelter?

PM your phone number plesae. I'll pass it on to a Cheshire estate agent who are marketting a 3 bed flat in Chester for £800,000

I'll do me a deal with them for 10% of their commission.

puddy

these debates continue because some people refuse to understand that there is no such thing as 'worth'.

the market dictates the price of anything. we live in a capitalist society, so the market rules what things cost, nothing else. if lap tops didnt shift at all, then they wouldnt be 'worth' whatever price they cant sell at, they then become 'worth' the new price, even as low as £50 because the market would dictate that no one is going to buy them for more.

LilacPixie

Some houses CAN be overpriced but it's not a blanket been on the market XX months not sold = overpriced.

In my home's case its a typical FTB property, been on since May in Scotland so as part of the home report you get the survery and mortgage valuation. We have had 2 offers we declined as being far too low and two we accepted, each time the buyers failed to secure the mortgage deal they required due to lack of deposit. We entered the market at 5% under valuation (this area has increase slightly since May too) and willing to negotiate down further for a proceedable buyer but there seems to be a shortage of buyers.

tyllwyd

What I hate is the patronising attitude of the 'obviously overpriced' brigade. If someone is trying to sell their house, do they honestly think that the seller hasn't considered what the asking price should be? If your house isn't selling of course you will consider dropping the price - and most of us on here trying to sell probably have dropped prices at least once - but we've got reasons for the decisions we've made and we don't need to be treated like children.

puddy

no, there is a shortage of buyers at the price you have asked for it.

Gwhiz

MadnessOfHPC wrote: »

I have to agree with you too. Housing is never overpriced when you consider it's one of the most basic facilities to living a happy contented life. How can you put a price limit on shelter?

Housing is in essence a one-way bet in the casino of life. You cannot lose.

You really should go on stage and support someone like Frankie Boyle. Some of the stuff you come out with is almost as hilarious!

A question - what sort of "sick kick" do you get from posting such uninformed and misleading drivel? If you are only 7 then I forgive you and hope you grow out of it. If you are an adult, please go and see a therapist of some sort. If you could only function as an adult you'd enjoy life so much more!

I've now added you to my ignore list so at least won't have to endure any more of your tedious crap!

pararct

The first 486 desktop computer I bought in 1995 (I remember the date as I was carrying my new born daughter around in her car seat) cost >£1000.

A few short years later it was worthless. But this was only because technological advance had over taken it.

Houses are a a different kettle of fish due to the land it sits on. Market sentiment, availability of credit, location are all factors.

Price is of course another factor and cannot be discounted but it has to be tied in with the others.

If you live in the average town and are trying to sell an average house then it stands to reason it will not go for more than the local average wage times whatever mortgage multiple (less deposit requirement) the lenders allow upon it.

End of the day here the Estate Agents don't call the tune neither really do the owners if they really want to sell, it is the mortgage providers, as the pattern establishing itself via postings to this board is proving.

aqueoushumour01

olias wrote: »

I started off putting this in a response to another thread, but thought it wasn't really relevant there and so thought I would start a new one.

I disagree with what a lot of people say that in the current market if a house doesn't sell quickly then it must be overpriced). There are a lot of reasons why houses aren't selling at the moment - uncertainty in the market, worry about rate rises, banks not lending etc etc. There are also local reasons for example my property is in a very small town, with quite a static population. If not many people are moving into or out of a location, or trading up, then properties will not sell as quickly as in a larger town or city or one with a more fluid population. Any house (indeed any commodity at all) will sell if you discount the price enough, doesn't neccesarily mean that the original price it is valued at is not what its worth.


Expecting a lot of flack for this thread, but I'm fed up of the, 'it's obviously overpriced' brigade.:D

Olias

the reasons given for not selling are right in themselves. However, they all result in the house being overpriced.

-If there's uncertianty in the market and people are concerned prices may fall then they will build this into their valuation and will want the house for less.
-If rates increase then some people will struggle to afford their mortgage and may need to downside resulting in an increase in houses of the market. this would put downward pressure on price.
-If a bank will only lend me £100k not the £110k I could have quite 2 months ago then I am only able to offer less. If this becomes widespread, this will tend to put some downward pressue on price.