It's obviously overpriced

Orpheo

tyllwyd wrote: »

Or they could keep the laptops themselves and use them, or rent them out ... ? Would they behave in exactly the same way if they had only one laptop to sell? Laptops aren't the same as a residential house, and your analogy doesn't work. People don't always have to sell their properties, even if in an ideal world they might like to.



So you like your book, and you are advertising it for sale at a certain price, and you are not prepared to sell it below that price? So you don't want to keep dropping and dropping the price to sell at any cost? I agree with you, place your own value on your possession and only sell it on terms that you are happy with.

Blimey, the quality has dropped this evening hasn't it?

I didn't introduce the poor laptop analogy, the OP did.

You think PCWorld should keep the laptops it can't sell? Keeping stock that isn't moving is a cost and it also takes up space that can be used to shift successful lines. Sometimes people do have to sell their houses, then their house is on the market and subject to the current market conditions. If they choose not to sell it then it is not on the market.

My value placed on my possession is more than it's current market value. I don't have to sell it, until I lose my job, or my wife is awarded it's value in a divorce settlement, or if I drop dead and my loved ones need to sell it to pay the taxidermist to have me stuffed. In the meantime it's market value may go up or it may continue to go down.

mynameisdave

HAMISH_MCTAVISH wrote: »

..

The value of a house is defined as being the price a willing buyer and a willing seller can agree to in an open and free market.

So if it gets no offers at its current price no buyer thinks its worth that price?

I'd say that makes it overpriced

myhouse_2

aqueoushumour01 wrote: »

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.

Precisely.
You cannot say my house was worth XX 2 years ago, therefore it still must be (which is in effect the net result of the OPs comments)
There are reasons why houses are not worth as much now and the OP has listed some of them but apparently doesn't seem to think they are "real" factors just because they are not convenient.

milliebear00001

Seems to me things are at a bit of a stalemate. Loads of buyers who can't afford to pay the prices the houses are advertised at due to low salaries and/or tight lending criteria/high deposit requirements; loads of potential vendors who are keeping off the market/sitting on the market because they either can't accept the market dictatated 'value' of their home and so will continue to sit tight, or who cannot afford to drop their price due to negative equity.

Nowt will change until either: more people can afford to pay today's prices (higher salaries or more relaxed lending) or prices drop (vendors realise three years sitting on Rightmove isn't going to achieve them their 'dreamhome' and start to accept they have to drop their prices if they really want to move).

Thrugelmir

olias wrote: »

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

Only one thing determines property prices and thats "the market".

I've always wanted a Ferrari 250 GTO , however I wouldn't say that they are overpriced. Just out of my price bracket.

Thrugelmir

Orpheo wrote: »

You think PCWorld should keep the laptops it can't sell? Keeping stock that isn't moving is a cost and it also takes up space that can be used to shift successful lines.

And manufacturers have channels that enable them to offload stock once a product becomes obsolete.

Eric1

olias wrote: »

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.

plus worries about job cuts.
These reasons are part of the equation that dictates the price, just as consumer overconfidence was in 2007 for example.

pararct

milliebear00001 wrote: »

Seems to me things are at a bit of a stalemate. Loads of buyers who can't afford to pay the prices the houses are advertised at due to low salaries and/or tight lending criteria/high deposit requirements; loads of potential vendors who are keeping off the market/sitting on the market because they either can't accept the market dictatated 'value' of their home and so will continue to sit tight, or who cannot afford to drop their price due to negative equity.

Nowt will change until either: more people can afford to pay today's prices (higher salaries or more relaxed lending) or prices drop (vendors realise three years sitting on Rightmove isn't going to achieve them their 'dreamhome' and start to accept they have to drop their prices if they really want to move).

You omitted one other important factor Interest Rates.

Once they start to rise it will affect the stalemate in the market!!

olias

I'm quite impressed. Don't think one of my threads has had this many posts so quickly before!:T

I agree that my laptop analogy was not a very good one:o

Two points though. My main point was a moan at those who just trot out the same mantra, 'it's obviously overpriced', as a catch all to anyone who is frustrated at the current market and their house taking time to sell and dares to post on a forum such as this. As stated in my OP and agreed with by quite a few posters, there are a myriad of reasons for a house to take time to sell.

Again with regard to my own property, The EA has stated to me that the incidence of viewings vendors are getting in my town accross the board is averaging out at about 1 per month (about what I am getting currently). According to published stats available on the internet (together with other anecdotal evidence), very few are actually selling. I do not believe that this is because every property in the town is overpriced, more likely that in a town where there is a very stable population anyway, in the current climate even fewer people than usual are actually deciding to move house.

The other point (and this relates more to the cheaper end of the market (say £50K-£200K), but impacts on the whole market is this. A house costs a certain amount to build, a builder or developer needs a certain profit in order to build it, therefore a house has to sell for a certain price in order for the developer to build it. Someone is bound to come along and mock my grasp of economics but, with a lot more houses needing to be built FTB properties (for example) will never be able to drop below a certain price because they simply wouldn't be built. This will inevitably have a knock on effect of the minimum price the next rung up the ladder will drop to and so on.

Olias

sonastin

I understand what people are saying about "if you drop it low enough, someone will buy it". But in some places there is a definite shortage of buyers even looking. If the people who would be prepared to buy at the lower price aren't even bothering to look because they have decided that everything is overpriced, then they won't know that you've lowered the price and it still won't sell.

As well as vendors being willing to get more "realistic" about their prices, something needs to be done to tempt buyers back into the market. Otherwise, the vendors might as well leave their prices that bit higher and wait for their turn for one of the rare buyers to make an offer.