Debate House Prices


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Aaaargh!!

My father-in-law has decided to sell his house. I eggshelled my way into his thoughts on the market and he has convinced himself that his house is going to get top whack. He said that his estate was in its own bubble and because houses don't often come up for sale on it that he's likely to get top whack. It is a 2 bed link-detached (should've seen his face when I called it a semi!) with a postage stamp back garden, tiny kitchen and garage. Only 1 reception. He lives in Milton Keynes.

I swiftly eggshelled out of the conversation.

It worries me that he is now going to chase the market down.
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Comments

  • silvercar
    silvercar Posts: 48,676 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    If he doesn't need to sell, he can withdraw from the market if he doesn't get his top whack price.
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  • carolt
    carolt Posts: 8,531 Forumite
    No idea, but I admire your use of eggshell as a verb. Could catch on.
  • Orpheo
    Orpheo Posts: 1,058 Forumite
    edited 11 October 2010 am31 8:41AM
    silvercar wrote: »
    If he doesn't need to sell, he can withdraw from the market if he doesn't get his top whack price.

    He won't get his top whack price then either.

    As it goes, he needs to sell. Another problem is that he's tied in for another 6 months and so is waiting until then to put it on the market. I reckon, as exit fees reduce as the tie in term gets closer, that he'll lose more than his remaining exit fee by waiting 6 months.

    He has never been smart with money, one of the reasons he was divorced.
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  • If he is buying something bigger good luck to him
    Not Again
  • silvercar
    silvercar Posts: 48,676 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Orpheo wrote: »
    He won't get his top whack price then either.

    As it goes, he needs to sell. Another problem is that he's tied in for another 6 months and so is waiting until then to put it on the market. I reckon, as exit fees reduce as the tie in term gets closer, that he'll lose more than his remaining exit fee by waiting 6 months.

    He has never been smart with money, one of the reasons he was divorced.

    Exit fees don't generally reduce as the tie in term gets closer. They are all or nothing fees.
    I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Lotus-eater
    Lotus-eater Posts: 10,789 Forumite
    10,000 Posts Combo Breaker
    You never get thanked for advising or interferring, either correctly, or incorrectly, with family's choice of financial dealings.
    It always ends in bad feeling and resentment. :D Better to talk about it in private with your OH and make no comment to the actual person involved.

    Unless you are actually asked about it by the person and even then better to give a vague reply.
    Freedom is not worth having if it does not include the freedom to make mistakes.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I had a family member whose house really was in a bubble area. But they wanted to move and had their eye on a new build, so took a low offer so it sold. I did worry that they'd have the "won't let it go for less" attitude, but luckily for me we never had to have the discussion. In fact, I think they let it go £5k too cheap.

    All done and dusted now though.

    It's still a bubble area, but even highly sought after places slip in value because it's all related in the long run.
  • zappahey
    zappahey Posts: 2,252 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Orpheo wrote: »
    link-detached

    I love the contradiction in that. It can offer hours of fun with the owner.
    What goes around - comes around
  • Orpheo
    Orpheo Posts: 1,058 Forumite
    edited 11 October 2010 am31 11:40AM
    Luckily, witht he demise of HIPS, we are now back to the days where you can put your house on the market for zero cost. If no one meets the askign price you can either choose to leave it up for sale or remove it from the market.

    If your FiL gets his asking price, then his speculation worked, if he doesnt then he hasnt lost any money. I assume that as he has a 2 bed house that hes not down-sizing, so even if he chases the market down, anything he buys will also drop in value, saving him more money. It seems like a no-loss situation as far as I can see.

    He is not speculating. He is "downsizing" his mortgage, that is he is looking to buy something cheaper. He was made redundant from his job a couple of years ago, he quickly got a new job but on about half his previous income.

    When he was married he aspired to the executive lifestyle and borrowed money. When the marital house was sold (divorced when my wife and her sister were grown up), what was left over did not amount to much after it was split, but enough for him to deposit on his house. As it happens he has a virtual 90K equity in his house now, I think it is better that he takes a bit of a hit now rather than a big hit gradually.

    Mrs Orpheo and myself would like him to buy something cheaper outright and then get himself a P/T job with less stress. He is over 60 now.

    But I shan't interfere in his house-selling or give him my opinions unless asked.

    I also think that he has failed to consider the fact that he is unlikely to get another mortgage in current conditions. He did have some arrears while he was out of work.
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  • Orpheo
    Orpheo Posts: 1,058 Forumite
    Its difficult to see how he can make downsizing pay when he already has what sounds like a modest home. When all the moving costs have been factored in he could end up with a smaller home in a bad area and not release that much cash.

    Wouldnt he be better off looking at his income and expenditure to see where he could make some savings in order to pay down his existing mortgage quicker so that he can stay in his current home?

    Its amazing just how much you can save by swtiching to cheaper utilties, looking at your life assurances, looking for better mortgage deals and even taking a packed lunch to work. Rather than incur the large expense of moving from a modest house in a nice area to a modest house in a poor area, he could stay put and with a bit of effort and sacrifice he will spend his retirement in a safe area.

    All of these avenues have been exhausted. for the past year he has been leaving behind his car and catching the bus to work, even though work is in a different town. Because of his age he is limited to the term that the lenders will allow on his mortgage. He has no options left now but to owe less money. He should have sold up 2 years ago, it has taken this long for the truth to sink in.

    We are also aware of the fact that he is alone in MK in terms of family and we would quite like him to move closer to us (East Mids) where his equity will buy him something modest in a reasonable area. But it is for him to choose where he wants to live.

    He has it in his head that he will get back into IT project management, but the unfair reality is that this is unlikely to happen now.
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