Concept of Market Value?

DVardysShadow

madmish00 wrote: »

... I am just gutted at the minute. I thought market value was what someone was prepared to pay at any given time and given the offers put forward so far I would say that is in the region of £165k

Essentially you are right. And a sale occurs when the buyer's top price is above the seller's bottom price. If the seller's expectation are above the market, then there is no sale and if the buyer's resources are not in tune with the market, he does not make a purchase.

You need to be quite clinical about this.

As for the house, there is one empty room, which suggests that the photos are staged and the vendor has moved out. The sale may also be somewhat forced and there may be a minimum which the vendor needs to make from a sale.

In your position, if I was prepared to pay the bare OIEO price as the top price, then I would offer £5000 less to start with. If the agent got snooty about passing it on, I would insist that they did pass it on before offering a best and final. And if I wa prepared to offer more, I would make a first offer at the OEIO price - absolutely expecting the offer to be passed on. If the agent said they actually want more than the OEIO price to pass the offer on, I would leave the offer on the table and tell them to come back when they had stopped messing me about.

BoGoF

dippy wrote: »

Classic false advertising. It wastes the time of so many people. If it happened in another industry, such as a shop for example, it would be an entirely different matter. It's still so wrong though.

http://www.oft.gov.uk/about-the-oft/legal-powers/legal/misleading-advertisements/what-is-it
What is a misleading advertisement?

An advert is misleading if it deceives or is likely to deceive its audience and affect their economic decision-making.

Give it up !!!!!!.

Using your logic auctions would be illegal also, in essence that's what a house sale is.

dippy

BoGoF wrote: »

Give it up !!!!!!.

Using your logic auctions would be illegal also, in essence that's what a house sale is.

You're the one who's wrong. Auctions have a "start price" where everybody starts to bid. The seller will HAVE to sell unless they announce that they have a reserve price. It's all above board.

BoGoF

And so is selling a house with offers over above board

madmish00

As for the house, there is one empty room, which suggests that the photos are staged and the vendor has moved out. The sale may also be somewhat forced and there may be a minimum which the vendor needs to make from a sale.

In your position, if I was prepared to pay the bare OIEO price as the top price, then I would offer £5000 less to start with. If the agent got snooty about passing it on, I would insist that they did pass it on before offering a best and final. And if I wa prepared to offer more, I would make a first offer at the OEIO price - absolutely expecting the offer to be passed on. If the agent said they actually want more than the OEIO price to pass the offer on, I would leave the offer on the table and tell them to come back when they had stopped messing me about.

Thanks for this. The house has been vacant since the start of January. That is why I thought they would be looking for a quick sale - given that neither of the divorced parties are living there I expected they should be more agreeable as neither currently has the benefit of the house. I'm hoping they realise that paying the mortgage on the empty property for several more months will cost them nearly as much as accepting an offer and walking away now.

Doozergirl

dippy wrote: »

Doozer, did you use to be an EA before?

I think everybody here will agree that you may have been the exception rather than the rule.

I have never been an estate agent.

But I've probably dealt with more of them than the majority of people; people who move house very rarely but many of whom seem to be fully qualified in having very strong opinions of them.

Too many people think they need to act in a manner other than normal when they're buying/selling because they think EAs do. People need to do research before going out looking, and view plenty of houses before making offers - not to beat the agent, but to be comfortable with their own assessment of price.

People are so wary of EAs but all you need to be sure of is how much you are prepared to pay for a property. eg. I couldn't care less if an EA knows how much I have to spend; how much I pay is my own decision based on how much I think the house is worth. If the vendor doesn't agree with me, I don't blame the EA.

There is nothing odd with 'offers over'. It's completely normal practice in Scotland, which people seem to think is the Holy Grail of process. In the case of the OP, it seems it's the vendor that's deluded and the agent is trying to bring down their expectations by convincing them to go 'offers over'. When they don't get those offers, they will have to reassess again. Delusion has come from the divorce - it's evident they've spent too much money on the property and they think it's added value. It hasn't and they're trying to avoid arguing over who lumps the negative equity.

madmish00

In the case of the OP, it seems it's the vendor that's deluded and the agent is trying to bring down their expectations by convincing them to go 'offers over'. When they don't get those offers, they will have to reassess again.

Thanks Doozer...nice to know I'm not the one who is deluded! lol. I think I need to find out whether my buyers are in a rush and try and wait it out and hope they come to their senses.

DVardysShadow

madmish00 wrote: »

Thanks for this. The house has been vacant since the start of January. That is why I thought they would be looking for a quick sale - given that neither of the divorced parties are living there I expected they should be more agreeable as neither currently has the benefit of the house. I'm hoping they realise that paying the mortgage on the empty property for several more months will cost them nearly as much as accepting an offer and walking away now.

Divorcing couples are very often difficult sellers. The fact that this place has been on the market for so long is less likely to be an indicator of desperation than it is of an inability to resolve important matters. If it is the latter, then it indicates that you are unlikely to get a quick purchase and you are at great risk of losing your buyer. Even if your offer is accepted. Only if you put in a high offer which makes both parties think 'wow, I must get a slice of that' are you likely to get quick movement. As the house as been up for sale for so long, I doubt the sellers have a sufficiently realistic view of the value that you are going to get them on side with a generous but realistic offer.

If you are determined for this house, then sell yours and rent for 6 months.

madmish00

If you are determined for this house, then sell yours and rent for 6 months

I wish this was an option but we have a tie in on our mortgage plus we want to port it anyway as it is a lifetime tracker at 0.18% above base so we don't want to lose this rate. We would have to look at lower purchase prices to do that as the current products on offer would cost us significantly more per month and we don't want to stretch it too much.

80schild

Your house is lovely-I am amazed you are only getting 90,000 offered. I know the area too as I am from Wigan-its not a bad area is it? Maybe you could hold out and see if you get a better offer and when you do you may be in a position to offer more on the other house!