The current market ??????

Angela_D_3

Am at a complete loss.

In 2009 we had three estate agents around to put our house on the market were told between £285 - 300.
We have spent £75k in three years completely gutting the place, wiring, roof, windows, kitchen, bathroom, redecorating throughout.
So yesterday the EA comes around and says now £249,999
I have absolutely no problem whatsoever with this, however we've now offered on two other properties at 10% less than asking (they'd both been on the market over a year). Will not budge.
So what to do, I cannot sell at such a loss without somebody else taking a hit too.
So stalemate, is that the stage we're at ?

more_money_for_me

You are right there are lots of unrealistic expectations in the market still. There are properties round here that are clearly overpriced and have sat on the market for over 18 months with no reduction. We are still waiting 3 weeks later to hear from a vendor whether he wants to accept an offer a couple of thousand above surveyors valuation, they have a Friday deadline, then we move on. The good thing is that there are not many in the market who are actually in a position to move straight away, so those that are in that position, can make offers until they find the right place at the right price. Remember even though they have said no today, it doesn't mean they won't come back in a week or two once they realise you aren't going to up it. By which time you will have found somewhere else you like and you can decide which one you prefer, putting the boot on the other foot. Good Luck.

poppysarah

Angela_D wrote: »

Am at a complete loss.

In 2009 £285 - 300.

So yesterday the EA comes around and says now £249,999

And tomorrow might be less. Or more.

There's no guarantees and the price an EA gives you as a value is just a guess.

There's got to be someone to buy it at that value and have the cash.

pararct

Part of the problem is also the level of equity release that went on in the boom years. Many used their properties like an ATM to fund the latest new car, kitchen, holidays ect and simply cannot afford to sell for less. Not saying this is the case here but it is a significant problem.

There needs to be a game change in the market first to solve this such as the looming hikes in interest rates.

evoke

Jeez. OP: you'll sell at what someone else will pay for your property, not what you expect your property to sell for! And expecting someone else to take a hit for your over-valued property is a bit rich. You can always say no too, and sit in your property and have no buyers too...

Welcome to the real, murky world of property.

tyllwyd

Angela_D wrote: »

... So what to do, I cannot sell at such a loss without somebody else taking a hit too.

So stalemate, is that the stage we're at ?

We are in a similar situation - we've had a very low offer which the EA is pushing us to accept, and to try to negotiate a drop on our onward move. But the market seems to be picking up at the moment for houses of the type we are looking for, and having looked around over the last few days I don't think the vendors are going to rush to accept low offers. But if we sell now and don't buy immediately, we are risking selling ourselves short and getting caught out if prices stablise/rise. It is incredibly stressful, but we've decided we'd rather wait it out than make a hasty decision. Time will tell if we are right!

Personally, I'd be wary of pricing a house at £249 to get under the stamp duty ceiling and trying to get an offer near asking price (which is what I assume you'd be doing?) I'd still price at £260, so buyers can feel they've beaten you down.

john_white

evoke wrote: »

Jeez. OP: you'll sell at what someone else will pay for your property, not what you expect your property to sell for! And expecting someone else to take a hit for your over-valued property is a bit rich. You can always say no too, and sit in your property and have no buyers too...

Welcome to the real, murky world of property.

jeez evoke, you've totally missed the point again. The OP accepts his property is worth less than expected, his point is if his property has dropped in value, then the other properties being viewed should in theory have dropped in value. Thusly leading to the problem, that you can't take the hit on your property only if others do the same, other wise you can't sell, and that means people can't buy and the market slows down and then stagnates.

evoke

The point is that the other properties might be more realistically valued. Your property may be over-valued. I sold my property at a great 'loss' to me. I then paid almost list price for the property that I am buying because it was what I wanted and was prepared to pay.

brit1234

Angela_D wrote: »

The current market ??????

We have just had the dead cat bounce after the bull trap above. Yes prices are falling and set to fall for a long time some sellers haven't realised this. Its typically the spring bounce period so a lot of sellers will be more positive and not reduce prices. Give it a few more months and most sellers will come round and reduce.

Angela_D_3

evoke wrote: »

The point is that the other properties might be more realistically valued. Your property may be over-valued. I sold my property at a great 'loss' to me. I then paid almost list price for the property that I am buying because it was what I wanted and was prepared to pay.

So you are completely missing the point i'm more than happy to expect a drop, but the others are no more realistically priced than mine would be at £299k
So as I'm not prepared to pay list price for any of them whilst accepting less for mine that's where the market appears to be stalling.
Who's going to blink first.
Oh and as it happens one of the properties we offered on has been in the same hands since 1960, they paid less than £10,000 but have turned down £400k and it needs gutting, you have to spend £40,000 to make it habitable.

Jenniefour

evoke wrote: »

Your property may be over-valued.

Please read OP's post carefully - does it seriously look to you that her property is overvalued - worth considerably less than it was valued at in 2009 and she's put in 75 worth of improvements since as well. Looks to me more likely that she's dealing with an agent who tells it as it is and doesn't go with vendors (not referring to OP here) who over value their own properties. I don't see OP saying 'we're not having that, I want it marketed for the 2009 price plus the 75 grand'.

OP - take great care if you decide to put it on for 260 - you immediately move one up on the RM search re price which will mean that it doesn't come up on searches for properties up to 250. And some possible vendors may be put off anyway.

Strange market these days, OP, and I sympathise. Keep looking and the one you want at the price you can pay will come along. Your other alternative, if you don't need to relocate, is to stay put and enjoy the house you've put so much time and effort into.