Valuation less than asking price?

ukcarper

brit1234 wrote: »

average property asking price is now £238,874 (Rightmove May figures)

average property selling price is now £163,083
(Landregistry, May figures)

Sorry the difference is 31.7% between asking prices and selling prices. Asking prices are even more inflated.

ukcarper is that proof enough?

Sources
http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=533715&in_page_id=57&position=moretopstories
http://www.propertywire.com/news/europe/uk-property-prices-registry-201106035243.html

Not really comparing two different sets of figures.

Duke203

ukcarper wrote: »

Not really comparing two different sets of figures.

I think that's the point tbh. One is what the seller thinks is a good price, and the other what both the seller and buyer thinks is good. Or the difference between asking and selling which is what was given?

Would you mind providing a different proof if available please. This is information in which I would find much benefit

Gorgeous_George

Duke203 wrote: »

I think that's the point tbh. One is what the seller thinks is a good price, and the other what both the seller and buyer thinks is good. Or the difference between asking and selling which is what was given?

Not quite.

The LR figures are not the prices of the houses currently available on Rightmove.

But I bet they're close enough.

However, buyers do not know what the price should be any more than my goldfish. They rely on whatever the so-called professionals tell them, on what lenders will lend them and on whatever they can afford to pay (after forgetting that homes need maintenance, Sky want paying and broadband is only free at mum and dad's house).

There is little value in wanting lower price NOW. Prices will be lower when sellers need them to be lower. Could be soon, could be years. If you are happy to rent until then, great. If not, buy and take the risk. Either way, do the sums. If prices fall a little over a couple of years, will they fall by more than the rent that you will have paid?

In a grown up, you get to make your own decisions.

GG

tyler80

Average asking prices and average sold prices aren't comparing like with like because if only houses at one end of the scale are selling then these two figures can be very different.

Hugely simplified but if four houses are for sale at 200k, 175k, 150k and 125k - average asking price is 162.5k

All but the most expensive house sell for 10% under asking - average sold price is 135.6k

Average sold price is nearly 17% under average asking price yet all the houses only sold for 10% under asking.

I don't remember where I saw it but I read that the difference between asking and sold prices in the current market is around 7%

ViolaLass

brit1234 wrote: »

average property asking price is now £238,874 (Rightmove May figures)

average property selling price is now £163,083
(Landregistry, May figures)

Sorry the difference is 31.7% between asking prices and selling prices. Asking prices are even more inflated.

ukcarper is that proof enough?

Sources
http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=533715&in_page_id=57&position=moretopstories
http://www.propertywire.com/news/europe/uk-property-prices-registry-201106035243.html

You're assuming that all the houses available for sale in May sold in May.

brit1234

ViolaLass wrote: »

You're assuming that all the houses available for sale in May sold in May.

No.

I can pretty much calculate 6-12 months back and pretty certain the difference is around 30% still. I am positive that May isn't a freak month.

What the heck lets have November 2010 figures.

average property asking price is now £229,379 (Rightmove Nov figures)

average property selling price is now £164,773 (Landregistry, Nov figures)

Yes in November 2010 the difference was 28% between asking and selling prices.

We also know that this year many seller have inflated their asking prices even higher to compensate for lower offers. Which I believe could be the reason for increased asking prices in May 2011 compared to November.

I would not offer asking price for a property in this buyers market and certainly not offer over as the original poster has.

Sources:
http://www.rightmove.co.uk/news/house-price-index/november-2010/november-2010
http://www1.landregistry.gov.uk/about-us/press-listing/2010/november-house-prices-down

ViolaLass

brit1234 wrote: »

No.

...

But you're still assuming that all houses up for sale sold at all.

ukcarper

brit1234 wrote: »

No.

I can pretty much calculate 6-12 months back and pretty certain the difference is around 30% still. I am positive that May isn't a freak month.

What the heck lets have November 2010 figures.

average property asking price is now £229,379 (Rightmove Nov figures)

average property selling price is now £164,773 (Landregistry, Nov figures)

Yes in November 2010 the difference was 28% between asking and selling prices.

We also know that this year many seller have inflated their asking prices even higher to compensate for lower offers. Which I believe could be the reason for increased asking prices in May 2011 compared to November.

I would not offer asking price for a property in this buyers market and certainly not offer over as the original poster has.

Sources:
http://www.rightmove.co.uk/news/house-price-index/november-2010/november-2010
http://www1.landregistry.gov.uk/about-us/press-listing/2010/november-house-prices-down

Even if you accept the 30%, that is not the average reduction on asking price of sold houses. The OP house has already been valued at £180k so if the seller agreed to that it would be a reduction of 5%.

ukcarper

Duke203 wrote: »

I think that's the point tbh. One is what the seller thinks is a good price, and the other what both the seller and buyer thinks is good. Or the difference between asking and selling which is what was given?

Would you mind providing a different proof if available please. This is information in which I would find much benefit

I don't think that information is readily available.

According to zoopla the average drop is 7.2% http://www.easier.com/89178-house-asking-prices-discounted.html

ukcarper

BoGoF wrote: »

Either the vendor accepts a reduced offer or you find the extra needed to make it £190K.

Personally I'd be rather worried at the prospect if instant negative equity but if it's your 'dream house' then that be less of an issue for you.

You have no idea what deposit the OP is putting down so no idea if he will be in instant negative equity.

I would say that if he can only afford £185k and the seller will not drop below £190k then he would have to walk away.