Unrealistic vendors?

david29dpo

My neighbour is suffering from delusions of grandeur with there recently removed house from the market. £200000 over price! This is with a far better house less than a mile away going for £250000 less than there asking price!

Davesnave

There are two sorts of vendors: those that would like to move, and those who are really serious about moving.

The former group includes a lot of people who cannot take any kind of hit on their wallet just now, and those who could, but won't, because they are not in a postion where moving is a priority.

The second group of vendors range from those who are financially desperate, to those who are seriously inconvenienced by things like being way too far from a new job, too little living space, or a marriage breakdown.

Unless you fall head over heels for a property, forget the first sort of vendor. If someone knocks-back what you feel is a realistic offer, move on.

Like you, we moved into rented and had nothing to sell. Even just looking at property owned by allegedly 'motivated' sellers, it took us 6 months to find someone prepared to do a decent deal. It was worth the wait though. The vendor thinks so too!:)

breadlinebetty

sw_jay wrote: »

I have no problem with the price range I am looking at, I'm just unwilling to pay more for a house than it's worth just because I really want to find one. What I am struggling to understand is how vendors can price their house at more than it was worth 5 or 6 years ago when prices have gone down significantly since that time. The 229k for example, if bought for 205k in 2007 is worth 175k now if you take off the 15% prices have dropped. That's a huge difference. When I asked the EA to justify this he could only say that they had needed to decorate throughout. Even if I was very generous and said they had spent 25k doing the house up, is it really worth another 30k on top of that?

I do realise there are other factors involved but this does seem a bit much. Maybe I wrongly presumed this was a buyer's market at the moment and there is no such thing as a 'bargain' anymore.

I'm not sure which areas you're looking at, but going by the prices you've quoted I'm assuming they're 'poor' areas, or areas up north somewhere. In London and the South east prices have risen - not sure if you knew that or not?:money:

But wherever you're looking, if you think it's reasonable to offer 10% below the asking price you must be living in cloud cuckoo land. No-one is going to knock 10% off their asking price - unless they're truly desperate to move or the place is genuinely overpriced and there's been no offers for months and months.....

You actually think the vendors should get LESS than what they paid for their properties back in 2006, despite them doing the properties up, and properties increasing in value in many areas. Even if they live in an area where prices have dropped they don't have to sell it to you for a song, just because you can't afford more.

Someone will buy those properties, of that you can be sure. People ALWAYS need a home, you see......

:money:

breadlinebetty

nearlynew wrote: »

what vendors paid for the house in 2007 is immaterial.
they may have paid over the odds and now want you to pay for their mistake.

what it is worth now is all that matters.

patience is your best weapon.

There's a lot of members on here who have been patient for about 10 years......and they've missed the boat altogether!:( They'll NEVER be able to get on the property ladder now........but they could have done had they not listened to foolish advice such as what you've dished out

breadlinebetty

Davesnave wrote: »

There are two sorts of vendors: those that would like to move, and those who are really serious about moving.

The former group includes a lot of people who cannot take any kind of hit on their wallet just now, and those who could, but won't, because they are not in a postion where moving is a priority.

The second group of vendors range from those who are financially desperate, to those who are seriously inconvenienced by things like being way too far from a new job, too little living space, or a marriage breakdown.

Unless you fall head over heels for a property, forget the first sort of vendor. If someone knocks-back what you feel is a realistic offer, move on.

Like you, we moved into rented and had nothing to sell. Even just looking at property owned by allegedly 'motivated' sellers, it took us 6 months to find someone prepared to do a decent deal. It was worth the wait though. The vendor thinks so too!:)

You're right. I was only 'toying' with selling my house and had it it on and off the market for about 5 years (terribly whimsical I am!) but it did me a huge favour, procrastinating, cos I ended up selling it at a price I couldn't refuse!:D I got almost double the price in just 5 years! So patience certainly can work!

Davesnave

breadlinebetty wrote: »

You're right. I was only 'toying' with selling my house and had it it on and off the market for about 5 years (terribly whimsical I am!) but it did me a huge favour, procrastinating, cos I ended up selling it at a price I couldn't refuse!:D I got almost double the price in just 5 years! So patience certainly can work!

Good for you. but procrastinating is all very well if you are basically satisfied with what you have, or value your life cheaply.

There are times when people need to sell up in order to move their lives on, so while it's maybe OK to take a year out to do this, taking five years could be quite unacceptable.

My vendor had secured a job 120 miles away at roughly twice the salary, so she wasn't too concerned about selling cheaply to someone with the readies, like me.

smileytiger

Davesnave wrote: »

There are two sorts of vendors: those that would like to move, and those who are really serious about moving.

The former group includes a lot of people who cannot take any kind of hit on their wallet just now, and those who could, but won't, because they are not in a postion where moving is a priority.

The second group of vendors range from those who are financially desperate, to those who are seriously inconvenienced by things like being way too far from a new job, too little living space, or a marriage breakdown.

Unless you fall head over heels for a property, forget the first sort of vendor. If someone knocks-back what you feel is a realistic offer, move on.

Like you, we moved into rented and had nothing to sell. Even just looking at property owned by allegedly 'motivated' sellers, it took us 6 months to find someone prepared to do a decent deal. It was worth the wait though. The vendor thinks so too!:)

I agree - people either need to sell or they don't. OUr house goes up for sale in the next couple of weeks. We need to sell for various reasons including needing to downsize to somewhere with no stairs.
House has been valued at £143k
Valuer knows we want a quick sale and has said we should go no lower than £136k.
Personally if someone offered a bit lower than that i'd still consider it if they were in a position to proceed straight away.
I'm not looking to buy another property so am not depending on reaching a certain figure before i can move.
It really depends on what the vendor needs from the sale as to how good a deal a buyer will get.

girl_withno_name

breadlinebetty wrote: »

if you think it's reasonable to offer 10% below the asking price you must be living in cloud cuckoo land. No-one is going to knock 10% off their asking price

You're right - I think the average is only about 8%

breadlinebetty wrote: »

You actually think the vendors should get LESS than what they paid for their properties back in 2006, despite them doing the properties up

I'd have to agree with the OP here - at least in the area where I'm looking to buy, prices have dropped and properties aren't "flying off the shelves"... but vendors seem to think that some new carpets adds £10-15k onto the price they paid a couple of years ago.

Someone might pay the price they're look for and that's fine - as long as it's not me getting ripped off and lining their pockets.

ognum

I think it is really hard to say that because a house was bought for x a few years ago it now is worth x -?

An example, my son bought a house three years ago that was a wreck, it has had chimney and outside loo demolished and a large kitchen extension, new kitchen,damp proof course all the way through replastered wall removed to open up middle room to stairs. Bay window re lead roofed where damp had come in and
plaster moulding to living room repaired, sash windows all renovated,
central heating put in, new bathroom complete redecoration, stripped floors etc

Similar houses on their road are now selling quickly for 100k more, even another wreck has sold for 75k more than they paid, they have done a lot and are not selling BUT I am just making the point that what it was bought for is not relevant to how it is now.

We do live in an area where desirable areas are still going to sealed bids!

jamesmorgan

breadlinebetty wrote: »

But wherever you're looking, if you think it's reasonable to offer 10% below the asking price you must be living in cloud cuckoo land. No-one is going to knock 10% off their asking price - unless they're truly desperate to move or the place is genuinely overpriced and there's been no offers for months and months.....

The asking price is largely irrelevant - it is just an invitation to negotiate. Whilst the average sale is 8% below asking price, the key point is that the sale value is an accurate reflection of sale prices for other similar properties in the area. You need to be careful not to be too active in seeking what appears to be a bargain - in chasing a 10% reduction in price you may simply end up with a house that was 10% too expensive (either now, or 5 years ago when it last sold). Ignore asking prices but try to find out what prices houses have actually sold at over the past 12 months. This should be your guide on how much you should be offering.

The other guide is how quickly houses are selling. If someone turns down your offer, but the house is still on the market in 6 months then the vendor is probably not serious about moving. If, however, it sells in a few weeks, you are probably pitching too low.