Unrealistic vendors?

breadlinebetty

Davesnave wrote: »

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.

I don't see how you equate procrastinating with valuing your life cheaply??? People procrastinate for all sorts of reasons - often because they're very fussy and value their very much indeed! I procrastinated because I could. I could afford to - and I was in no rush to sell. I was happy where I lived, but also fancied a change - and when the right offer came along I accepted it - as anyone would have done! It was an offer I couldn't refuse........;)


You should be thankful you bought 'cheaply' - good for you. Just as well really, cos if the doommongers on here are correct property isn't going to rise in our lifetime - so at least you didn't hang on forever waiting for a bargain that will never happen! If properties aren't going to rise everyone may just as well buy now, eh?:D

girl_withno_name

ognum wrote: »

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

This is a completely different kettle of fish though... the OP states that the properties they've been looking at have had "minor cosmetic work", whereas that terminology hardly seem to describe the work carried out at your son's property.

One EA I spoke to "didn't get" what I was getting at when I asked where the added value to a property had come from... they stated that "it's ready to move into" and "has extensions", both statements which were true before the current vendor got there! The vendor wasn't willing to move from the inflated asking price, so I had to walk away (a shame really as it was a nice property)

ognum

girl_withno_name wrote: »

This is a completely different kettle of fish though... the OP states that the properties they've been looking at have had "minor cosmetic work", whereas that terminology hardly seem to describe the work carried out at your son's property.

One EA I spoke to "didn't get" what I was getting at when I asked where the added value to the property had come from... she started on that "it's ready to move into" and "has extensions", both statements which were true before the current vendor got there! The vendor wasn't willing to move from the inflated asking price, so I had to walk away (a shame really as it was a nice property)

I completely agree, I was just talking about doing homework on a property before you see it, it is impossible to know what has been done.

I would always advise people who renovate houses to keep photos of how it was when they bought. Any interested buyer would be interested in these as well as a record of receipts for improvements!

brightonman123

i guess vendors want to cover their mortgage, not just house 'value'.. only worth what someone is willing to pay.

ognum

brightonman123 wrote: »

i guess vendors want to cover their mortgage, not just house 'value'.. only worth what someone is willing to pay.

That is exactly why some house remain unsold for years and years!

Thrugelmir

breadlinebetty wrote: »

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

All has changed. The property market is at a pivotal point. So take those RTG's off. Those with patience may well be rewarded.

breadlinebetty

jamesmorgan wrote: »

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.

Don't know how you can think the asking price is largely irrelevant ???? The asking price is decided by taking into account the property, area, and recent house sales of similar properties nearby in similar type locations. So give or take a bit, asking prices are pretty accurate.

Sometimes they'll sell for less - sometimes much more! Sealed bids and all that......

You can't go by 'averages' either - every area is different - even the roads in the same area can be different - sometimes certain ends of the road can fetch higher or lower prices. So there is no such thing as an average in real terms.

Your quote:

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.

That's wrong too. Although areas and streets vary in price accordingly, individual properties on the same street can vary tremendously in price depending on its condition, year it was built, features, location in the road, number of rooms, decor, parking etc.......

I know one road where all the houses are quite different to each other and the cheapest go for around the £350k to £400k mark, while the top end ones go for between £500k and £700k.

It's also nonsense that the majority of vendors expect to get 8 or 10% less of their asking price. Do you seriously think someone selling their £1M property expects to sell it at a £100,000 reduction? I don't think so!

Neither would soeone selling a £100k property expect to sell it at a £10,000 reduction. Not on your nellie!!!

Davesnave

breadlinebetty wrote: »

I don't see how you equate procrastinating with valuing your life cheaply???

Procrastinating may be OK if you are basically content and not just kidding yourself that you are.

Two examples that I know of. People in part of the country where they had settled for a time, both wanting to return nearer 'home' because their circumstances had changed and/or they felt somewhat unhappy. Neither looked likely to have a mortgage. We viewed their houses, but felt they were over the top, price-wise. No inclination to negotiate.

Seems we were not alone. The properties are still on the market, and at much the same prices, but our viewings were in 2008!

These vendors are both Boomers, like me. Why don't they take a hit and move on? The answer, it seems, is that they value money above the worth of their own lives & happiness, or perhaps the thought of 'making a loss' scares them too much. Knowing how long they'd been in ownership, I doubt if there was any question of loss. They'd had the benefit of house price inflation for years.

Davesnave

breadlinebetty wrote: »

You should be thankful you bought 'cheaply' - good for you. Just as well really, cos if the doommongers on here are correct property isn't going to rise in our lifetime - so at least you didn't hang on forever waiting for a bargain that will never happen! If properties aren't going to rise everyone may just as well buy now, eh?:D

I thank only myself for having the courage to sell up when I needed to at a sensible price, confident that I would, eventually, get what I wanted from someone equally determined. Falling markets present more opportunities than rising ones, IMO.

playaz

I cannot understand though how people expect the 'asking price' it is a negotiation - the price will vary and while not everyone will accept 10% off their asking price - this is the point...

Many vendors put the price of their houses 10% HIGHER than the actual value OR amount that they wish to sell it for. Simple really - if someone offers 10% off the asking price and the seller says no either provide another offer or just leave.

There are sooo many houses on the market - as said before it is a buyers market, swings and roundabouts because in many years from now it will all change and become a 'sellers market' again.

I am no expert but common sense does need to be taken into account - if sellers hold out for their asking price then in most cases that property will not sell or will take a very long time.

Lending criteria has changed and it is much harder to get credit from the banks, therefore not surprisingly buyers are becoming more aware and not just buying the first house they view.

I find it amazing how many estate agents try to rush me with silly comments like "this property has attracted a lot of interest" and "you really ought to put a bid in immediately before it gets snapped up"... and then months later I see the very same property on the market not being purchased by anybody.

Prices are dropping.... but it won't be forever obviously might as well make advantage of the current bad situation with the economy (don't start me on that one lol)