Unrealistic vendors?

bitsandpieces

breadlinebetty wrote: »

You seem to be fogetting a couple of very important things.............rent is dead money and properties ALWAYS go up in value - albeit eventually. Okay, there's been a worlwide economic depression, but that ain't gonna last forever:)

Rent's no more dead money than the interest on a mortgage. Property can be a great investment, but certainly isn't the best investment for everyone,

Lavendyr

This is a really interesting thread and have been reading through for the last day or so on and off. Finally decided to make a post!

sw_jay wrote: »

I am surprised at the amount of houses on the market that appear to be unrealistically priced.

The realism or otherwise of pricing is down to two factors - what the buyer is willing to pay and what the seller is willing to accept. I have seen houses priced at what I believed was a completely crazily high price yet seen people pay full asking, and have seen houses priced way below what I would have expected to see as well. There are so many factors that go into pricing a house.

sw_jay wrote: »

1. 3 bed chalet bungalow on Rightmove for £279,000. House was bought for £267,000 in Nov 2006. Minor cosmetic work done to it since then.

I have to be honest and say that this does not sound at all unreasonable to me, certainly for the area I live in, although it will totally vary from place to place. If it is in a decent state, with a good location, with good schools, and demand exceeds supply, there is no reason why they wouldn't try for a higher asking price. Not to mention the fact that if they paid £267k they will need to try and get more to meet their moving costs next time around. The hike isn't completely unrealistic.

sw_jay wrote: »

House prices have gone down by around 15% (according to LR) in this area since the peak in 2007 so I don't see how vendors can justify the price increases without extending or the like. I have probably seen 5 or 6 houses like this.

But if you are going through a period in the area of low supply, prices will start to move up. People who need to move or are desperate to buy - like you say you are - will need to pay more to secure a property as they will be up against a greater number of potential buyers. Simple supply and demand issue.

sw_jay wrote: »

It wouldn't be so bad if they were prepared to accept a lower offer but they seem to be sticking to their guns.

Perhaps they don't need to sell quite as much as some people need to buy and can afford to wait a bit. They might get lucky, as in the example I mentioned above.

sw_jay wrote: »

Apart from not wishing to offer more than the house is worth

A house is worth to you what you are willing to pay for it. The trick is finding a seller who agrees with what you are willing to pay! And if you can't find any sellers, anywhere, who agree with your valuations, perhaps that suggests that you are a bit behind the curve and you should be offering a bit more. Or, you need to wait until the supply improves (which could be a while as the market has slowed right down of late) at which point the balance of power might swing a bit more towards you.

sw_jay wrote: »

I am getting a bit depressed now. I am desperate to find a new home and am prepared to pay a fair price for a decent property

But clearly, in this market, you are not prepared to pay what everyone else seems to think is a fair price. Perhaps it is best for you to wait until there is more choice on the market, as that may open up negotiations a little more.

Rudess

Well maybe if buyers would be as sw_jay then prices will get back to their normal levels. People seem to offer whatever price they will be quoted for a house without doing enough research and bargaining.

sw_jay

Rudess wrote: »

Well maybe if buyers would be as sw_jay then prices will get back to their normal levels. People seem to offer whatever price they will be quoted for a house without doing enough research and bargaining.

At least someone agrees with me. I might come across as a little naive and unrealistic myself but I'm pretty switched on when it comes to researching and negotiating. I can't be the only person out there who thinks house prices have reached a ridiculous level and would like to see them come down a bit. And yes, before you ask, I am a homeowner so I would lose equity in my own house if this were to happen.

SuzieSue

sw_jay wrote: »

At least someone agrees with me. I might come across as a little naive and unrealistic myself but I'm pretty switched on when it comes to researching and negotiating. I can't be the only person out there who thinks house prices have reached a ridiculous level and would like to see them come down a bit. And yes, before you ask, I am a homeowner so I would lose equity in my own house if this were to happen.

I think a lot of people would agree that house prices are too high compared to salaries etc, but what people don't agree with is your notion that sellers are unrealistic. If they are in no hurry to move why should they lower their asking price?

Rudess

sw_jay wrote: »

At least someone agrees with me. I might come across as a little naive and unrealistic myself but I'm pretty switched on when it comes to researching and negotiating. I can't be the only person out there who thinks house prices have reached a ridiculous level and would like to see them come down a bit. And yes, before you ask, I am a homeowner so I would lose equity in my own house if this were to happen.

You're definitely not naive. Naive is someone who pays any price the EA will quote.

There is a house in my area in a !!!!!! road, 3 bed, they ask for it 315k, no chance it's worth more than 230k at the best case, Where did they come with that figure? only god knows.

geoffky

The key is finding a motivated seller with deadlines..mine had divorce and repossession deadlines hence i got 120k off the original asking price and they still made a good profit..

zappahey

Lavendyr wrote: »

Not to mention the fact that if they paid £267k they will need to try and get more to meet their moving costs next time around.

I'm curious as to why you think a buyer should fund the seller's moving costs.

Thrugelmir

Lavendyr wrote: »

But if you are going through a period in the area of low supply, prices will start to move up. People who need to move or are desperate to buy - like you say you are - will need to pay more to secure a property as they will be up against a greater number of potential buyers. Simple supply and demand issue.

Unfortunately the market is debt dependent. So supply of available finance will limit demand at current price levels.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Unfortunately the market is debt dependent. So supply of available finance will limit demand at current price levels.

Then the market will remain at low volumes, prices will continue to stagnate as they've now done for several years, and the housing shortage will continue to get worse.