Unrealistic vendors?

Davesnave

geoffky wrote: »

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..

And you have to be able to move quickly. Our vendor was similar to yours, but it wasn't a repo, so when the gazumper came along, she stuck with us because we could meet her deadline.

breadlinebetty

bitsandpieces wrote: »

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,

Yes but even on an interest only mortgage (which I don't recommend long term) with inflation in 25 years time, for instance, your £200k property will probably be worth at least 3 times that - giving you a cool £400k lump sum at the end of it. You get NOTHING back from paying rent for 25 years......

And with a REPAYMENT mortgage you're paying off the capital each month - which means you'll own the property outright and have £600k to your name.

I know which one I'd rather do!:D

breadlinebetty

Lavendyr wrote: »

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!


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.


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.


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.


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.


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.


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.

Great post!:beer:

Lavendyr

zappahey wrote: »

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

Sorry, have been away from t'Internet a while!

I don't think they *should* necessarily fund the moving costs, but I don't see why the seller wouldn't try for it all the same. As in my previous post, if the seller is not desperate to move, they can try asking a higher price and see what they're offered. Where demand is high they might just get lucky.

Lavendyr

Thrugelmir wrote: »

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

Also broadly true. However certainly in the area in which I live, this does not seem to be the limiting factor. When a "normal" house comes on the market at the moment in my area (south but not London), it is under offer within days. The only houses that seem to be sticking around are unusual for one reason or another (unauthorised extension, strange layouts, in need of total refurb) or are completely ridiculously priced (way beyond "having a go" and into cloud cuckoo land). Nor are selling prices a million miles away from asking - certainly not 10% below but more like 2-4%.

To me this suggests that where I live, prices are being inflated because there are more people willing - and able - to buy than sell. Of course, this is not the case everywhere! But I think it's a false assumption that debt affordability is the sole factor at play here. Doubtless in many regions it is, but it certainly doesn't seem to be affecting prices where I live.