Why most houses don't sell

witchy1066

its not that I mind looking at a property that has been made to look better than it actually is but I do mind the seller expecting me to pay for it

can I add something to the sellers out there, and this is purely what I have been told by mortgage lenders....and should be obvious but in my viewing experience over the last 2 months doesn't seem to be

lenders can be very picky not only who they lend to but also on the property they are loaning the money

if your house needs the damp sorting , or the roof looking at , and the electrics are a bit dodgy, your prospective buyer will find it difficult to get the money needed to buy your property, or need to put down a bigger deposit than they can afford,
by overlooking these things you are limiting your prospective house buyers considerably

Lenders do not care if the kitchen is new or if the floor has fluffy carpets but they do care if the property isn't worth what the buyer is asking/needing to borrow

Richard_Watters

It's a Buyer's market in most parts of the UK right now so typically a buyer has a choice of several properties. The majority of people will buy a well presented property that they can move into without having to do much to it. First time buyers in particular tend to go on first impressions - they're nervous about what they might not be able to see in a tired property.

My experience is that if a property needs say £5k spending on it to bring it up to standard (maybe new carpets, some redecoration and maybe a new bathroom suite for example), then a Buyer would want this to be priced £10k lower than a similar property in good condition to make it attractive. This is because: 1) People value their time and 2) First time buyers (in particular) often don't have the cash to spend on improvements but can stick £5k on the mortgage quite easily.

DRP

Richard_Watters wrote: »

It's a Buyer's market in most parts of the UK right now so typically a buyer has a choice of several properties. The majority of people will buy a well presented property that they can move into without having to do much to it. First time buyers in particular tend to go on first impressions - they're nervous about what they might not be able to see in a tired property.

My experience is that if a property needs say £5k spending on it to bring it up to standard (maybe new carpets, some redecoration and maybe a new bathroom suite for example), then a Buyer would want this to be priced £10k lower than a similar property in good condition to make it attractive. This is because: 1) People value their time and 2) First time buyers (in particular) often don't have the cash to spend on improvements but can stick £5k on the mortgage quite easily.

It seems to me that there is no such thing as 'the UK housing market' given the disparity between the regions. The stories of selling woe that are often heard of on here just don't tally with the contrast I (and others on here) have experienced - and not just in the South East. It certainly isn't a buyers' market where I live in Bristol and property is literally flying off the shelves at 5%+ more than last year. The market is mental here, for all but the very crappiest stock.

Prices that seemed 'optimistic' to me are selling at asking price, or very near...

Fraise

I always thought that the two most important rooms when selling a house were the kitchen and bathroom? If they looked old , dated and worn it knocked thousands off the asking price?

Strapped

Richard_Watters wrote: »

As someone involved in the property industry I see a lot of people who are bemoaning the fact that their property has been on the market for months - or longer - with little interest from potential Buyers. Invariably they blame this on "the market".

"The market" is tough, of that there's no doubt. But there is a market nevertheless. So if a house isn't selling it's down to one reason and one reason only - the price.

The reason so many houses are over-priced is because most Estate Agents over-price them (there are exceptions, but not many, in my experience). This is because their aim is simply to get as many listings as possible. Once they have a listing (and often, a 3 or 6 month contract) they will say how tough it is, and eventually either you or they will suggest reducing the price to the real value.

Here's a real example I came across last week:

Detached house in N. Yorkshire on the market at £345,000.

Was last sold, in 2006, at £285,000. Was in average condition then, has been tidied up since, but nothing special. Based on what's happened to house prices since (about 16% down in this area) there is absolutely no reason why this property should be marketed at a higher price than was paid for it back then.

The vendors believe that they got a bargain when they bought it (they didn't, the price paid just reflected the condition) and the improvements they've made justify the marketing price. Of course the Estate Agent was only too happy to humour them to get the listing.

Result: House has been on the market for 2 months with no viewings. The owners will eventually give up and decide not to move, or have to reduce the asking price to below £300,000 to have any chance of selling.

If I could give one tip to people who want to sell a property it is to work out the value of the property yourself (lot's of online tools available for this) and ask Estate Agents for realistic valuations to sell the property without telling them what how much you think it's worth. Then use an Agent who gives an honest valuation. Might take you a while to find one though!

Hey, no !!!!. Thanks for enlightening us all.

Dan-Dan

I agree with DRP , it`s only a buyers market when the house is not the usual , or perhaps in need of modernisation etc , bog standard , well priced, fairly well maintained 3 bed`s where we are honestly fly off the shelves

geordiepaul2001

I agree with the OP, we part exchanged with Taylor Wimpey and they marketed our house at a price likely to get a sale in 4-6 weeks. Approximately 9 days, 25+ viewings and several offers late the house is sold to the next family.

Paul

lessonlearned

Irrespective of a property's condition or location there is a price at which it will simply fly. At the other end of the spectrum there will be a price at which you don't stand a snowball in hell's chance of selling.

The trick is to find the balance.

I sold mine in December, after 3 weeks on the market, at 7% less than asking price. I thought it was a good offer so I went for it.

Checked RM out of curiosity and one of my competitors who was priced exactly the same as mine is still on the market and has so far reduced his asking price by £35K.

That property was bigger than mine, well presented (although not, of course, so elegant and as stylish as mine :rotfl::rotfl:). No in all seriousness mine perhaps enjoyed a slightly more advantageous location but I think I was more pragmatic and open to offers than my competitors were hence I got my sale.

They have held out for a better price and it has cost them dear. They have been greedy and unrealistic.

They have made reductions but they have only "chased the market down". The fact is the house has been on the market too long and people get wary. A house that has languished for a long time tends to get a stigma attached and people become suspicious.

Now that they have reduced it yet again they might just get a buyer, but it will still be much less than their new asking price.

When the price is low enough the vultures will swoop......

Davesnave

Hmmm...so if something is too expensive for what it is, it won't sell.

And one simply can't generalise about the UK housing market.

Yup, think I'm keeping up....:)

kwmlondon

I_have_spoken wrote: »

Yep, the great majority of buyers are sheeple and can be easily fooled by shiny things, hence the 'tick boxes' of staging for sale.

It does surprise me, there are SO MANY house sale shows on tv you'd have thought it impossible for anyone not to realise that the presentation of a property is something you can alter. Seeing beyond a lick of paint is not hard.

However, I do have sympathy with people who are lacking in time and just want a place they can buy and move straight into, and getting a place decorated once you've moved in can be disruptive and, to people who've never been through it, can seem very daunting.

I grew up on building sites so it holds no fear for me, but for a lot of first time buyers who've rented a different place every 6 months, painting and decorating must seem like a huge proposition. Once they've been through it once they'll be more prepared to take on a bit of a project.