Discount on asking price?

w00519772

Please take a look at this URL: http://www.zoopla.co.uk/house-prices/lincoln/carlton-boulevard/?new_homes=include&q=148%20carlton%20boulevard&search_source=nav&yr=13349439. (the first three houses in the list are for: 148 Carlton Boulevard as this is what I searched for).

I am confused why this house sold for such a discount in December 2008 (which was actually about the time the market peaked). The only reason I can think of is that the vendor accepted a huge discount on the asking price. Are there any other possible reasons?

I am interested in a property in this area and I am looking at what prices these houses sold in the past as part of my research.

ReadingTim

The peak of the market was Q3 2007, so by Q4 2008 things were well and truly on the slide, which may have spooked the market locally.

Other than that, it's pure speculation - the place could have been cosmetically trashed by tennants/cannabis farmers, and needed a complete renovation; the vendor needed cash quickly (failure of a business, divorce) or really wanted to move fast; the buyers may have driven a hard bargain, aided and abetted by sites and forums such as these?!? You just don't know.

Kynthia

Wasn't summer 2008 when the whole Northern Rock thing happened and there were queues of people trying to get their money out? Plus the sub prime mortgage scandal in America had kicked off by then.

dimbo61

Has it been on the market since May 2013?
Well looked after, modern townhouse so may have thin walls!
Was it built in 2004?
Master on top floor with en-suite and easy to look after garden.
Is it still up for £140K after 7 months?
not sure you will get it for £125K and not pay stamp duty but if you start at that you can always go UP!

Davesnave

Kynthia wrote: »

Wasn't summer 2008 when the whole Northern Rock thing happened.

No, that was autumn 2007.


By Q4 2008 property sales were in a pretty poor way. To sell then meant giving a big discount. I know, because I did, and so did my purchasers; roughly £60k and £30k respectively. We lived in very desirable areas too.


So the OP comments on timing are way out.


Bottom of the market nationally came a bit later, in spring 2009. That's when I bought again.;)

Kynthia

Davesnave wrote: »

No, that was autumn 2007

Ah, so by late 2008 people were very worried and waiting to see what happened next. Not a great time to sell.

troubleinparadise

Sold to a family member at a discount to avoid IHT / care home fees / divorce....?

Davesnave

Kynthia wrote: »

Ah, so by late 2008 people were very worried and waiting to see what happened next. Not a great time to sell.

Warren Buffet wasn't alking about houses, but one of his mantras was "Buy when others are fearful."

For us, and for our buyers, selling at that time really paid off. Even the person who sold to us, right at the bottom, still gained by moving then, starting a new life and career elsewhere.

Opportunities come in many guises.

john_white

ReadingTim wrote: »

The peak of the market was Q3 2007, so by Q4 2008 things were well and truly on the slide, which may have spooked the market locally.

Incorrect.

Looking at HPI some areas peaked in Q1 2008.