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Debate House Prices
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Just been told that the market is cooling in SW London
Comments
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observingthedebate wrote: »I would agree with you. The silly asking prices has brought out a lot of properties on the market, particularly 2 bedders. Now there must be a lot of sellers chasing fewer quality buyers, post MMR. Sounds to me like a correction is going to happen soon.
A correction in asking prices yes, not a correction on year on year sales. Well, I wouldn't bet on it if I were you. I imagine we'll continue to see a creep in prices which over the next six years which will be quite significant.
Haringey had something like a 10% increase in asking prices two months ago, then this month -5% and before the last two months, a year of gains. That's not a crash, it's one flicker of a flame in a very hot market burning decidedly upwards very quickly and relatively consistently if you ask me.
I might be wrong though, only time will tellProudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
I'm slowly seeing a few houses coming on in my area that we would possibly consider, even though they are still massively overpriced for what they really are, and would completely stretch us financially.
I was speaking to a chap from Winkworth yesterday and he was saying that property isn't being snapped up with the same frenzy as a few months ago, so we are going to sit tight for a bit and see what happens.Metranil dreams of becoming a neon,You don't even take him seriously,How am I going to get to heaven?,When I'm just balanced so precariously..0 -
I guess the amount of credit people can get will heavily effect sales and I'm not sure how that one will pan out but more I look around London I see a whole new city being born which is looking much more enticing and inspiring. The amount of development work is astronomical. The city is currently growing at a rate never seen before as the new building materials and tools are put to ever greater use with new amazing buildings literally popping up making one of the world most popular skylines almost dynamic. All of which is inevitably sucking more and more people in.
On the short term, in the next six to twelve months, the prices could go any which way but i think it's pretty clear what direction London prices are ultimately heading.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
We've just had our house undervalued from £640k to £500k to everyone's astonishment, including our buyer who is selling a flat in the area, looked at 15 houses in one day and still wants to pay asking price.
The surveyor refused to use the 8 comparables that completed/exchanged in 2014 provided by our EA, instead relying on published sold prices and talking to local 'budget' EAs.
On our street of 200+ houses, the last four houses that sold (and are on Zoopla) completed in the last quarter of 2013 and were on the market/sold in the early £300k's.
We know all these houses because they were on the market last spring/summer when we were buying our BTL and they were in our price range.
1. None were extended so they are all 85m2 to our 133m2, second.
2. Two were literally derelict and have been bought by developers, a third was probate and we tried to get to see it but it was bought without going on the market and is currently being gutted, the fourth is in bad decorating order, only has a downstairs bathroom and backs onto a train track.
3. Ours is pristine - kitchen extension/loft conversion/new sash windows/new carpets/resanded floors/recently decorated inside and out (we didn't intend to move)....
We had our house valued last June by two EAs at £500k (today's apparent valuation) when the houses above were all on the market for about £320k. Houses in need of modernisation are now going on from £450-500k.
Surely the surveyor should have made adjustments for what has happened in London in the last 12 months?
Where can it go from here? How can an area ever increase in price if surveyors don't use the latest completions as reference?
Our buyers are contesting the valuation with their lendor but I can't see a £140k increase happening.0 -
Thought this place was in the Midlands.We've just had our house undervalued from £640k to £500k to everyone's astonishment, including our buyer who is selling a flat in the area, looked at 15 houses in one day and still wants to pay asking price.
The surveyor refused to use the 8 comparables that completed/exchanged in 2014 provided by our EA, instead relying on published sold prices and talking to local 'budget' EAs.
On our street of 200+ houses, the last four houses that sold (and are on Zoopla) completed in the last quarter of 2013 and were on the market/sold in the early £300k's.
We know all these houses because they were on the market last spring/summer when we were buying our BTL and they were in our price range.
1. None were extended so they are all 85m2 to our 133m2, second.
2. Two were literally derelict and have been bought by developers, a third was probate and we tried to get to see it but it was bought without going on the market and is currently being gutted, the fourth is in bad decorating order, only has a downstairs bathroom and backs onto a train track.
3. Ours is pristine - kitchen extension/loft conversion/new sash windows/new carpets/resanded floors/recently decorated inside and out (we didn't intend to move)....
We had our house valued last June by two EAs at £500k (today's apparent valuation) when the houses above were all on the market for about £320k. Houses in need of modernisation are now going on from £450-500k.
Surely the surveyor should have made adjustments for what has happened in London in the last 12 months?
Where can it go from here? How can an area ever increase in price if surveyors don't use the latest completions as reference?
Our buyers are contesting the valuation with their lendor but I can't see a £140k increase happening.0 -
We've just had our house undervalued from £640k to £500k to everyone's astonishment, including our buyer who is selling a flat in the area, looked at 15 houses in one day and still wants to pay asking price.
The surveyor refused to use the 8 comparables that completed/exchanged in 2014 provided by our EA, instead relying on published sold prices and talking to local 'budget' EAs.
On our street of 200+ houses, the last four houses that sold (and are on Zoopla) completed in the last quarter of 2013 and were on the market/sold in the early £300k's.
We know all these houses because they were on the market last spring/summer when we were buying our BTL and they were in our price range.
1. None were extended so they are all 85m2 to our 133m2, second.
2. Two were literally derelict and have been bought by developers, a third was probate and we tried to get to see it but it was bought without going on the market and is currently being gutted, the fourth is in bad decorating order, only has a downstairs bathroom and backs onto a train track.
3. Ours is pristine - kitchen extension/loft conversion/new sash windows/new carpets/resanded floors/recently decorated inside and out (we didn't intend to move)....
We had our house valued last June by two EAs at £500k (today's apparent valuation) when the houses above were all on the market for about £320k. Houses in need of modernisation are now going on from £450-500k.
Surely the surveyor should have made adjustments for what has happened in London in the last 12 months?
Where can it go from here? How can an area ever increase in price if surveyors don't use the latest completions as reference?
Our buyers are contesting the valuation with their lendor but I can't see a £140k increase happening.
I've heard a couple of similar stories locally recently, and it's a tricky one. Essentially, surveyors in cases like this are imho effectively saying that current prices are a bubble, are not sustainable, and sale prices being agreed today do not represent true value. As such, they don't want to "sign off" these valuations.
Whether they're right is of course another matter entirely. There's also the valid question as to whether to make those judgements is their call (and opinions on that point will legitimately differ). After all, the market is setting these prices, and the value of a property is of course ultimately what someone is willing to pay for it.
Sadly, none of this much helps you in your current situation. Your buyers best option in this situation might be to find out which local valuers are on their lenders panel, and pay for a "second opinion" themselves. This particular surveyor is clearly not going to budge, and the best option might be to try and go round him by getting another view that the lender will listen to. That way, there is a professional opinion trusted by the lender flagging that this valuer is wrong. This of course assumes that a seond valuer will support the purchase price (which seems likely based on what you've told us). If for some reason a second valuer comes in at a figure close to the first, you are sadly probably stuck.
Sorry I can't be more help!.0 -
We've just had our house undervalued from £640k to £500k to everyone's astonishment, including our buyer who is selling a flat in the area, looked at 15 houses in one day and still wants to pay asking price.
The surveyor refused to use the 8 comparables that completed/exchanged in 2014 provided by our EA, instead relying on published sold prices and talking to local 'budget' EAs.
On our street of 200+ houses, the last four houses that sold (and are on Zoopla) completed in the last quarter of 2013 and were on the market/sold in the early £300k's.
We know all these houses because they were on the market last spring/summer when we were buying our BTL and they were in our price range.
1. None were extended so they are all 85m2 to our 133m2, second.
2. Two were literally derelict and have been bought by developers, a third was probate and we tried to get to see it but it was bought without going on the market and is currently being gutted, the fourth is in bad decorating order, only has a downstairs bathroom and backs onto a train track.
3. Ours is pristine - kitchen extension/loft conversion/new sash windows/new carpets/resanded floors/recently decorated inside and out (we didn't intend to move)....
We had our house valued last June by two EAs at £500k (today's apparent valuation) when the houses above were all on the market for about £320k. Houses in need of modernisation are now going on from £450-500k.
Surely the surveyor should have made adjustments for what has happened in London in the last 12 months?
Where can it go from here? How can an area ever increase in price if surveyors don't use the latest completions as reference?
Our buyers are contesting the valuation with their lendor but I can't see a £140k increase happening.
Sorry to hear but it is interesting to hear that surveyors, perhaps guided by lenders (?), maybe the ones applying the brakes.0 -
Will be interesting to see the next few months of the rightmove index. Initial asking prices are down considerably.
Might not show in LR index as I'm not sure the crazy asking prices of late '13 / early '14 were ever achieved.
But a definite, substantial fall in asking prices at the moment.0 -
Asking prices do move wildly. They tend to shoot away from sold prices and then hover or fall while sold prices catch up.0
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