Market state for selling

Crashy_Time

buggy_boy wrote: »

One repossessed property sold cheap does not change the market, what you actually need is lots of motivated sellers and no buyers, thats my point though to get this you need high interest rates and high unemployment, the global market seems to be actually recovering so I dont see a crash coming any time soon.

You are too focussed on repos, many people have been trying to sell for years at kite flying prices, and they have been enabled in this by record low rates, it just takes a few to smell the coffee and the next round of valuations will be lower. The "forced sellers" this time around will be people exiting the BTL market IMO. I think you are way off in thinking we need "High" interest rates, rates at 2% would have many in the UK in trouble IMO.

buggy_boy

Crashy_Time wrote: »

You are too focussed on repos, many people have been trying to sell for years at kite flying prices, and they have been enabled in this by record low rates, it just takes a few to smell the coffee and the next round of valuations will be lower. The "forced sellers" this time around will be people exiting the BTL market IMO. I think you are way off in thinking we need "High" interest rates, rates at 2% would have many in the UK in trouble IMO.

A repo is just a good example of a motivated seller. There have always been people who have tried to sell high and buy lower. The point is they dont need to sell.. Yes there will be some exiting the BTL market, but that has already been happening, as section 24 will come in over a 4yr period then it will not have a huge effect, if they had done a cliff edge then short term it may have made a short term difference, just like when they announced the 3% SDLT there was a huge increase in sales just before and a decrease afterwards...

Really 2% would be 1.5% more than current BoE rates. The average mortgage amount is £85000, even if you say for people with £150k mortgage, you would need an income of around £35k a year, a 1.5% interest increase on that mortgage will cost £187.50 a month, on a a gross income of around £2250 a month, yes it might mean less nights out, delaying getting a car, generally tightening your belt but unlikely to sink many.

Crashy_Time

buggy_boy wrote: »

A repo is just a good example of a motivated seller. There have always been people who have tried to sell high and buy lower. The point is they dont need to sell.. Yes there will be some exiting the BTL market, but that has already been happening, as section 24 will come in over a 4yr period then it will not have a huge effect, if they had done a cliff edge then short term it may have made a short term difference, just like when they announced the 3% SDLT there was a huge increase in sales just before and a decrease afterwards...

Really 2% would be 1.5% more than current BoE rates. The average mortgage amount is £85000, even if you say for people with £150k mortgage, you would need an income of around £35k a year, a 1.5% interest increase on that mortgage will cost £187.50 a month, on a a gross income of around £2250 a month, yes it might mean less nights out, delaying getting a car, generally tightening your belt but unlikely to sink many.

No, a repo is someone who can`t pay their debts having the house taken off them by the bank, they are just looking to get away and start over, they are only motivated to find a new place to live and after ten + years of fat bailouts a bank is not what I would call a "motivated" seller either. When people who actually need/want to sell realise that they have missed the selling window, and are actually chasing the market down, then they will become "motivated" People don`t just have mortgage debt though, most aspects of their existence relies on debt now, so the small upward move in rates hurts in various areas of their spending and contributes to a general tightening and sentiment change.

cypher007

MobileSaver wrote: »

Terrible advice (and spelling!) The whole world has moved on from over a decade ago! Every single person I know who has bought a property in the last few years has searched online at some point during their property search.

I sold one of my properties via an online EA around 6 years ago, had loads of viewings, sold at top whack and saved literally thousands of pounds compared to using a High Street EA.

where in the UK are you selling? also what were you selling. I was selling in the FTB range which is where people seem to need creative mortgage application filling out by an EA's mortgage adviser, due to very low incomes.


hence why even now I bet if I used an online EA id get hardly a sniff. where as a property near me sold for £300k via purple bricks, whilst other properties sit there at £125k with online agents.

MobileSaver

cypher007 wrote: »

where in the UK are you selling? also what were you selling.

Inside the M25 area, family home.

cypher007 wrote: »

hence why even now I bet if I used an online EA id get hardly a sniff.

This is just utter nonsense. I'd be amazed if the number of FTBs who did not use Rightmove or similar was more than 1% (with the possible exception of Scotland where buying is slightly different.) It's just ridiculous to suggest that most FTBs would see a property on Rightmove and then discount it based on who the EA was; in fact I would hazard that the majority wouldn't even know whether a particular EA was an old school bricks and mortar EA or an online one.

Crashy_Time

Did the OP get any offers yet?

hazyjo

Crashy_Time wrote: »

Did the OP get any offers yet?

Bloody 'ell Crashy, they only posted slightly over a week ago! And even then, it was very early days to be worrying (taking the absolute dead Christmas/NY period into account).
Come back in a month...

poppy10_2

hazyjo wrote: »

Bloody 'ell Crashy, they only posted slightly over a week ago! And even then, it was very early days to be worrying (taking the absolute dead Christmas/NY period into account).
Come back in a month...

Looks like they've dropped the price a fair bit and redone the photos

Crashy_Time

poppy10 wrote: »

Looks like they've dropped the price a fair bit and redone the photos

How much have they dropped it?

poppy10_2

Crashy_Time wrote: »

How much have they dropped it?

£10k. Was £340,000, reduced to £30,000 in the last 7 days