House devalued

robatwork

For @Crashy_Time please set a diary entry for 5 years and 10 years time to update this thread with the current house valuation.

Enjoy your new home

gerkin

Here is what is happening. Economy is in doldrums, people have lost their jobs or on furlough. Houses are not shifting as quickly as before. The media have been advised to keep projecting that prices are shooting into the stratosphere so that the housing market ponzi keeps going. If this deck of cards falls, it would be a catastrophe. So every possible means are being employed to keep it steady. However, banks who lend you the cash to buy the asset are not fools. They have an eye on the ground and know what is going on. They are unwilling to take a risk of crashing prices but would you ? If you are willing to bet that prices are shooting up like the papers say, put your own cash in to make up the difference. But, you might risk losing it all.

gerkin

luke105 said:

Well the good news is they’ve accepted the £210,000 offer. thanks guys 

This would worry me. No negotiations no nothing, straight up accepted a low offer.

luke105

gerkin said:

luke105 said:

Well the good news is they’ve accepted the £210,000 offer. thanks guys 

This would worry me. No negotiations no nothing, straight up accepted a low offer.

Why would it worry you? What are your thoughts?

luke105

gerkin said:

luke105 said:

Well the good news is they’ve accepted the £210,000 offer. thanks guys 

This would worry me. No negotiations no nothing, straight up accepted a low offer.

Just to give you more info. I told the estate agent tht we will not negotiate at all and If they don’t agree we will walk away. I’ve inboxed you if you want to read my message as I’ve explained a bit more about the sale 

Crashy_Time

gerkin said:

luke105 said:

Well the good news is they’ve accepted the £210,000 offer. thanks guys 

This would worry me. No negotiations no nothing, straight up accepted a low offer.

Seller is maybe smart and not in denial about the economy like some would be sellers? There is still the risk that the OP could lose money on this IMO.

Thrugelmir

steampowered said:

you have probably done more research into the property than the valuer.

Valuer is going to be on the ball for what properties are actually sell for.  It's their job to know the local market. 

Crashy_Time

Not knowing the local market is going to make a valuer look pretty daft?

luke105

Crashy_Time said:

gerkin said:

luke105 said:

Well the good news is they’ve accepted the £210,000 offer. thanks guys 

This would worry me. No negotiations no nothing, straight up accepted a low offer.

Seller is maybe smart and not in denial about the economy like some would be sellers? There is still the risk that the OP could lose money on this IMO.

I think at the £210,000 mark the house is probably right. It’s 3 years old and they have done some nice improvements to the kitchen and fitted blinds etc. 

We have no way of improving the property so it can only gain money naturally with the market (once it recovers) 

we are selling a house too and that would lose money in the same market so not much is lost. 

At the time we offered on the property the housing market was having the crazy boost around July, august September time. Valuer went out start of this month so I can see why the valuer has come up with 13k less.

of course, we probably went in too high originally using heart over sense. 

Crashy_Time

luke105 said:

Crashy_Time said:

gerkin said:

luke105 said:

Well the good news is they’ve accepted the £210,000 offer. thanks guys 

This would worry me. No negotiations no nothing, straight up accepted a low offer.

Seller is maybe smart and not in denial about the economy like some would be sellers? There is still the risk that the OP could lose money on this IMO.

I think at the £210,000 mark the house is probably right. It’s 3 years old and they have done some nice improvements to the kitchen and fitted blinds etc. 

We have no way of improving the property so it can only gain money naturally with the market (once it recovers) 

we are selling a house too and that would lose money in the same market so not much is lost. 

At the time we offered on the property the housing market was having the crazy boost around July, august September time. Valuer went out start of this month so I can see why the valuer has come up with 13k less.

of course, we probably went in too high originally using heart over sense. 

 The market is propped up with zero interest rates and HTB schemes, nothing natural there, it will only take rising mortgage rates and/or rising unemployment to tip it over the edge IMO, buying a home to be anything other than a long term home in this climate isn`t a great idea IMO