Ridiculous listing prices

AdrianC

MobileSaver said:

hippocrates1 said:

lookstraightahead said:

 only for a high percentage to fall through because of over egging. Or indeed buyers thinking they can afford it.

Exactly no point if nobody can get a mortgage for that amount 

A third of all houses are bought outright with cash so no mortgage needed...

And, of course, "undervalued" doesn't mean "won't lend".

Let's say £300k downvalued 10% to £270k. If the buyer is only after a £200k mortgage, then that's the difference between 67% LtV and 74% LtV. Would that even affect the rate?

Unless it's an FtB purchase, most downvaluation will just get nodded through because it's not changing anything functionally.

Penguin_

Average house prices in Wales have, for the first time, exceeded £200,000 recently.

Crashy_Time

RelievedSheff said:

hippocrates1 said:

lookstraightahead said:

I tend to agree - a lots of hard work and money paid to agents, solicitors, banks, brokers and surveyors only for a high percentage to fall through because of over egging. Or indeed buyers thinking they can afford it.

Exactly no point if nobody can get a mortgage for that amount 

Some will though. Again that is how a rising market works.

The number of sales falling through doesn't seem to be all that high certainly where we are and we are in Nottinghamshire as well. Which would seem to suggest that the lenders are willing to lend on these properties you think are overvalued 🤔

https://www.plumplot.co.uk/Nottinghamshire-property-transactions.html

Transactions are at all time lows though?

Crashy_Time

caprikid1 said:

Can you provide evidence with valid links to prove the price rises or the statemement that a high percentage are falling through.
That is not the market I am aware of, estate agents , mortgage brokers selling more than they have ever sold. whether due to the stamp duty holiday or not the market is booming in the southwest with demand outstripping supply. The economy is set to bounce back and those that can have been saving hard for deposits.

But transactions have collapsed about 30%?
https://www.plumplot.co.uk/South-West-property-transactions.html

What is your evidence that the economy will "bounce back"?

NameUnavailable

I thought it was just me - I have noticed properties coming onto the market this year are 10-20% higher than most comparable properties.

For example a place that I saw identical versions of sell for £220K last year came on at offers over £260K. It was reduced to £250K and now to £240K. I would be very interested in it at £220/225K so I will wait and see if they get realistic.

I'm not sure what is driving the optimism.....

MobileSaver

NameUnavailable said:

I thought it was just me - I have noticed properties coming onto the market this year are 10-20% higher than most comparable properties. I'm not sure what is driving the optimism.....

Pure speculation but I would suggest that there is a shortage of properties coming on to the market because many people won't be comfortable with viewings and viewers during the pandemic. Similarly demand has changed over the last 12 months with probably more people than ever before wanting bigger properties and bigger gardens and ideally in less-urban locations. So the sellers who are on the market are thinking why not try and get a better price?

Turn it around; if you had something that others want and that you knew was in short supply, would you try and get the highest or the lowest price you could for it?

Thrugelmir

NameUnavailable said:

I thought it was just me - I have noticed properties coming onto the market this year are 10-20% higher than most comparable properties.

Reductions have started to filter through. Now that the stamp duty holiday boat has sailed. 

Splatfoot

I sold my house last year, completed November for 485k. A comparable house in the same road went up for 600k in October and was under offer within a month! I was pretty dumbstruck at the time. I was pleased to note that 3 months down the line, it fell through and is back on again. I know that sounds mean but the price is ridiculous.. Still at 600k though but they won't make the SD holiday this time so any buyer will have to find an extra 20k. To me, it seemed like pure greed.

strawb_shortcake

I was surprised when a terraced house near me went on the market for £270k, ceiling price for the road is £246k and that was a semi. 
It sold for £275k and was taken off the market in a week. 

RelievedSheff

Splatfoot said:

I sold my house last year, completed November for 485k. A comparable house in the same road went up for 600k in October and was under offer within a month! I was pretty dumbstruck at the time. I was pleased to note that 3 months down the line, it fell through and is back on again. I know that sounds mean but the price is ridiculous.. Still at 600k though but they won't make the SD holiday this time so any buyer will have to find an extra 20k. To me, it seemed like pure greed.

It is worth what someone is willing to pay for it. What you completed for is pretty irrelevant.