Ridiculous listing prices

RelievedSheff

annabanana82 said:

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. 

The ceiling price will always be broken in a rising market otherwise prices wouldn't rise, they would be stuck at the ceiling price.

GDB2222

RelievedSheff said:

annabanana82 said:

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. 

The ceiling price will always be broken in a rising market otherwise prices wouldn't rise, they would be stuck at the ceiling price.

Prices in the last year have risen about 0.5% a month, depending on where you are in the country, so it is quite surprising to see a 10% jump in one go.

strawb_shortcake

RelievedSheff said:

annabanana82 said:

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. 

The ceiling price will always be broken in a rising market otherwise prices wouldn't rise, they would be stuck at the ceiling price.

I get that, it just took us all by surprise as we didn't think house prices in that are would have risen so much in a short time. Mine is a semi and valued at £180k 5 years ago, the £246k was only a year before.  I don't think some of the newer estate (but must be 20 years old) have had as much of increase but they have always been pricier anyway.

Splatfoot

RelievedSheff said:

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. 

I didn't say it wasn't, and someone clearly was prepared. I just said it annoyed me because it was an example of  massively over inflating a price. But now it's fallen through, so......

lookstraightahead

I think that houses are going on higher than they've should, they're quickly snapped up, then lots fall through.
As said, a house is worth what someone is willing to pay, but I would add it's only worth what a bank is willing to lend on if you need a mortgage. Over ambitious sellers, buyers and Estate Agents.
I do think there will be some kind of correction, or at least some order to a very strange market situation.

lookstraightahead

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.

I'm seeing a lot of situations like this as well. Houses offered on quickly, taken off the market, then back on later. 

MobileSaver

lookstraightahead said:

I'm seeing a lot of situations like this as well. Houses offered on quickly, taken off the market, then back on later. 

This is nothing new though; way before the added complexities of coronavirus was a thing, one in four house purchases fell through - primarily simply because the buyer changed their mind.

NameUnavailable

Just look at the amount of posts on here about people who have problems with down valuations by lenders.....

Even if someone offers an 'optimistic' price things invariably fall apart when they get the mortgage valuation.

steve866

Are any stats published about down valuations? I would guess not. I would be interested to see if there’s a trend. 

RelievedSheff

NameUnavailable said:

Just look at the amount of posts on here about people who have problems with down valuations by lenders.....

Even if someone offers an 'optimistic' price things invariably fall apart when they get the mortgage valuation.

I would say they are a very insignificant number on the whole. There may be a few posts on here complaining about down valuations but let's be right here, no one ever posts that their valuation was just fine.

You only ever hear about the tiny amount that didn't agree with the sale price.

I would say that far more sales fall through for other reasons than a down valuation.