Agent or market problem?

Sarah1Mitty2

LE_Bore said:

MobileSaver said:

Around 33% of all properties are bought with cash and no borrowing. If someone can afford to buy a house outright when they could have used a mortgage at say 5% then they're unlikely to be paying for a holiday on plastic with an APR of 25%.

You are massively underestimating how much wealth and cash is out there in the UK...

An interesting point. We will be buying ours for cash if ever this one sells. If.

I should point out that none of the viewers have reported back that the house is too expensive. We have had not suitable for us, smaller bedrooms too small (don't think they are particularly), garden too big (really?! It's hardly a park) and there's no garage (there is off-street parking). The only folk suggesting it is overpriced is the EA. But there are plenty of other houses locally, including some on their books, which are similar sized spaces ins lightly worse locations which are dearer than ours, some incredibly so. Of course, they aren't selling either. 

Exactly, this is the bit Mobile Saver misses, a lot of the "cash" sales come from equity, I was talking about people who can buy top end cars and holidays WITHOUT selling a property or using credit, the interest rate rises are a damper on this pipeline of cash from equity for most of the 33% of people who pay cash for a house.You could say that your problem isn`t the agent or even the market, it is a cash/credit flow problem into the market.

Sarah1Mitty2

LE_Bore said:

MobileSaver said:

Around 33% of all properties are bought with cash and no borrowing. If someone can afford to buy a house outright when they could have used a mortgage at say 5% then they're unlikely to be paying for a holiday on plastic with an APR of 25%.

You are massively underestimating how much wealth and cash is out there in the UK...

An interesting point. We will be buying ours for cash if ever this one sells. If.

I should point out that none of the viewers have reported back that the house is too expensive. We have had not suitable for us, smaller bedrooms too small (don't think they are particularly), garden too big (really?! It's hardly a park) and there's no garage (there is off-street parking). The only folk suggesting it is overpriced is the EA. But there are plenty of other houses locally, including some on their books, which are similar sized spaces ins lightly worse locations which are dearer than ours, some incredibly so. Of course, they aren't selling either. 

So you have basically identified the root of the problem? Most people won`t come out and say it is too expensive, they will make an excuse about parking or size or something else and run away without causing too much offence, many people making offers will be told by their lender down the line to offer less anyway so unless you have a strong offer backed by cash or an agreed mortgage deal you still need to be trying to draw people in somehow.

MobileSaver

Sarah1Mitty2 said:

LE_Bore said:

MobileSaver said:

Around 33% of all properties are bought with cash and no borrowing. If someone can afford to buy a house outright when they could have used a mortgage at say 5% then they're unlikely to be paying for a holiday on plastic with an APR of 25%.

You are massively underestimating how much wealth and cash is out there in the UK...

An interesting point. We will be buying ours for cash if ever this one sells. If.

Exactly, this is the bit Mobile Saver misses, a lot of the "cash" sales come from equity, I was talking about people who can buy top end cars and holidays WITHOUT selling a property or using credit,

Seriously?!?! You are suggesting that most people who own their own home outright so are not having to fork out a mortgage or rent payment every month are still having to pay for their holiday on credit?

I know you live in a different country to me but sometimes I think you live on a different planet!

Sarah1Mitty2

MobileSaver said:

Sarah1Mitty2 said:

LE_Bore said:

MobileSaver said:

Around 33% of all properties are bought with cash and no borrowing. If someone can afford to buy a house outright when they could have used a mortgage at say 5% then they're unlikely to be paying for a holiday on plastic with an APR of 25%.

You are massively underestimating how much wealth and cash is out there in the UK...

An interesting point. We will be buying ours for cash if ever this one sells. If.

Exactly, this is the bit Mobile Saver misses, a lot of the "cash" sales come from equity, I was talking about people who can buy top end cars and holidays WITHOUT selling a property or using credit,

Seriously?!?! You are suggesting that most people who own their own home outright so are not having to fork out a mortgage or rent payment every month are still having to pay for their holiday on credit?

I know you live in a different country to me but sometimes I think you live on a different planet!

 No, I am saying that not everyone who owns their home outright has the income to pay cash for four expensive holidays a year and Range Rovers on the driveway, and there are far fewer people who can access the cash for a house purchase without selling a house first than vice versa! The OP has already identified that houses in their area are asking too much and for that reason are not selling, no amount of speculation about what people can or can not afford changes this, everyone knows that the recent changes have made massive holes in the affordability of ordinary people, debating it is of no help whatsoever to the OP.

RelievedSheff

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

LE_Bore said:

MobileSaver said:

Around 33% of all properties are bought with cash and no borrowing. If someone can afford to buy a house outright when they could have used a mortgage at say 5% then they're unlikely to be paying for a holiday on plastic with an APR of 25%.

You are massively underestimating how much wealth and cash is out there in the UK...

An interesting point. We will be buying ours for cash if ever this one sells. If.

Exactly, this is the bit Mobile Saver misses, a lot of the "cash" sales come from equity, I was talking about people who can buy top end cars and holidays WITHOUT selling a property or using credit,

Seriously?!?! You are suggesting that most people who own their own home outright so are not having to fork out a mortgage or rent payment every month are still having to pay for their holiday on credit?

I know you live in a different country to me but sometimes I think you live on a different planet!

 No, I am saying that not everyone who owns their home outright has the income to pay cash for four expensive holidays a year and Range Rovers on the driveway, and there are far fewer people who can access the cash for a house purchase without selling a house first than vice versa! The OP has already identified that houses in their area are asking too much and for that reason are not selling, no amount of speculation about what people can or can not afford changes this, everyone knows that the recent changes have made massive holes in the affordability of ordinary people, debating it is of no help whatsoever to the OP.

I think you are vastly over estimating the effects that the current round of inflation are having on a large proportion of people.

Yes there are people struggling, but without putting too fine a point on it, on the whole these are not the same people that are buying houses, taking expensive holidays and have Range Rovers on the drive.

Inflation and rising interest rates do not, (and never have), effect all people in the same way.

LE_Bore

I should be clear that while the street we live on would once have been full of houses first time buyers could afford, ex-council homes, albeit quite pretty ones, and modest cottages, they have mostly been extended beyond belief -- in fact the street is a permanent building site -- and the first-time buyer who could afford one now would probably have to be a (OK, very) minor royal! This is a little-debated point: if everybody is extending their homes to the limit, raising their value, it's another factor that means first-time buyers can't afford them.

There is someone in the street who bought during the peak of the lockdown property panic and they have the sort of mortgage I would be too terrified to take on even if anybody would lend it to me, and they can still afford a new Tesla and a second vehicle, plus three weeks in Italy last year. God knows how. They do not appear to be villains, they're every nice. There is money round here. But that doesn't mean properties cannot be overpriced. 

My original post was questioning the lack of action or feedback from the agent more than the price. Maybe there's no action from them because the market is moribund. It would be difficult to reduce the price by much now anyway, as more houses have gone on the market in the past few days which are smaller than ours but only a bit cheaper. But here's a question: if an agent says they are working a property, what are they actually doing? How much CAN they do when they are dependent on people coming to them from property websites? it's not like they can drag people off the street into their offices or your home. But maybe I misunderstand their role and there is more that could be done, it's just that our agent may not be doing it. Any ideas, please?

Sarah1Mitty2

LE_Bore said:

I should be clear that while the street we live on would once have been full of houses first time buyers could afford, ex-council homes, albeit quite pretty ones, and modest cottages, they have mostly been extended beyond belief -- in fact the street is a permanent building site -- and the first-time buyer who could afford one now would probably have to be a (OK, very) minor royal! This is a little-debated point: if everybody is extending their homes to the limit, raising their value, it's another factor that means first-time buyers can't afford them.

There is someone in the street who bought during the peak of the lockdown property panic and they have the sort of mortgage I would be too terrified to take on even if anybody would lend it to me, and they can still afford a new Tesla and a second vehicle, plus three weeks in Italy last year. God knows how. They do not appear to be villains, they're every nice. There is money round here. But that doesn't mean properties cannot be overpriced. 

My original post was questioning the lack of action or feedback from the agent more than the price. Maybe there's no action from them because the market is moribund. It would be difficult to reduce the price by much now anyway, as more houses have gone on the market in the past few days which are smaller than ours but only a bit cheaper. But here's a question: if an agent says they are working a property, what are they actually doing? How much CAN they do when they are dependent on people coming to them from property websites? it's not like they can drag people off the street into their offices or your home. But maybe I misunderstand their role and there is more that could be done, it's just that our agent may not be doing it. Any ideas, please?

The agent just wants you on their books, they will be hoping that you price to sell so they can get a commission , what other houses in the street are priced at doesn`t matter, if you are getting no views you have to price at a level that brings people in and keeps them interested in YOUR house, not a level that has them not showing up or not even bothering to view or making excuses about random things just so they can scoot off without offending anyone. If it is a decent house and it is priced right people will want to view it, even in this market.

Surrey_EA

LE_Bore said:

MobileSaver said:

Around 33% of all properties are bought with cash and no borrowing. If someone can afford to buy a house outright when they could have used a mortgage at say 5% then they're unlikely to be paying for a holiday on plastic with an APR of 25%.

You are massively underestimating how much wealth and cash is out there in the UK...

An interesting point. We will be buying ours for cash if ever this one sells. If.

I should point out that none of the viewers have reported back that the house is too expensive. We have had not suitable for us, smaller bedrooms too small (don't think they are particularly), garden too big (really?! It's hardly a park) and there's no garage (there is off-street parking). The only folk suggesting it is overpriced is the EA. But there are plenty of other houses locally, including some on their books, which are similar sized spaces ins lightly worse locations which are dearer than ours, some incredibly so. Of course, they aren't selling either. 

You have to decode the feedback, to a certain degree.

If a buyer is saying: " bedrooms are too small" or "there's no garage"

They really mean "for this price I'm expecting to purchase a property with larger bedrooms and a garage as well as off street parking. 

I agree the "garden too big" comment is a little leftfield.

4 viewings in nearly 4 months does rather point towards the price being somewhat optimistic.

RelievedSheff

Surrey_EA said:

LE_Bore said:

MobileSaver said:

Around 33% of all properties are bought with cash and no borrowing. If someone can afford to buy a house outright when they could have used a mortgage at say 5% then they're unlikely to be paying for a holiday on plastic with an APR of 25%.

You are massively underestimating how much wealth and cash is out there in the UK...

An interesting point. We will be buying ours for cash if ever this one sells. If.

I should point out that none of the viewers have reported back that the house is too expensive. We have had not suitable for us, smaller bedrooms too small (don't think they are particularly), garden too big (really?! It's hardly a park) and there's no garage (there is off-street parking). The only folk suggesting it is overpriced is the EA. But there are plenty of other houses locally, including some on their books, which are similar sized spaces ins lightly worse locations which are dearer than ours, some incredibly so. Of course, they aren't selling either. 

You have to decode the feedback, to a certain degree.

If a buyer is saying: " bedrooms are too small" or "there's no garage"

They really mean "for this price I'm expecting to purchase a property with larger bedrooms and a garage as well as off street parking. 

I agree the "garden too big" comment is a little leftfield.

4 viewings in nearly 4 months does rather point towards the price being somewhat optimistic.

It only takes one viewing to find a sale.

The house is getting viewings. If the price was optimistic it wouldn't be getting any.

The property has been marketed at what is usually the quietest time of year in the run up to Christmas. Spring is just around the corner. That usually brings the buyers out of hibernation. 

Surrey_EA

RelievedSheff said:

Surrey_EA said:

LE_Bore said:

MobileSaver said:

Around 33% of all properties are bought with cash and no borrowing. If someone can afford to buy a house outright when they could have used a mortgage at say 5% then they're unlikely to be paying for a holiday on plastic with an APR of 25%.

You are massively underestimating how much wealth and cash is out there in the UK...

An interesting point. We will be buying ours for cash if ever this one sells. If.

I should point out that none of the viewers have reported back that the house is too expensive. We have had not suitable for us, smaller bedrooms too small (don't think they are particularly), garden too big (really?! It's hardly a park) and there's no garage (there is off-street parking). The only folk suggesting it is overpriced is the EA. But there are plenty of other houses locally, including some on their books, which are similar sized spaces ins lightly worse locations which are dearer than ours, some incredibly so. Of course, they aren't selling either. 

You have to decode the feedback, to a certain degree.

If a buyer is saying: " bedrooms are too small" or "there's no garage"

They really mean "for this price I'm expecting to purchase a property with larger bedrooms and a garage as well as off street parking. 

I agree the "garden too big" comment is a little leftfield.

4 viewings in nearly 4 months does rather point towards the price being somewhat optimistic.

It only takes one viewing to find a sale.

The house is getting viewings. If the price was optimistic it wouldn't be getting any.

The property has been marketed at what is usually the quietest time of year in the run up to Christmas. Spring is just around the corner. That usually brings the buyers out of hibernation. 

I realise all of that - this isn't my first rodeo!

Having read the OP again, it seems rather like 2 and a half months on the market, including a fortnight where everything is more or less closed down for Christmas.

Even so, 4 viewings in almost 6 weeks since the beginning of the year isn't particularly impressive, and I stand by the view that it suggests the price expectations are a little high.