Fantasists?

lookstraightahead

mi-key said:

[Deleted User] said:

Property is only worth what someone is willing to pay. Sellers can be as optimistic as they like, but if nobody is willing to pay that much it won't help.

And the flipside is property is worth what someone is willing to sell for. Buyers can be as optimisitic as they like, but if nobody is willing to lower their price enough for them to buy, then it won't help them either

This is true, except like owning a shop a buyer can go to the next one if it's too expensive. It depends really where your mindset is as a buyer. You've nothing to lose really if you keep a level head.

mi-key

lookstraightahead said:

mi-key said:

[Deleted User] said:

Property is only worth what someone is willing to pay. Sellers can be as optimistic as they like, but if nobody is willing to pay that much it won't help.

And the flipside is property is worth what someone is willing to sell for. Buyers can be as optimisitic as they like, but if nobody is willing to lower their price enough for them to buy, then it won't help them either

This is true, except like owning a shop a buyer can go to the next one if it's too expensive. It depends really where your mindset is as a buyer. You've nothing to lose really if you keep a level head.

Well yes and no. Most people want to move to a fairly small specific area, rather than just being  happy with a house anywhere, so there is a finite supply of houses per buyer that are suitable. There aren't always cheaper options in a desired area.  

If all the local shops sell beans for 50p, but a shop 200 miles away sells them for 45p someone isn't going to travel that far.

Bonniepurple

mark_cycling00 said:

A quick online look at chalford explains that it's in the "golden valley" between Stroud (recently named best place to live in UK) and Cirencester (Roman capital of the Cotswolds)

Basically super trendy. Trains are just over 1hr to London and the Elizabeth line has recently opened connecting paddington to the city and canary wharf in just a few minutes. 

I don't think this is really an area for struggling first time buyers. It's where actors, fashion designers and even California tech billionaires buy homes.

Cirencester centre is strangely good value considering, and the upgrade to the dual carriageway road to the M5 will make it much more desirable.

Also cam/dursley is good value and a very attractive place to live.

I would second the Cam/Dursley area.  We love it here.  Good transport links (M5/A38/trains/buses) to both Gloucester and Bristol, a mix of independent and chain shops and rural without being completely remote.

Cornish_mum

Sorry haven’t read whole thread, but it’s really unhelpful to look at previous sold prices, as so many factors influence the individual sales price.

For example I know we paid too much for our current house by ~30k but we did it knowingly because of our personal situation; relocation for my husbands new dream but stressful job(with golden hello payment), second baby on the way and very specific location/time criteria to get our eldest into the local primary to start reception and thus not have to pay school fees. The value of the property to us because of the other factors was more than its real market value. As we saved a fortune in rent and school fees by paying too much for our house and my husband was able to make the best of his new job which lead to him being promoted etc.

We had just lost out on a better property (extra bedroom and bathroom in loft conversion) on the same road as we eventually bought on which sold for 75k under market value (it went to sealed bids - 8 people bid for it). The vendors took a lower bid from a cash buyer (downsizing) as they needed to proceed quickly with the sale or risk losing out on their purchase. They called me to apologise for not taking our bid and explained why!

On previous transactions it looks like our house is worth more than the other one but it’s not. It’s just reflected individual circumstances.

Houses are illiquid unique assets and only worth what someone will pay and what a vendor will accept.

CM

aoleks

Cornish_mum said:

Sorry haven’t read whole thread, but it’s really unhelpful to look at previous sold prices, as so many factors influence the individual sales price.

For example I know we paid too much for our current house by ~30k but we did it knowingly because of our personal situation; relocation for my husbands new dream but stressful job(with golden hello payment), second baby on the way and very specific location/time criteria to get our eldest into the local primary to start reception and thus not have to pay school fees. The value of the property to us because of the other factors was more than its real market value. As we saved a fortune in rent and school fees by paying too much for our house and my husband was able to make the best of his new job which lead to him being promoted etc.

We had just lost out on a better property (extra bedroom and bathroom in loft conversion) on the same road as we eventually bought on which sold for 75k under market value (it went to sealed bids - 8 people bid for it). The vendors took a lower bid from a cash buyer (downsizing) as they needed to proceed quickly with the sale or risk losing out on their purchase. They called me to apologise for not taking our bid and explained why!

On previous transactions it looks like our house is worth more than the other one but it’s not. It’s just reflected individual circumstances.

Houses are illiquid unique assets and only worth what someone will pay and what a vendor will accept.

CM

but this is exactly the point many of us are making here:

THIS is the market. the couple expecting a baby and wanting to move regardless. the individual who won the lottery and wants to pay £20k "over" for that quirky fireplace. the FTBer who is simply fed up with yearly rent increases, biting the bullet to buy a house at a "higher" price.

there's no such a thing as "overpaying", because that implies everything is predictably priced, linear. it's literally what people are willing to pay for something.so when people see a house for sale and take the calculator out, they're oblivious to real life. you can't take the percentage increase, apply it to the last transaction and voila, there's your price. it's not!

MobileSaver

lookstraightahead said:

mi-key said:

[Deleted User] said:

Property is only worth what someone is willing to pay. Sellers can be as optimistic as they like, but if nobody is willing to pay that much it won't help.

And the flipside is property is worth what someone is willing to sell for. Buyers can be as optimisitic as they like, but if nobody is willing to lower their price enough for them to buy, then it won't help them either

This is true, except like owning a shop a buyer can go to the next one if it's too expensive. It depends really where your mindset is as a buyer. You've nothing to lose really if you keep a level head.

All well and good in theory but back in the real world that's not how it actually works; the problem is that there aren't enough suitable houses in the locations that people want them.

Even on this forum (which is a small fragment of the entire UK house-buying public) we get posts practically every day from people who are struggling to find their next home.

Here's an example from yesterday from a poster who has looked at 34 houses and none are suitable. In the same thread another poster has looked at 43 flats and still not found their next home...

When houses are already in short supply if you then add in your own special criteria of, for example, refusing to pay more than 10% under asking then you do have something to lose because the likelihood is that you won't be moving into a new home any time soon.

lookstraightahead

MobileSaver said:

lookstraightahead said:

mi-key said:

[Deleted User] said:

Property is only worth what someone is willing to pay. Sellers can be as optimistic as they like, but if nobody is willing to pay that much it won't help.

And the flipside is property is worth what someone is willing to sell for. Buyers can be as optimisitic as they like, but if nobody is willing to lower their price enough for them to buy, then it won't help them either

This is true, except like owning a shop a buyer can go to the next one if it's too expensive. It depends really where your mindset is as a buyer. You've nothing to lose really if you keep a level head.

All well and good in theory but back in the real world that's not how it actually works; the problem is that there aren't enough suitable houses in the locations that people want them.

Even on this forum (which is a small fragment of the entire UK house-buying public) we get posts practically every day from people who are struggling to find their next home.

Here's an example from yesterday from a poster who has looked at 34 houses and none are suitable. In the same thread another poster has looked at 43 flats and still not found their next home...

When houses are already in short supply if you then add in your own special criteria of, for example, refusing to pay more than 10% under asking then you do have something to lose because the likelihood is that you won't be moving into a new home any time soon.

As you say it's a small fragment on here. Most don't need the help because, for example, they've found somewhere. So I would say most people across the U.K. actually do find somewhere.

Most use this forum (apart from discussions ☺️) to try to get answers to problems they might have. Not because they've got solutions. My next one will be "can I paint over kitchen tiles effectively". If I knew I could, I'd be merrily on my way with that job and wouldn't need to ask. That's what most of the U.K. population are doing.

PS if you do have any knowledge of painting over tiles, I would happily listen.

Slinky

In 2017 we paid £425 for our 4 bed house which was up for OO £395, we were in a bidding war with others on a neighbouring 3 bed property where we lost out having bid just over £411 on the same OO£395. That sale fell through and we could have had it for the £411 but in the meantime, this one came up and we knew the people who outbid us for the other were looking at this one too, as were several others, so we went in heavy and got it. The garden faces west, other was smaller and north.

Fast forward to 2021, a property similar to the 3bd comes up for OO £495, goes for £505. Some friends who were renting in the street got out bid for it, so when a near 4 bd identical property to ours came up for OO £600 they slapped in £650 and bought it.  Recently a 3 bed property was up for £550 and has sold quickly, another 3 bed in better condition went on for £595 a few days ago and won't be around for long.

That extra £30k we paid in 2017 seems a tiny fraction now.

The houses are 1960s with some of the original or early years buyers still here. Time is taking its toll and death or immobility are bringing more of them to the market recently. The sad thing is though, judging by the viewings it appears that we are only going to be getting older people moving in, as younger ones don't have the money, or if the are say 40-50s with older children, the bedrooms in these houses aren't massive and there's bigger available within a mile or so.

badger09

Apologies for OT post

@lookstraightahead
Family member has recently painted over some garish coloured bathroom tiles. Fairly sure he used tile paint from B&Q, I can check if you’re interested. The finish looks good as a temporary measure until he can afford a complete upgrade.

[Deleted User]

jimbog said:

[Deleted User] said:

Property is only worth what someone is willing to pay. Sellers can be as optimistic as they like, but if nobody is willing to pay that much it won't help.

But they only need one buyer.

 Why not be optimistic? How else would you know? 

A price can always be lowered 

Obviously sellers are free to ask what they like, but asking too much and then lowering it sends signals. Maybe the seller has other unrealistic expectations, maybe they are getting desperate and will be open to further reductions.

Haggling is not something we do much in the UK. Houses are an exception.