Buyers - do not pay the prices the greedy sellers want

izzybusy23

movilogo wrote: »

So, instead of hoping for a crash, FTBs need to try raising their income as well

What, so we can buy overpriced cr&pholes? Errr, don't think so!!!!

I don't intend to flog my guts out to buy some sellers overinflated bricks and mortar and line their pockets for retirement.

tomstickland

Nenen wrote: »

I spent almost half an hour showing a teaching colleague (who seemed to understand percentages ) how a hpc would actually benefit her as she wants to trade up from a 2-bed terrace to a 3-4 bed detached in this area. At first she was horrified her house could go down by even 10% and didn't want to listen but I doggedly showed her all the maths for what happens in a falling market and I thought I'd convinced her that as prices drop the difference between 2-4 bed houses in the same area (and hence increase in mortgage) narrows.

Yes, very simple sum. I intuitively just see it as changing the scaling factor on equally spaced lines that represent price of houses. Have a line for zero, first house is second line, next house is third line etc. As market falls all the lines move closer together.

Or to do it more mathematically, take the ratio of new house price to current house price....

cost of moving = selling price of current house * (price ratio - 1)

where price ratio is price of new house over price of current house

eg: move from £100 to £200K house, ratio is 2, so will cost £100K to move.
Market halves, house now worth £50K and new house £100K,cost to move also halved.

glossgal

I don't think sellers are always greedy, I think some of 'em are genuinely naive (or am being naive thinking that? )

This is typically true of people selling up after their family have flown the nest say, who haven't been in the property game for 20+ years. There is a house round the corner from me where I think this applies-been on market for nearly twelve months via two do- it -yourself websites. The price has been up and down like a bride's nightie and is still on at an inflated price considering the work needed to update it. Every few months they will repaint the garage door or some such tart up as if baffled why it aint selling! I just feel like going round and breaking it to them gently....

Stevie1

I think the majority of sellers are everything that has been suggested on this thread

In our area, there are so many houses that have been on the market for around 12 months with no change in price that it is depressing. Most of them are old couples downsizing, so are happy to sit and wait till the fool paying asking price comes along and are not even willing to negotiate (we've tried). They don't really have or need to move, so what's the rush?

We haven't witnessed any of the drops in prices or ability to negotiate reduced prices, reported on this forum. I don't know what other EAs are telling sellers when offers come in, but ours has told us several times it is slow.

Jorgan_2

Nenen wrote: »

I'm ashamed to say I spent almost half an hour showing a teaching colleague (who seemed to understand percentages ) how a hpc would actually benefit her as she wants to trade up from a 2-bed terrace to a 3-4 bed detached in this area. At first she was horrified her house could go down by even 10% and didn't want to listen but I doggedly showed her all the maths for what happens in a falling market and I thought I'd convinced her that as prices drop the difference between 2-4 bed houses in the same area (and hence increase in mortgage) narrows. I believed I'd cracked it and she seemed to understand... only to hear her telling another colleague a few days later that she thought her house would retain its value and she was so relieved that house prices in Cambridge always stay high!

And I thought teaching children was difficult!:D

You should try doing it for a living then, I can have this conversation four or five times a day I. Once in a while someone listens.

I drove down a road today which has six properties for sale. I was invited to value all of them when they were first put on the market, each vendor went with a higher valuation from a competitor. The minimum length of time on the market is six months, one has changed agents and increased the price by £20k in the nine months it has been on the market.

Gorgeous_George

When you own something, you can choose the price at which you would sell.

Equally, buyers can choose the price at which they will buy.

Often , there is a middle ground. Sometimes, there is not.

I expect the number of house sales over the next three years to be significantly less than the number over the last ONE year.

GG

nelly_2

Ive owned my house a week now how much has it gone up?

Should I mew and get a big fridge?

Talking of fridges as we now are

I was in comet last week and was looking at them big fridges

White = £500

Silver = £700

Black = £900

I said to the shop bird - can I have a white one and do you sell black spray paint?

She just looked me like I was stupid..........charming init

tomstickland

I said to the shop bird - can I have a white one and do you sell black spray paint?

Nelly: telling you how it is.

Gorgeous_George

nelly wrote: »

Ive owned my house a week now how much has it gone up?

Should I mew and get a big fridge?

Talking of fridges as we now are

I was in comet last week and was looking at them big fridges

White = £500

Silver = £700

Black = £900

I said to the shop bird - can I have a white one and do you sell black spray paint?

She just looked me like I was stupid..........charming init

Buy on line and save 200 spondoolies.

GG

tomstickland

Part of the problem is that estate agents know that a good proportion of buyers will go with the highest valuation, or the middle valuation. So they don't want to value low. A canny agent will value high, talk a load of bull, wait 6 months for no sale and then suggest lowering the price. When you consider that their working lives are spent dealing with "the public", you can forgive them for sinking into talking rubbish half the time, since about 70% of the population have no grip on reality.