Another report that says housing market continues to cool

river_kwai

http://news.bbc.co.uk/1/hi/business/4203476.stm

But why are most vendors still refusing to acept lower offers wrt their asking price? I don't think anyone would offer the full asking price at the current housing market.

LouLouHelen

I'm in negotiations on a property at the moment. Offered £215k they have it on for £225, they want an offer over £220k. It was bought to do up and sell on - they have put new cheap kitchen in and lick of paint!

Some of my friends think that they are being a bit hopeful at end of Summer holidays and the current climate! I just don't want to pay high and watch it drop when we are in - we are looking to live in it for sometime though so hopefully we would be ok.!?!?

Doozergirl

A decent estate agent will know from their sales price what a good asking price would be for a property. I agree that it's sensible for vendors to listen to their valuations rather than stick an extra 10% on for luck and wait for the market to meet them. It's unlikely to happen.

There's no matrix for asking prices though - to simply say that no one should pay asking price is naive. A little homework on the part of a potential buyer will enable them to assess a sensible price for a house themselves.

river_kwai

I think it's human nature to want to bargain. I have never seen anyone paid the full asking price for cars on Autotrader. I think sellers priced this in when they advertise. I am sure the same mentality applies to the housing market.

Doozergirl

It certainly does, but if a house is undervalued, I'll offer asking price. We should encourage people to research and get the best deal, not convince them that they have to knock 10% off before even thinking, which is the impression many people are getting from this forum.

meanmachine_2

Doozergirl wrote:

It certainly does, but if a house is undervalued, I'll offer asking price. We should encourage people to research and get the best deal, not convince them that they have to knock 10% off before even thinking, which is the impression many people are getting from this forum.

It's a moneysaving forum. We're all careful with our money on here.

I do think though that sellers, getting wise to this, are simply adding 10% on to their price and then accepting 10% less, tricking buyers into thinkng they've got a bargain.

But after 14 months of price falls I think a vendor should be grateful for any offer over 90% of a realistic asking price.

Doozergirl

meanmachine wrote:

It's a moneysaving forum. We're all careful with our money on here. I do think though that sellers, getting wise to this, are simply adding 10% on to their price and then accepting 10% less, tricking buyers into thinkng they've got a bargain.

On the other hand, there are plenty of vendors not doing that which is why it's important we don't generalise and we encourage new buyers to research, not just knock 10% off indiscriminately. I want every buyer to get the best price, not miss out on a good deal because posters here keep shouting to knock money off without even knowing the details.

meanmachine wrote:

But after 14 months of price falls I think a vendor should be grateful for any offer over 90% of a realistic asking price.

You've fallen for the spin - this graph is displaying the rise in house prices, not fall! Display the graph in another context and it becomes a levelling rise. The base line is 0% - no change. It's still above that line which means, generally, prices have not fallen. Over inflating prices won't work for vendors, single-handedly knocking 10% off the value of the housing market overnight doesn't work either.

LouLouHelen

Its all about getting the house you want at a price you think is reasonable. I agree with Doozergirl. The problem is like it is with hoidays - you hear eveyone else saying how they got a bargain, cheaper than you, money off. Sometimes you've just got to pay what you think it is worth TO YOU.

People can end up getting naturally suspicious of every estate agent and every sellor because they hear stories and watch too much TV that fuels this thought process.

At the end of the day the people selling want a fair price and so do the people buying. Goes back to dealing with people you cen get on with and trust.

meanmachine_2

Doozergirl wrote:

You've fallen for the spin - this graph is displaying the rise in house prices, not fall! Display the graph in another context and it becomes a levelling rise. The base line is 0% - no change. It's still above that line which means, generally, prices have not fallen. Over inflating prices won't work for vendors, single-handedly knocking 10% off the value of the housing market overnight doesn't work either.

Forgive me, I'm talking about the more reliable Hometrack figures which look at England and Wales.

They've been negative for FOURTEEN months straight. Where have you been?

And today's "silly offer" in another 14 months' time will seem hugely generous, wouldn't you think?

But I agree that vendors are still stuck in that "the only way is up" mindset. That's because EAs are too scared to tell them what's really going on.

Doozergirl

meanmachine wrote:

Forgive me, I'm talking about the more reliable Hometrack figures which look at England and Wales. They've been negative for FOURTEEN months straight. Where have you been?

Going by Land Registry figures, silly me! Hometrack - that'll be the only survey reporting an annual decrease in UK property prices then?

The survey which reports on estate agents asking prices? The asking prices which everyone thinks are overinflated and are adjusting downwards? Figures.

Kenny4315

In the past few weeks I have had some details for houses I have previously looked at back thorugh the post they have been unable to sell them. They have all dropped substantially, for example, one place on when I saw it price was £525k, chnaged agents they reduced it to £500k, now the agent has reduced it to £475k, that's £50k. Another near the river in York, on market for £535k now £475k, a B&B on my street (didn't view this but i know the price), started at £535k and is now down to £440k. Obviously these are the new asking prices so they'll go for less that that if they go at all. :T

People are going to be waking up with some serious negative equity issues in the very near future. Those that are sensible will have the last laugh on those who think prices can go up continually, I am waiting in anticipation of picking up a real bargain. :j :beer: As a qualified accountant there is a saying that we always use CASH IS KING, property values are paper dollars and those who have re-mortgaged, etc to fund a jet set life-style on the basis of houses values are due for a good kick up the backside.