Edinburgh house prices

MrDT

dopester wrote: »

Property developer attacks surveyors for 'deliberately lowering house prices'

Aww, he's annoyed that they're no longer playing ball?

I wonder what kind of backhanders have been flying around the past few years to help surveyors justify their vastly overinflated valuations...

dopester

MrDT wrote: »

Aww, he's annoyed that they're no longer playing ball?

I wonder what kind of backhanders have been flying around the past few years to help surveyors justify their vastly overinflated valuations...

Wouldn't surprise me, although I just figured most surveyors in the UK had been seduced in to the perpetual HPI mindset over the last 6 years in the new paradigm as it's been so widespread. Although maybe some kickbacks have been involved along the way with so much money sloshing around.

Burrell, who founded what is regarded as the first architect-developer company in Scotland in the early 80s, said: "Most developers and housebuilders in Scotland are still seeing demand in many areas and for many types of properties, yet values are being lowered. That goes against the law of supply and demand.

"A property that was being talked about at, say, £200,000 a couple of months ago is now being valued at £180,000. Why? What's changed?"

A mortgage famine maybe - the lack of limitless funds to lend to everyone which pushed prices in to orbit in the first place? Why don't they get it? Why can't so many experts grasp the simple concept? Prices aren't determined by demand alone. Demand requires the ability to pay for something, and the banks aren't lending as much money as they have a lot less money to lend. Some don't even want to lend at all.

rudedog_2

MrDT wrote: »

Aww, he's annoyed that they're no longer playing ball?

I wonder what kind of backhanders have been flying around the past few years to help surveyors justify their vastly overinflated valuations...

Couldn't agree with you more...poor old Mr Burrell, his shoe boxes arn't being valued as high as he would want them... boo hoo!!...Dry your eyes mate! _pale_

dog

cheap_charlie

http://edinburghnews.scotsman.com/topstories/Buy-my-house--and.4191416.jp

Proof that prices are falling in Edinburgh, even though some people don't want to believe it...like the vendor in that story!

cheap_charlie

I live in Edinburgh and know the area well too.

Fact of the matter is he doesn't want to accept that his house isn't attracting buyers at £599,995.

The £50K cashback offer is just his way of getting some free advertising via the paper (probably a reporter on there is a family friend) rather than actually cut the price.

Would love to know what it would survey at!

rudedog_2

jeepjunkie wrote: »

On another note I viewed a cottage last week and I have never seen so much interest in a property in my life! And friends bidding on Edinburgh houses are saying people are still putting in huge/silly offers overs.

Me... I'm sitting tight cos the market is all f*cked up right now...

Thats exactly my experience also, there are still people out there paying silly money in Edinburgh.

I think that the single survey home reports will have a big difference to the Scottish market. Like you, i'm sitting tight with money in the bank waiting for more favourable conditions.

dog

neverdespairgirl

IveSeenTheLight wrote: »

Life doesn't stop at the Watford gap

Are you sure about that....?

Incidentally, I noticed in another post that you are currently working abroad - what country are you in?

IveSeenTheLight

neverdespairgirl wrote: »

Are you sure about that....?

Incidentally, I noticed in another post that you are currently working abroad - what country are you in?

Definately sure.
I'm seconded out of the UK in Malaysia at the moment.
UK is still my home though and I will return at some point in the future

k9p9

cheap_charlie wrote: »

I live in Edinburgh and know the area well too.

Fact of the matter is he doesn't want to accept that his house isn't attracting buyers at £599,995.

The £50K cashback offer is just his way of getting some free advertising via the paper (probably a reporter on there is a family friend) rather than actually cut the price.

Would love to know what it would survey at!

After speaking to a Solicitor from the ESPC the other week, he suggested doing this, offering a cashback i mean or offering to pay stamp duty. He said it is more attractive than dropping the price, because the mortgage will still be based on the full price but you are giving something back to the buyer. He also went on to say that offering these sort of incentives is what the new house builder do, and if it sells your property, who cares in the long run.

MrDT

jacko1747 wrote: »

After speaking to a Solicitor from the ESPC the other week, he suggested doing this, offering a cashback i mean or offering to pay stamp duty. He said it is more attractive than dropping the price, because the mortgage will still be based on the full price but you are giving something back to the buyer. He also went on to say that offering these sort of incentives is what the new house builder do, and if it sells your property, who cares in the long run.

In a roundabout way we're back to 100% mortgages in a falling market. What a fantastic idea, I see no downsides whatsoever. :rolleyes:

Using a simple example - 100k sale price, 5k 'cashback'. Buyer gets a 95% mortgage (so 95k) which equals the value of the house (i.e. what the seller got for it, 100k-5k=95k).

None of this gimmicky rubbish will suck me in, sadly there are plenty of fools out there easily parted from their (and the banks) cash.

What I still don't get is how can the mortgage surveyors pass off a 100k valuation knowing this kind of thing has gone on? It's clear the house is only worth 95k... This kind of tactic can't remain effective for long.