How far will house prices fall [volume 4]

[MDMetal]

Richyboy said:

I'm not good with all this property stuff or maybe I just use crappy agents or something else. Sold my house a year ago for 443k (not a mark on the wall, perfect condition), very little profit. Agent said the buyers weren't there so I accepted a very low offer.

That same house recently on market for 600k (not looking as good as I left it). I don't even want to know if it sold seriously depressed.

I'm no expert but the price is simply what someone will pay. If someone buys that house for 600 suddenly every similar house in the area starts to look like it's worth 600. That's the problem with the system, it's really so far removed from actual tangible value it's unreal.

I've always just used comparisons, what else is around, what's it going for and (realistically) how does my house compare.

[Justayellowbadge]

Richyboy said:

I'm not good with all this property stuff or maybe I just use crappy agents or something else. Sold my house a year ago for 443k (not a mark on the wall, perfect condition), very little profit. Agent said the buyers weren't there so I accepted a very low offer.

That same house recently on market for 600k (not looking as good as I left it). I don't even want to know if it sold seriously depressed.

Did the offer come from the agent's wife/brother/cousin?

[TheLordJohn]

Richyboy said:

I'm not good with all this property stuff or maybe I just use crappy agents or something else. Sold my house a year ago for 443k (not a mark on the wall, perfect condition), very little profit. Agent said the buyers weren't there so I accepted a very low offer.

That same house recently on market for 600k (not looking as good as I left it). I don't even want to know if it sold seriously depressed.

You may not be £157k down, but you may have been turned over to a lesser degree by the agent.
"Yes Sir, market is bad for this sort of house", that puts you off your guard then they, or someone they know make a BMV offer which is more likely to be accepted given the recent bad news you've received.
May not have happened in your case, but it's happened before and will happen again.

Edited by TheLordJohn on Saturday 5th March 06:33

[010101]

Using multiple agents gives a broader opinion. I like the way they have to compete with each other for the sale commission.

[princeperch]

just looking through my old stomping grounds from days gone by:

http://www.zoopla.co.uk/for-sale/details/38626156?...

2 bed executive flat in brighton over 400k with a service charge that will be well over 2 grand a year within 3 or so years I suspect

http://www.zoopla.co.uk/for-sale/details/39815767?...

crappy house that needs 100k odd spending on it for well over half a bar



http://www.zoopla.co.uk/for-sale/details/39638341?...

1 bed flat on the kingsland road for 450 (and it will seem like you are living on the kingsland road itself believe me). I used to rent the flat next to this one for a grand a month 7 years ago.

my house has apparently gone up by 100k in the last 14 months and all I've really done is paint it and put a new kitchen in it.

someone at work said to someone the other day "but the longer you leave it the less you can afford"

its like 2007 on steroids.

[Pork]

The insanity continues.

A mate bought a tiny flat in Streatham just over two years ago, £225k. Two year mortgage deal ran out so planned to get remortgaged....told it was worth £400k! Sold at full asking in three weeks.

The place were in was valued 2 months ago. Just been revalued at 20% more. 20%!!! This is in Herts.

It's just mental. Everyone seems to be giddy with excitement and they KNOW that it doesn't matter what they pay, it'll be with loads more tomorrow. It makes 2006-7 look like a warm up.

[RYH64E]

Pork said:

The insanity continues.

It's just mental. Everyone seems to be giddy with excitement and they KNOW that it doesn't matter what they pay, it'll be with loads more tomorrow. It makes 2006-7 look like a warm up.

What could possibly go wrong? In just a few years everyone on the South East will be property millionaires, the sky's the limit for property values...

[princeperch]

anonymous said:

[redacted]

I hope you got a good deal on the commission - 0.75pc plus the vodka and tonic?

Where are you thinking of moving to?

[scenario8]

A flat in Streatham in 2014 for £225k sounds remarkably cheap. I can only think it was really very tiny indeed.

And above a crack den. With a short lease. Balcony access. Made of straw.

At the average level (under, say, £800k) sales are still fairly busy in the Outer SW London and North Surrey postcodes I work in. Lord knows what the rest of the year will bring.

As Mr tonker says, over a million, well, let's just say I'm quite glad I don't rely too much on that price segment. Not much happening and far too much being advertised at dreamer levels.

[scenario8]

Going back a page or so, one of the best ways to profit on buying and selling is to try to buy through a bad agent and sell through a good one. My own modest house was sold to me by a cheap and very unimpressive outfit. But they're cheap, right? We bought it for around 10% less than I would have expected it would have sold for and perhaps nearer 20% less than I would have expected our local office to have achieved. Good for me, I suppose. A couple of grand saved by the vendor, though, eh?

On the other side around four weeks ago we confidently took on a very mildly unusual 3 bed semi (downstairs bed 3, detached outbuilding, middling standard refurb) for offers over £575,000. Two local agents and an online outfit suggested between £475 and £525,000. We had three offers over the asking and the mortgage offer is already ou on the chosen purchaser.

All agents are the same, they only take photos and put it on rightmove then wait for the phone to ring, blah, blah, blah...

[Pork]

scenario8 said:

A flat in Streatham in 2014 for £225k sounds remarkably cheap. I can only think it was really very tiny indeed.

And above a crack den. With a short lease. Balcony access. Made of straw.

At the average level (under, say, £800k) sales are still fairly busy in the Outer SW London and North Surrey postcodes I work in. Lord knows what the rest of the year will bring.

As Mr tonker says, over a million, well, let's just say I'm quite glad I don't rely too much on that price segment. Not much happening and far too much being advertised at dreamer levels.

I don't know much about it. It was very small and a basement flat. Apparently refurbed about 5 years ago and had a share of the freehold through a Ltd co. She said she'd expected around £300k and was gobsmacked, not expecting viewings let alone offers.

[Pork]

scenario8 said:

Going back a page or so, one of the best ways to profit on buying and selling is to try to buy through a bad agent and sell through a good one. My own modest house was sold to me by a cheap and very unimpressive outfit. But they're cheap, right? We bought it for around 10% less than I would have expected it would have sold for and perhaps nearer 20% less than I would have expected our local office to have achieved. Good for me, I suppose. A couple of grand saved by the vendor, though, eh?

On the other side around four weeks ago we confidently took on a very mildly unusual 3 bed semi (downstairs bed 3, detached outbuilding, middling standard refurb) for offers over £575,000. Two local agents and an online outfit suggested between £475 and £525,000. We had three offers over the asking and the mortgage offer is already ou on the chosen purchaser.

All agents are the same, they only take photos and put it on rightmove then wait for the phone to ring, blah, blah, blah...

I sold a small place recently. The EA was pretty pushy but did his job well. i.e he got me a good price. He certainly earned his fees.

However, now I've an eye on buying, I'll be very wary of the tactics I saw which, in the current climate, put the buyer in a very week position.

[TheLordJohn]

Pork said:

I sold a small place recently. The EA was pretty pushy but did his job well. i.e he got me a good price. He certainly earned his fees.

However, now I've an eye on buying, I'll be very wary of the tactics I saw which, in the current climate, put the buyer in a very week position.

So you're happy to profit from his, probably illegal, definitely underhand, tactics. But don't wish to be on the receiving end of them? Seems fair.

[scenario8]

Probably illegal, definitely underhand? Please elaborate.

Can't some operations simply be better at marketing and negotiating? The house I bought was shoddily advertised and marketed and thus sold at a low price. If they'd tried harder they would have achieved a higher value. No need for illegal or underhand practices. Unless underhand is a term we're happy to extend to absurd levels.

[Pork]

TheLordJohn said:

So you're happy to profit from his, probably illegal, definitely underhand, tactics. But don't wish to be on the receiving end of them? Seems fair.

What did he do that was illegal and underhand?

He was a good salesman and pushed the attractive attributes of the property (huge garden etc). I don't believe he operated illegally or underhandedly at any point, what makes you think he did? I wanted rid and was going to auction, he persuaded me otherwise. Is that illegal and underhand?

Other things he did well was sell the location, period features, scarcity of properties like this etc and did a great fluffy write up online when a previous agent hardly bothered. Is that illegal and underhand?

[OzzyR1]

z4RRSchris said:

I'm calling this Black Friday for the new build market

Was the reason behind this ever elaborated on? Apologies if I've missed it.

[z4RRSchris]

was just being dramatic. but the PCL market isn't great.

[Justayellowbadge]

z4RRSchris said:

was just being dramatic.

You? No, never.

[z4RRSchris]

I don't like to disappoint.

[anonymous-user]

wc98 said:

Pork said:

I genuinely do not get why we celebrate the cost of homes increasing in the UK and I think I'm just about alone on that.

If my home goes up, it just means my kids will eventually need a bigger mortgage if they want to buy or have to pay more rent as their landlord has to pay more so will charge more. Or indeed will be a large pension fund! I'd rather they didn't become even more enslaved through debt just to have accommodation (or spend their days wishing for inheritance!).

If that means my house doesn't go up, I don't care. It's a home. So long as I can service the cost, I don't care what someone with a vested interest tells me how much it's gone up or how much more it would cost to buy the next house up.

Of course, if you're an estate agent, mortgage provider or politician then increases are all super news - increased commission, increased loan values and continued votes.

you are not alone in that train of thought at all.

I totally agree with Pork.

It's utter madness and I wish it would stop for the sake of future generations.

And I say this as someone who owns their home outright and theoretically should be happy at every increasing values.