Why do so many people over value their houses?
Discussion
I was wondering what makes people put their houses on the estate agents books at between 30% and 40% over value? My reference would be that there are similar properties on the same road for sale at a lesser price, and they don't sell either.
I can't be the only person to notice this? After a year and no viewings they take them off the market, but why bother in the first place? Is it some sort of an ego boost? Or just to make themselves feel good?
I guess when the new sellers packs become law, the timewasters will have to put their money where their mouth is and probably just disappear.
I can't be the only person to notice this? After a year and no viewings they take them off the market, but why bother in the first place? Is it some sort of an ego boost? Or just to make themselves feel good?
I guess when the new sellers packs become law, the timewasters will have to put their money where their mouth is and probably just disappear.
I suppose people are just looking to make as much as they can. Some silly sod might just come along and see it as their dream house.
Then try buying a house in Dublin mate. Come up with the sillyist price you can think of and someone will buy it. Great for selling, but a pain trying to buy. Prices have rocketed in recent years.
Then try buying a house in Dublin mate. Come up with the sillyist price you can think of and someone will buy it. Great for selling, but a pain trying to buy. Prices have rocketed in recent years.
JoolzB said:
I guess when the new sellers packs become law, the timewasters will have to put their money where their mouth is and probably just disappear.
Can you elaborate on that, what's the new law?
Sellers pack involves a basic survey and searches, certs for work done etc i think, will cost a few hundred or something to get your property on the market.
The Sellers Pack, comes in maybe next year? Basically the seller has to get a survey done,local search etc before putting the property on the market.Estimated cost is £700 or so which the SELLER has to pay for. Then , this information pack is given to propect buyers so they know that state of the property before they offer anything and are aware of any repairs/work that need doing.
MGBGT said:
They're just greedy bastards who take advice from Estate Agents (professional greedy bastards)...
Theres one particular estate agent in our town who values anything about 20-30% more than any other. Classic was a pair of semi's, one half of the house this agent valued about 25% more than the other half of the semi sold by another agent.
Example, a road near us, a few bungalows for sale circa 200-210k, then somebody put theirs up with a little extension and asked 280k LOL(it never even got a viewing).
Another estate near us, about 3 houses for sale 450-480k, none sold in 18 months, then another goes on the market(same size/type) for 600 on the same road with poorer plot.
The market around here has been flat for the last year or so.
Gazboy said:
Sellers pack involves a basic survey and searches, certs for work done etc i think, will cost a few hundred or something to get your property on the market.
Well that sounds fairly reasonable to me.
Indeed- what's to be done to stop a buyer from completely wasting the sellers time/money/oppotunity though?
The info pack is reusuable with as many buyers as you want. As all the searches/survey are done there is very little waiting time. The "buyer" if serious should be able to exchange contract very quickly, obviously if they don't then you find another.
Gazboy said:
Before if a buyer had just spend hundreds (or thousands) on surveys etc you kinda got the impression they were serious about buying you house- I think this will just move the see-saw of who gets shafted really...
Presently, it costs the seller nothing to put the house on the market. By the time you get to exchange contract the buyer will have spent over £1500 on survey/legal fee's etc. The seller can just walk away at this point, the buyer having lost £1500.
With the sellers pack, the seller pays for the survery/searches upfront before the house is on the market. The buyer then knows what he's looking at (ie no nasty surprises later). If the seller accepts an offer, the buyer is given a few weeks to arrange mortgage etc. If the buyer pulls out, the seller has just lost a few weeks time.
I'm impressed with the house buying process in NZ.
As a seller you have (typicaly) open home days, so you know when the property needs to be presentable.
All offers are official and if accepted legaly binding, land info/searches etc all done in 7-10 days. Buyer(and seller) can add clauses to the contract to protect themselves (subject to finance/survey etc).
Once the sales/purchase agreement is signed both parties are locked in barring huge penalties.
As a seller you have (typicaly) open home days, so you know when the property needs to be presentable.
All offers are official and if accepted legaly binding, land info/searches etc all done in 7-10 days. Buyer(and seller) can add clauses to the contract to protect themselves (subject to finance/survey etc).
Once the sales/purchase agreement is signed both parties are locked in barring huge penalties.
Gazboy said:
I do agree, but I can just see a massive amount of time wasters cropping up. In either case, the only winners are the estate agents, who in my case made an absolute fortune for doing sweet fa.
Another example, I looked at a house, I looked really closely and my father came to the conclusion that it would need a new roof. We put an offer in with that in mind and it was rejected so we walked. Now, this particular house has been under offer a few times, I guess that when the buyer gets the results of the survey and asks for a similar consideration in the price, they are told to go and jump also. Seems some sellers don't want to accept that their house has defects! At this moment, its under offer again LOL.
In the meantime, all those who made offers on this house and lost £££ with surveys etc because the seller didn't want to accept his house was defective!
>> Edited by sjn2004 on Monday 27th February 01:16
The Seller's Pack will change fundamentally a lot of the atitude to buying and selling houses and may even have an impact in slowing down the housing market. The BIG impact of the Seller's Pack is that the legal responsibility for the details contained within the pack will lie with the owner who had the various surveys carried out. If it turns out at a future date that there were some problems with the details in the Seller's Pack, the owner at the time the Seller's Pack was drawn up may end up being sued for "mis-selling".
Can sellers afford this risk?
Will they have to take out some sort of indemnity insurance to cover this risk?
How lomg will the Seller's Pack remain valid? If you sell your property within a couple of years of buying it, will you have to draw up a new pack or can you rely on the one drawn up by the previous owner?
How will the Seller's Pack rules affect leasehold flats where there is a mutual obligation amongst all the owners of the leaseholds to look after the maintenance of the building?
There are lots of issues that will need to be sorted out before the Seller's Pack becomes law.
Can sellers afford this risk?
Will they have to take out some sort of indemnity insurance to cover this risk?
How lomg will the Seller's Pack remain valid? If you sell your property within a couple of years of buying it, will you have to draw up a new pack or can you rely on the one drawn up by the previous owner?
How will the Seller's Pack rules affect leasehold flats where there is a mutual obligation amongst all the owners of the leaseholds to look after the maintenance of the building?
There are lots of issues that will need to be sorted out before the Seller's Pack becomes law.
Wont this sellers-pack be fundamentally similar to the 'surveys' that are carried out by individuals when purchasing a house? i.e. the constraints & general arse-covering made by the surveyors leave little room to blame/sue anyone?
(i'd be interested if anybody knows for how long the packs will remain valid for?)
(i'd be interested if anybody knows for how long the packs will remain valid for?)
sjn2004 said:
Before if a buyer had just spend hundreds (or thousands) on surveys etc you kinda got the impression they were serious about buying you house- I think this will just move the see-saw of who gets shafted really...
Presently, it costs the seller nothing to put the house on the market. By the time you get to exchange contract the buyer will have spent over £1500 on survey/legal fee's etc. The seller can just walk away at this point, the buyer having lost £1500.
With the sellers pack, the seller pays for the survery/searches upfront before the house is on the market. The buyer then knows what he's looking at (ie no nasty surprises later). If the seller accepts an offer, the buyer is given a few weeks to arrange mortgage etc. If the buyer pulls out, the seller has just lost a few weeks time.
SJN....you are looking at this from a really warped one sided view!!! I had two potential sellers pull out on me on day of contract leaving me with large legal bills for f all so it's a 2 way street. I do not understand this thread...WHAT IS WRONG IN TRYING TO GET THE MAXIMUM PRICE FOR YOUR HOUSE????? If you try and fail to get the offer you want who cares. If you don;t want to buy at that price walk away!!!!!!!!!!!!!
I think the seller's pack will be brilliant, especially for FTB's on a tight budget...
I am just days from exchange yet I only got to see all the stuff from the managing agents and the lease on Friday, now there are another expected few thousand pounds cost involved and some irritating lease conditions. If I'd known these from the start they would have influenced my offer price and maybe even my willingness to buy. The house buying situ is ridiculous, I've already paid out 1k, and if things collapse I could end up losing money each time.
and talking of overpricing, the flat Im looking to buy for 123k sold to the current owner for 69k just 5 years ago, it's gutting...
I am just days from exchange yet I only got to see all the stuff from the managing agents and the lease on Friday, now there are another expected few thousand pounds cost involved and some irritating lease conditions. If I'd known these from the start they would have influenced my offer price and maybe even my willingness to buy. The house buying situ is ridiculous, I've already paid out 1k, and if things collapse I could end up losing money each time.
and talking of overpricing, the flat Im looking to buy for 123k sold to the current owner for 69k just 5 years ago, it's gutting...
I've noticed this, all I can say is that logic seems to go out of the window when it comes housing. Why people don't bother to 'mark there houses to market' is beyond me.
Recently my cousin asserted to me that her house was "worth over £220,000" feck me I thought she's done well. So being the nosy bugger that I am I went onto Rightmove and checked the prices of similar properties on the same estate....... prices ranged from £155,000 to £165,000 ish. So where on earth had she got the idea that her house was worth so much more than the others?
Because when it comes to houses...otherwise perfectly sensible people become
stupid, greedy, lazy and complacent.
Recently my cousin asserted to me that her house was "worth over £220,000" feck me I thought she's done well. So being the nosy bugger that I am I went onto Rightmove and checked the prices of similar properties on the same estate....... prices ranged from £155,000 to £165,000 ish. So where on earth had she got the idea that her house was worth so much more than the others?
Because when it comes to houses...otherwise perfectly sensible people become
stupid, greedy, lazy and complacent. Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff