House prices start to fall

[Too Good To Be True]

Here you go:

http://www.economist.com/node/21554204

[Nigello]

House on Adys Road, near the school, went for a million and got a million (according to a source).

[LondonMix]

The US it is more expensive.

You asked why people moan, and I explained its because they are dishonest as real estate agents in other countries who are more honest are not hated in the same way.

I'm glad you prefer the system we've got but I hope you understand now why agents here are hated...

[lbsmith73]

Just thought I would add my thoughts on this thread having sold my house recently. We put our property (5 bed house) on the market in January 2014 with KFH, they were very slick with their sales pitch and promised me the world, in my heart of hearts I knew they were over valuing my house but like so many people I got blinded by the pound signs in front of my eyes! Well I went with them none the less and had a really bad experience, they had one nice agent who was very helpful and she knew from the start it was priced too high but couldn't admit it. The other agents that showed clients round were useless, on the times I was there in the background I was shocked by their lack of knowledge about the area and their rush to get clients onto the next property. We had one offer which was not serious and way below the asking price and this was after 12 weeks with them. I switched to Property In Dulwich and they were brilliant (I can't recommend them enough)they are local and know the area inside out and managed my expectations well. They marketed the property with a guide price which was well below the original asking price KFH had suggested and within two weeks it went to sealed bid and went much higher than we expected. Our plan was to move to Norfolk but we got cold feet and have decided to stay in London. We are moving at the end of this month (we are moving into a flat for a short period) and have been looking at other properties in SE22. What I have noticed it has really calmed down since we sold our property at the end of March. We have had a couple offers accepted in the last two months which were well below the asking the price however they didn't workout. Prices are definitely levelling off and it some cases starting to fall, people are not prepared to pay the silly prices anymore and I think sellers have to be more realistic about what they are going to get regards asking prices. I feel fortunate to have sold when I did as I know I would not get anywhere near the price my house achieved in March if it went back on the market now. All in all whether you like them or not using estate agents is a lottery my only bit advice is to manage your own expectations as too often you get carried away which can lead to frustration and stress!

[Jack.asiliman]

That is a bargain. Best I snap it up!

[worldwiser]

It's very simple: the UK is one of the few countries in the world without meaningful laws to govern property conveyancing.

Depending on the situation, the buyer or seller can nail the other party and hold them to ransom for no better reason than because they can.

If there were stricter laws covering the conveyancing process, everyone would seem more honest. When the opportunity arises and in the absence of legislation preventing it, people almost always revert to the worst versions of themselves.

[LondonMix]

Yes and no. Those willing to exploit the weakness of the system will do best and the industry will be full of scoundrels. However, not everyone automatically behaves badly (just the most successful within the industry). The fact that the legal structure gives scoundrels and advantage doesn?t negate the fact that these people as individuals are scoundrels!

[Toldyouso]

LondonMix Wrote:

-------------------------------------------------------

> Yes and no. Those willing to exploit the weakness

> of the system will do best and the industry will

> be full of scoundrels. However, not everyone

> automatically behaves badly (just the most

> successful within the industry). The fact that

> the legal structure gives scoundrels and advantage

> doesn?t negate the fact that these people as

> individuals are scoundrels!

Sorry but who are you referring to as scoundrels? Estate Agents, Sellers, Buyers? I think people need to start taking some personal responsibility when it comes to buying and selling property and not just blaming it all on the agents or the unsatisfactory nature of the English conveyancing system.

If you are talking about gazumping and gazundering then, whilst an agent can facilitate that, he cannot force a buyer to reduce his offer or a seller to increase his asking price - that is a personal choice of the buyer/seller facilitated by perhaps, but in no way caused by, the conveyancing system we have here or estate agents per se.

As far as inflated pricing is concerned greed is the principal factor. If you are offered a selling price for your home that seems too good to be true then it is probably because it is too good to be true - and it does not make it any less so just because a range of agents (who are competing against each other for your property) tell you the same thing. Ask them for the evidence. Also, in these days of Rightmove and Zoopla it is perfectly possible, unless you own some kind of unique dwelling (which is not common in ED and surroundings), for you to come to a relatively informed view as a buyer or seller of what a reasonable buying/selling price for a particular property is. All you have to do is look at similar properties close by that are up for sale or, more usefully, have gone under offer. Frankly, if people fall for an estate agent telling them they can get an inflated price for their property, without having done some homework themselves, they are at least as culpable as the agent in my view.

[Earl Aelfheah]

worldwiser Wrote:

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> in the absence of legislation preventing it, people

> almost always revert to the worst versions of

> themselves.

I'm not sure this is true. Gazundering and gazumping is not something which most people do. Most people have principles and act decently. A significant minority don't, but it is a minority.

[LondonMix]

Exactly rahahah-- despite the system, people choose how to behave and most sellers and buyers do behave well.

My post Toldyouso did refer to estate agents. As my previous post discussed, I dealt with an agent who lied to me and the seller, and we both were outraged to learn what he had done. That sort of behavior can't be blamed on the buyer or seller, the agent was simply lacking any sense of morality.

[Toldyouso]

Ah I see. I obviously read your post out of context. Still not sure about the scoundrel = success in the property industry point though. Very sad if it is true - particularly as there are plenty of decent people to use.

[MrBen]

Good post from Toldyouso above I think. Buyers and sellers are often equally badly behaved, selfish and greedy. Very few take responsibility for their own actions. It's a stressful transaction for many and whether you are buying or selling, sticking to your word on a deal makes the world a better place. Ditto in business generally.

[????]

Bad experiences stand out - I with my minute sample of 4 buys and 3 sells have never had a problem with EA or buyers/sellers

[Bellenden Belle]

I am in such a quandary and have heard so many conflicting opinions that I am going to throw this out.

We have sold our house in principle. For ?25k less than the asking price (so ?750k for a three bed house on Maxted Road off Bellenden Road). We took the lower price as we'd found our dream home and we wanted a quick sale (we had loads of interest and it sold in just over a fortnight - unusual considering we went on the market in August when it's traditionally quiet.)

Our dream house turned out to have ?50k worth of dampwork and needed major work - not part of our plan. So we have to pull out. Do we still continue with the sale of our house?

Some have said that we should bide our time - we sold to a young girl moving in with her mates - ours is a family house and with an excellent school about to open on our road (a free school managed by Dulwich Hamlet) families are very likely to be interested.

Others say house prices are falling and we should take the money, and go rent, ready to purchase when the moment arrives. But rent would be considerably more than our current mortgage and would then begin eating into our deposit for our next home.

Neighbours have told me we undersold - and we were happy to because the figures worked for the house we thought we wanted to buy.

Wise forumites - what to do?!

[muffins78]

I think you need to just do what is right for you. Has the buyer done any survey etc yet? If you are worried about what she has invested so far, I'd understand. I'd be the same. However, it's a big decision to leave your home and if prices are to fall, they will fall across the board I imagine.

I'm thinking of selling, but know where I stand, that is, I know the net I need before it will be worth it for what I want to do next. Otherwise I will just stay put. I couldn't give up what I have, unless I was sure about my next step.

I do hope it works out for you, and you may well be better off holding on to what you have - renting may leave you feeling in a state of limbo, if that makes sense. It was suggested to me that I sell and rent after here by a bank manager where I am thinking of moving to, but I couldn't get my head around that - I'd be left renting in London (costs money), purchasing a house to be left empty where I want to move to (potentially costing money too if it needed doing up)! Renting wouldn't feel right! It's all a personal choice and we all feel differently about different things!

[Bellenden Belle]

Muffins78 - thank you for your reply.

No - the buyer hasn't done a survey. She doesn't intend to - that was part of the deal with the ?25k off. She's a cash buyer so is in the position to call the shots and to walk away, with no cost to her if necessary.

[alice]

have you asked your dream house seller to drop the price by 50k- them you get the cash and the dream. Tim she does sound too good to be true

[Loz]

Bellenden Belle Wrote:

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> Others say house prices are falling and we should take the money, and go rent, ready to purchase

> when the moment arrives.

Prices aren't falling. According to people tracking these things, they are just not rising as fast as they were.

[Bellenden Belle]

Thank you to Mustard for advising me to contact Brendan at NoFlies (and Loz for mentioning them to be a few weeks back) - just had a really good conversation with him and I think I'm going to let my pushy buyer push off.

[muffins78]

Loz is right and probably it's just the market not moving as fast as it was!

I'm glad you've come to some decision - a young girl as a cash buyer sounds mad! Also mad on another sense that she wouldn't so a survey - a bit dodge making such a large investment. I make that comment in general not about your home Bellenden Belle!

I hope you get the 50k off if you are looking to so that now and/or find a more perfect place for you :) It all happens for a reason, everything does :)

[alice]

alice Wrote:

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> have you asked your dream house seller to drop the

> price by 50k- then you get the cash and the dream.

> Tho she does sound too good to be true

[Bellenden Belle]

Sorry Alice for not replying earlier.

We haven't as yet because we are waiting for a hard copy of the survey (due Thursday) so we can quote and give accurate quotes (though we have had an indepth discussion with the surveyor so we know the contents already).

I don't imagine someone taking off 50k and we just can't afford to meet them halfway as is the usual case when you buy a period house. But we will ask....

[eddad]

Regarding comments about KFH in East Dulwich, we bought a house here last year and the KFH agent was so bad with us, lying to us and putting words in the sellers' mouths, that the sellers apologised to us and told the agent to stop any further communication with us without their approval. I certainly won't go near KFH when I get round to selling.

[Whoop]

New tactic being used by Winkworth to make people believe that house prices are still at May/June highs = leave a house as 'under offer' on your website even though the buyer retracted their offer 2 weeks ago and the seller has taken the house off the market market. Genius. Fool people into believing you've managed to sell a house at a super high level when in fact you haven't.

[MissKing]

Offers in excess of ?830k for a two bed terrace anyone?!

http://www.rightmove.co.uk/property-for-sale/property-48314207.html