I know it's a difficult question to answer but what's a realistic final selling price on a unit priced at 575 in your opinion?
I'm aware of asking prices that have changed that much over six months.
It's all relative to location really, but going on the facts provided by the OP, I would say c.520/530k. The house has been on the market 6 months, there is local cheaper competition which to me looks like they are asking for a low price to shift their houses. If they don't move its harder for the vendor in question to sell theirs. All three may end up dropping their price again in 2/3 months if they are all still on the market. Alot of ifs and buts and I'm using all negative scenarios.
Is 22% not alot, even in uncertain times especially for a house in this price range?
The jumps of 20%+ per annum were not out of speculation, how can that be true? Surely the levels of housing built in the last 10-15 years would indicate that the market was trying to meet demand, so in essence a supply and demand scenario was in play. I don't see how anyone can back up the reason for such a vibrant market in the last decade was based purely on positive speculation.I assume what Camry meant by a 'normally functioning property market' is one driven by supply and demand and not underpinned by speculation. Jumps of 20+% per annum is not a normally functioning market and was fuelled by speculation. I think that this is accepted. Drops of a similar amount therefore would be tantamount to a return to relative equilibrium.
I don't think anyone believes this, it is there to be seen that prices go both ways its the generalisation that is dangerous.A market where people don't think property prices don't fall
There is an argument there to support both sides.A market where people don't believe "rent is dead money"
I wouldn't recommend that anyone hand over a non-refundable booking deposit and it is the norm IMO.A market where people think that they should not have to fork over a non-refundable "booking deposit" to a developer for a non-existant asset, wait two years or more at the developer's whim to deliver and then discover that the finished product is not what was displayed or described on the "plans".
The estate agent is there to provide a service for their client, the vendor. They should also extend their professionalism to the buyer, but not bend over backwards to please them. The buyer is there to purchase the property and it is the estate agents obligation to negotiate the best possible deal for their client. If purchasers wished to have this service available to them they should also enlist the services of an agent to act on their behalf.A market where people believe that an estate agent, acting on behalf of the vendor, rather than treating you with undiscuised disdain, should be bending over backwards to please you - the person stumping up the money- the buyer
Are you confusing a market with peoples ability to be able to read between the lines?A market where people can tell the difference between marketing or industry spiel and well formed opinion
A market where people don't believe that something is "cheap" because "it doesn't cost as much as it does here", or it "doesn't cost as much as it did last year"
What about a place that's just come on the market at 575? If you were to get a quick sale on that do you reckon it would sell for about 530/535 cos of the way the market is going?
The jumps of 20%+ per annum were not out of speculation, how can that be true? Surely the levels of housing built in the last 10-15 years would indicate that the market was trying to meet demand, so in essence a supply and demand scenario was in play. I don't see how anyone can back up the reason for such a vibrant market in the last decade was based purely on positive speculation.
Please tell me you don't believe that over the past 10-15 years everyone who bought houses is the steroetypical 2 parent 2.4 kids family unit who intend to stay in the house for 20+ years.
But there is no doubt people have bought properties with little or no attention paid to :
possibility of price fall
possibility (due to price fall) of staying in the house for a longer duration than anticipated (particularly commuter towns) as they cannot trade up.
rental yield
I was in a similar situation and went sale agreed this week on a place. I got a 24.7% reduction on original price, we bid 100k under what they were looking for and it worked.
So that's why I assume it's the estate agent that is holding up the high price and refusing to budge and not necessarily the seller.
Interesting fact, I didn't realise we wielded such power.Estate Agents will not allow their clients to reduce the prices and advertise the fact
We all are dealing with entities that are selling something they don't even own, and they work on Commission - so the higher the price the more they earn
Most resi EAs are not qualified about property. They know more about colour schemes than Planning Permission or Snag Lists.
Generalised and correct I'm sure in some cases, but not in all.The EAs charge one price for newspaper advertising and pay a much lesser figure to the papers.
I am in the Property business and detest Residential Agents with a passion
When the deal is signed you should advise the Agent who wouldn't refer your previous offer that you intend to report him.