Houses down 65%

TheFarneyman

The selling price of a house is now around the 65% off peak stage (which the head of Daft and other leading agents/property specialists agree on). So say for example a house was worth 600 in the peek and when offered 65%of the price the estate agent laughs and says its worth at least 330 still! And the owner turned down an offer for 300!!!! Surely these people still dont think we were born yesterday!!!!

whippet

TheFarneyman wrote: »

The selling price of a house is now around the 65% off peak stage (which the head of Daft and other leading agents/property specialists agree on). So say for example a house was worth 600 in the peek and when offered 65%of the price the estate agent laughs and says its worth at least 330 still! And the owner turned down an offer for 300!!!! Surely these people still dont think we were born yesterday!!!!

It's not as simple as that unfortunately.

Asking prices are all that Daft can measure. 65% of what, a notional price, a price that may have been paid .. etc ...

You can offer all you want for a house, a seller can ask what they want. The actual price is dictated by what the buyer and seller can agree on.

You might value the house at 300k, the seller may be in negative equity and isn't in a position to sell below 350k and therefore the buyer and seller will never agree.

You can't force a seller to sell at the price you want to pay, you can offer what you think it the price and that is all.

Forget about % down from the peak, this figure isn't going to be same for every part of the country and even different towns will have differing levels of drops.

TheFarneyman

I Totally agree that prices vary from place to place but a difference of 20 percent is ridiculous in my opinion, This house is in Dublin and not a portmarnock or one of the areas seen to be holding their price. I understand that the person may be in negative equity but in a market thats in freefall do they really think people are going to pay above and beyond so they'll not be in negative equity????

jmayo

TheFarneyman wrote: »

The selling price of a house is now around the 65% off peak stage (which the head of Daft and other leading agents/property specialists agree on). So say for example a house was worth 600 in the peek and when offered 65%of the price the estate agent laughs and says its worth at least 330 still! And the owner turned down an offer for 300!!!! Surely these people still dont think we were born yesterday!!!!

During the peak 2006 to very early 2007, the Asking Price was actually often lower than the actual Selling Price.
The reverse is now true as by the time the hosue is often sold the market has dropped a few percent from when the Asking Price was set.
If you put your property up for sale last Sept, the market value has dropped a few percent in the mean time and your Asking Price is now above the actual achievable Selling Price.

Daft or anyone else are just looking at Asking Prices and then probably trying to figure out what ultimate Selling Prices are.

Also the drop from the so called peak is not a uniform percentage across the board.
It depends on proeprty desirablility (e.g house versus apartment) and the old maximum of Location, Location.

Also as whippet pointed out, the seller may be looking at trying to pay back a huge chunk of money to their bank.
There was story from Midlands auctioneer last week or so that sellers were been told by their banks to demand as a Selling Price the full amount that they still owed.
Now don't know how true this is, but it is madness and sooner or later people will be forced by their banks to offload the properties for whatever they are currently worth in the market.
Then there will be another large drop in house values.

Of course the vested interests are busy trying to make sure this does not happen by finding ways that people hugely in debt are able to offload their debts on the taxpayer.
And yes most of these people are also taxpayers.

All you can do as a buyer is make a reasonable offer and see if the seller has enough cop on to realise that the market is only going one way at the moment.
If the seller believes that their property is different and they should get 2002-2007 prices then they can continue to live in cloud cuckoo land.

Snakeblood

TheFarneyman wrote: »

I Totally agree that prices vary from place to place but a difference of 20 percent is ridiculous in my opinion, This house is in Dublin and not a portmarnock or one of the areas seen to be holding their price. I understand that the person may be in negative equity but in a market thats in freefall do they really think people are going to pay above and beyond so they'll not be in negative equity????

The rule at the moment is that nobody knows anything. PEople don't have a clear view what prices things are selling for (but they know it's not good). Until there's a property price register that reflects the market for a few years with a property price register there'll be chancers on both sides of the deal.

And you can throw the agents/specialists into the heart of the sun. They know nothing, they just guess and pepper it with what they want to happen.

someuser905

i have my doubts a property price register will happen

whippet

TheFarneyman wrote: »

I understand that the person may be in negative equity but in a market thats in freefall do they really think people are going to pay above and beyond so they'll not be in negative equity????

what you have to understand .. if the seller has not got the funds to buy out their negative equity they can't sell the house for lest that what they owe ..... i doubt there is a bank in the country that would be willing to take on the NE part of a mortgage as an unsecured loan.

Therefore .. regardless of what the market is saying and what houses are worth there a many sellers who can't possibly sell at the current market condition .. you can laugh all you want and sneer at their 'failure to grasp' the reality of the market .. but you can't change the reality of negative equity.

irishduck

homes bad 65% down i hate this:D

Spiritofthekop

Question.

How do Daft.ie have any clue into how much the actual house sold for?

Why are Daft.ie been used are a marker for house prices when there is pages of houses that have been sitting on their website for 2 years now...YES 2 years Ive marked most of them & these houses are in most cases overpriced by upwards of 200,000?

johnnyk66

Spiritofthekop wrote: »

Question.

How do Daft.ie have any clue into how much the actual house sold for?

Why are Daft.ie been used are a marker for house prices when there is pages of houses that have been sitting on their website for 2 years now...YES 2 years Ive marked most of them & these houses are in most cases overpriced by upwards of 200,000?

Houses for sale on Daft in Co. Galway since May 2006:eek: almost 6 years

Zamboni

Percentage drops from peak price in the property market merely make for interesting stats.
They have zero relevance to the property market now.
Why the hell do people keep referring to them?

jmayo

Zamboni wrote: »

Percentage drops from peak price in the property market merely make for interesting stats.
They have zero relevance to the property market now.
Why the hell do people keep referring to them?

Because it has got into the consiousness of the masses.
Some deluded fools actually think that the prices in 2002-2007 were actually the norm and prices now are adnormal.

Also some think that just because prices are x percent lower than they were in 2006, then they are getting a bargain.