So the housing market is in turmoil in more ways than one. The down valuation has now kicked in which can only mean that sellers cannot sell and buyers cannot buy.
The sellers are the ones that will lose out in the long run. Even if they drop their price to start with, there will be an element of down valuation that will lower the price even further.
So it wouldbe better for the buyer to get a valuation from the lender before they approach the seller.
So is this the begining of a downward spiral on house prices.
With the anticipated interest rate rise, it will make things even more difficult for many than they already are.
It has just been anounced that there is a increase of .25%, doesn't sound a lot but many will struggle with mortgage repayments and may have to sell up where the new valuation of the property, could be less than expected.
This knock on effect is a bit like the outcome of BREXIT, but nobody knows what effect it will have on the housing market.
Not long ago people were complaining about high house prices ..can't please ya!
Nothing can be done about high house prices ---YET! But the way things are going and with banks and building societies knocking the values down, the days of high house prices could be over.
If the demand for houses drops even further, the spiral can only be downwards.
My gripe with house prices has always been the estate agents very rarely knock the percentage they take down. It was 2.5% years ago and I beliee it still hovers around that figure now. The higher the prices went, the richer they became, that is why there are so many estate agents. Just look how many there are in Dawlish. Easy money for what they do.
You just tell gent 1% is what you want for selling....or find someone that will accept that, you will find plenty of agents sell at 0.90. The 2.50% is normal for multi agent rate.
I knew someone that did that, and her bungallow was still on the market twelve months later until I intervened and it was sold within a fortnight albeit £25,000 lower than the asking price and the buyer paid all parties legal fees. That was with Bradley's by the way.
So you have to go careful when you get a lower percentage take, they don't push it so hard.
Bradleys coudnt find my house in Dawlish to value it..no wonder they have gone!
I used an Exeter agent for 1% and it was listed on 'Right move' and the deal was that i would do the viewings, save them coming out. ...i didnt want an agent simply saying 'this is the ktchen' etc lol .. Sold it in a week.
by SEAN POULTER, Daily Mail