I found a property for sale that was available in October 2019. At the time, it had an asking price of £1.75million.
It didn’t sell and is now back on the market for £50,000 more – or £1.8million.
Is this a case of people putting houses back on the market for a bit more than just before the coronavirus, expecting buyers to ask for a discount, and allowing them to think they’re getting a good deal?
Some properties that failed to sell before coronavirus now have a higher asking price
MailOnline Property expect Myra Butterworth replies: Those who keep a keen eye on the property market may have seen a number of examples of properties that didn’t sell last year, or at the beginning of this year, which are now back on the market with a higher asking price.
A handful of cases have been brought to our attention, with some £1million-plus properties having an extra £50,000 added to the asking price.
This goes against the traditional thought on homes that fail to sale, with prices normally being lowered to attract a buyer.
It begs the questions why this is happening and whether it’s to try to convince some buyers they are getting a good deal? We asked buying agent Henry Pryor for his thoughts, which he gives in detail below.
He suggests that many buyers have no idea what a property is worth and sellers take advantage of this.
If you’ve spotted a property you like, whether the price has gone up or not, how should you decide what to offer.
The key is always to do as much research as you can about a property.
This includes searching on the internet for any information about a property’s address and surrounding area.
You then need to assess if this information works for your personal circumstances.
For example, some families may be willing to pay over the odds to live near a good school, while other people will be more than happy to extend their mortgage substantially if it means they only have a five minute walk to work.
Ultimately, if you’re buying a property, only you can decide what it is worth to you as you’re the one that is going to have to live with that decision.
If you do want to track asking price movements, you can download a plug-in such as Property Tracker for your Chrome internet browser.
Buying agent Henry Pryor replies: Having worked in the world of property for more than 35 years it would be fair to say that there isn’t much I haven’t seen, such as buyers behaving badly and sellers being economical with the truth.
The housing market is perhaps the last true capitalist market. You can ask as much as you like and offer whatever you want.
Most of the protagonists are unqualified and emotions often run as high as the prices. Sometimes people cut corners.
In the three downturns I’ve worked through, prices started to slide at some point.
Most people mistake an asking price with a value and when deciding what to offer many buyers reference their offer to the asking price with ‘so many per cent below’ as if somehow paying less than the seller was asking was an indication of what a great deal they had done.
Putting the property address into a search engine will often bring up previous, historic listings
The sad truth is that many buyers have no idea what something is worth and sellers and agents take advantage of this.
If you stick 10 per cent on the asking price, then there will be some buyers who will offer 10 per cent less, thinking that it must be a good deal.
If you stick 10% on the asking price, then there will be some buyers who will offer 10% less, thinking that it must be a good deal
I’m seeing more and more examples of houses that didn’t sell last year being offered for sale again this year asking more than they did before.
Some buyers will be taken in by this although there are ways to minimise the chances of this happening to you.
There are plug-ins for your internet browser that will highlight any price change for a property on property websites such as Rightmove.
Simply putting the property address into a search engine will also often bring up previous, historic listings. And, of course, other estate agents will be able to point out if someone else’s property has, shall we say, a chequered past.
I always tell my clients ‘the buyer decides what a property is worth, the seller has the luxury of deciding if it’s enough’.
There is a wall of investment money keen to commoditise residential property – people who want to be able to value property by reference to the floor area for instance, but if they could then there would be an app that could tell you what your property is worth and I’d be out of a job.
As always, check out a property before you bid. Talk to neighbours, to other agents, you’d be surprised what people will tell you.
Remember, the asking price is not an indication of value, a statement of what the seller will accept, necessarily what the estate agent advised, or what a mortgage valuer might sign it off at.
Just because the seller will take less than his price doesn’t make it a good deal. ‘Price is what you pay. Value is what you get.’
THIS IS MONEY PODCAST
- Are electric bikes and scooters the future of getting about?
- Are we all going on a summer holiday?
- Could your savings rate turn negative?
- How many state pensions were underpaid? With Steve Webb
- Santander’s 123 chop and how do we pay for the crash?
- Is the Fomo rally the read deal, or will shares dive again?
- Is investing instead of saving worth the risk?
- How bad will recession be – and what will recovery look like?
- Staying social and bright ideas on the ‘good news episode’
- Is furloughing workers the best way to save jobs?
- Will the coronavirus lockdown sink house prices?
- Will helicopter money be the antidote to the coronavirus crisis?
- The Budget, the base rate cut and the stock market crash
- Does Nationwide’s savings lottery show there’s life in the cash Isa?
- Bull markets don’t die of old age, but do they die of coronavirus?
- How do you make comedy pay the bills? Shappi Khorsandi on Making the…
- As NS&I and Marcus cut rates, what’s the point of saving?
- Will the new Chancellor give pension tax relief the chop?
- Are you ready for an electric car? And how to buy at 40% off
- How to fund a life of adventure: Alastair Humphreys
- What does Brexit mean for your finances and rights?
- Are tax returns too taxing – and should you do one?
- Has Santander killed off current accounts with benefits?
- Making the Money Work: Olympic boxer Anthony Ogogo
- Does the watchdog have a plan to finally help savers?
- Making the Money Work: Solo Atlantic rower Kiko Matthews
- The biggest stories of 2019: From Woodford to the wealth gap
- Does the Boris bounce have legs?
- Are the rich really getting richer and poor poorer?
- It could be you! What would you spend a lottery win on?
- Who will win the election battle for the future of our finances?
- How does Labour plan to raise taxes and spend?
- Would you buy an electric car yet – and which are best?
- How much should you try to burglar-proof your home?
- Does loyalty pay? Nationwide, Tesco and where we are loyal
- Will investors benefit from Woodford being axed and what next?
- Does buying a property at auction really get you a good deal?
- Crunch time for Brexit, but should you protect or try to profit?
- How much do you need to save into a pension?
- Is a tough property market the best time to buy a home?
- Should investors and buy-to-letters pay more tax on profits?
- Savings rate cuts, buy-to-let vs right to buy and a bit of Brexit
- Do those born in the 80s really face a state pension age of 75?
- Can consumer power help the planet? Look after your back yard
- Is there a recession looming and what next for interest rates?
- Tricks ruthless scammers use to steal your pension revealed
- Is IR35 a tax trap for the self-employed or making people play fair?
- What Boris as Prime Minister means for your money
- Who’s afraid of a no-deal Brexit? The potential impact
- Is it time to cut inheritance tax or hike it?
- What can investors learn from the Woodford fiasco?
- Would you sign up to an estate agent offering to sell your home for…
- Will there be a mis-selling scandal over final salary pension advice?
- Upsize, downsize: Is swapping your home a good idea?
- What went wrong for Neil Woodford and his fund?
- The incorrect forecasts leaving state pensions in a muddle
- Does the mortgage price war spell trouble in the future?
- Would being richer make you happy? Inequality in the UK
- Would you build your own home? The plan to make it easier
- Would you pay more tax to make sure you get care in old age?
- Is it possible to help the planet, save cash and make money?
- As TSB commits to refund all fraud, will others follow?
- How London Capital & Finance blew up and hit savers
- Are you one of the millions in line for a pay rise?
- How to sort your Isa or pension before it’s too late
- What will power our homes in the future if not gas?
- Can Britain afford to pay MORE tax?
- Why the cash Isa is finally bouncing back
- What would YOU do if you won the Premium Bonds?
- Would you challenge a will? Inheritance disputes are on the rise
- Are we primed for a Brexit bounce – or a slowdown?
- How to start investing or become a smarter investor
- Everything you need to know about saving