Slim Posted March 19, 2007 Share Posted March 19, 2007 You are talking about supply and demand in a broader context, I am talking of supply and demand as it is in the current housing market. Yes it could change but it is unlikely to. That is because the same factors that force the vendor to lower his price are the same factors that lower the buyers ability to afford houses. Sigh. The vendor sets his price to attract buyers. The buyer lowers his price to what he can afford. It's generally, therefore, the buyer who sets the market value. See? In an analysis of house prices, you wont see any commentry about 'sellers would be happy to get less dosh..' it's all about what the buying market can take. Link to comment Share on other sites More sharing options...
Cambon Posted March 19, 2007 Share Posted March 19, 2007 Sigh. The vendor sets his price to attract buyers. The buyer lowers his price to what he can afford. It's generally, therefore, the buyer who sets the market value. See? In an analysis of house prices, you wont see any commentry about 'sellers would be happy to get less dosh..' it's all about what the buying market can take. Sigh! The vendor sets his price (say £200K). The buyer lowers the Vendors price by making an offer (say £180K). The vendor says no. The buyer says ok, £190K and the vendor accepts. The buyer thinks he has a bargain because he got it for £10K less than the asking price. The vendor is happy because he asked 10K over the £190K he that he wanted. When you bought your house, did the vendor accept your first offer? I know mine did not! Link to comment Share on other sites More sharing options...
lfc84 Posted March 19, 2007 Share Posted March 19, 2007 Buyers Market http://realtytimes.com/rtcpages/20000203_buyermrkt.htm Sellers Market http://realtytimes.com/rtcpages/19981105_sellersmkt.htm Link to comment Share on other sites More sharing options...
BigDave Posted March 19, 2007 Share Posted March 19, 2007 Head. Wall. Bang. Link to comment Share on other sites More sharing options...
Slim Posted March 19, 2007 Share Posted March 19, 2007 The vendor sets his price (say £200K). The buyer lowers the Vendors price by making an offer (say £180K). The vendor says no. The buyer says ok, £190K and the vendor accepts. The buyer thinks he has a bargain because he got it for £10K less than the asking price. The vendor is happy because he asked 10K over the £190K he that he wanted. When you bought your house, did the vendor accept your first offer? I know mine did not! See, what you're doing is confusing the asking price and market value. There's only one price in your example above, the amount the property actually sold for. The rest is irrelivant. Link to comment Share on other sites More sharing options...
Cambon Posted March 19, 2007 Share Posted March 19, 2007 See, what you're doing is confusing the asking price and market value. There's only one price in your example above, the amount the property actually sold for. The rest is irrelivant. Yes, and that selling price was controlled by the seller, not the buyer, because it is currently a sellers market. If you go up to Buchanan BMW today and buy a brand new mini, you will not get a penny off the price because the seller is in control. Demand outstrips supply. If you want a second had mini you will be able to negitiate a lower price than the asking price because there are a good number of second hand minis for sale. Link to comment Share on other sites More sharing options...
Overdose Posted March 19, 2007 Share Posted March 19, 2007 It's a buyers Market at the moment. To be fair to Slim and Dave what they are saying is correct, it's the buyer that sets the price. The seller set's the orginal asking price, but it's the buyer that ultimately determines the purchase price. Link to comment Share on other sites More sharing options...
feelslikeitshould Posted March 19, 2007 Share Posted March 19, 2007 Riiiiight. So, anyway, back to the topic in question....First time buyers. There are over 1000 applicants on the first time buyer register and over the next 18 months, there are less than 450 approved, purpose built first time buyer homes being constructed. The points scheme is the fairest way of allocating housing to those most in need of assistance in order to buy their first home. There are more than 550 other people who will never get to the top of that list either Tonto, the grant is there because the Government know they can't supply the number of houses required by those who qualify for assistance and £25,000 is far better than nothing, which was the way things were before 2002. I don't think there's anything wrong with a 21 year old wanting to buy a house but I'm assuming from some of what you've said that she lives at home with you. If she has enough for her deposit to buy then maybe she should look at renting for the time being, it'll give her more points and give her a better idea of what it'll be like to live alone and the responsibility that goes with it. Subsidised first time buyer housing is not an attractive option to me, like it's been pointed out already, until you've owned it for 10 years, you have to sell it on to a first time buyer at the Government rate. So although you're on the ladder, you're going to be stuck at the bottom for a while. The only way to make it worthwhile is to pay off your mortgage as quickly as possible which is ok if your circumstances change and you start earning a lot more but what if interest rates go up another few percent or you work in a job with a salary that's only ever going to increase in line with inflation? Alternatively, you could stay in it until the 10 years is up but how likely is that? Link to comment Share on other sites More sharing options...
Slim Posted March 19, 2007 Share Posted March 19, 2007 Yes, and that selling price was controlled by the seller, not the buyer, because it is currently a sellers market. The term sellers market doesn't mean the vendor controls the price, just that conditions are favourable for him to get a better price. If you go up to Buchanan BMW today and buy a brand new mini, you will not get a penny off the price because the seller is in control. Demand outstrips supply. If you want a second had mini you will be able to negitiate a lower price than the asking price because there are a good number of second hand minis for sale. For the last time: the price he's asking for that mini isn't the maximum he wants to get for it, it's the maximum he knows someone will buy it for, hence the buyer set the price, not the seller. Buchanan BMW would love you to pay a million for that mini, see? Link to comment Share on other sites More sharing options...
keyboarder Posted March 19, 2007 Share Posted March 19, 2007 Head. Wall. Bang. Yes, the TT will soon be upon us....lol,lol.... ,, ))) ; ) Link to comment Share on other sites More sharing options...
Cambon Posted March 20, 2007 Share Posted March 20, 2007 Yes, and that selling price was controlled by the seller, not the buyer, because it is currently a sellers market. The term sellers market doesn't mean the vendor controls the price, just that conditions are favourable for him to get a better price. If you go up to Buchanan BMW today and buy a brand new mini, you will not get a penny off the price because the seller is in control. Demand outstrips supply. If you want a second had mini you will be able to negitiate a lower price than the asking price because there are a good number of second hand minis for sale.For the last time: the price he's asking for that mini isn't the maximum he wants to get for it, it's the maximum he knows someone will buy it for, hence the buyer set the price, not the seller. Buchanan BMW would love you to pay a million for that mini, see? Slim, If the buyers were controlling the prices of houses the prices would be a lot lower. If the market was suddenly flooded with properties than the sellers would be forced to lower their expectations on price. However, this is not likely to happen and the sellers can ask pretty much what they want because they know the buyers will "find" the money if they want to buy. It is a sellers market. If the seller does not get offered what he wants he does not have to sell. That is his prerogative. There has not been a buyers market over here since the early 90s when Carvill Group flooded the market with cheap, affordable housing that forced the market down. At the time a brand new, three bedroom semi from Carvill cost the same as a second hand 2 bedroom terrace. It seemed a bit of a no-brainer at the time. In the end Carvill could not sell all the properties even at discount, so sold the last 25 or so to Port Erin commissioners as commissioners housing, for half price. A bit of a kick in the teeth to the people who had paid full price to live on a private housing estate. But as I said, it was a buyers market. Link to comment Share on other sites More sharing options...
Roger Smelly Posted March 20, 2007 Share Posted March 20, 2007 If someone did come along and knock out a load of 3 bed semi's for say £120.000 i bet they would make a killing. Because thats about the price most first timers can afford. If this was the UK it would have happened a while ago, this places is that greedy that the idot's cannot see that selling on mass is the best way to make money. Link to comment Share on other sites More sharing options...
Slim Posted March 20, 2007 Share Posted March 20, 2007 Slim, If the buyers were controlling the prices of houses the prices would be a lot lower. I'm not repeating myself again, it's clear you're simply not capable of understanding this fairly simple point. Link to comment Share on other sites More sharing options...
Slim Posted March 20, 2007 Share Posted March 20, 2007 If someone did come along and knock out a load of 3 bed semi's for say £120.000 i bet they would make a killing. But you'd sell all your 3 bed semi's at £185k so why on earth would you want to sell them at £120? Because thats about the price most first timers can afford. But there's buyers who can also afford to pay higher. If this was the UK it would have happened a while ago, this places is that greedy that the idot's cannot see that selling on mass is the best way to make money. Huh? Selling something cheap that you can get more money for isn't the best way to make money. The UK property prices are proof that you're all talking shite. Take a a look: 3 bed semi west yorkshire 3 bed semi darlington 3 bed semi manchester If you think the property price inflation of the last 20 years is limited to the Isle of Man, well you're wrong. Link to comment Share on other sites More sharing options...
rallybug Posted March 20, 2007 Share Posted March 20, 2007 I think to a certain extent that the IOM sped ahead of a lot of UK areas for a number of years, but now the UK has caught up and the IOM is sort of trading water in property price increases. I know that 7 or 8 years ago, my parent's 30s 3-bed semi in Somerset was probably only worth about 2/3 of the IOM price, but is now pretty much on a par. Link to comment Share on other sites More sharing options...
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