Buying a house in East Dulwich? expect sealed bids!

[nylonmeals]

We got our house just in 2006 and just had it valued last week. I had expected that it had probably stayed about the price given all the media hype about falling house prices etc. Totally not the case in ED. Someone earlier posted that they thought prices had gone back to 2007 peak prices - from our personal experience I would totally agree.

According to Winkworth's, a nicely done up 3 bed (with potential to do loft/side return etc) will go for just under 600k

I think that's a lot but apparently that is the going rate at the moment.

[cate]

It's also the lack of stock available. There aren't many about. Had a look last night on Find a Property.

[Sue]

Maybe I'll sell up and retire in comfort somewhere cheaper :))

[TheAllSeeingEye]

Worrying thing is ... they'll get it. I know the house.

Sue Wrote:

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> Maybe I'll sell up and retire in comfort somewhere

> cheaper :))

[Sue]

Which one? The one at ?565 or the one at ?575?

Pix of the inside and outside of both houses are on the Winkworths website, btw.

I find it worrying from many points of view, but not from a purely selfish point of view :))

[Jeremy]

I guess if you want to sell up and get out it's fine.

But this isn't healthy for the majority of us!

[Sue]

Not healthy for me if I'm sitting on a goldmine but living on a pittance :))

[Pecanpie]

I had a couple of valuations and the agents would have said any figure they thought i wanted just to get the job. I think it might be rough out there.

[Barry Rhode]

Not sure why so many people are surprised about local house prices

Location, location, location...

[SteveT]

Is this thread in the right place admin?

[Administrator]

It is generally about house prices in East Dulwich so yes it is in the right place.

Please keep it on topic about house prices in East Dulwich or it will be moved to the Lounge.

[Mick Mac]

TheAllSeeingEye Wrote:

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> Agreed, and I'll be happy to take my cut of it :-)

Typical - Estate Agents trying to make money again - shocking. ;-)

[Mick Mac]

???? Wrote:

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> ...expect more of this...

More doom and gloom. I think west ham's demise is getting to him generally.

[Mick Mac]

I don't see the problem with sealed bids. If the asking price is too low and lots of people want to buy the property then its the quickest way to get the best offer for the buyer.

The agent acts for the seller so its his job to get the best price surely.

We moved to ED in 2001 and we bought our house under a multi agent sealed bid process. Yes we overpaid I guess but if you intend to live in the house for the long term then the element over the asking price is not likely to be a major amount of money when you look back 5 or 10 years later.

My view is if you really want the house - and you are going to live there long term - then bid what you need to to get it.

[dubluke]

TheAllSeeingEye Wrote:

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> Its the popular, young

> professionals flats (typically 2bed garden) and

> the small family homes, that are gold dust at the

> moment.

Very true, I work for a local agent and we have a number of large houses in good structural and decorative order, in good locations and for realistic prices which have been hanging around on the market for a number of months, however we are getting rid of two bedroom garden flats like no-ones business! The majority of my buyers are looking for this kind of flat up to about the 250 range

[Catalyst]

Rather than talking about asking prices and estate agent valuations the only figure that really matters right now is what surveyors put in their reports. Are the valuation surveys matching the accepted offers?

I've heard of one instance in Telegraph Hill where ?30K was knocked off the final price (?440K down to ?410K for a 3 bed family house) due to the mortgage valuation. What's happening on this point in ED?

[cate]

The valuation reports can also hinge on how much of a deposit the buyer has. For example if you are putting down forty or fifty percent then there is a better chance of not having it downvalued. And if you can show that other similar properties have sold for similar prices then it would usually go through.

edited due to addition

[TheAllSeeingEye]

In addition, if it is at the point where there are sealed bids this can sway the surveyor ... massive demand for it drives the price up and they are more likely to approve the money.

[PeterW]

My feeling - and I could, of course, be wrong - is that anyone who buys a place for top price before the election is taking a risk. There's no telling what a few weeks of confusion and chaos amid a hung parliament could do for the markets and the pound. All it would need is a hefty rise in interest rates and there'd be big trouble. There was an interesting statistic in the latest Northern Rock results: 4% of their mortgagees are having problems making payments. That's with rock-bottom rates.

This might just be wishful thinking. I'm very much of the opinion that ?500,000-plus for a basic three-bed Victorian terrace, the sort of home that only a couple of decades ago was very much within the reach of people on ordinary wages, is not only absurd but downright immoral. Bring on a huge house price crash. And I say that as a home owner. If it sends some estate agents over the edge then all the better.

[Sue]

PeterW Wrote:

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I'm very much

> of the opinion that ?500,000-plus for a basic

> three-bed Victorian terrace, the sort of home that

> only a couple of decades ago was very much within

> the reach of people on ordinary wages, is not only

> absurd but downright immoral. Bring on a huge

> house price crash. And I say that as a home owner.

xxxxxxxx

Agreed. Just wait till I've sold mine :))

:-$

[pie-eater]

Renting is king in today's silly house price debacle.

Half price living and wait for 1989 - 1995 to happen.

Only a fool buys now.

[TheAllSeeingEye]

What, in East Dulwich, renting a 3bed house for 1500 a month, so 18000 a year down the drain ??

[R&A]

"This might just be wishful thinking. I'm very much of the opinion that ?500,000-plus for a basic three-bed Victorian terrace, the sort of home that only a couple of decades ago was very much within the reach of people on ordinary wages, is not only absurd but downright immoral"

In the early 80s crash the Price to Earnings ratio for property fell to approx 2-3x followed by a peak at 4x in 1989

This ratio has been steadily moving upwards over time due to increase population growth/wealth etc

They say this long term trend will continue upwards but in the short term the multiple should probably be about 3-4x earnings? Factors like the weak pound help but unemployment hurts...

This is all very back of the envelope stuff - but absolute values don't really mean anything ('?500k is too much')

It's currenlty at 5x earnings again so this'll probably correct back down to 4x soon as it seems too pricey???

At least that's my basic understanding of things

I personally agree that prices are too expensive in the short term BUT that we'll hit 5x in another 10 years or so....

edited to add p/e chart

[Brendan]

I think you have to separate the two concepts of house prices nationally and the specific house price rise in ED though.

The issue nationally is a major fuck up for this country where most new builds are bought by buy-to-let landlords and the average age of a first time buyer is 38. Problem is to readjust the market lots of people are going to lose a lot of money but if you don?t do anything it will have major social and economic impact.

The issue with ED specifically as a market is that (for better or worse) it is a much more desirable area than it was 10 years ago and offers more than the surrounding areas do. It is only natural to expect the houses here to be higher priced when compared to neighbouring areas.

[R&A]

agreed - but the principle is the same. The p/e ratio (more desirable area/population growth) is rising over time