Family home loses 40% in value in just 4 months

[Property Prices]

A six-bedroom Victorian family home has seen its value fall by 40% in just 4 months. The home, which is in the desirable area of Bedford Park, west London, is believed to be the capital’s steepest property reduction. The property was put up for sale in March for £3.2 million, since that time buyers interest has [...]

More: Family home loses 40% in value in just 4 months

[BarryM]

Surely story should be unrealistic asking prices no longer being quoted?

I haven't seen falls like this in the areas where we oprate east of Bedford Park - except where the property was being marketed at an unrealisable figure in the first place.

[Rebecca1]

I cannot understand why any house should lose so much in value in 4 months. Was the original value realistic or just what the vendor wanted?

[brian]

Well, it was a six-bedroom Victorian property in London, originally priced at £3.2 million.

I wouldn't be surprised if it was over-valued in the first place.

[moneyman]

Would agree with Brian. Sounds over inflated price in first place.

I can't believe such a property would genuinely lose 40%.

[Mortgage Broker]

A lot of property that is going to auction is either not meeting the reserve or no bids taken. lots of property going for 50% off, there will be bargains to be had and cash will be king.

[LaBaguette]

Hi everybody, here is a new adept ! Thank you Brian for your work, this forum is also very useful and interesting for French people as you can see.

I don't know about the price over-valued or not for this house because I don't know the area (yet), obviously. It sounds like a lot of money any way. But I am not surprised about the prices falling down and the properties loosing value in a small amount of time. In France it is the same problem, the property's market goes really down and some owners really over-valued their house ! They will have to change their mind soon and reduce their price, unless they can find an investor who's got money in his purse. The economy is constantly slowing down, it is worrying.

I am thinking about what Baron Rothschild has said : it is time to 'buy when blood is in the streets' ...

Cheers

[brian]

Hi LaBaguette and welcome to the forums.

What's been really interesting to watch is how even when house sales started falling along with prices, a lot of estate agents were still trying to retain strong prices, which added to the problem of unsold property numbers building up.

But, of course, when sellers over price in a buyers, they only have themselves to blame if their property remains unsold.

[BarryM]

Estate agents have a strong motivation to value at a price that will sell. Sadly, some agents view instructions as lottery tickets. When prices are rising this isn't such an issue, but when prices are falling, as they undoubtably are in many areas outside Central London, this is potentially expensive for the vendor.

[Mortgage Broker]

Lotss of sellers still hanging on to last summers prices, if the place does not get an offer lower the asking price by 10,000 every month until you do get an offer. Then you will no where the market is at.