‘Sellers are asking too much for their homes’
Saturday 3rd January 2009, 9:30AM GMT.
PROPERTY asking-prices could drop this year to a more realistic level, a leading estate agent has said.
Keith Enevoldsen, from Martel Maides, said many people looking to sell their home at the moment are asking for too much money and that is creating a lull in the market.
‘At the moment, vendors are not prepared to lower prices and the majority of purchasers believe that if there is going to be movement it’s going to be down, so therefore are happy to wait and see,’ he said.
‘That’s why we are seeing a lull in the market. There’s a bit of a stand-off between vendors and purchasers.’
The number of properties sold in Guernsey last year dropped considerably, according to figures released by Treasury and Resources, yet prices still rose by 11%.
Mr Enevoldsen said he expected the market to remain slow for the first quarter of 2009.
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I think that most of us would agree that Keith makes a valid point but surely estate agents valuations play a part in house sellers having unrealistic price expectations?
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Fat Cat Agents overpricing homes in the island for own financial gain!
Numerous accounts of it happening and would like to see some go bust.
I just laugh at such a blatant way of turning it back on the vendor.
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How refreshing that at last a professional in the property market has stopped talking up the Guernsey property market.
Guernsey may not suffer as badly as the UK with falling house prices, but cannot expect to completely escape the effects of the recession on the property market. One only has to look at the local property magazines to see how many houses have been on the market for months and have not shifted – vendors do need to be more realistic in current economic conditions.
I really do hope that Guernsey will escape the worst, but I am frustrated by people in business who have the attitude that “Guernsey is different” and the recession will not affect us. Our ties to the UK and the City of London are too close for the island to be totally unaffected.
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Estate Agents are and have been part of the problem. Over the past 20 years they have turned what used to be ‘homes’ in to ‘get rich quick’ schemes. Of which our own greed has played no small part.
There is a new reality. It is time we all recognised this.
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I note the average London salary is £34,777. The average Guernsey salary is £27,000. Even with a lower taxation level the average Guern is worse off than the average Londoner. Yet I read recently that Guernsey now has a higher average property value than London.
Somethings got to give in the Guernsey property market. I think we are now witnessing it with, i believe, the vast majority of Guernsey properties remaining on the market for many months. One property i have been keeping my eye on remains unsold at £476k after being £525k 3 months ago.
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When an estate agent gets column inches in the Press, especially with such a negative overtone, I cannot help thinking it must be cry for help!!
It is worth bearing in mind that Estate Agents make money in a liquid market place, selling property whether the market is moving up or down, no matter what the price is, the worse position for them is a slow market, it could mean some redundancies. Martel Maides closed down their new St Sampsons branch last year shortly after opening it.
Hopefully all those who need to sell, will drop your prices immediately and help keep all these fine folks from the dole queue!!
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I don’t think its a case of Vendors asking too much for their properties – its more the fact that the vendor relies on the expert opinion of their estate agent in valuing the property.
For the majority of buyers who require a mortgage the bank will insist on an independent valuation by a surveyor who will confirm what the “proper” value should be…
I sold a house last year and I didnt value it myself or perform the mortgage valuation. Why should it be the vendors fault??
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It is also worth remembering what Nick Renny (director of Martel Maides) was quoted as saying last October.
‘I want to be very clear that it is the quantity of sales that is affecting property-related businesses in nervous economic conditions. Where sales are taking place, house prices have so far been holding up well. The market is relatively robust and history shows that, given time, it will recover.’
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Vendors and real estate agents always want to sell for “top dollar” and purchases want to buy “a bargain”, its not being selfish its just the way it is.
Noone can argue that demand is dropping so we are entering a buyers market and lets face it, if you are selling and buying into the same market then there is no real loss if everything falls slightly. Its only really sad if someone has had to sell there house at a loss due to job loss, illness etc.
First home owners should rejoice as this is their opportunity to get on the market at reduced prices.
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Wil, 1st time buyers may be seeing that house prices are within their grasp, but the flip side is that the banks and brokers have tightened up their lending policies in recent months.
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Good point Russ. We will have to save for a deposit now instead of getting a bridging loan like i did. My thinking was that by the time i save enough for a deposit, houses would have gone up twice that amount anyway! It would have been good to have a crystal ball but anyway…
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I have been visiting Guernsey since 1993 and having spent 13 days looking at property on the open market over xmas all I can say is it may be time for a re think away from two markets!And more to the point a complete re think on what Guernsey has to offer a tourist never have I seen Guernsey so deserted over an xmas period and in my opinion heading for an almighty ressesion!Along with the rest of the world!
Just have one market and help locals and local first time buyers with a supported mortgages etc and let the marke find its own value.You need to create jobs fast and you need to wake up and look at what is happening in the UK and Europe before it is to late!
Bring back the power boat race and get real!
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John
The open market was created specifically to stop people coming in and buying local market property. If you don’t have local housing qualifications, don’t have a job which justifies a local licence and cannot afford an open market property then you sound exactly like the category of person that the housing laws are designed to keep out. Otherwise our average local market house price would be 800k rather than 400k or we would have a population of 100,000! Alderney or the Isle of Man don’t have the same restrictions though.
Guernsey has always looked closed on a Sunday and its nothing to do with a recession !
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