Help! - flat selling advice

[Wales-Bales]

Labour isn't committing to an extra tax on people's gardens. Its manifesto only promised:

"We will initiate a review into reforming council tax and business rates and consider new options such as a land value tax."

A Land Value Tax is a tax on the potential value of land itself, ignoring anything that's built on it. It isn’t being proposed as an additional tax, but as a potential replacement for council taxes and/or business rates.

The idea will probably be on the table at some point, whichever party comes to power

The business rate and council tax system have been widely criticised for being unfair and inefficient, and Land Value Tax is an idea that’s been around for over 150 years.

The idea has also been promoted by economists across the political spectrum, including the free-market Adam Smith Institute, the left-leaning Centre for Labour and Social Studies, the non-aligned Institute for Fiscal Studies and the Economist, a liberal magazine.

International organisations like the IMF and the OECD are also fans, as was the economist Milton Friedman, whose ideas underpinned Margaret Thatcher’s economic policies.

The Conservatives have also promised a review into the business rates system. So it seems likely that the idea will be considered in a review at some point, whichever party comes to power.

The idea is also put up for consideration in the Liberal Democrat manifesto and the Green party suggests a trial of the tax.

[BLUETIT]

No "GARDEN TAX" then.

Talking of "GARDENS", how is yours these days, Mrs R.

I've got a concrete yard.

That's hard, try a bit of "AXLE GREASE", it worked for Dynah

[A Quiet Monkfish]

Oh board of all knowledge. Sorry to clog the board with this thread. Just desperate to get some advice from some wiser more experienced heads.

I'm currently in the process of selling my tiny one bed flat in London. I accepted a bid a margin less than neighbours had sold a year ago as the market is clearly cooling. The buyer has submitted a PDF of a survey report saying the valuation is right in accordance with the bid. But the survey report is saying the value of the property is going to drop a steep amount in the next 90 days. Do the banks dictate the market? Or is it demand driven?

I feel like I'm being scammed or low-balled by an experienced buyer who knows brinkmanship. Should I hold out? Or accept the offer a fair whack under what the value is now?

Thanks for anyone who has time to give their 5p!

I think you are right to be suspicious. Firstly, why would a buyer - or anyone financing that buyer - be making an investment which they are claiming to fall 'drop a steep amount' in the next 90 days ? That just doesn't add up. Secondly, are they saying that your property is going to fall in value, or those in the same area, or those in London, or the whole of the UK ? As someone who knows a bit about property, I can assure you that nobody anywhere is making such predictions.

Best way to handle the situation is just to chill and be patient. Providing the offer you accepted was only 'marginally smaller that your neighbours, then you are in control. If he tries to drop the price a later stage just say 'no thanks' - he'll either proceed because he's already paid expenses out, or he will back out. Don't panic, the flat will still be worth the same. Just one small thin you should to. Go onto Rightmove/Zoopla etc and check out 'sold prices of others in your block [if you haven't done so]. You may find your selling to low, not too high...

[bobh]

The value MAY go down in the short term.

But it will vastly increase in the long term

I bought my London flat in 1979 for £14,000, sold 5 years later for £23,000.

Value now? circa quarter million.


Tell him to pay up or do one.

[Igovernor]

Simple - if the buyer's valuation report says there will be a massive reduction in price over the next 90 days - what else do you think would cause that - other than a change of Govt. Unless of course the potential buyer is about to crash the housing market himself.

A Govt coming in with massive a borrowing / taxing agenda - will affect the market - in my opinion.

So you see - it's not a political post at all. Just a possible answer has to why the housing property will be massively devalued over the next 90 days.

What else do you think would cause this ? - end of the world perhaps, Tsunami, maybe an out break of Ebola in the UK , the world is waiting and this forum is your stage - so crack on son - let us know ?

Sorry but it has nothing to do with election/gov/housing market, it is standard practice of banks to only lend what they would expect to get back with a 90 day enforced sale, so if the buyer fails to pay defaults,then the bank would expect to get all of their money back

[Igovernor]

My best guess would be that it has been misread, how do you think anyone would know what the housing market is going to go down or up,certainly by that amount, the operative word here is the 90 days one, its what banks do, believe me I have been there and done that, the buyer does not have enough deposit/money or the ratio to lending is very high, banks do this all the time, look up banks 90 forced sale lending

[sneggyblubird]

Blue in the face,you're gonna be red in the face pretty soon if you listen to this crap.If the banks were that good at telling market trends there would have never have been a financial crisis.Plus the fact that something like this would be huge news.He's trying it on.

[Eric Cartman]

How did you shoehorn Jezza into this thread? You've now turned it into a political post, and Matt will be along shortly to move it into the correct forum.

Tragic, isn't it?

[kingbillyboy]

just tell them to **** off or else you will come for their family? always workd for me

[Blue in the Face]

Why did the report say this then "But the survey report is saying the value of the property is going to drop a steep amount in the next 90 days"

Not 'could' but 'is' - unless the OP has mis read it

The wording is simply "Projected Market Value (90 days)"

We've heard loads of guff about the banks being more stringent since 2008. But it seems odd. It could be that the buyer's lending power isn't that good and this is a bracket which gives the bank the excuse to be more conservative.

I do think politics is having an impact like you say.

I think you are right to be suspicious. Firstly, why would a buyer - or anyone financing that buyer - be making an investment which they are claiming to fall 'drop a steep amount' in the next 90 days ? That just doesn't add up. Secondly, are they saying that your property is going to fall in value, or those in the same area, or those in London, or the whole of the UK ? As someone who knows a bit about property, I can assure you that nobody anywhere is making such predictions.

Best way to handle the situation is just to chill and be patient. Providing the offer you accepted was only 'marginally smaller that your neighbours, then you are in control. If he tries to drop the price a later stage just say 'no thanks' - he'll either proceed because he's already paid expenses out, or he will back out. Don't panic, the flat will still be worth the same. Just one small thin you should to. Go onto Rightmove/Zoopla etc and check out 'sold prices of others in your block [if you haven't done so]. You may find your selling to low, not too high...

Thanks Monkfish. Everything you've said is spot on.

It's great I could come to CCMB and get some rationale thinking because it's hard to do so when the stakes feel high.

Blue in the face,you're gonna be red in the face pretty soon if you listen to this crap.If the banks were that good at telling market trends there would have never have been a financial crisis.Plus the fact that something like this would be huge news.He's trying it on.

Thanks Sneggy. I held tight and said no.

Tell him to pay up or do one.

Definitely. I actually used the words "do one" in the email to the agent

THANKS FOR ALL THE HELP FOLKS!!!
XXX

[BlueWales]

Just for fun how about the idea that property prices in London are about to crash because May
has clearly failed to provide enough police to protect all the homes there from crazy terrorists ?

Finance and property depend on " confidence " and more and more people have no confidence
in our Weak and Wobbly PM.

[the other bob wilson]

I've had an offer for a flat accepted and it's looking like I will have moved by the time City play again - should I have made my offer on the proviso that there is a Conservative party win on Thursday?