I’ve just taken a phone call from someone who wants to sell me house insurance to go with my new buy-to-let mortgage. As I haven’t yet had notification from the lender, I stopped the conversation right there, along with a caution that when officially notified, I will be happy enough for him to quote, but I will be comparing that quote with the whole market. While writing this, I have just been phoned by Mrs L to confirm that the offer has, indeed, arrived.
So, it does rather look as if the plan to vacate these shores is back on. Only, we will be keeping Longrider Towers and renting it out rather than selling it. Reading the various news sites and speaking to property agents, this does seem to be a trend. I cannot say that I am surprised by this. According to the surveyor who assessed our property there are fifteen properties available for every proceedable buyer. Falling prices and a desperation to sell among some sellers should be a boon for first time buyers, indeed they should be making hay. But they are not. Unfortunately the glut of properties at enticing prices has been dampened by the banks’ unwillingness to lend.
There is another trend, too. It’s all very well saying that the bubble has burst and that prices should fall to a natural level, but sellers have to be willing to drop to whatever this price may be. Longrider Towers was valued at a predictable £10k below what I am prepared to sell it for. If I sold for that value, I wouldn’t have the funds I need to clear the French mortgage and have enough over for removal costs. So, under no circumstances will I drop that low. It’s not a matter of wanting to; I cannot. So, I would stay put sooner than do that. Speaking to other home owners, there is another (admittedly anecdotal) trend; a hardening of attitude. For prices to drop, there has to be agreement on the part of both buyer and seller as to the value. Failure to agree simply means that both parties are frustrated and the property remains unsold.
Certainly during the few months that our property has been on the market I have had feedback from viewers that it needs “modernising” – presumably a euphemism for the price being too high. It most certainly does not need “modernising”. The plumbing, heating, electrics, kitchen, bathroom and floors are all under ten years old and in good condition. Of course, they may be wittering on about the original fitted windows in the front of the house. People seem to expect tacky UPVC double glazed units. I replaced the rear window with a timber double glazed unit when the original one rotted. As the front ones are sound, I refuse to replace them as there is no need. The benefits of double glazing are insufficient to justify the capital expenditure and I refuse absolutely point blank to fit UPVC. If a potential buyer wants to vandalise the property with this stuff, they can do so with their own money. I will not pay for it with a discount on the asking price.
So, there is an impasse. An impasse that if it develops among enough potential sellers, could lead to a dearth of properties available for sale. Sure, we are a long way from that yet, but as sellers find it more difficult to sell they are seeking creative alternatives, such as Mrs L and myself have. And the fact that properties are not selling does tend to suggest a reluctance to drop further. Certainly my neighbour appears to have reached his bottom limit.
Anyway, given the buy-to-let mortgage coming through and a willing tenant in waiting, Longrider Towers is now coming off the market. So, from my perspective as a seller at just the wrong time, I see an interesting unintended consequence of the housing bubble bursting.