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Hi Dizzy
Im not sure who told you that the market was picking up, but i believe the opposite is true.
I work for a construction materials supplier as a market analyst and also have my house on the market. What i can say is that most housebuilders are predicting a difficult year. Many are already taking action by trying to cut costs on contracting work already done by asking for a 5% discount (although this will be tricky when the work has already been contracted and completed!!!!). House prices are forecast to go down, and there are low levels of mortgages being agreed. Nearly every indicator suggests it will be a difficult year to sell a house.
Our own house has been on the market for 3 months and we have not had a viewing since christmas, although January is always a tough month. We are now going to take it off the market for a few months whilst we progress our move to Australia - we are at a very early stage.
Forecasters cannot decide between a gradual decline in the market, or a crash. Some are predicting as much as a 20% fall in house prices over the next year. others much less. What i will say is that almost every forecast ever written will be wrong.
My guess would be that your potential buyers are considering both your own personal circumstances and the general state of the market when offering such a low amount.
What you need to decide is
1) what would a worst possible scenario mean (20% drop in the market)
2) How much is it costing you each month not to sell your house - i.e. are you having to pay more by having 2 houses rather than one. Costs could include, Utilities, maintenance, mortgage interest/rent, loss of investment income etc.
You need to weigh up the risks. It is difficult to comment on your own personal situation, but dont just dismiss an offer immediately, they will be hard to come by at a good price this year.
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