I’ve just read an article on popular UK personal finance site www.thisismoney.co.uk with the headline ‘The House That Lost 40% in Four Months‘. Sounds ominous doesn’t it. The headline suggests that a house has decreased by 40% in value in just four months. But it hasn’t! Firstly, house prices you see in estate agents are not usually the prices buyers pay. Estate agents will always inflate the true value of the property slightly so that after some negotiating the vendor gets the price they actually wanted and the buyer thinks they’ve got a good deal. Someone I know recently paid £205,000
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