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The market has jammed. More new property is coming onto the market every week, but many buyers are finding it very difficult to find a mortgage and without one are unable to bid on a home. Agents are scowling at anyone who hasn't got a formal mortgage offer in their hand, and will stick to a 'cash buyer' like gum to a shoe.

The result of this has some surprising knock-on effects, and my post bag has been stuffed with emails from both buyers and sellers caught up in the side effects of the lenders' strike. There are too many to reproduce here, so I've picked a couple who speak for many and have edited them (with apologies to the original correspondents) to include some of the other questions that I have been asked.

Help! I can't sell.

Q. Lizzie lives in leafy SW19, an area busy for the next two weeks hosting the world famous tennis tournament. But while the world is glued to the latest Russian beauty and enjoying the 'ace' comments served up by Mr McEnroe, poor Lizzie, like so many others, has had her house on the market for 6 weeks and has heard nothing!

She cares full-time for her fragile mother who can no longer cope with the stairs and she needs to move. Although she lives in a modernised and extended home she is scared that if it stays on the market without being sold, it may seem 'tainted' if it is still on the market in September.

Answer: Firstly, I have just done some statistics on Wimbledon which might give some comfort.

There are 1225 other houses on the market in Wimbledon today. Two hundred more than at the start of the year and just 402 have been sold or withdrawn so far this year compared to 792 in the same period last year. It's not just Lizzie who's having a tough time. So are half of Wimbledon!

Some homes are selling but talking to agents in the area there seems to be no rhyme or reason to explain what is, and what is not, rushing out of the door. As a result, agents don't know what to take on and what to turn away or what or how to price the properties they do take on. If you have to sell, then dropping your asking price should attract buyers.

But I think this is the lull in the storm. The market will return, so my advice is to hold your nerve. Because there is so little turnover no one knows what houses are worth today as the market - and therefore values are all over the shop. Dropping your asking price may attract some new interest but 'tainted' is a relative term and when the market does return, Lizzie's home will be like thousands of others that didn't sell in the first half of 2008.

One last thing. If you want to feel that you are doing something proactive, consider employing a second agent either as a multiple agent (you pay the one who finds the buyer) or be ruthless and sack the first one. An agents' job is to find you a buyer not to prove that the market is tough!

What is my house worth?

Is it possible there is a template out there of letters to send to "The Property Clinic"? I must have had a dozen like the following from Paul who wrote:

Q. I was interested to read your article on selling houses and wonder if you can help me to establish where I am going wrong.

The only drawback is the house is located alongside a main road. Although you cannot hear the road when inside the property, nobody would know this unless they actually view the property.

Due to the road, I obtained 5 valuations, they varied from £650,000 to £725,000. I put the property on the market with a national firm at £670,000 (their valuation was £725,000). In the first month I had no viewings whatsoever. On my own initiative I reduced the price to £619,500. and have still had no viewings.

Where do I go from here? The agent is saying, if I don't get any viewings by the end of July then I should consider reducing the price to the upper £500,000. How can valuations be so wrong? I would be grateful for any help you can offer.

Answer: This is heartbreaking. I have the greatest sympathy with Paul and with the others who can't seem to find an agent who knows what their house is worth. The problem is that (a) when there are very few transactions then it is very hard to find a relevant comparison for an individual property.

Similar property that might be a useful compassion often went on the market last year. Whilst a valuer is expected to have an opinion of the market going forwards, this has been a testing market even for the old hands who have worked in this kind of chaos before. Which brings me to (b).

Your agent has to be over 35 to have witnessed a property recession. Agency is a young man's business (which is why I am writing and no longer selling!) but if you haven't worked in a property recession then you have a whole heap of painful lessons to learn.

In a falling market you must price ahead of the curve! We have dealt with this before but it's worth reminding ourselves that you have to price your property for the market in 6 weeks time not for today. We are still in a falling market so Paul's hunch was right to instruct his agent to put it on the market at less than they valued it.

Next, dropping the price will always help as a last resort but unless you have to sell - hold your nerve. At the particular stage we are in the market now there are some properties that won't attract a credible buyer at any price. If you must sell then be prepared for a shock as only the predators are out at the moment and most will carve you up and take advantage of your situation if you are a forced seller.

Think about why you are moving. Can you change your existing house by extending into the attic perhaps or change the reason for wanting to move? Can you remodel the property or telecommute? A £50,000 drop in what you take for your home could buy a lot of nights in a Travel Lodge if you have to work away from home for a new job two or three nights a week. Paul is staring at a notional fall of £100,000. Does he really have to sell now or can he wait a year or eighteen months?

Finally, (and it is of little use to all the Pauls out there) remember when you are buying something that a good house will always sell in any market and is why it is usually worth the extra money 'a good house' costs. The next time you buy, remind yourself that houses with a 'small problem' like a road, a flight path or dodgy neighbors sometimes won't shift at any price in a difficult market.

More soon. Please keep the emails coming. Why not share your tips if you have another solution for Paul, Lizzie or any of the other correspondents who can't seem to be able to find an agent who can tell them what their house is worth.

Share your thoughts

Do you disagree? Or agree? Let us know what you think and help shape future articles by emailing PryorOnProperty@mac.com

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