Sold for 85k & Back on Market for 120k in a Week?

JSCB · 17 February 2018 at 2:39PM

Hi everyone,

Come across a property that looks interest to us today, but its sales history on zoopla caught my eye. Having looked into it a bit further on nethouseprices.com, this is how it goes:

Sold for £93'950 in 2003 - Possibly as a new build...
Sold again for £85'000 on 2nd August 2017

Listed for £119'950 on 12th August 2017
Reduced to £110'000 on 12th October 2017
Reduced by a further £50 to £109'950 on 20th November 2017

This seems a bit peculiar to me... why was it sold in 2017 for £9000 LESS than 14 years previous in 2003 and then why the new buyers marked it up by 41% within 2 weeks!?

Is the £85k an incorrect figure or perhaps there's an easy explanation? Or does it show a reason for concern? Or perhaps the possibility for negotiating down even further from the current £109'950 price?

Cakeguts · 17 February 2018 at 2:42PM

Could be something where someone bought the other person out?

ACG · 17 February 2018 at 2:46PM

Might have been one of those we buy your house for cash purchases where they buy it for 75%(ish) of its true value.

It might be that it was repossessed, bought for cash because the person who owned it originally ripped the kitchen and bathroom out. It would take someone who knows what they are doing less than a week to fit a kitchen and bathroom and relist.

Any number of reasons.

JuzaMum · 17 February 2018 at 4:10PM

A house in my road sold for about half the normal price as it was sold to a family member.

JSCB · 17 February 2018 at 4:21PM

All valid suggestions and I guess not a simple answer after all then, I wonder whether the estate agent would even tell you if you asked?

Does this sort of thing make it hard to decide whats a good/bad offer or price? Considering it's been on the market 7 months, they've already dropped the price 10k and possibly brought it for 85k, makes it hard to consider what a sensible offer would be... perhaps £95k going up to £100k?

I'm speaking hypothetically here, we've not been to see it or anything, just think it's quite an interesting case!

dunroving · 17 February 2018 at 4:46PM

Distressed seller, maybe?

An acquaintance runs a business where he searches for properties that need to be sold quickly. He then flips and resells, often with minimal or no modifications, for anything up to a 50% profit.

If you have spare cash and don't mind waiting for a sale, it's a good way to make some money.

ACG · 17 February 2018 at 4:51PM

You can not (or at least should not) make an offer on a house based on what the previous buyer bought it for.

I bought my last home for £85k, but it needed gutting. I ended up selling for £155k after spending about £10k doing it up. But nobody else was prepared to buy it in the state it was in.

knightstyle · 17 February 2018 at 5:12PM

We had similar, neighbour had money problems and going bankrupt. So they sold to a cash buyer for 75% of house value.
Still upsets me as now we are thinking of selling this is what people think the houses are worth.

Smodlet · 17 February 2018 at 5:29PM

Within certain strict criteria, it was possible to buy a house for £1 four years ago, in a certain undesirable location in Liverpool. Does not mean that is what they are worth now. House prices can vary drastically for all kinds of reasons. It could have suffered fire, flood or even subsidence damage which has been rectified. Short of asking around the local yokels, don't see how you can find out unless you really like googling.

JSCB · 17 February 2018 at 6:01PM

By no means would I think that just because they paid 85k for it, that that's what it's necessarily worth for that reason alone and certainly wouldn't say a property is worth X, because next door was sold for that previously. What I was trying to understand is why this sudden low price and then seemingly high increase (and then subsequent drop again in asking price) could of come about.

However, what I was suggesting was that perhaps knowing they paid 85k and have been unable to sell in 7 months, it would mean a lower offer than the £110k it marketed at could probably be accepted as they'd still be making money and are probably eager to sell after 7 months.

All just thought and hypothetical ideas and situations though.

Smodlet · 17 February 2018 at 6:31PM

What they paid for it does not matter. What they can sell it for is what someone is prepared to pay for it.

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Sold for 85k & Back on Market for 120k in a Week?

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