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House that was part exchanged overpriced.

mallen
mallen Posts: 92 Forumite
First Anniversary First Post
in House buying, renting & selling
Hi, I'm going to view a house today which has been part exchanged and now owned by a developer. I believe the previous vendor is still living there until December.

The house was first listed in July for 175k and hasn't changed in price since. It also shows on Zoopla it was bought for 180k. From looking at the market stats and houses sold in the same road this is waaay over priced. In May 2017 a similar property sold for 162k in June 2016 one sold for 153k in Feb 2016 135k and in January 2016 142k. No house on this street has ever sold for 175k. Are the developers just trying it on?

With viewing the property I would say the market value is around 150-160k. As the haven't dropped the price in 6 months do you think I should be going in Low to start? Say around 152k Or offer my best price?

This is my first time buying a house so any tips appreciated.

Comments

  • Tom99
    Tom99 Posts: 5,371 Forumite
    First Post First Anniversary
    Offer £152 and see what reply you get - no harm in doing that
  • Marvel1
    Marvel1 Posts: 7,171 Forumite
    Name Dropper First Post First Anniversary
    It has been a year, lot can happen in term of value.
  • martinthebandit
    martinthebandit Posts: 4,422 Forumite
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    cjdavies wrote: »
    It has been a year, lot can happen in term of value.


    ......especially as it’s now owned by a developer.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Smoke and mirrors. The p/ex price being higher to reflect the fact that the new house wasn't discounted. Offer what you believe the property to be worth. Negotiate from there.

    The developer has hard cash tied up in the property. Therefore will be looking to sell as soon as posible. Borrowed money comes at a cost.
  • AlexMac
    AlexMac Posts: 2,983 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Thrugelmir wrote: »
    Offer what you believe the property to be worth. Negotiate from there.

    The developer ... will be looking to sell as soon as posible. Borrowed money comes at a cost.

    Thrugelmir's first piece of advice is excellent...

    ... but don't over-estimate the integrity or competence of a developer trying to re-sell a part-ex.

    I tried to buy one once, as a Buy to let, and it was a nightmare. The developer was a major operator, but totally focussed on their core business of selling their huge portfolio of new-builds and conversions...

    So no-one took ownership of basic elements of selling this odd property- no replies to standard enquiries, no file of statutory notices of future freeholder charges or even knowledge of past service charge payments so massive delay. Getting responses via my solicitor was like drawing teeth. The cleaner they sent in used caustic abrasive on all the stainless steel kitchen fixtures and screwed these up, and to cap it all, when the ceiling collapsed due to a leak from an upstairs flat, luckily before exchange, they refused even to claim on their insurance, nor to fix it, nor to reduce the price to cover the costs to me of repairs and delay and consequent lost rent.

    The very opposite of buying from a caring owner!

    OK I was unlucky (or lucky?; I walked away and swallowed £500 legal and search fees) but don't assume anything, and don't pay over the odds.
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