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  • FIRST POST
    • gazfocus
    • By gazfocus 11th Jul 17, 3:13 PM
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    gazfocus
    Selling - 1 Viewing in 2 weeks
    • #1
    • 11th Jul 17, 3:13 PM
    Selling - 1 Viewing in 2 weeks 11th Jul 17 at 3:13 PM
    We had a buyer for our house (found privately), but their circumstances changed part way through the process, so we have had to put the house up for sale - this time with an estate agents.

    The house has been on the market now for 2 weeks and so far we've only had 1 viewing. The house is a shared ownership 3 bed semi with a large recent conservatory and the price is in line with other shared ownership properties that have sold recently so just wondered if anyone could give any feedback on why it may not be getting more interest (other than it being shared ownership).

    We do have the option of selling the house as a 100% outright sale, which I have mentioned to the estate agents but so far they've not responded to the suggestion.

    Rightmove Link: http://www.rightmove.co.uk/property-for-sale/property-67265630.html
Page 3
    • gazfocus
    • By gazfocus 12th Jul 17, 11:15 PM
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    gazfocus
    after only 2 weeks that is your reason ... end of discussion?

    shared ownership will appeal to a very limited market

    just look at it from the point of view what is it competing with and who will be the potential viewers/buyers of those places:

    you reckon it is "worth" 140k

    anyone who can afford 140k outright is not going to touch 50% SO obviously.
    if you market at 140k 100% there are 2 other properties within 1 mile of yours. I have no idea about the area so of course this may be wrong, but how does your 140k 3 bed semi compare to the other 3 bed semi in your area - the one priced at 15k less than you????
    http://www.rightmove.co.uk/property-for-sale/property-66027164.html

    yes yours is was new build, but the other place offers much, much, greater value for money: room size, plot size, etc


    anyone who is restricted to 72k budget can buy 100% of a 3 bed terraced for around 72k (although the EA they are using do have a bad reputation for how they deal with purchase negotiations)
    http://www.rightmove.co.uk/property-for-sale/property-60728818.html

    and returning to the SO question, yes such buyers are on tight budgets by definition, but you want 72k for 3 bed semi. These people want 75K for 4 bed 50% SO. I'd raid the wife and MIL's purses to raise merely an insignificant extra 3k for the sake of a 4th bedroom
    http://www.rightmove.co.uk/property-for-sale/property-60092917.html

    summary
    • it will take time to sell
    • its SO,
    • it will get viewers once the current crop of competitors are off the market
    Originally posted by 00ec25
    Thanks for taking the time to look.

    The 4 bed shared ownership house at £77,500 is a good buy, I completely respect that. I have only valued my house at £72,000 because that's what a mortgage valuer valued it at and it seems in line with other shared ownership properties available.

    I appreciate also that there are other, much older properties on the market (the one you linked to being ex Council), with more space but I also understand that a lot of new builds have less space but this gets offset by the style/look/estate/etc - don't get me wrong, I'm not discounting your comment and if I was buying again, I'd definitely choose more space over a newer house.

    I spoke to the estate agents earlier and discussed marketing the house differently, and will be doing some new photos myself when the tenants are out and place professionally cleaned, and as I say, I respect all the valid advice on here
    • 00ec25
    • By 00ec25 13th Jul 17, 12:16 AM
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    00ec25
    don't get me wrong, I'm not discounting your comment and if I was buying again, I'd definitely choose more space over a newer house.
    Originally posted by gazfocus
    OK 5 miles radius of your property, price range 60k - 90k minimum 3 bed brings up 32 properties of which 7 are SO. patently there are 24 x 3 bed 100% properties for sale in direct competition to you. Whilst there is always a premium for being a new build, yours is now secondhand, not new. Yes it has new styles etc but does that really make yours worth an extra 40% on the asking price and add into that equation the relative uncertainty of future rental increase on the SO bit? yes there will always be people who are snobby over ex council, but I'm snobby over new & bad value SO

    I accept that of the SO ones, yours is not disproportionately priced against them, but what do you think would make a viewer want to pick yours over these given it is in the middle of a sea of similarities?

    65k for 50% Chapel St - mid terrace, old, small, to be forgotten
    70k for 40% (or 100%) New St - semi, new, (pricey) contender against yours?
    70k for 35% Dallington Av, - semi, new, (pricey) contender against yours?
    72k for 50% - your own property
    75k for 50% Higher bank St - semi ("mews"), new, every room is bigger than yours but you have a conservatory, they don't. A worthy contender given its village location compared to your town centre near a motorway location?
    77.5K for 50% Shireburne Dr - semi, new, the 4 bed already mentioned, a very strong contender?
    80k for 50% Dunnerholme Av - semi, new, (pricey) contender against yours?
    • Cakeguts
    • By Cakeguts 13th Jul 17, 11:15 AM
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    Cakeguts
    When did the mortgage valuer value your house at £72k. When you bought it new or recently when the tenants were living there?
    • Crashy Time
    • By Crashy Time 13th Jul 17, 12:23 PM
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    Crashy Time
    Well, smart !!!!, by definition, a shared ownership house is always going to be leasehold. When you staircase to 100% you get the freehold.
    Originally posted by gazfocus

    Love the little terms the money lenders use to draw people into this nonsense. Shocking really, SO will be the PPI of the future IMO.
    • gazfocus
    • By gazfocus 13th Jul 17, 1:13 PM
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    • 480 Thanks
    gazfocus
    When did the mortgage valuer value your house at £72k. When you bought it new or recently when the tenants were living there?
    Originally posted by Cakeguts
    About 4 weeks ago when the current tenants were applying for their mortgage to buy the house
    • Alex28
    • By Alex28 13th Jul 17, 2:56 PM
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    Alex28
    I thought you were selling via an estate agent and the tenants moving out. Why are they applying for a mortgage?

    Having read this thread I think the main problems here are it being shared ownership combined with having tenants. Neither are desirable and together probably putting people off.
    • gazfocus
    • By gazfocus 13th Jul 17, 3:21 PM
    • 1,907 Posts
    • 480 Thanks
    gazfocus
    I thought you were selling via an estate agent and the tenants moving out. Why are they applying for a mortgage?

    Having read this thread I think the main problems here are it being shared ownership combined with having tenants. Neither are desirable and together probably putting people off.
    Originally posted by Alex28
    This was covered earlier in the thread, but essentially, the current tenants viewed the house (through an ad I placed on Facebook). They made an offer and we accepted, at which point they proceeded to apply for a mortgage, etc. They had to vacate the house they were renting so to save some hassle I agreed to rent them the house they were buying (with the housing association/mortgage lenders permission).

    Unfortunately, the buyers circumstances changed and so they could no longer get the mortgage they needed, so had to pull out, at which point we listed it with an estate agents and the tenants gave their months notice at the end of June as they've had to find an alternative rental property.
    • getmore4less
    • By getmore4less 13th Jul 17, 3:25 PM
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    getmore4less
    The tenants were buying but seem to have pulled out.

    Lucky escape.

    Forget trying to pretend it has any nearly new build premium till it looks like one.
    • Leo2020
    • By Leo2020 13th Jul 17, 5:11 PM
    • 877 Posts
    • 643 Thanks
    Leo2020
    Not read all the thread. I have seen a lot worse for sale as in worse condition, very untidy, obvious major problems etc.

    Seems OK looking, nothing particularly stands out other than the kitchen handles which appear to be in the wrong place. Never seen handles placed near the top of wall hung units. Looks very odd to me.

    I think tenants is an issue as as it will put many people off plus you will only attract a small number of people because it is shared ownership. Small pool of people to start with who would want your house because of shared ownership minus all the ones within that group who will be put off by tenants = not a lot of people who will want to buy.
    • Crashy Time
    • By Crashy Time 13th Jul 17, 6:28 PM
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    Crashy Time
    100% of this house is worth 72k, definitely, IMO.
    • Dreysha
    • By Dreysha 13th Jul 17, 6:33 PM
    • 4 Posts
    • 2 Thanks
    Dreysha
    @gaz
    As a matter of fact I am.

    The fact is you're competing against new build shared ownership, which will always be more desirable. If people are going to purchase through an affordable housing scheme they'd buy one that has never been lived in before, has the full 12 year building warranty and brand spanking new appliances covered under their manufacturers warranty. This target market doesn't want a second hand affordable scheme that has been neglected by tenants and landlord who hasn't bothered fixing it up.

    Your best bet is to sell 100% so it opens up your market and an investor can come nab it up without having to qualify someone for the strict shared ownership criteria. Your HA should already be doing this if they fail to find a buyer after an allocated time frame.

    But who knows what conditions you're bound by considering they've allowed subletting...
    • swingaloo
    • By swingaloo 13th Jul 17, 6:57 PM
    • 1,725 Posts
    • 3,079 Thanks
    swingaloo
    I hadn't noticed the kitchen unit handles till they were pointed out. I don't think thats enough to prevent a sale but its certainly odd. That would drive me mad.
    • Murphybear
    • By Murphybear 13th Jul 17, 8:05 PM
    • 3,152 Posts
    • 6,528 Thanks
    Murphybear
    If I were looking in this area I would want a house as far from the motorway as possible. This house is quite near and some of the comparisons were even closer.
    • Crashy Time
    • By Crashy Time 14th Jul 17, 10:56 AM
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    Crashy Time
    If I were looking in this area I would want a house as far from the motorway as possible. This house is quite near and some of the comparisons were even closer.
    Originally posted by Murphybear

    Even worse, but SO is the deal breaker IMO, people have woken up to how much of a scam this is.
    • csgohan4
    • By csgohan4 14th Jul 17, 6:12 PM
    • 3,636 Posts
    • 2,271 Thanks
    csgohan4
    OP got taken for a ride, their supposed buyers pulled out when the vendor rented it to them, now the OP has an unreliable tenant who doesn't keep their word. I hope you get your tenants out without much expense
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Crashy Time
    • By Crashy Time 15th Jul 17, 12:41 PM
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    Crashy Time
    OP got taken for a ride, their supposed buyers pulled out when the vendor rented it to them, now the OP has an unreliable tenant who doesn't keep their word. I hope you get your tenants out without much expense
    Originally posted by csgohan4

    The "expense" of this adventure was baked in as soon as they signed up for shared ownership I`m afraid.
    • Crashy Time
    • By Crashy Time 16th Jul 17, 7:58 PM
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    Crashy Time
    Not read all the thread. I have seen a lot worse for sale as in worse condition, very untidy, obvious major problems etc.

    Seems OK looking, nothing particularly stands out other than the kitchen handles which appear to be in the wrong place. Never seen handles placed near the top of wall hung units. Looks very odd to me.

    I think tenants is an issue as as it will put many people off plus you will only attract a small number of people because it is shared ownership. Small pool of people to start with who would want your house because of shared ownership minus all the ones within that group who will be put off by tenants = not a lot of people who will want to buy.
    Originally posted by Leo2020

    You can ask for tenants to be gone before finalising the sale, not much you can do about SO?
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