Local fashions in asking/selling price ratios ...

kunekune

And finally, how do you compare? I know about every other two-storey four-bed house in this price bracket for the last 2 years (actually, maybe longer - before we even came to the UK, I was tracking the market in this area). Nothing similar has sold for under £192k until recently. The first one we were after has presumably sold for about £175 (the asking price) ... but the kitchen and bathroom were very outdated and needed replacement, so the real price for ordinary un-handy people like us was at least £185. It did, though, have a garage rather than gravel ...

The base point is that only 4-5 houses of this kind and in the price bracket plus or minus 50K have sold around here in 2-3 years. They are rare. It makes it really really hard to jump if you're the cautious kind and are looking for proof of 'value' (in quote mark on purpose).

QTPie

I think that it is very hard to ever have "proof" of value - it is all so subjective...

The only way you can get even close is perhaps really quite new houses (within 5 years) that are identical and aren't likely to have had many changes (i.e. on small plots where you couldn't really extend). Then you can guess that the houses are still pretty much identical and worth a similar value. Then you can factor in price drops. But that can change HUGELY by area and be changed by the motivation of buyers and sellers involved (just because one house is a repossession doesn't mean that the house next door will sell their's at repossession prices...). So even then, working out what something is "worth" is still an art. With older houses (where they have been so individually changed and updated, or not, over the years), there is so much guess work involved....

You can quote houseprices.co.uk or zoopla to your hearts content (as what a house SHOULD be worth), but a vendor may very well not go down to those levels. Believe me I would be SOOOO happy if they did! :cool:

At the end of the day a vendor will try to get the maximum price for a property (and may, not necessarily wisely, hold out for that illusive buyer who will "fall in love and pay the high price). Estate agents generally want to help the seller to get the highest price, but - in the current climate - many are urging sellers to be "realistic". The buyer will always want to get their ideal house at the cheapest possible price (house buyers are not a charity and money is precious). So it is a "tug of war" or differing expectations. At the end of the day either the buyer and seller come to a compromise or the property will just stay on the market.

If you are looking for a long term home for yourself and your OH, then it is you two being completely happy with any deal that is THE most important thing. If you pay £5k (only 3%) over the odds for that, BUT you are happy with it, then it isn't a big price to pay for happiness. BUT buying a house is a huge commitment: so you both have to be 100% happy about it.

Good luck and let us know what you decide
QT

stolt

I've offered on a house which has been on the market for 450k since 2007, 405k, 410k rejected. Will probably offer 415k.

Also offered on a house which had just come on the market at 380k last month, we offered 350k-rejected then 358k and was accepted. (these vendors cant find anywhere to move to though)

Annpan

kunekune,
Unfortunately you can't make someone see the reality of the house price crash. They don't realise that if they won't negotiate on price realistically, they will still be on the market when prices drop another 10 - 15%. I would say, leave your offer on the table of what you think it's worth to you and wait for them to get back to you when they catch up with what's actually happening. If they don't, then they won't sell I don't think. You've fallen in love with this one haven't you?

ILW

The value of anything is an equal combination of what someone will pay AND what the seller will sell for.

kunekune

Which is why, so far, we haven't bought anything. I left a message with the agent saying, completely honestly, that we were still thinking.

There's only one house I actually fell in love with - the one with housenetwork that was 209K (I've not posted a link, but it wouldn't be hard to find given I don't keep my location a secret). It's out of reach, in the sense that what they will take is far too much for the area, a classic case of over-capitalisation, and we're not going to go down that dangerous road. The others all had things for and against, but this particular one (the last of several that we have offered on) may well on balance be the most suitable for our needs. Looking quite nice on the inside (at last, a vendor who isn't scared of a little colour) does help, but it wouldn't clinch it. It's true, though, that as a keen OS-er in the kitchen, that kitchen does appeal!