on the market now & priced at over top selling price of last year

Greenwellies_2

I've seen a cottage, only 4 in a row, it's lovely and within my budget.

However, I looked into the house prices for those 4 homes, and the house next door (identical as mid-terraced) has sold 3 times in the last 7 years.

(next door)
property 1 sold in Sept 2002 = 136k
property 1 sold in July 2007 = 198k
property 1 sold April 2008 = 214k

(property I like)
property 2 sold Nov 1996 = 60k
Property 2 sold July 2002 = 123K

The property we really like is on the market at 220. Zoopla comes back at 175-185k

I had no idea that it was over priced, I was willing to pay up to the asking price as it's quite unique and the sort of home you'd stay in for years, but now I'm concerned.

How would you handle this?

TIA

GW

pawpurrs

Are they really Identical? I have lived in many period cottages and having been in to all my neighbours properties they were far from identical?
Have the sellers done a lot of work to the property?

jackieb

I wouldn't rely on Zoopla. We bought our house last year for £177k, and it says it's now worth £214k, which I very much doubt!

Doozergirl

I'd ignore Zoopla entirely.

Make up your mind based on what else is on the market and what is selling.

Greenwellies_2

Thanks everyone for the Zoopla reply. My pal insists on it, so I thought it was a good guide.

The houses are identical as far as I can see, both have the same amendments made, e.g. bathroom and kitchen extension, and these were put on at the same time.

I chatted to a few locals, and they were shocked that I was buying in the area as no-one was lucky enough to be selling, so I was thinking that was a good leverage tool, not that I want to grind the seller into the ground, nothing of the sort, but I do want a good price for the home, not an over-inflated one. Afterall, the last thing I want is the mortgage valuation survey to come back with a figure like zoopla, but I also don't want to pay over the top.

Would you offer 205, with a hope that you end up at 210?

Thanks

GW

alexlyne

Your house is worth how much you're willing to pay!

I just checked up on Zoopla for the first time.. it does tend to use national or regional trends to estimate prices, which is alright, but if you're in an in-demand area, you will sell for more.

My house (not on the market yet), Zoopla had for 82.5... one EA valued it at 105! Another EA said 90, with a worst case of 85.

Rental was skewed too, Zoopla said 260-330, EA reckons around 450-500 (market rate in the local area, I checked)

Cissi

Bearing in mind that sold prices achieved are on average 12% below asking price, and that this one seems to be priced at 2007/2008 peak levels (in some parts of the country, including where I am, the peak didn't happen until spring -08) I'd go in at 20% below, tops. Interestingly, that would be £176k, or pretty much spot on the Zoopla value. If you really want the house and feel that it's worth it, you could aim to go up to the 12% below mark which would put it at £193,600 so perhaps £195k, max. However, as you say that nothing is selling, personally I'd hang on to get it (or something equally good) for no more than £180k.

In the end, it depends on how badly you want it - and of course whether your mortgage provider will agree with your valuation. My guess is that the "true value" today is around £175-£180k but chances are the owners won't see it that way

pawpurrs

Offer 205k and see where that gets you, are yo u still happy to pay full asking if need be?

maryotuam

why not offer £185k ? You have nothing to lose if there are no other buyers around and it's a falling market. Dont forget that the housing boom was a bubble, an abnormal phenomena! They will obviously refuse but you can let them sweat for a couple of weeks and offer to move up in £5 increments to £190k. If they don't drop at all, walk away. In 6 months time when houses have continued to drop they will probably get in touch with you if they have had no more offers.

Gorgeous_George

There is one obvious and important difference. Only one is for sale.

Providing your offer meets the vendors' bottom line, tthe house is worth whatever you agree it is worth - subject to mortgage requirements. Once you buy it, it is worth whatever someone else will pay - againn subject to meeting your bottom line and mortgage requirements.

GG

Greenwellies_2

pawpurrs wrote: »

Offer 205k and see where that gets you, are yo u still happy to pay full asking if need be?

Yes, but I worry that I'll pay out for surveys etc, and the mortgage co will say no it's overpriced..

GW