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

pawpurrs

None of us are 100% sure that the house is overpriced or not, zoopla and looking at past sale figures do not take in to account any work that may have been done to the property, for all we know it could have been completley renovated in that time? An extension added, doubling the size etc.
I realise the house is a period cottage and a little difficult to compare price on, but obviously the OP has viewed other properties, how does it compare with other asking prices/sold prices?
If the valuation down values it then, it will give you an opportunity to reduce your price.
Why not sling in an offer and see how that goes, I would do that through the EA.

Greenwellies_2

Thanks everyone for your thoughts and advice.
I'm going to view the HIP on Friday, I'll chat to the EA.
Should I tell her that although I'd love to buy the property, the bottom line is that in the current market, comparing the prices of similar property, it's likely that the mortgage valuation will come back low, and thus my offer needs to reflect that. So I'm offering 190 (trying not to offend the seller)
(House went on market in June 2008 at 230, reduced to 220 in Sept 08)

How does that sound?

Re Pawpurrs comment, true I'm not 100% sure it's overpriced, but as next door looks the same, with the same external improvements and sold for 214, it does make me question the current asking price, mostly in terms of the mortgage valuation.
BTW, I would pay 210 for the home, not because I have money to 'waste', but because it's something I've not seen anywhere else, it's what I'm looking for and I don't plan on moving for many years, so I don't think NE will be an issue; but the issue is going to be what the mortgage valuation come back as.

Thanks

GW

p.s. the figures I'd 'lose if the valuation came back too low would be circa 2k taking into consideration the 1k bank booking fee, circa 250 bank survey, 750 + vat Sol fee (for work part done) and maybe my buyer too, who's renting ATM.

domcastro

Zoopla normally OVER values - so house is overpriced

GDB2222

Greenwellies wrote: »

p.s. the figures I'd 'lose if the valuation came back too low would be circa 2k taking into consideration the 1k bank booking fee, circa 250 bank survey, 750 + vat Sol fee (for work part done) and maybe my buyer too, who's renting ATM.

Is that right? Get a mortgage in principle, then get a panel surveyor in ASAP, so you only pay the survey fee? Talk to the bank/mortgage adviser about the problem and choose the mortgage based on the up-front fee to some extent?

Since it's *almost* bound to value up much lower than the asking price, it seems to me that you are wasting your money on the fees unless you have a means of bridging the gap between what you want to offer and the likely mortgage you can raise. If you are going to need a mortgage of 90% of the sale price, think you are wasting your time and money if you are thinking of offering over £200k.

pawpurrs

Have you offered yet OP?

Greenwellies_2

GDB2222 wrote: »

Is that right? Get a mortgage in principle, then get a panel surveyor in ASAP, so you only pay the survey fee? Talk to the bank/mortgage adviser about the problem and choose the mortgage based on the up-front fee to some extent?

Since it's *almost* bound to value up much lower than the asking price, it seems to me that you are wasting your money on the fees unless you have a means of bridging the gap between what you want to offer and the likely mortgage you can raise. If you are going to need a mortgage of 90% of the sale price, think you are wasting your time and money if you are thinking of offering over £200k.

I have a mortgage in principle, based on 75% of the value. I have 65k equity / deposit (whichever way you look at it) and 10k within that for fees

I have to take up the mortgage within 4 days of the phone call (First Direct), so I've been trying to hold out until I found a home, and if I get a survey done I wont get a reply in 4 days will I?

Perhaps I've mis-understood your post.

GW

Greenwellies_2

pawpurrs wrote: »

Have you offered yet OP?

Nope, holding out until I go and see the EA on Friday. Do you think it's wise to mention that it's likely to be under valued as my post of last night? or just say '£190'

Thanks

GW

pawpurrs

Shouldnt think it would make an Iota of difference, the vendor will have a figure in mind that they are willing to accept and nothing will change that. Whats the point of waiting untill friday though to get the ball rolling? Sounds like you want the house, so wouldnt it be better to try and secure it, and if you cant, move on to the next?
I find that going in with reasons just gets the vendors back up, ie its only worth X because of X Y Z.
Better just to state your offer and your postion.

puddy

have you looked at home.co.uk you can track the sold prices for a postcode or area and see what percentage up or down it has gone in a particular time, you may find, that it tells you that for the post code where your chosen property is that since april 08 prices have risen, thereby justifying the price they are asking, on the other hand you might find the prices have dropped by a percentage, also need to consider that the property apepars to be unique(ish), so its a guide but it might help

Greenwellies_2

Thanks,

I just spoke to my newly instructed solicitor (finally got that one sorted!)
He said to go to the agent and let them know I have a mortgage offer, and that I have instructed the lendor that this is the house that I want to buy; and to get the ball rolling.
He said not to mention a figure at the moment, but when the lendors survey comes back, then tell the agent that I can't go above that.
*fingers crossed*

GW