Need advice for quick sale please!!

ciano125

karenthemummy79 wrote: »

Thankyou Jancee!! I am worried about that exact thing - putting the price too low then not having room to negotiate as people will always offer less than asking price!

I appreciate what you are all saying about the fact that I have to come to terms with the fact that the house is worth less - and that is exactly why I am on here asking for advise because I am getting conflicting advise from everybody! Even my EA thinks it is on at a good price!! She didnt want me to reduce it to £145k - strange!!

I think I am going to strongly consider dropping the price to just under £140k to see if that generates any interest and if it doesnt then I think that we may just have to rent the house out for 6-12mths hoping that the market will pick up. We could also save the rental income to help repay the deposit.

I really do appreciate everybodys advise and some of you have spent time looking into things for me so thankyou very much.

Gauly - I wouldnt say I am being greedy - I am just trying to get the best deal I can and the house that we have bought becomes less of a bargain, the less we take for this house.

The lady I deal with at the EA was off on hols today so I am going to have a proper chat with her tomorrow and decide what to do.

First of all, I didnt suggest you had to sell it for £120k. I suggested that you advertise it at £120k which would generate interest and you would more than likely get two or more parties interested, and they would bid what they thought it was worth. That's the market value. You don't need to negotiate downwards either if you dont want to, its about getting people through the door and interested to start with. All buyers want to feel as though they have got a good deal, that could be by either negotiating a huge chunk off the asking price, or getting in before another buyer when a price is low.

The reason your estate agent doesnt want you to reduce your price is also simple, this reduces their commission. I dont understand why some estate agents struggle with the very simple concept - price lower sell more. It will get them more in sales and they can say they are selling more houses than their competitors, which they love.

As has already been said, you need to shift this one before interest rates come back up (and they will, they can only go one way from here). The banks are already increasing their rates for fixed mortgages, doesnt that tell you something? You've got a decent deal on one hand, do a decent deal on the other while you still can.

karenthemummy79

Thanks ciano125. You are right about the mortgage rates - The new mortgage is fixed for 2yrs and is interest only until we sell this house but this house is on repayment and my discounted rate has just finished so I am now on Standard Variable so if rates go up...................

I do believe that £120k is too low though when I look on rightmove at houses around £139950 I truly believe that our house would be a really good buy at that price.

Blacksheep1979

karenthemummy79 wrote: »

These 2 were bargains at the time!! The £130k house needed fully done up and the 100k house was bought by a friend of ours and it never went on the market - it was an old ladies house that died and the whole house was totally gutted!!! I think this is where we are going to struggle - because the houses were built in the 70's alot of them that have sold recently (including ours when we bought it in 2004) are in a really poor state!! Hence the low price.

Are you sure they were 'bargains' or not just realistically priced?

karenthemummy79 wrote: »

I appreciate what some of you have said about the house we have bought being at a low price but that is exactly why I said it is worth the risk!! the price is extremely low and an identical house (except for not needing any work) is on the market for £235k:
http://www.rightmove.co.uk/property-for-sale/property-20847991.html?locationIdentifier=REGION%5E24944&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E24944%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D%26maxBedrooms%3D%26minPrice%3D%26maxPrice%3D%26maxDaysSinceAdded%3D%26retirement%3D%26partBuyPartRent%3Dfalse%26_includeSSTC%3Don%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26auction%3Dfalse%26x%3D81%26y%3D10 In fact the house you can see at the end of their garden is ours!

There is also a house next door on the market for £260k:http://www.rightmove.co.uk/property-for-sale/property-20049178.html?locationIdentifier=REGION%5E24944&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E24944%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D%26maxBedrooms%3D%26minPrice%3D%26maxPrice%3D%26maxDaysSinceAdded%3D%26retirement%3D%26partBuyPartRent%3Dfalse%26_includeSSTC%3Don%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26auction%3Dfalse%26x%3D81%26y%3D10

And they're still on the market (ie haven't sold at that price)...

karenthemummy79 wrote: »

Anyway - I think I am going to have some drastic talks with the EA today and I will let you know how I get on! Although I spoke to the family member that lent us the deposit last night and he was adamant that we shouldnt reduce the price as it is worth its current price....

He's an expert in economics is he?

TTMCMschine

Also, re the houses on at 235k etc, they're not the same - they're detatched. On viewing you look like you get a lot more. Bigger garden etc. But they're still overpriced.

Trollfever

The reason your estate agent doesnt want you to reduce your price is also simple, this reduces their commission. I dont understand why some estate agents struggle with the very simple concept - price lower sell more. It will get them more in sales and they can say they are selling more houses than their competitors, which they love.

Some EA's will also have a vested interest in keeping prices in a particular area high as they have substantial personal mortgages to fund.

ixwood

Sounds like you want your cake and to eat it to me. Prices have fallen on both houses, not just the one you want to buy!

Why would anyone spend that much on yours?

And you're basing your 10% on what it didn't sell at last year. That means it wasn't worth that and the reduction is completely meaningless. If you had it on for a million and nobody brought it, it wouldn't be worth £900k now.

karenthemummy79

TTMCMschine wrote: »

Also, re the houses on at 235k etc, they're not the same - they're detatched. On viewing you look like you get a lot more. Bigger garden etc. But they're still overpriced.

The house we have bought is the same - detached?!

karenthemummy79

I take it from the advice I get on here then that EA valuations should just be ignored then?! I have had 3 agents round and not 1 of them suggested setting the price at anywhere near £120k.

No wonder houses arent selling if even the EA's havent got a clue how much to price houses at!!

Catblue

If the 3 EAs' valuations were all correct, then why did you drop your price, and why hasn't it sold in over a year?

Because the valuations were not correct, that's why.

EAs tell you what you want to hear in order to try to procure your business with them. Simple. You may have been giving off the "I'm desperate for a high asking price" vibe to them and they responded accordingly.

TTMCMschine

karenthemummy79 wrote: »

The house we have bought is the same - detached?!

I thought you were comparing the house you were selling to those, it seems i misunderstood.

Anyhow, if i were you i'd plump for inbetween what the ea is saying and what the op's are saying, after all - it's easier to drop prices than raise them in this climate. I'd be tempted to accept what your ea says with a pinch of salt, otherwise you would have had a viewing by now. As i said we would be potential buyers if we lived in your area. House we have offered £139,995 (was on at 155K) - we offered 130k and it was accepted. Although as i said in an earlier post it depends on who your typical buyers would be. I couldn't tell you whether 145k was right, but be certain - prices won't be going up any time soon. It is possible if you rent it out, you could be waiting for a long time for the market to pick back up again (have you thought of this).