Overpriced... I think so - do you?

baby_fuzz

the house is only worth what someone is willing to pay for it. Work out how much it'll cost you with the home improvements etc and then make your offer.

Jazzie99

roseland69 wrote: »

Oh, absolutely. I am assuming if the house that sold was in a worse condition than this one (which is decoratively knackered) then it will be easy to spot as it'll be falling down. In the meantime a mate who lives nearby is going on a recce for me to gauge the outsides of the two to see if there's much difference. If not then its the inside that's the difference and if that's the case then I'm confident in my assumptions. And yes, its all they are - assumptions. But it would be no fun if you couldn't make those. I've not spent any money. its not as if I've invested anything other than time on the internet and doing a few sums. I'm no mug. I'm not going to part with any cash until I know Ihave a good deal. Getting a bit excited on the internet is one thing. Parting with cash in the real world is quite another!!

Its not impossible to get a general valuation without stepping through the door by the way. Because you can judge an area by other properties and what they sold for. Its not ideal and its not an exact science but it is fair to say it gives an "idea" of ball park. That's all I have done. I stick by my statement that its odd for a property to be up for a price that would make it THE most expensive house to sell on that close EVER - despite being in the midst of a property crash when properties in the area have fallen by at least 15%. Things that make you go Hmmm....

You really remind me of myself just last week.... I was quite excited (after viewing house though). I couldnt believe it was on the market for £400k but it still went for around £380k. I had looked up prices on nethouseprices, roughly worked out how much it would cost to do up etc etc. It too was a corner house, in the south east... mmmmm its not in the IG8 postcode area is it??!!!!! Realistically, I dont think the EA would price it at £400k if they didnt think they could get at least £370k for it - it was a hard lesson i learnt!

roseland69

Jazzie99 wrote: »

You really remind me of myself just last week.... I was quite excited (after viewing house though). I couldnt believe it was on the market for £400k but it still went for around £380k. I had looked up prices on nethouseprices, roughly worked out how much it would cost to do up etc etc. It too was a corner house, in the south east... mmmmm its not in the IG8 postcode area is it??!!!!! Realistically, I dont think the EA would price it at £400k if they didnt think they could get at least £370k for it - it was a hard lesson i learnt!

Haha, no, its not there.

I'm not so sure about what an agent will value a property at. Sometimes the vendor sticks their heels in and despite the good advice of an Agent will price their property on what they'd like to get for it, however unrealistic that price may be in the current market. I talk from experience as this is EXACTLY what we did the last time around we tried to sell this place. I fully admit to not liking the thought of losing some of my precious equity. But the reality sunk in over the following few months of few viewings and no offers.... so next time round we knocked a chunk off.. and hey presto! offer within the month.

So we view Sunday (I think - waiting to here back from the Agent) and go from there. If we think its worth a punt, offer. And if they say no walk away and rent for however long it takes to get a house we like at a realistic price in the market. No skin off my nose really.

Sorry to hear about the place you liked by the way. Do you find there are lots of properties on for over £400+K and lots on for under £300K but precious little for sale on the inbetween £350K pricerange? Or is it always the case that whatever you can afford it always seems like all the houses are for sale at more than you can afford or less than you want so don't like them!! I think that's probably it.

Patmoore

You what roseland69, I'd just take the punt if the viewing confirms it is all that the pics/plans crack upto be. Admittedly thats coming from the chap who just failed to do the same.

It's all a bit of gamble anyway, roll the dice.

I'm finding the here, West London, there is very little in the £350k price range. Those that come on, are gone very quickly. Either side of those and there are lots on the market. The amount of ~£400k houses is quite large.

Thing is, I'm feel this crash or whatever 'this' is, will be very long and drawn out. The supply is already quite thin, demand is returning, then prices will level off and even rise. So if you want that home, you might have to pay more than you think it's worth and bite the bullet or you could continously be waiting 'just another 6months', like the gazillion threads here that say so, every 6 months. That's the quandry I found my self in this morning, coupled with maybe the house isn't what I wanted, even if the wife adored it.

Thermidor

=roseland69;discussion/1767789]We have had an offer on our place and have accepted (hurrah) so are now looking to either buy or, if we can't find anything, rent. We favour renting to be honest, but should the "right" house come up - and the right price - we'd buy as it'd be our home for a long time probably.

So we see a house. According to propertybee its been on Rightmoves since March. No reductions AT ALL (which is also odd as most places have a reduction if they're still there since then). Its a 4 bed detached, priced on Rightmove at £400K. A tad over our budget (by £30K at least). But it has v. good sized rooms, nice garden in a quiet cul-de-sac in a non estate area. It is a corner plot which is nice. The decor inside is VERY tired though. I think older people lived there as its got the look of 1980's taste, beige kitchen and "pub" carpets in the dining room (which is crying out to be knocked through into the kitchen to make a nice big kitchen/breakfast room overlooking the garden). So it needs some serious work to spruce it up. Anyway...

I checked on houseprices and was surprised to find that out of all the sales on the close its on since 2000 the biggest was for a detached property (as this one is), sold in July 2007 (the very peak) for £395K. Which got me sitting up a bit. I know from looking at this area for some time that prices are around 15% - 20% down from the peak. I've watched one gorgeous place plummet from £550K to £435K over the past year as an example (there are many like it) you get the picture.

I've given the owners the benefit of the doubt and thought that perhaps this house is a lot bigger than the mystery £395K house (being a corner plot). So I've been generous to them and imagined it would have sold for £415000 back in 2007. Take the average of say 17% off that price would still value it at £344,000. Less a bit because its kitchen needs ripping out and its a bit knackered looking (I can do knackered ).

Anyway, we are going to look at it next week. And if we like it may put an offer in at about £320K and go from there. Of course we expect to get turned down at that price (and for the agent to laugh and baulk at our cheek) but its a base from which we would be willing to move from to an extent. But to me the £400K price is crazy. It would be the most expensive property ever to sell on that close. Quite something a year + into a massive property crash! I wonder if the Estate Agent or seller were on something they day they priced it up? Do they not realise people check these things out? I almost think they don't want to sell it as its so out of whack. Double so given its in need of work inside.

Are we mad at making such a low offer compared to the sale price though? I guess they can just say no. There is no onward chain so not sure what the story is with it; the owners are definitely old I'd say from the decor. Can you ask an agent flat out what the story is? I will of course but is it "done".

But what is the lowest offer you have put in, ratio wise, to the price of the house in this pricerange? In this case at the house is "up" for £400K and we will offer £320 that's a 20% drop for them. The 20% they seem to have forgotten to take off their house in the first place as it goes! I know "normally" you should offer 10% less but I'm just not happy that the current "for sale" price is in any way rational/realistic. I'm almost inclined to wait to see if it drops to say £375 and THEN go for the viewing and offer. I'll be amazed if someone buys it at the price it is though...

Sorry that I'm not posting a link by the way but rather not if that's okay. Nothing to hide but the house (lest someone else spot it! ) and running the risk (however slim) of someone connected with the house seeing it and getting wind of my cunning plan :A).

So... If they say no and aren't willing to negotiate, fine. We'll just walk away. Depending on the price (and our sale, of course), we'd have around 60% + of LTV so the mortage side for us isn't a worry. But we do want to lower our mortgage from what it is now (particularly with interest rate rises looming) and we don't want to stretch ourselves. Getting this place say for £340K would be just the job. £10K on doing it up (a wall needs knocking through, kitchen putting in and wood floors in living room/entrance hall (I love wood floors). But just doing that would make it very nice I think and a perfect family home for us.

Thanks for reading this far.

I'll probably get a call from our Agent saying our buyer has pulled out or something and it'll be all pointless anyway. Ah, optimistic me!

RL x[/QUOTE]



What d'you mean by 'normally' you should offer 10% less of the asking price? That's total nonsense! If a house is on at £400k,say, you don't offer £360k becasue you SHOULD! They'd tell you take a hike!

I've dealt in property for over 50 years and I can tell you that on a £400k property, providing the seller is no rush to sell and the property is good value, they'll be thinking no less than £390k. MAX. Even then they'll winch the buyer up to £394k. Very occasionally (if they're in a rush to move) they'll take £385k for it - but that's rare.

If you really like this property, then offer a realistic and civil amount. Offering stupid low amounts will only result in the sellers refusing to negotiate with you.

The estate agent who priced it would know more about that property, and the property market in that road than you would! Contrary to popular belief it's not in an estate agents interest to overprice a property - THEY WANT SALES!! Commision from TWO realistically priced sales is far better (and more money) than waiting on the chance of making a bit more commision on just ONE property.

The problem with some of the information on these websites, and the problem with all these 'averages' chucked around is that an average is just that: an average. Chances are that properties never sell at the exact same average these sites quote! Just because they say 10,15 or even 20% average it does not mean ALL property has dropped by that amount. Some (in fact MOST) properties have only fallen by as little as 4%! SOME properties have actually risen!! YES!! Do you think people have stopped improving their homes and making them better? Of course not! Many houses are worth more now than they were in 2007 becasue they're in far superior condition
to what they were then!

Yes, you say this house needs work done to it (to suit YOUR taste) but as far as the present owners are concerned (and the estate agent) it could be in tip-top condition. You say it's a large house with good-size rooms, so until you see it you shouldn't start deciding on what silly prices to offer! You may think it's worth MORE!

I suggest if you're struggling and can't afford a £400k house you should lower your expectations my dear! Just out of interest, have YOUR buyers offered you 20% less of what you were asking? I bet NOT! I bet you'd have been most put out had they done it to you!!!

roseland69

Thermidor wrote: »

What d'you mean by 'normally' you should offer 10% less of the asking price? That's total nonsense! If a house is on at £400k,say, you don't offer £360k becasue you SHOULD! They'd tell you take a hike!

I've dealt in property for over 50 years and I can tell you that on a £400k property, providing the seller is no rush to sell and the property is good value, they'll be thinking no less than £390k. MAX. Even then they'll winch the buyer up to £394k. Very occasionally (if they're in a rush to move) they'll take £385k for it - but that's rare.

If you really like this property, then offer a realistic and civil amount. Offering stupid low amounts will only result in the sellers refusing to negotiate with you.

The estate agent who priced it would know more about that property, and the property market in that road than you would! Contrary to popular belief it's not in an estate agents interest to overprice a property - THEY WANT SALES!! Commision from TWO realistically priced sales is far better (and more money) than waiting on the chance of making a bit more commision on just ONE property.

The problem with some of the information on these websites, and the problem with all these 'averages' chucked around is that an average is just that: an average. Chances are that properties never sell at the exact same average these sites quote! Just because they say 10,15 or even 20% average it does not mean ALL property has dropped by that amount. Some (in fact MOST) properties have only fallen by as little as 4%! SOME properties have actually risen!! YES!! Do you think people have stopped improving their homes and making them better? Of course not! Many houses are worth more now than they were in 2007 becasue they're in far superior condition
to what they were then!

Yes, you say this house needs work done to it (to suit YOUR taste) but as far as the present owners are concerned (and the estate agent) it could be in tip-top condition. You say it's a large house with good-size rooms, so until you see it you shouldn't start deciding on what silly prices to offer! You may think it's worth MORE!

I suggest if you're struggling and can't afford a £400k house you should lower your expectations my dear! Just out of interest, have YOUR buyers offered you 20% less of what you were asking? I bet NOT! I bet you'd have been most put out had they done it to you!!!

I was only asking for advice, not a patronising lecture. :rotfl:

Are you an estate agent? Either that or your the seller of the house and have worked out its your taste in flock wallpaper and beige kitchen units that I'm having a go at!

Whichever it is, I've clearly touched a nerve because your post is an fine example of "doth protest too much". Good lord, listen to yourself! You'll give yourself an ulcer carrying on like that.

As for what you say, well I respect your points but I completely disagree with you most respectfully. Times have moved on.

You mention our buyer's and what they offered. Well, they didn't need to offer miles under the asking price because the asking price was sensible in the first place.

We'll go and view and put in a fair offer regardless of what you think. Nothing ventured and all that aye. If they say no, we'll just do what we're going to do anyway and rent and stash our (not insignificant pile of) cash away and get the house we want down the line in any event. Just not that house. So we're easy about it really. And my expectations intact :rotfl:

Have a nice day.

zappahey

Thermidor wrote: »

I've dealt in property for over 50 years and I can tell you that on a £400k property, providing the seller is no rush to sell and the property is good value, they'll be thinking no less than £390k. MAX. Even then they'll winch the buyer up to £394k. Very occasionally (if they're in a rush to move) they'll take £385k for it - but that's rare.

Welcome to 2009. Things have changed.

Thermidor wrote: »

The estate agent who priced it would know more about that property, and the property market in that road than you would! Contrary to popular belief it's not in an estate agents interest to overprice a property - THEY WANT SALES!! Commision from TWO realistically priced sales is far better (and more money) than waiting on the chance of making a bit more commision on just ONE property.

That's all well and good but the EA only offers a recommended asking price, the seller decides what price they actually want to ask. So the price could quite possibly be an unrealistic punt on the part of the seller.

In any case it's well known (and I've seen it from experience) that some EAs do value high to get the business. After all, they don't get any commission at all if they don't get sellers on the books and they can then work on reducing the seller's expectations.

roseland69

Update:

My friend has done a drive by recci on the property. :cool:

She tells me that the one up for sale for £400K is indeed the SAME SIZE as the one that sold for £395K at the peak of 2007.

Given the area HAS seen drops around 15% its a no brainer. Not even being a corner plot (which according to mate, doesn't make that much difference). The decor inside the for sale house is not modern or in keeping with what you'd expect if shelling out so much money.

Problem is my mate didn't like the area much!! I wasn't expecting that curve-ball. Haha. Well, going to have a look on Sunday. But I think we'll end up renting, sitting tight, stashing our cash and waiting as prices buckle (as they are now) and slowly slide down again.

Our agent says we are likely to complete end July. We are away 3 weeks of August. :eek: Its going to be the calm before the "panic, we need to find somewhere to live" storm. Trying to remain calm!

Jomo

roseland69 wrote: »

Update:

My friend has done a drive by recci on the property. :cool:

She tells me that the one up for sale for £400K is indeed the SAME SIZE as the one that sold for £395K at the peak of 2007.

Given the area HAS seen drops around 15% its a no brainer. Not even being a corner plot (which according to mate, doesn't make that much difference). The decor inside the for sale house is not modern or in keeping with what you'd expect if shelling out so much money.

Problem is my mate didn't like the area much!! I wasn't expecting that curve-ball. Haha. Well, going to have a look on Sunday. But I think we'll end up renting, sitting tight, stashing our cash and waiting as prices buckle (as they are now) and slowly slide down again.

Our agent says we are likely to complete end July. We are away 3 weeks of August. :eek: Its going to be the calm before the "panic, we need to find somewhere to live" storm. Trying to remain calm!

I'm not sure that this would have much of an effect on the price, a lick of paint isn't going to add that much value...if all the electrics etc. needed doing or a new kitchen/bathroom etc then maybe you could haggle a few grand off but buyers should beable to look beyond the 'old decor' etc. and 'many' claim that they'd rather the seller NOT do any work on the property in order to get the best price, saying that they would 'probably' rip it all out!!!!

Maybe the kitchen and bathroom is in pretty good nick...just looks abit tired!

roseland69

Jomo wrote: »

I'm not sure that this would have much of an effect on the price, a lick of paint isn't going to add that much value...if all the electrics etc. needed doing or a new kitchen/bathroom etc then maybe you could haggle a few grand off but buyers should beable to look beyond the 'old decor' etc. and 'many' claim that they'd rather the seller NOT do any work on the property in order to get the best price, saying that they would 'probably' rip it all out!!!!

Maybe the kitchen and bathroom is in pretty good nick...just looks abit tired!

I'd offer a lower offer because its overpriced, not just because of the decor (although that would be something too). Its just not feasible that an identical house sold in the boom year for £5 grand LESS than this one is up for now. They are living in cloud cuckoo land as prices in the area have dropped considerably since 2007. I just think some vendors (and who knows, agents too) are in denial that we are in for the long haul of price drops over the next few years. No way would I buy that property at anything like 400K. I may as well make a big pile of money and burn it in front of my eyes. There is another 4 bed detached up for sale on the next road for £365K. Its been up for sale for over a YEAR at the same price. It is slighly smaller but not much - only a few square feet in it. Going to look at that one too. But again, given its been up for sale a long time at the same price either (a) its overpriced (b) there is something wrong with it. (c) the owner has refused every offer, even ones near to the asking price so therefore doesn't appear to want to sell it, even though its up for sale