Can't sell flat, no choice but to let it, tax issues... :(

silvercar

Are you still in the running for the property you want to buy?

Why not rent the flat out until the market improves?

brooky_agb

Why would I take legal action? It's a small estate agent in town run by a nice chap who seems to have worked hard for us. I run a small business too so I don't want to sue a company. I know the blood sweat and tears involved in running a company.

*We crossed posts*
We had out offer acepted on the new place but don;t want to rent as the lease is *starting* to get short and I will be screwed 40% tax letalone risking that the market will be no better in 3 years time. I've decided to get shot of it.

Maybe I will get another EA to value it and see what multiple agency rates will be like.

It is so painful as it first went on the market in 2007 for £160k after the agents jointly valued it for £165k. Its now down to £115k and I still cant seem to get a sole through the door.

Chinkle

Perhaps the OP should put things into perspective instead of looking at it has having made a £30K loss. The new property he is buying is probably also now cheap than it was in 2005 too. Any property is only worth what someone is willing to pay for it. Currently across the board prices are lower than a few years ago - FACT.

Having paid off the mortgage on his current property and being able to buy a new house without need to call on the equity in the first he is in an enviable position.

If he is willing to ride out the current slump and look at the flat as a long term investment by all means hold on to it and rent out. If you don't want the stress of the ups and downs of the propety market and see a house as a home - sell up at the going rate and move on.

brooky_agb

Chinkle wrote: »

Perhaps the OP should put things into perspective instead of looking at it has having made a £30K loss. The new property he is buying is probably also now cheap than it was in 2005 too.

I agree with you and I have to deal with it. I am hence the fact I have lowered the price from £160k in 2007 to £115k now. One agent in town told me that I'm in a terrible situation as the bottom of the market is a nightmare and the buyers have ALL the power but higher up sellers have quite a bit more power. After a bit of patience we had an offer accepted on a property to buy at 10% below the asking price even though we have been told it needs damp work fixing and modernization.

If you search the competition I have you should see the price I have it on the market at is very competitive. Checkout the search term below for comparison:

http://!!!!!!/zlbAZ Mine is on at £115k with the green door.

silvercar

As it is in such a good condition and has attractive period features, people would pay more in a good market. In the current market people are nervous of paying extra for what is "just" a one bedroom flat fronting the pavement, with not even a shared garden.

It is the sort of property that would attract a premium in the good times but would make people wary in the current market.

brooky_agb

I kinda agree with you. However it is in a very popular commuter town with a train to central London about 300 yards away that takes 30 minutes. It is also 5 miles from Stansted Airport. Location is fantastic.

Fella

brooky_agb wrote: »

I agree with you and I have to deal with it. I am hence the fact I have lowered the price from £160k in 2007 to £115k now. One agent in town told me that I'm in a terrible situation as the bottom of the market is a nightmare and the buyers have ALL the power but higher up sellers have quite a bit more power. After a bit of patience we had an offer accepted on a property to buy at 10% below the asking price even though we have been told it needs damp work fixing and modernization.

If you search the competition I have you should see the price I have it on the market at is very competitive. Checkout the search term below for comparison:

http://!!!!!!/zlbAZ Mine is on at £115k with the green door.

Don't forget that the prices other people are asking don't necessarily mean a lot. They may be totally unrealistic.

A far better guide would be to look for similar properties on the same street or as near as possible that have recently sold (i.e. on somewhere like nethouseprices.com) & see what they went for.

brooky_agb

Fella wrote: »

Don't forget that the prices other people are asking don't necessarily mean a lot. They may be totally unrealistic.

A far better guide would be to look for similar properties on the same street or as near as possible that have recently sold (i.e. on somewhere like nethouseprices.com) & see what they went for.

Thanks for the advice. I've done that too. I may get a different agent to come and value it again at a realistic fast sale price.

penguine

brooky_agb wrote: »

Thanks for the advice. I've done that too. I may get a different agent to come and value it again at a realistic fast sale price.

That's the advice I was about to give you. Be sure you stress to your current agent and the new one that you are serious about selling quickly. The building is beautiful and the flat looks in good condition. As another poster said, instead of fretting over the loss you've made on this property, look at the amount you're probably saving on your next property which will have come down in price even further.

I think 1-bed flats are the toughest to sell in a slump; anyone able to get finance in a falling market is likely to prefer a 2-bed property as that gives them better long-term flexibility should the market not recover for awhile -- they can always get a lodger for the second room, or if they get into a relationship and a baby comes along they at least have enough space to get by for a few years.

I don't know if this is still true (or even if it was true to begin with), but I read a month or two back that some people who are serious about selling have put their properties on at a price considerably lower than similar properties in the area. The thinking is that it will attract several keen buyers who may then get into a bidding war with each other.

brooky_agb

Thanks penguin. I just spoke to the current agent who just said (via email):

"I will sell it.... I have made it my personal mission to sell this before
I sell any other property."

I think you may be right about under cutting everyone. I might just do that in the next few days.