Nice house in wrong area

DA_Jennings

I am trying to sell an early 19C 2/3 bed cottage in an ethnic area in a large city. It has been on the market, with a 5 month break from Jan 05-May 05, since Oct 2004 and was originally priced at £245,000 (not the highest valuation). I had a number of viewings until July 05, but no offers. The viewers at that time were couples with children and the number of bedrooms was an issue-- one double, one single and a third single reached through the double bedroom. I decided to change the estate agent for various reasons in July 05 at which point the house was being advertised at £220,000. In Sept 05 I appointed another estate agent and the cottage was now advertised at £215,000. The new agent and new price seemed to work in terms of getting the right sort of people--young couples, no children, maybe first time buyers, but they did not like the area! I did have one offer last November but when he brought his Mother to view (he needed her money) she put him off because of the cars/vans in various states of repair next door (can only be seen from the upstairs double bedroom).The price has been reduced twice since the offer and is now £199,000. Everyone comments on the excellent decoration, presentation of the house, including comments like "the 'photo's don't do it justice", but people will not make that extra step due to the area. I am getting desperate. if I could move the cottage brick by brick I would.

Any suggestions please?


Des.

tesuhoha

We had the same problem last year. Our house was beautiful but the area had gone down. However we now have a buyer and whats more all the for sale houses around here now have sold signs outside. We did the same as you and lowered the price considerably. In retrospect we think that the estate agent overpriced the house to get the contract and also the market was very depressed last year and is now picking up. It could well be the case that the market is still depressed in your area and has yet to catch up. Maybe you should take it off the market for a couple of months and then it will be fresh on by May or June. People lose interest in houses that have been on the market for a long time. Even estate agents lose interest in them. Good luck.

clairehi

I would hold tight for now. Obviously depends exactly where you are located but my gut feeling is that there will be more activity in the housing market this year than last year.

we are only just into the spring buying season so dont panic and dont take it off the market. unless you are in a hurry to move, Id wait until July/August before considering another price drop.

I think its a myth that buyers dont look at houses that have been on the market awhile, although if they are smart they will realise you may be more open to negotiation over price. However EAs do lose interest after the first 6-8 weeks. Are they doing their job properly - maybe you could get a friend to "mystery shop" them to see whats going on?

lynzpower

You mention the "ethnic" area, are the prospective viewers not of the same ethnicity type thing, "ethnic" areas do tend to appeal to prospective families ie if an area is predominantly bengali muslim , then the bengali prospective buyer will be thrilled with the local mosque, shops selling authentic foodstuffs etc. If this is an exploitable avenue then try it - eg the voice newspaper? Depends what the Ethicity of the area is, but there will be a resource to utilise! If the area is profoundly run down, then maybe its overpriced, but see what other stuff is going for. You may be as well to start marketing it yourself ( internet, local newspapers, ethnic outlets, and see how you go?

DA_Jennings

I think the "ethnic" question is muddying the water. The ethnic people of the area think that the cottage is too small and does not have room for expansion, whilst those from outside the area are surprised to see a cottage (which they like) in an area they do not like. Is auction a possibility?

lynzpower

But surely "ethnic" people are first time buyers, young couples etc.

Fair enough though, someone will be along shortly to advise on auctions. Ive only watched homes under the hammer a few times, I'll keep my opinions to myself on that one!

Doozergirl

You're problem isn't just the area, it is the bedroom sizes and the access to the third (questionable) bedroom. Period properties are often quirky in their nature and appeal to a niche market. A sledgehammer (sorry!) may create a more saleable 2 bed for you by opening up the range of people it would appeal to. It may even increase it's current value!

Auction is a good possibilty but you have to be prepared for the house to maybe sell lower than it is currently being marketed at. There is no point in setting a high reserve; properties always sell for what they are worth. Even a property that has it's reserve is set too high in repeated auctions shows a distinct pattern in the last bid prices. It's worth what it's worth.

Which city are we talking about? Small auctions are great for attracting attention as they get big ads in the local paper, whereas potential buyers you have to actively seek out properties being sold by the big auction houses. I think it would be a good idea to get an auctioneer in, as they can often value unique houses more accurately, simply through experience. If you're lucky, you'll get offers before the auction anyway.

dander

I agree with Doozergirl. Those bedrooms sound like a bigger problem than the area to me. Is the house advertised as a 3 bed property? To me a 3 bed house needs to have 3 seperately accessed rooms, which yours doesn't. I'd also expect 2 double bedrooms rather than 1 double and 2 singles. In some ways I'd have thought it would manage expectations better to advertise as a 2 bed house with master bedroom suite.

I also wonder where you are - £200k sounds like a lot of money for what appears to be a small house in a not particularly lovely area. Is it possible that it's been priced higher due to period character, while being in an area where people just aren't interested in period character?

ethansmum

Houses that have been on for a while certainly wouldn't bother me. I know that when we were looking at potential houses, we had to sell ours first before making any offers on houses we liked. Were all your viewers cash buyers? or did they too have property to sell first. I agree with the earlier post that houses weren't selling too well last year (well atleast where we live) and things are definately starting to pick up now. I agree you should just sit tight unless you are desperate to sell.

DA_Jennings

Let me clear up a couple of points. The cottage is in Birmingham and is advertised as "2/3 bedrooms ( bedroom 3 leads directly off bedroom 1)". I agree that the house was overpriced in 2004 because of its individual character. In fact there was a £50,000 difference between the top valuation-not the one we chose and the lowest valuation which was £190,000. I think that we have not been well served by Estate Agents, but nevertheless the apparent negative features of the house apply regardless of price.

dander

I've just had a snoop on rightmove and it does indeed look like a lovely house. The main problem I can see is just the sheer quantity of properties on the market at that price in your area. I got 90 houses priced between £190 and £200k - and that was just pulling up the 3 miles around your library. You've got one hell of a lot of competition. I don't know how long the other 89 have been on the market, but it strikes me as possible that the market in your area is still really slow, and the only option is waiting.

Also there are an awful lot of much more traditional semis with garages and even new builds - some 4 bedroom things - in that price range. If someone's looking for a family home, they may well feel the space is more valuable than the character.

I may be clutching at straws, but with the weather still being so grotty out, I suspect the traditional easter rush for houses is going to be delayed this year, until it's a bit more pleasant out.

I'm sorry, I don't really have any suggestions about what you can do, but I do really feel for you. I also had a really tough time selling my flat recently and it's incredibly stressful. All I can say is that I got there in the end and I'll keep everything crossed for you too.