Fair valuation??

katsplat1

I currently rent a 4 year old house. Have been here a year and just signed a new 12 month contract. Met with actual landlord yesterday (not agents) to discuss redecoration etc and he has asked us to think about buying the house.

He knows we love the house, really look after it and like the area. Have looked around a few similar properties that have come on the market but have not liked them as much mainly due to the colour/style of fittings (kitchen & bathroom) & size of garden.

Similar properties are on the market for £150,000. The landlord has said if we do want to buy we can do it without agents and he will be happy to 'negotiate' a fair price.

How will I know if it is a 'fair' price and what kind of things do I need to do if we don't use an agent? Will it be cheaper without agents?

Thanks in advance

Kat
x

Robert_Sterling

katsplat1 wrote:

.The landlord has said if we do want to buy we can do it without agents and he will be happy to 'negotiate' a fair price.Kat
x

Hmmm. That will save the landlord some money.

silvercar

Phone a couple of agents, pretend your the owner and ask them to give you a free valuation.

They'll come round and give you a market price, ask them what price they would suggest for a quick sale.

Jorgan_2

Or look at websites like nethouseprices.com to see what actual sale figures have been achieved.

rchddap1

Investigate similar houses in the area and see what they are priced up at. Then work out how much you think the house is worth....and then how much you are able or willing to pay.

Debt_Free_Chick

katsplat1 wrote:

How will I know if it is a 'fair' price and what kind of things do I need to do if we don't use an agent? Will it be cheaper without agents?

Thanks in advance

Kat
x

Because agents give valuations to sellers FOC (free of charge). So you or he could simply ask 3 or 4 agents to express their opinion as to what the house would fetch and then take the average (or the median).

Regareds

claz

okay my dad is doing a similar sort of thing at the moment with his tenant

find out the market value and then say an estate agent would charge for example 1.5% for the sale price ask the landlord to knock that ammount off your purchase price so if like you say it is worth £150,000 then knock off £2,250 - which equals £147,750 - this extra cash will go a long way to paying things like surveys stamp duty etc

if i were go get valuations from various estate agents and see what they think the market value is, then if you want tell your landlord what you have done and if you are happy with the sum offer to buy it off him for a mind range price and then negotiate the esate agents feess off on top of that

hope this helps

Robert_Sterling

silvercar wrote:

Phone a couple of agents, pretend your the owner and ask them to give you a free valuation.
They'll come round and give you a market price, ask them what price they would suggest for a quick sale.

Then knock at least 10% off their initial valuation. They tend to overvalue in order to get business.

itsakidsworld

Why not start by asking the landlord what price he had in mind!!! He will know what the property is worth so ask him what he wants then work backwards from there.

Get agent quotes as well yourself so that you have as much information as possible. If the agent says £150,000 then if the landlord says he will let you have it for a fair price, I reckon £140,000- £144,000 tops is fair. Anything under is VERY fair!!!Anything over is just a regular deal so theres nothing "fair in that".

Could be a great guy, could be dodgy? Who knows until you get some figures together.

silvercar

Just read your OP again. You have just got a new 12 month contract and the landlord wants to sell! If he doesn't sell to you he is going to have to wait a year or sell with a tenant in place. Remember that when negotiating.

katsplat1

The landlord seems a really genuine guy. Had stayed for a coffee and told us how he got into the renting game. He's got 3 properties in different villages over our county. He originally bought our house for his daughter for when she came back from working abroad but she stayed abroad so he rented it out.

He basically said that he and his wife are looking to move to Spain and were going to do it this year but when we requested a new 12 month contract instead of a rolling contract, they have put their move off a year. He explained that he will be putting our house on the market at the end of our 12 month contract but if we would like to buy, have a think about it, and we can talk more after xmas.

I know he only paid £103,000 for it new and has rented it out for £600 a month ever since. Most of the properties on the estate similar are on the market for between £140,000-150,000. He can also see that we have really looked after the place. We have probably spent about £200 on the back garden, have had the carpets cleaned through, and are about to start decorating, all at our own expense. Like itsakidsworld says, I would 'like' to pay about £135,000 - 140,000 for it.

Give him his due though, he's told me to post the receipts from the paint & fence care to him and he'll reimburse me!! That was a bonus!!