Are they being greedy?

VickyA_2

Ok, we're looking for a house to buy (FTBs) and came across one that sounds quite good, but needs a little bit of work to it - new kitchen required, utility room (ie place for washing machine) is outside in a shed so would probably need to knock through, no double glazing. It's a 3 bedroom house, but is on the market for 22k over the "ceiling" price for that road.

Why I say that is because the neighbouring house (double glazed, obviously don't know what the kitchen is like) which is terraced sold earlier this year for £122k and this house we're contemplating is on at £144,900.

Are they just being downright greedy? As we'd need to do so much work (but it's habitable) then we definitely couldn't afford to buy at the full asking price AND do it up.

Or are we just being naive?

PS 3 bedroomed terraced houses (in decent condition) tend to be priced from £130k - £150k in this town.

MortgageMamma

I think house prices in your town may have risen generally from earlier this year and this could be partly the reason for the asking price. also, youhave to consider if the neighbouring house marketed deliberately below value to secure a quick sale? Whatever the reason, if your not happy with the price don't pay it and trust your instincts. If you want some help on negotiation house costs, i.e. battering them down give me a PM and I'll email you a guide that I have.

MM

wobbley

The value of a property is what someone is willing to pay for it, not what an agent may have valued it at. Neither is it forced to be the same as neighbouring properties recent sale prices. You have to consider all that you get for your money - condition, appliances, fixtures & fittings, recent work done, appearance, position, convenience, surroundings etc. and make a balanced assessment as to whether it's worth the asking price. Look to see if there's significantly more than the other house that went for £122k. If there is then it may be worth the £144k. If you don't think it is, then put an offer in at a price that seems more realistic to you - there's nothing to lose in making an offer.

silvercar

Sounds like its in the right price range for the road. The one that sold earlier this year may have had the price agreed a while before that. Remember it is difficult to sell houses at just over the stamp duty thresholds, so this might have deflated prices in the road for quite a while.

Talking about ceiling prices is a bit artificial, a house is worth what its worth, irrelevant of what houses have sold for in the road. We are breaking the ceiling by 25% if you believe it exists!

cattie

It may that they are not so much being greedy, but gullible. It's possible that they have had 2 or 3 estate agents in to value, which is always good to do, but one agent has overvalued in an attempt to get the vendor's business.

You don't say how long the house has been on the market, or if it is terrace or end terrace. End of terrace will usually go for a higher price than a terrace.

If the house has been on the market for a while & you are interested then there is nothing stopping you making what you feel is a realistic offer, pointing out to the estate agent what prices similar properties are achieving.

VickyA_2

It's been on the market for a few months and has recently been swapped over to another estate agent because it "wasn't getting any viewings" (EA's words), however the price has remained stable.

It is end of terrace - just, but not the last house in the road - if that makes sense.

VickyA_2

It turns out that they ARE being downright greedy.

Remember, a terraced house in decent condition tends to be on the market (and realises) £130k - £150k.

The things that would need doing pretty much immediately:

replace boiler (just looked dangerous)
whole kitchen falling apart, cooker equally "dangerous"
replace windows (rotting and falling out)

Carpets not meeting at the walls.
Bathroom suite needs "updating"
Garden a complete and utter mess

Ah well. You live and learn. Even if we offered what we thought it was worth, we don't actually have the cash to update what needs going immediately, other than elbow grease!

cpu

Just a thought but I think it's unfair to class someone as greedy just because they want as much as they can get for their house? There may be someone somewhere who would pay what they are asking.

I'm sure when we sell up, our first thought wil not be to fix a price that we think might be suitable for any possible buyers. :rolleyes:

They might need x amount so that they can afford their next place and when it comes down to it, it IS only an asking price. No-one can be forced to pay it. It may be that their property wont sell at that price but they have to try it first.

When it comes to your own buying and selling, your own family are your priority, not Joe Public's wallet.

Having said that, it doesn't sound to me like this house is the best buy for you and it might be worth looking around some more?

Good luck, it's always a stressful time.