Are we over priced??

Selbyjay

Our flat has been on the market for almost 4 weeks and we've only just got an appointment for a viewing 2moz. We've already dropped our price once, a week ago.

We're selling a 2 bed, riverside appt on 50% shared ownership for £56495. I cant post a link but we can be found by searching YO8, appartments. We're on Holmes Avenue.

Compared to other appartments in the area, this is bigger, in a great location (riverside, close to town but far enough away not to be bothered by noise/traffic), very energy efficient so cheap to run and very well looked after (i bought it new 4 years ago and every room has been redecorated in last 2 years).

The flat downstairs from us is also on the market but they're asking more than we are. Our asking price was based on the average from 6 different estate agents valuations and seems to be a fair realisation of property in the area and how the market is. Or is it??

Any help/comments would be appreciated

marc-h_2

http://www.rightmove.co.uk/property-for-sale/property-28385282.html

That yours?

Are there any special criteria for buyers with it being shared ownership. That may be putting people off?

Cannon_Fodder

Think its;

http://www.rightmove.co.uk/property-for-sale/property-28778990.html?premiumA=true

Cannon_Fodder

Land Registry shows NY is around -14% from peak.

[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=North+Yorkshire&s=01 January 2007&e=01 February 2010&t=1[/IMG]
Which makes the £58k sale in Jan 08 = £49k. http://www.houseprices.co.uk/e.php?q=holmes+avenue+yo8

Yes, there a £65k but there's also a more recent £30k...which people might be hoping for.

SelbyJay_2

The link on Cannon Fodder's post is the one.

The recent £30k sale on the street was for 25% of a 2 bed house, so not quite comparable to ours.

I bought for £42k in 2006. I feel that our asking price is a little high, but is it so high that it's off putting?

There are some criteria buyers would need to meet in order to be eligible for the shared ownership i.e. be a FTB is the main one.

Fire_Fox

It is a very well presented flat but your estate agents particulars need work! According to Property Bee you have only reduced the price by £1K what was the point of that?? I would also want to know what the rent is on the other half of the flat and the service charges, if any.

No need for two photos of the frontage, two photos of the cramped hallway, three photos of the living area or two photos of the main bedroom. Choose the best photos of each room and lose the hall photos completely. That wintery view is depressing, I assume it is lovely on a bright Spring day once the green is back on the trees? Get that retaken: if it is top floor why is the view from ground floor level, what are you hiding? Apparently there are communal gardens why are there no photos of this? How have you got patio doors on a top floor flat, is there a balcony?

Blacksheep1979

You're probably going to be hit by what a lot of shared ownership folks will be when they come to sell - the prices are artificially inflated by the scheme and you're restricted on who can buy them.

Cannon_Fodder

Prices, on average for North Yorkshire, have yet to return to Jan 2006 levels...

[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=North+Yorkshire&s=01 January 2006&e=01 February 2010&t=1[/IMG]

Which might reasonably imply, that your place is worth less than the £42,500 paid for it...especially as new builds are generally overpriced due to the developer's premium.

Forgetting stats for a minute, if you can get 25% of a house for £30k, i.e. 50% of one for £60k, and have a garden, and a separate kitchen to keep the extractor fan/oven/washing machine from drowning out the TV, that I'd happily pay £10k extra for, which at best makes the flats = £50k.

SelbyJay_2

Thanks Fire Fox for your comments. Sometimes it just takes a little bit of honesty and a new pair of eyes so i'll certainly take your comments on board. I must admit, i kind of agree with your comments about the hall pic. The hall isnt actually cramped but the pic doesnt do much for it! You're also right about the view pic. The view is great from the flat and it never occurred to me to ask why it was taken from ground floor! I'll get it changed. The modest price drop was made to try and catch people's eye, coupled with the Premium listing on RM. We will consider further drops in the future if necessary.

Blacksheep - although i have a hunch that the EA's have over inflated our valuations a little, i would disagree that it was the shared ownership scheme that has inflated the price. We do have a niche market, but i can personally vouch for the genuineness and success of this scheme and would recommend any FTB investigate SO as a way to get on the property ladder.

SelbyJay_2

Cannon Fodder, you make some good points. The stats are confusing! If i compare Feb 06 to Feb 07 on Land Reg, flats sold for £125k avg in 06 and £126k avg this year. On this basis, wouldnt the flat be worth 50% of £126k = £65k?? I wouldnt agree, i think £65k is way too high. But what's right?

Cannon_Fodder

Think you are referring to a breakdown like; http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?step=4&locationType=0&area=North+Yorkshire&reporttype=2&datetype=3&compare1=01%2F2006&compare2=01%2F2010&image2.x=20&image2.y=14

The £125k shown for Maisonette/Flat is the average flat price. It cannot bear any direct relationship to your flat, as we don't know where your flat comes in the averages - high, low, average. So, we cannot simply apply 50% to it to get your price. The nearness to your price of doing that is a statistical coincidence.

The fact its £125k in both 2006 and 2010, shows that prices have not gone anywhere in the intervening 4 years. (Although the earlier graph obviously shows the up and down nature in-between).

The nearest relationship you can infer from the property type breakdown, is that whatever price was paid in 2006, a similar price would be paid in 2010.

It might be argued that 2-bed places have performed better than 1-beds or studios, as the latter are often harder to shift. So yours might be in the high end of averages. But by 20%+? Doubtful, I'm afraid.