Offer vs. asking price advice

LouiseK_2

Please could I have some advise on the 2 properties in the Greater London borough:

(1) Semi-detached with an asking price £475,000 – recently been renovated to a high standard. My worry is that the highest sale price in the road (and it is a long road with many sales) is £355,000 in November 2009. Not sure of the condition of that property but I feel concerned that we could end up paying £120,000 more than any other house in the road. I think £410-420k may be reasonable.

(2) Semi-detached with an asking price of £499,995 – needs work doing to it (the previous owners haven’t really looked after it to be honest, otherwise it would have been fine), a nicer road but not that far from (1). Previous owners bought in 2002 for £250,000 and added an extra bedroom in the loft. Again, I think this is over-priced. Top price in the road achieved in the road for a semi-detached is £500,000 in July 2007. Again, I think £410-420k may be reasonable, allowing for the work needed to make it nice again.

These are the best 2 properties we’ve seen. We don’t want to come in with stupid offers and we’re worried that we won’t be seen as serious but at the same time, I really think the sellers are being very optimistic. (We are also starting to become very desperate to buy – we have a buyer for our flat and we have our 2nd baby on the way so we have to move soon!). Is 20% below asking price too low in today’s climate?

Jowo_2

LouiseK wrote: »

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(2) Semi-detached with an asking price of £499,995 – needs work doing to it (the previous owners haven’t really looked after it to be honest, otherwise it would have been fine), a nicer road but not that far from (1). Previous owners bought in 2002 for £250,000 and added an extra bedroom in the loft. Again, I think this is over-priced. Top price in the road achieved in the road for a semi-detached is £500,000 in July 2007. Again, I think £410-420k may be reasonable, allowing for the work needed to make it nice again.

What are other similar properties going for in that road, anything more recent than 2007? I'm not sure of the relevance of the original purchase price compared with the usefulness of what recent sale prices are like.

Milliewilly

Sorry but why are you even viewing properties that you consider to be overpriced by between £50K and £70K anyway?

whitesatin

Milliewilly wrote: »

Sorry but why are you even viewing properties that you consider to be overpriced by between £50K and £70K anyway?

I would imagine in these uncertain times, that it is quite usual to look at property based upon what you think it should be worth rather that the price it is being marketed at. Estate agents are often too optimistic in their asking prices and people know they will not fetch those prices.

£50k - £70k is not that much in the London area, a house could easily be put on that much above the realistic price. My house was valued at £442,000 by a local agent in Surrey whereas I know that we will be lucky to get £330,000 for it so we put it on the market somewhere in the middle knowing that nobody would dream of offering the asking price at the moment.

spudnik

We are the same, slowly thinking about buying next year.

We have seen a house that we like on rm but it is 125k highest price on the street ever sold is ...... 79k in 2009. What can you do eh? puts me off even going looking at it. At 80k i would snap it up i would prob even at a push go to 90k, i really don't understand their thought processes especially now rm has the house price comparison page. I'm in the north west.

not_loaded

Overall, for anything that appears over-priced, if you’re interested and have the time, I’d view it and ask where their price comes from, quoting your research.

Being direct in that manner may help you get the right deal, or it might get you thrown out, but who cares? <shrug smiley>