With House Price Transactions At A Record Low

Money_Doctor

How do you judge what a house is really worth in such an environment compared to what they seem to be up for (i.e whichever Estate Agent has vastly over estimated the price).

Any Thoughts appreciated

FATBALLZ

Same way as normal, take into account various factors, local changes in average prices, what similar houses have sold for over the last 5 or 6 years, if there's an over/undersupply, mortgage costs etc.

Money_Doctor

Fatz I would agree, but my point for asking the question is that we are looking at a house at the moment, no houses have sold down the road in the last 4 years (a long road with lots of different type of tenure) Where do you go in such a situation, combined with the fact the Estate Agents seem to be valuing houses at whatever they like

googler

There's nothing like it sold in the surrounding streets, or the wider locale, in recent times ....?

Money_Doctor

Googler the wider locale maybe, but I am loathe to base too much on such a purchase price in the current climate...

FATBALLZ

Have you viewed other comparable houses? If there is little reference material based on sales or what is currently up for sale, you might need to make a judgement based on what you get for your money compared to other places you've viewed in the area (not necessarily the same street), and take location into account.

[Deleted User]

our dd cannot find a good house for love nor money. That shortage alone will drive up prices in good locations

googler

Money_Doctor wrote: »

Googler the wider locale maybe, but I am loathe to base too much on such a purchase price in the current climate...

It's all you've got.

Even if the climate were better, given the same sales in the wider locale, that would be all you'd have. So you'd have to use them.

Batchy

in the last two years there has only been 2 houses for the right money that has been on the market that personally suit me, one i missed out on as wasnt really in the right position to make it happen at the time, the other I got for a bargain price and is still going through now hopefully! Awesome you might say except, ive had to wait for 12 months for this property! Sometimes, things just dont happen as you imagine, as for valuation.

The only way to value property is invite offers, if people are making offers then you have a good idea what people think it is worth ... if not, its overpriced.

If they are investers, the are looking for a bargain, if its familys making offers to live there, then you still have the best indication.

You can think about its relationship to sold prices, but it doesnt mean a lot if the resulting price doesn't attract a lot of interest.

tyllwyd

Money_Doctor wrote: »

How do you judge what a house is really worth in such an environment compared to what they seem to be up for (i.e whichever Estate Agent has vastly over estimated the price).

Any Thoughts appreciated

You've contradicted yourself a bit here - how can you say that the Estate Agent has vastly over estimated the price, if you don't have any idea of what the price should be?

If you think the price is vastly overestimated and you are in a position to buy, why not make an offer that you think reasonable - then it is down to the vendors to see if they agree with you. They will have their own view on what they are willing to sell for.

lincroft1710

The answer to your question is sadly not helpful in your situation, as the value of a house as with anything is what someone is prepared to pay for it.

You know the asking price of this house, you must have some idea of you would want to pay. Offer below the amount you want to pay and see how near to your figure the vendor will come. Do be aware that by doing this you may alienate both EA and vendor who may not regard you as a serious purchaser.