Should I bother looking at this expensive house?

Charliezoo

Called a local agent today to register for new properties in the area.

They told me there was a suitable house which has been on the market for about 3 weeks but at 390k its way above our 350k max. The EA said that he said we should take a look and try a low offer anyway but I think it would be a complete waste of time, I can't see them taking a 40k drop.

Should we try our luck or leave it?

BitterAndTwisted

What have similar properties in the same area sold for in the last few months?

McKneff

Nothing ventured, nothing gained.

Bungalow near us has dropped form £199,999 to £160,000 simply because the lady in it died, her family dont get on so they want a quick sale and the money.

Charliezoo

BitterAndTwisted wrote: »

What have similar properties in the same area sold for in the last few months?

Its on a modern development where it seems few properties seem to come up for sale.

An exact copy of the house (maybe with a more dated kitchen/bathroom) was on the market for 360k for 4 months, dropped to 350k and finally sold for 340k at the end of June. We were unlucky to just miss that one. According to Zoopla, etc nothing else has sold there since 2008.

Currently on the market there is a larger version in immaculate condition on the market for 420k and a semi in poor condition for 370k, all are built by the same developer in a similar style.

Its in a nice villiage near Watford, Herts which I don't think its been affected by house price drops as much as other areas.

michaels

Not far away also in Herts there are lots of houses with reduced asking prices on rightmove, many of a greater percentae than you are looking for. If similar sold for 340 in June then I don't think you should pay more than that. If the agent didn't think your 350 might be enough then why would they send you round?

Oldernotwiser

In percentage terms, it's only just over a 10% drop.

Charliezoo

michaels wrote: »

Not far away also in Herts there are lots of houses with reduced asking prices on rightmove, many of a greater percentae than you are looking for. If similar sold for 340 in June then I don't think you should pay more than that. If the agent didn't think your 350 might be enough then why would they send you round?

I think sometimes the EA hopes the viewer will fall in love with the house and manage to stretch their budget to afford it.

Charliezoo

Oldernotwiser wrote: »

In percentage terms, it's only just over a 10% drop.

I've tried a 5% drop on a house in the same area and was told to b****r off!

Eric1

Charliezoo wrote: »

They told me there was a suitable house which has been on the market for about 3 weeks but at 390k its way above our 350k max. The EA said that he said we should take a look and try a low offer anyway

The EA wants to know your real budget, and how flexible is your 350K "max".
Tell them you don't want to waste your time and will only view if the vendor is open to offers below 340K.

DVardysShadow

Charliezoo wrote: »

I've tried a 5% drop on a house in the same area and was told to b****r off!

So What! :rotfl::rotfl::rotfl:

This is another house. The Agent cannot tell you that the owners would accept an offer within your budget, even if they really would.

Now, they might. Or the Agent could just be trying to get an offer on the table to beat someone else up with. Only one way to find out.

pardal51

Friend of my OH was told by EA to "test" the market, i.e., put it for sale at an inflated price.

If you decide to go and view the property and like it, put an offer and that is it. If they agree fine if not good luck to them.

As a FTB I might be biased but the overall forecast isn't great for sellers for the short-term, therefore you have nothing to lose.

What I really dont understand is, from the EA point of view:
consider commission at 1.5%

1) AP: 490K --> commission: 7,350
2) If sold for 450K --> commission: 6,750

therefore "only" 600quid difference. I don't understand why the EAs don't try to persuade vendors to be more reasonable, hence selling quicker. I know that they try to max their commission and the vendors might be stubborn and don't want to negotiate. However I don't feel that it is good time to overinflate the price. I personally will not fall into this trap.