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Would you buy this?
Options
epoman
Posts: 64 Forumite
Long story so I'll give you the short version:
I'm thinking of buying a property that was built by a private developer. He originally had it advertised for £450k and says he had an offer a £410 but that fell through (not sure why). Offers were invited in excess of £350. I offered £360k and this was accepted as the owner was keen to sell. He then had a further offer for £375 (I have seen evidence of this) but decided to stick with us because we had nothing to sell and had a mortgage already in place.
The building society survey valued the house at £360k but made some vague suggestion that as it was a new house it may not immediately be worth that on resale. I figured that this was because the surveyor was covering his back but was sufficiently concerned to decide to get a private valuation survey done.
My valuation however came in at £300k! The surveyor, who is not from the local area, went so far as to say over the telephone that he did not advise we buy it even at that price! He described it as a 'funny animal' that would always be hard to sell because it is side facing and the front is partly obscured by a detached garage. It is on a small plot and only has a small front garden. It is however a decent size and is done to a very high standard internally - far better than any other new property I have seen so far.
We spoke to the agent about the valuation and the effectively closed the door to any further price negotiations in light of the other buyer (who is not in a proceedable position). We had no option therefore but to withdraw, a week before exchange.
Two weeks on the seller has been in touch reducing the price to £330k. He is clearly getting desperate to sell. He is planning to move abroad after the sale and his own home is also under offer pending the sale of this house. The documents reveal that he has a loan secured on the property, which he obviously used to build the house.
It is a difficult property to value as there are no comparables. It’s not the best road but that section of it is not bad comprising of 6 or so houses of similar size and character. In a better road the house (and facing the main road) would easily command £450k. There are a couple of similar new’ish houses adjacent but they are over 5 years old and are not listed on nethouseprices. The neighbouring property which is a similar size is also side facing has a bigger garden and is on for £400k, but has not sold. I find it difficult to find similar properties in the area for less. My own view is that it is worth £350k.
In light of the survoyors advice I have decided to pass on it if vendor sticks at £330k. My dilemma however is whether to ignore the surveyor and proceed if the vendor comes down a further £10k-£20k.
Any views?
I'm thinking of buying a property that was built by a private developer. He originally had it advertised for £450k and says he had an offer a £410 but that fell through (not sure why). Offers were invited in excess of £350. I offered £360k and this was accepted as the owner was keen to sell. He then had a further offer for £375 (I have seen evidence of this) but decided to stick with us because we had nothing to sell and had a mortgage already in place.
The building society survey valued the house at £360k but made some vague suggestion that as it was a new house it may not immediately be worth that on resale. I figured that this was because the surveyor was covering his back but was sufficiently concerned to decide to get a private valuation survey done.
My valuation however came in at £300k! The surveyor, who is not from the local area, went so far as to say over the telephone that he did not advise we buy it even at that price! He described it as a 'funny animal' that would always be hard to sell because it is side facing and the front is partly obscured by a detached garage. It is on a small plot and only has a small front garden. It is however a decent size and is done to a very high standard internally - far better than any other new property I have seen so far.
We spoke to the agent about the valuation and the effectively closed the door to any further price negotiations in light of the other buyer (who is not in a proceedable position). We had no option therefore but to withdraw, a week before exchange.
Two weeks on the seller has been in touch reducing the price to £330k. He is clearly getting desperate to sell. He is planning to move abroad after the sale and his own home is also under offer pending the sale of this house. The documents reveal that he has a loan secured on the property, which he obviously used to build the house.
It is a difficult property to value as there are no comparables. It’s not the best road but that section of it is not bad comprising of 6 or so houses of similar size and character. In a better road the house (and facing the main road) would easily command £450k. There are a couple of similar new’ish houses adjacent but they are over 5 years old and are not listed on nethouseprices. The neighbouring property which is a similar size is also side facing has a bigger garden and is on for £400k, but has not sold. I find it difficult to find similar properties in the area for less. My own view is that it is worth £350k.
In light of the survoyors advice I have decided to pass on it if vendor sticks at £330k. My dilemma however is whether to ignore the surveyor and proceed if the vendor comes down a further £10k-£20k.
Any views?
No reliance should be placed on the above.
Would you buy this? 40 votes
Yes at between £310-£320k
30%
12 votes
Yes, but only at £300k
20%
8 votes
No, take surveyors advice
50%
20 votes
0
Comments
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Yes at between £310-£320kYou liked it enough at first to offer £360k, until the surveyer's report came through....
I guess it depends if you want to live in it or have it as an investment. If you love the house and want to live there for a long time, it sounds like a bargain to me. If you are only buying it as an investment though, then I would haggle hard or walk away.
0 -
No, take surveyors adviceCan you post a website link so we can have a look?0
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BlondeHeadOn wrote:You liked it enough at first to offer £360k, until the surveyer's report came through....
I guess it depends if you want to live in it or have it as an investment. If you love the house and want to live there for a long time, it sounds like a bargain to me. If you are only buying it as an investment though, then I would haggle hard or walk away.
Thats the problem you see. I think it's worth more, but the surveyor disagrees - he's the professional.
Would only want to live there for a max of 5 years and then move up the ladder to a better house. It is a home but I sill want to protect my deposit investment come what may!lilyann1 wrote:Can you post a website link so we can have a look?
It's no longer advertised. It was taken off the market once our offer was accepted.No reliance should be placed on the above.0 -
No, take surveyors adviceI voted to take the surveyor's advice. Aren't they supposed to know what they are talking about?
The seller does seem desperate. That could be you in a few years time.0 -
No, take surveyors adviceI think if the surveyor told me do not buy it, even at this price as it'll be difficult to resell,I'd take their advice.
Ok if you love it and you think you'd be there forever that might be different, but you always have to think about the re sale value when you buy somewhere,if you are planning on moving on in a few years.
I think it is unbelievable that it was originally up for £450k and they got an offer of £410k but the value is only really £300k!!!0 -
No, take surveyors advicelilyann1 wrote:I think it is unbelievable that it was originally up for £450k and they got an offer of £410k but the value is only really £300k!!!
I have no difficulty in believing that someone would over-value a property by so much. And we're told the seller had an offer of £410,000 that fell through. I wonder why it fell through. :rolleyes:0 -
RHemmings wrote:I voted to take the surveyor's advice. Aren't they supposed to know what they are talking about?
Yes, but we all know different valuers will value differently. The variance between estate agents who valued my own house for example was over £40k.
I am more concerned by his advice that we should not buy it.RHemmings wrote:The seller does seem desperate. That could be you in a few years time.
His desperation arises out of his personal circumstances. In a few years my desperation will be the fact that I will be stuck in a chain.
One view is that everything sells if it is priced correctly and on this basis I 'should' be okay so long as I don't overpay. As a new house it will attract a premium so I am wondering whether to offer £300k and increase to £310k knowing that if I resell I would lose the premium and only get £300k back.No reliance should be placed on the above.0 -
RHemmings wrote:I have no difficulty in believing that someone would over-value a property by so much. And we're told the seller had an offer of £410,000 that fell through. I wonder why it fell through. :rolleyes:
I wonder whether he had an offer at all!No reliance should be placed on the above.0 -
No, take surveyors adviceepoman wrote:. As a new house it will attract a premium so I am wondering whether to offer £300k and increase to £310k knowing that if I resell I would lose the premium and only get £300k back.
With respect, I dont think any Moneysavingexpert is ever going to believe its a good idea to pay over the odds.:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
New build ... builder moving abroad.
Hmmz what happens about the guarantee should the house start falling apart in a year or so?0
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