Selling above the stamp duty threshold

Clutterbug_3

Hi,
I'm after some advice. A year ago we had our house valued at 270k, and were surprised as we didn't think anything would sell that close to the 250k stamp duty threshold, but we sold for full asking price in 3 days.
Unfortunately we lost out on the house we wanted and nothing else came up, so coupled with work instability at the time, we pulled out.

A year on and we're back on the Market, again valued at 270k, but it has been really quiet on viewings the last month until this week, where we've had 5. We now have an offer for 250k, and the buyers reckon it is their only offer.

Question is, would we be foolish panicking into selling at a price that really impacts our onward purchase, or is there a risk that we hold off and find another year passes and the house attracts even lower offers?

We've again lost the house we wanted (which would have been a stretch in light of the low offer on ours) so aren't in a hurry, but maybe in this Market we should just take the money and run?

The EA are non committal but seem to lowball all their houses for quick sales, having said that given how quiet viewings have been, maybe this is the best we can get and we need to lower our expectations on what we are going to be able to buy.

What do you think? Are people going to fork out over the tax limit in this Market? Will it just get worse or should we hold out for a better price?

Blacksheep1979

advertising at that price is asking for offers of 250 or less. If you really want 270 then you're going to have to ask for more - at the moment people want to knock 5-10% off the price no matter what. What can you afford to sell at?

tyllwyd

If you are keen to move, and you can afford to make your ownward move if you accept an offer of £250K, I'd take the offer. The only way you are likely to get £270K is if there is someone out there who is desperate to find somewhere to buy because there are so few properties on the market - not impossible (because it did happen last year) but very very unlikely. If you turn this offer down, there is every chance you will still be here next year, so you have to weigh up what's most important, the money or the chance to sell now.

Doozergirl

A lot of places are down on last year. I think itwould be asking price or £250k for a house priced like that. And asking price is something that people only feeled compelled to offer when a house is brand new to market. Once people see it hasn't gone for a little while, that's when they start making offers. We're looking at houses around and just over and there's simply not a chance that if other people haven't bitten at the more expensive houses at over £250k, that we would be offering more than that.

neverdespairgirl

I think most people will interpret the £270k asking price as meaning, "not a penny under £250k", because of the stamp duty issue.

kingstreet

Consider offering a £5,000 contribution towards stamp duty on completion on offers over £260,000. Many purchasers will find that attractive as they can get the mortgage they need at the higher purchase price, but don't do so because of the extra cash they have to find for the stamp duty.

Take away the issue which puts them off.

Richard_Webster

Also depends on what else is out there on the market. If there are a number of similar houses all around £270-285K then a buyer might feel he isn't going to get anyone down to £250K. So if OP's is the "cheapest" of a group of similar houses he can hold out and say just that - mine's cheaper and you won't get the others down so you'll have to pay the SDLT.

On the other hand if there are no obvious comparables, buyer won't see why he should pay more than £250K.

Oliver_Green

Clutterbug wrote: »

Hi,
I'm after some advice. A year ago we had our house valued at 270k, and were surprised as we didn't think anything would sell that close to the 250k stamp duty threshold, but we sold for full asking price in 3 days.
Unfortunately we lost out on the house we wanted and nothing else came up, so coupled with work instability at the time, we pulled out.

A year on and we're back on the Market, again valued at 270k, but it has been really quiet on viewings the last month until this week, where we've had 5. We now have an offer for 250k, and the buyers reckon it is their only offer.

Question is, would we be foolish panicking into selling at a price that really impacts our onward purchase, or is there a risk that we hold off and find another year passes and the house attracts even lower offers?

We've again lost the house we wanted (which would have been a stretch in light of the low offer on ours) so aren't in a hurry, but maybe in this Market we should just take the money and run?

The EA are non committal but seem to lowball all their houses for quick sales, having said that given how quiet viewings have been, maybe this is the best we can get and we need to lower our expectations on what we are going to be able to buy.

What do you think? Are people going to fork out over the tax limit in this Market? Will it just get worse or should we hold out for a better price?

Hi Clutterbug

Unfortunately the market is unpredictable at the moment...

It also depends on which news article you read, to know what is going to happen with the market.

You are in the same boat sadly as most other sellers. If we had a crystal ball it would be easy to give advice but there is’nt any. It can only come down to you.

Your local estate agent should be in a good position to advice as they should know the market, especially the local market and if you are not happy with the advice then see how many weeks you have left contractually with them as a suggestion, you could possibly change your agent.

Make sure to shop around first or go back to your current agent and have a serious chat with them.

I am sorry to not have better advice. Oliver Green

dehydrato

We sold our place 2 years ago - was valued at £280k but we wanted to sell quickly due to pregnancy and a few other factors so we put it on at FP £249950. We sold to the 1st viewers who then pulled out due to lack of finance then when we put it on again we got 5 full asking price offers on the 1st day so opted for a cash buyer. If you price cheaply enough you will sell. At that time, a quick sale was vastly more important to us than waiting for someone who would pay more, that said, I often wonder if we should have gone to bids .....

hcb42

I paid £270K for my house a few years ago, the reason was that at the time, we could not get what we wanted for £250K (we were moving a long distance and felt we were compromising too much on space) and decided we would have to pay the extra stamp duty to get a much better house, it is a decision I have never regretted although I had to pay an extra £5.4K in fees. It had previously been offered at £300K, and then the buyers pulled out after they managed to get the kids in the local school - which is extremely popular, one of the best in the county.

It was on market at offers over £275K however we were in a strong position as we had sold our own in Scotland so that deal was watertight.

I only say that as I often read on these boards that no one will ever pay £270K! Which is a bit of madness.

However, if you have priced at £270K then I too would try and knock you under the £250K mark!

hazyjo

'A few years ago' takes it back to a rising, level, or fairly wobbly market (or one rumoured to collapse). People do spend £265k+ on properties in a rising market. In a falling market, you'd be very lucky to sell for anything on or over £270k.

Unfortunately the prices get dragged down to that stamp duty level. I had to take a hit on mine. Way of the market, I'm afraid. Gutting for me too, but there ain't much anyone can do. Someone might come along and say they'll pay the £270k, but I'd be surprised if a valuer didn't come along and knock the other £20k off anyway.

I watched my two bed house price fall from nearer £300k down to my eventual sale price of £228,500 (what I initially bought it for 4.5 years earlier. The three beds were over £300k a few years ago, but they're now selling around the £250k stamp duty level. That was in a road in East London where houses were still selling within days or weeks. Still didn't mean anyone would pay over the stamp duty threshold though...

Jx