House built 1980s, please help!

twinkle123_2

One thing confused us while househunting, please share your opinions here.

-- house was built in 1980s is now on market for 310k, vendor bought it for around 8K pounds,
However this figure is not in accordance with or anywhere near to the below link (type house price crash in google, click graphs, click
nationwide average house prices adjusted for inflation)

i know this is the average price for south west, however we took other properties as examples and they all fit in just ok with the below formula, well not exactly, just 20k to 40k difference which is understandable due to the regional difference.

i.e, 25000 (average price in 1982) : 8000(vendor's purchase price in 1980s = 162 000 (average price in 2011) : x (the price which should be on the today's market)

hence, x = 51840

How come this is not any where near to the asking price in the today's market?
I have tried other houses which were new built in 1999, it sort of fit in, only 10k to 40k difference which is understandable.
how come if applies 1980s new build house, it does not fit in at all.
is it because the time range is too long to be irrelavant for discussion?

have you bought a 1980s house from the first owner when it was built? if so, what were their purchase prices? please share your opinions with me here.

thanks a lot.

LittleMissAspie

Might be regional variations, the south west I thought was a cheaper area until holiday homes became fashionable and now no-one can afford to buy there. Maybe the vendor got a massive discount for some reason. Maybe the area used to be a poohole and now it's posh.

It's irrelevant really though, you need to compare it to recent sold prices of similar houses to make sure you're getting a decent deal.

Edit: How do you know what they paid anyway, the online records don't go back that far. Did the vendor tell you? Maybe they're mistaken.

diable

does it matter?

Tiddlywinks

diable wrote: »

does it matter?

I agree - regardless of what the original owner paid, it is the current sale price that matters.

So what if they have make a 'profit' or the house is marketed at more or less than the average for an 80s build.

If you like it and like the price then buy it, if not then walk away.

pleasedelete

A house built in the 1980s is unlikely to have been 8k. Are you sure?

Where did you get the price from?

My first house was a tiny terrace bought in a northern town for 26k in 1986.

Rob_192

This just doesn't sound right?

We bought our first house in the South West in 1984, a newly built 2 bed terrraced house for £21.5k, at the peak a few years ago, I noticed this house on the market for £152k (if memory serves me!), I would think it would be £130-140K currently. I can not see a house currently worth £300K+ having been only worth £8k in the 80s.

R

danilou21

Could the 8k be the price paid for the plot of land?

Paul_the_Painter

Yep sounds to me like danilou has hit the nail on the head - selfbuild or new build?

Easily could have bought the land for £8000 then built the house, or could have been part of a deal whereby he sold enough land for say 4 houses, and for £8000 got a house built for him.

Loads of reasons why something was could have been transfered at under market value as well.

At the end of the day doesn'y actually matter - is the house worth it? if answer = yes -buy- if answer = no =don't buy-

toadyfrog

Could it be a right to buy council house, my friend paid about £13000 for hers in the 90's

emmell

We paid £13500 for a tiny (and I mean tiny) two bedroom semi bungalow in Yorkshire in 1980 and on the same new estate my cousin paid about £24,000 for a four bedroom detached house both new builds from Wimpey. But like the other posters have said, a house is worth what someone wants to pay now, no relevance to what they cost new.
ML.

twinkle123_2

Thanks for everyone who responded to my message above.

The figure of 8k comes out from the search from our solicitor,
it stated it includes the dwelling house and the garden...so don't think they just bought the piece of land with that price.
it was not an ex council house, it is a posh area now.
but this is a bit out of our expectation still although solicitor said it's irrelevant...