Reducing house price

HotShot2011

Thanks all!

Lots of good advice here to mull over. I agree that it's going to be a judgement call on whether to reduce or not, with pros and cons on either side. If I was a buyer, I'd definitely be looking at both properties, and as I said before, anyone viewing the other one would have to drive past ours first!

More to the point is the lack of a response from my EA despite requesting a call today (it's a different EA for the other property). I'm not over the moon with the service provided so far (numerous spelling mistakes for me to correct on the draft brochure, no contact from their "approved" EPC assessor, so we arranged our own, wasting several days, lack of feedback from them until requested ... I could go on). But that's another story ...

martindow

Orpheo wrote: »

+15% is a big difference? I know some 11 year-old mathematicians who would debate that with you.

Big was not a good word I agree. But 15% a much more significant difference than my other example which is has a difference of less than 2%.

Will I get level 4 in my SATs now?

HotShot2011

Actually, re. my last post no.22, should I be expecting more from my EA or am I being impatient? We went with this one as they appeared to offer a very professional service, but ever since I feel as if I have been making most of the effort. It's only been a couple of weeks, but I'm beginning to wonder what exactly is being done. Our property is "Premium Listed" on Rightmove, which is good, but I am beginning to find the lack of communication frustrating and I had to contact them twice for feedback on the initial viewing ... How much should I reasonably expect? A weekly phone call / email re. interest. I don't want to be a pain but do want the reassurance that they are actively trying to sell the house for us :think:

Leif

You can't be sure that the other property is less more or less without seeing it and the layout. An old kitchen and bathroom can significantly impact the sale price. I saw a house with a conservatory, but it was in a poor state, so I told the EA it was overpriced. It went for about what I said it was worth.

How keen are you to sell? Are you buying, and have you found a bargain or a peach to move to?

What I have found in my area, which is Surrey Hampshire borders, is that houses are going on at absurd prices, and being reduced a month or so later. I saw one originally on at £365K and reduced to £350K, and I was tempted to offer £320K. It went for £325K. The owner was an old dear who needed money for her old peoples home. I saw another at £350K, I told the agent I thought it was worth £300K, and he was all over me to make an offer. It went a few months later for £295K. These were houses that needed a good deal of work i.e. new kitchen and bathroom. Some come on at realistic prices, and I know they will sell, and yup, a few days later they are SSTC.

If your price is too high, you can always take offers to get a feel for what people are willing to pay. I made some offers, being cheeky. I offered £280K on a £300K house that had started higher, got turned down, waited a week, then offered £290K which was accepted. It's an okay price, not great. £280K would have been good.

Orpheo

tyllwyd wrote: »

And that is why I never discuss house prices with know-it-all 11 year old mathematicians.

I understand. Don't fight the battles you can't win, huh?

tyllwyd

Orpheo wrote: »

I understand. Don't fight the battles you can't win, huh?

No, I just don't like being patronised by someone who knows nothing.

Orpheo

tyllwyd wrote: »

No, I just don't like being patronised by someone who knows nothing.

Oooh, cutting. You did the patronising precious:

And that is why I never discuss house prices with know-it-all 11 year old mathematicians.

Furthermore, you only appeared in this thread to do so. Where were you before post #20? You crusading forum avenger you. :rotfl::rotfl:

And apparently, contrary to knowing nothing, I have a sense of scale and an understanding of percentages that intimidates you. :eek:

Orpheo

Orpheo wrote: »

Don't fight the battles you can't win, huh?

Here I was very, very wrong. You clearly are a martyr.:dance:



Does anybody else find this smiley a little disturbing?

:grouphug:

tyllwyd

Orpheo wrote: »

Oooh, cutting. You did the patronising precious:

Furthermore, you only appeared in this thread to do so. Where were you before post #20? You crusading forum avenger you. :rotfl::rotfl:

And apparently, contrary to knowing nothing, I have a sense of scale and an understanding of percentages that intimidates you. :eek:

Umm - I never said you were patronising - I was referring back to the imaginary conversation with your mythical 11 eleven year old.

And where did the rule that you can't join a thread until post #20 come from?

But sorry to have touched such a nerve with you, I didn't realise you were so sensitive.

Caveat_Mortgagor

Back on topic now.

To the OP.... your own words were Clearly if there is a buyer in the area it is unlikely they will want to pay £15K more for a remarkably similar property ...


It sounds like you have good instincts, listen to them. Let me rationalise the thought process of the buyer for you. The less expensive house is in a close, you are on a through road. Other than that not much between your houses other than your higher price.

Speaking as a would be buyer - it depends how much quieter the location is -, but I'm probably like anyone else when I say I would pay as much as 10% more for a quiet close location than the arterial road feeding traffic through.

If you were in my area and asking more than a better situated property i would dismiss you as a kite flyer hoping to get more than your house is worth. There is a huge raft of houses that are apparently for sale local to me, of which only about 15-20% are at anything close to a sensible asking price.

I have a belief that if you go to see overpriced houses it makes the vendor think the price is in the right ballpark but the house didnt suit that buyer. It doesnt put the potential buyer in a strong position to negotiate down if you view when overpriced. So even if i did think i liked your house as well, I would try for the cheaper one, and then ignore your house unless it dropped to a level that was in line with the cheaper house.

You mentioned that the other vendor may be a motivated seller. If so this can only be bad news for you if you dont act quickly enough. Bear in mind that if you hang around for too long before dropping your price, it is possible that the sold price for the other property may appear on the land registry data. If the other vendors accept an offer below asking (current norms are 8-12%) then this will impact on the new price expectations of anyone waiting for you to drop your asking price. Worse still, you may find a buyer who later gets cold feet when this information becomes available.