Found a house how much to offer...

Yasmin02

Hi

I have found a house 2 bedroom in Chadwell Heath Greater London. The asking price is 215,000 how much should I offer? I have looked on nethouse prices and in 2006 the house next door sold for 169,995. I really like it but am unsure how much to offer. According to the EA it has come back on the market as the other sale fell through due to the buyers solicitors (although i am not to sure how true this is)

Also another question is a house better than a flat in temrs of return?

Thanks for your help in advance.

Yasmin

Doozergirl

The 'buyers solicitors' is not even a reason, let alone an adequate one for a sale falling through. You need to dig deeper here because the problems uncovered by that buyer will have repurcussions for you and may affect the value. It may be absolutely nothing but I wouldn't start spending money to hit the same stumbling block as the people before.

You can only obtain your own valuation of a house by research. On face value, next door selling for £169,995 seriously undermines their asking price. Is next door smaller or was is delapidated?

You need to look at lots and lots of details and view lots and lots of houses and once you have enough information to start drawing comparisons, you will develop your own opinion on what this house is worth. That is the maximum you are prepared to pay. I would start negotiations at least 5-10% lower than that price.

Yasmin02

Hi

Yes you are right I was a little confused by why the EA told me that too as I thought that the buyers solicitors would have nothing to do with it too. The EA said that the buyers solicitors were rubbish and hence the sale fell through. You know EA's they will tell you anything to sell the house!

The one next door is exactly the same that is why i was a little confused why it was so high the asking price for the house. Its only two bedrooms it is not even three bedrooms. The EA tried to say to me oh its ready to move into so thats why it is quite highly priced! It is true but it still does not justify the huge difference in price.

Thanks for your help.

Yasmin

brasso

If the house next door sold last year for 169K, then 215K is an outrageous value.

I know we get excited when we find a place we really like but you have to stay rational.

The thing about the house being "ready to move into" -- is the implication that the house next door wasn't? If it was a total wreck without a roof, then fair enough. If it just needed redecoration then around £180K would seem like a fair value for the house you've seen. If you factor in HPI you may end up around £195K. Given the limited info, anything over £200K would seem to be unwarranted.

I would have no qualms at all about knocking on the house next door and asking them how much work needed doing, and go from there.

Doozergirl

Is it a relatively new build?

I've had a look for 2 bed houses in Chadwell Heath and you won't get one for £169,995! £215,000 is fair, though I'd hope it would be semi for that price. There's a few largish terraces cheaper than £215,000.

Yasmin02

Hello

Here is the link to the property

http://www.rightmove.co.uk/viewdetails-6676146.rsp?pa_n=2&tr_t=buy

This is number 54 and number 57 in 2005 (sorry got the date wrong) went for £162,500. Is is reatilstic that the property has gone up by so much given thta we are now in 2007? I asked the estate agent how old is was and he said it was not that old but i will investigage this further with the EA. So would you feel thta starting at 190k a fair offer or should i start a bit higher than that. Any advice would be greatly appreciated.

Kind Regards

Yasmin

Doozergirl

I thought it was that one. It is reasonable that a house has gone up that muvh because all you can buy for that price now is a flat and the quite a number of sold properties that were advertised a little under the price of yours, but you are a semi and have a garage and parking which is nice and hopefully the fat it is pretty new means you won't have any serious maintenance issues for a while yet.

I'd offer £200k BUT I'd only increase in 2k increments over the period of a few days. Try and seal it a few grand under £210k. Yo have to play it hard though, you must never offer again in a phonecall where an agent calls to tell you that on offer has been rejected and once you've offered twice, ask how much the vendor would be prepared to accept. Then you still come in under.

Make sure you have your mortgage AIP to prove you can afford it. It shows you as a serious prospect.

brasso

Well I admit I don't know Chadwell Heath but if the property you're interested in has increased 32% more than the other in 2 years, I would want to know why. That is way over average HPI. If the other house needed extensive rebuilding/renovation then fair enough.

Yasmin02

Thanks for everyones advice. We have just drivne past the house we are looking at and a house a couple of doors down is now on the market for £235k but it is three bedroom house though. Surely an extra bedroom can't be worth thta much more? Now i am really confused with what to offer!

Any advice would be most welcome.

Yasmin

danm

i sold my 2 bed in CH for £210. Completed 3 weeks ago therefore probably say £215 is far as this looks like it has a garage.

We have moved along the highroad into Romford/Havering and got about 3x the space for £20K more.

danm

For reference. This house is opposite my old one and is up for £212K

http://www.rightmove.co.uk/viewdetails-14598916.rsp?pa_n=1&tr_t=buy