How to estimate market value for unusual house occupied by its builder?

scarletjim

I've just been to view a house which was built in 2006 by the people currently living in it. It is a detached 4-bed property sitting on a plot of land amongst lots of terraced 2-beds, so completely different to them obviously. How on earth can I estimate what a fair price for the property would be? I know any property may be worth whatever you will pay for it, but no one likes getting ripped off, plus if I pay over the odds then it could be a problem for the mortgage lender and also when it comes to reselling...

I've tried to judge on the basis of similar properties nearby, but this is such an unusual place that it's really had to judge. It looks expensive, but because they currently live there themselves, it has no expense spared, it is really roomy and luxurious (well to me lol), whereas most modern builds seem to just cram as much as possible into a tiny space just to get more money from the development.

Anyone got any bright ideas of how I can estimate a fair price?

GAH

The price will be whatever you feel its worth to you.

The fact that it is a large house situated in between 2 bedroom houses would personally put me off all together, and depending on when you look to sell this will probably have an impact on you selling price.

IF you are staying longer term you maybe ok with price, but if your staying shorter term you could lose money.

googler

Calculate a price per sq metre for the surrounding properties and see if that shows a consistent figure

Calculate a price per sq metre for the nearest comparable properties and see if that shows a consistent figure

Maybe average out the two

Apply the figures derived here to the target property's size for an approximation

Have a casual word with a local surveyor and see what he would say for a 'finger in the air' guesstimate, or commission your own valuation survey from a local surveyor. Ask the surveyor if he thinks the ratio of the square metre figures would be a realistic approach, if he would derive a figure the same way, or not.


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princeofpounds

I would try an area-based calculation too. However, bear in mind it is not a linear relationship; two beds are not twice as expensive as one beds, and so on.

I am sure there will be an element of 'best house on a bad street' syndrome, which may suppress the price a little. Not saying the street actually is bad, but future buyers, just like you, will have a little more uncertainty over value as they cannot point to a number of similar examples.

But don't take that too far. You are buying what you are buying, and I would happily get what I want in a house 5% cheaper as long as I was happy with the location.

scarletjim

Ok so looking at similar properties within 15 mins walk, I'd say it's quite a bit over-priced. Those similar ones are about £290k-£320k asing price. Admittedly this one is better because a). it is sligtly neaer to town, and b). the finishes are much better (presumably because the builder has built the place to live in thempseves for the last 6 years) - but I'd say it's probably worth about £330-340k market value (I'd pay £350k, but I won't tell them that obviously). But that's just my assessment - I might be completely wrong!

What should I offer? It's up for £375k, and only been on market a few days - would £325k be derisory and put them off dealing with me altogether? Should I wait a couple of weeks and risk losing it? (Presumably sellers are optimistic about getting asking price in the first week or two?)

dimbo61

Does it tick all the boxes for the house you are looking for.
7 years ago we viewed about 15 houses in one week as our property went on the market on thursday, first viewer on friday ( sold sat morning )
We walked into our current home after looking at the details and it felt right ( Know what I mean ? )
4 bedrooms, 3 bathrooms, double garage and parking for 5/6 cars on the drive, rural town in cheshire with good schools, shops, pubs and great transport links.
Got the price down below the 3% stamp duty and love every minute in our home.
£325K is a good price but it all depends on how much deposit you have and what the valuation is from the surveyor !

agrinnall

What's the value of the 2 bed terraces around it? If they are a lot less, which I guess is pretty likely, then that's the price band that people will be looking for in that area. That could work in your favour when it comes to making an offer, but will work against you when you want to sell.