Think House is V overpriced - what do we do?

gothgirl123

When spending as much money as you are on a property, I'd not feel guilty about offering so low especially in light of all of the work that needs to be done. We learned very quickly, if we didn't get this particular one, another one would come along soon enough, and it did!

That particular house was on for 3 months at £132,950 originally, then he reduced it to the £125,000, which is why we felt that our offer was low, but we're glad we didn't buy that property now

Monkey1977

DawnW wrote: »

Might the sitting tenant be problematic? Will you be able to get them out if you buy this house?

They are moving out - they are buying a house elsewhere.

blue_monkey_2

My friend is trying to sell in our village, she had 2 agents round, one valued at 250, the 2nd valued at 350 with the promise of 12 people on the books being interested. She went with the higher priced agent - as does everyone so I would take your chance, it could be well overpriced due to the agent they have chosen.

It seems to me that this particular agent around here is trying to make sure that the 'working classes' cannot afford to live here and because he gives a higher estimate everyone goes with him and he is the only agent with boards up in the village really.

I would not pay more than you want - or can afford being the main thing, something else will be around the corner - save your money for that price crash that is on the way. Looked in the paper this week (i can't afford anything, not even a mobile home around here but you have to keep on looking!!) and lots of cheap 'vacant possessions' or 'No Chains' available. What does that tell you!! If you do not need to move I would wait a bit longer and keep a watch on those advertisements as people are slowly but surely starting to lose their houses, or can't afford them, so are selling them cheap for easy money to get them out of holes. In an area where the houses are worth around 400k minimum I saw a 3 bed house for 202k with vacant possession this week in the paper. Still too expesnive for us but it is starting and it won't take long for the ripple effect to reach you - we are in Herts!

Sisyphus

Monkey1977 wrote: »

This I would have absolutely no qualms about. Selling prices in our area are currently about 95% of asking prices so i wouldn't see a £117k offer on a £125k property as cheeky - just a start for negotiating. BUT... I'm looking at putting in an offer that is £35k below asking price! Thats why I'm nervous!

Wait for the agent to contact you.

When they do, tell them that you can't make an offer because the asking price is too high and you do not wish to come across as offensive.

If they're still interested make your offer.
Leave it with a time limit, otherwise they'll only use it to leverage other buyers into making better offers.

Good luck.

Monkey1977

Sisyphus wrote: »

Wait for the agent to contact you.

When they do, tell them that you can't make an offer because the asking price is too high and you do not wish to come across as offensive.

If they're still interested make your offer.
Leave it with a time limit, otherwise they'll only use it to leverage other buyers into making better offers.

Good luck.

That was actually one of the things I was worried about - I don't want the EA using my offer as a bargaining tool with other potentials. Your advice helps - thanks. We have another house we would offer on but the vendors are away until next week so I would tell the EA we need an agreement by then...

carolt

blue monkey - where in Herts are you? I'm in Herts too and would love to see what you're suggesting, but round here (village near St Albans) prices just seem to be going ever upwards and very little new for sale, so what there is is snapped up immediately. Hope you're right, as would be FTB.

Ticklemouse

Don't be afraid to tell the EA that you believe the house to be over valued.

I recently viewed a house on the market for £296k. The vendor enthused about her italian tiled shower room and her extension at the back - in reality the house needed gutting. I'm sure the bath and shower rooms were lovely ...... in 1972!! It needed a complete rewire, every bathroom/loo needed replacing, kitchen knocking through to the DR, new carpets and curtains throughout and almost every wall was woodchipped! When the EA rang, I ended up saying it was over-priced and £250k was the most I would offer (although I did say I wasn't yet in a position to offer) She then told me that I had been the 3rd person to say £250k was about right (it was the vendor's instructions to go on at that price)

Trouble was, the vendor liked me and in 10 minutes, the EA rang me back and said I could have it for £250k!! As it happens, didn't really want it and I was 3rd in the queue - so it's gone under offer to one of the others.

However, on the other side of the coin, a house across from me has been put on the market at approx £50k over true market value (3 bed semi) The vendors aren't that bothered about moving, just seeing if someone will pay, so they are sitting waiting for asking price. It went under offer this week :eek: See, location, (along with a new bathroom) has won the day

Monkey1977

Ticklemouse wrote: »

The vendors aren't that bothered about moving, just seeing if someone will pay, so they are sitting waiting for asking price. It went under offer this week :eek:

This is what worries me about this vendor and a couple of others we have seen. Maybe, as her tenants have recently given notice, she's just speculating to see what she could get. Is there any way to find out if this is the case?

RufusFrog_2

I would be very surprised if the prices have gone up in this area by more than 10% in the last eighteen months (The villages between MK and Northampton are more expensive than the towns but I haven't noticed a huge difference in percentage price increases in the last couple of years). £185k + 10% is £203,500. If the treatment by the tenants has devalued the property then a figure just below the 200k mark would seem about right. I think the sellers are trying it on - they may have insisted on a higher asking price than the agent recommended or the agent may be off the mark (everyone is tempted to go with the agent who suggests the highest price!).

I think you should drop the hint that you know how much it sold for last time (it was quite probably knocked down a bit because it needed 'work' that the current owners clearly haven't done) and make an offer in the low £190s and be prepared to come up a bit.

As someone else said buying a house is a bit like playing poker, you need to keep your cards close to your chest and hope you can call the other player's bluff. If the vendors are sensible they will realise that it is better to sell at a lower then expected price than lose money on an empty BTL. Not everyone behaves rationally when selling houses though.

We're buying a house that was on the market for £375k. We offered £335 and upped it to £340 which was also rejected. We managed to sweat it out (let the EA chase us) and claimed we would offer on our cheaper second-choice house rather than increase our offer (true but good tactic anyway). About a week later the £340k was accepted.

Monkey1977

Thanks Rufus,

We do have another cheaper house that we would offer on so I'll use that tactic. It seems we have quite a bit of choice in the area and price bracket we are looking in.

Interestingly I've just booked a viewing at another place that I think is over-priced on the same road we are renting on. Because I know the houses well I emailed the agent to ask why it was priced at £35k more than they sold for last year... I said it was a shame as I like those houses but that £225 was a silly price.... he admitted his valuer was half blind and that they would be looking for less... we're viewing tomorrow.... Madness!