Asking Price 280k Vs Budget of 250k

cwcw

A house we would like to offer on has an asking price of £280k. There are a number of similar properties in the area, priced around £250k, but this has a much better garden and is slightly bigger inside. It has a newish kitchen but a really old bathroom. The others are still sticking around despite being lower priced.

The house has only been on the market a few days. Our position is sold up and living in rented, so deposit ready and mortgage already agreed for a £250k purchase that fell through. Our budget is £250k but we would like to get slightly below that to allow some work. The asking price is around 20% - 30% higher than sold prices on the same road in 2006. There haven't been many comparables since then. As an average for the area as a whole, sold prices are down 6% on 2006.

Given the above, what would you open at?

PS. Vendor's position is downsizing. They have a house lined up at c£210k which is what spurred on putting their house up for sale.

justjohn

210k ...ouch lol

they prob will not drop much on the price at this time.(so more than likely you are going to have a long wait)

J_J_Carter

The asking price is around 20% - 30% higher than sold prices on the same road in 2006....Vendor's position is downsizing

Sounds like they haven't noticed that prices have dropped and are pricing on what they think it 'should' be worth.

No harm in sounding out the EA on how quickly the vendors now want to move on, but faced with the reality of what they'll get, they may just decide to stick.

P.S. Rightmove link?

andy.m_2

Our realistic budget when we moved was 250k.
Busting stamp was a real psychological barrier for me and it would have to have been something amazing to even consider going over.

So we looked at all sorts from 235 to 300k.
I was genuinely astonished that people priced at 265k honestly thought they would get 265.
We offered on at least 4 houses between 265 and 280k, all our offers were at stamp, none were accepted, not one.
There are some crazy people out there who are a little out of touch, maybe I'm one of them though but I always believed that an asking of 265-280 meant that they wanted to see 250 and didnt want to !!!!!! about at 230.

justjohn

i offered on a house the day it was put on market 60k below asking price(offered 110k). Left offer on the table, just over 6 months later they took 114k from me.

Its just a big haggling game..

franklee

cwcw wrote: »

The asking price is around 20% - 30% higher than sold prices on the same road in 2006. There haven't been many comparables since then. As an average for the area as a whole, sold prices are down 6% on 2006.

Given the above, what would you open at?

PS. Vendor's position is downsizing. They have a house lined up at c£210k which is what spurred on putting their house up for sale.

Do you mean an estimated comparable sold price in 2006 was about 200K and now it's asking average 25% higher than that at 250K? If prices are now 6% lower than 2006 then shouldn't it be about 188K? If so asking 250K and settling at 188K seems a tall order to me. Any particular reason why you want to overpay based on your own reasoning. Or maybe I've got my sums confused today as that's a big gap that doesn't seem compatible with the downsizing figure.

ukcarper

andy.m wrote: »

Our realistic budget when we moved was 250k.
Busting stamp was a real psychological barrier for me and it would have to have been something amazing to even consider going over.

So we looked at all sorts from 235 to 300k.
I was genuinely astonished that people priced at 265k honestly thought they would get 265.
We offered on at least 4 houses between 265 and 280k, all our offers were at stamp, none were accepted, not one.
There are some crazy people out there who are a little out of touch, maybe I'm one of them though but I always believed that an asking of 265-280 meant that they wanted to see 250 and didnt want to !!!!!! about at 230.

I suppose it depends on how realistically the house is priced but in this day and age where most people expect a discount I would not market my house at £265k if I wanted something over £250k.

ukcarper

franklee wrote: »

Do you mean an estimated comparable sold price in 2006 was about 200K and now it's asking average 25% higher than that at 250K? If prices are now 6% lower than 2006 then shouldn't it be about 188K? If so asking 250K and settling at 188K seems a tall order to me. Any particular reason why you want to overpay based on your own reasoning. Or maybe I've got my sums confused today as that's a big gap that doesn't seem compatible with the downsizing figure.

I read it that the sold prices in 2006 were between £224k and £196 as the asking price is £280k, so if they are now worth 6% less they would between £210 and £184. So if the house is comparable to the ones sold it does seem overpriced. As we don’t know anything about house we can’t be sure and there could be other factors involve.

cwcw

franklee wrote: »

Do you mean an estimated comparable sold price in 2006 was about 200K and now it's asking average 25% higher than that at 250K? If prices are now 6% lower than 2006 then shouldn't it be about 188K? If so asking 250K and settling at 188K seems a tall order to me. Any particular reason why you want to overpay based on your own reasoning. Or maybe I've got my sums confused today as that's a big gap that doesn't seem compatible with the downsizing figure.

Sorry, the asking price of £280k is about 20% to 25% higher than similar properties sold for in 2006, ie. they sold for around £220k and £235k. Sold prices in the postcode as a whole are down 6%, so I'd expect to pay less than the 2006 ones, but priced at £280k that's not going to happen. Asking prices are 12% higher than 2006 (stats from home.co.uk). I think it's what Brit calls the delusion index?

The 280k one has a bigger garden, but hard to value that. We're thinking of offering £240k?

getmore4less

If there are similar at £250k either they are realistics(not if sticking) or they are expecting lesss say £225 have a look at a few and see what offers have been rejected if non are showing at sold prices.

Then ask yourself what has this place got that makes it worth more and how much more to you.

Go look and feed the agent with the we will be looking at offers below £250k give us a call when they will consider them I think thye need to be more reallistic and show them the others you have been looking ta that are allready comparible and below £250k.


you have to remember the 6% is and average there will duffers and gooduns that are either side of this.

ukcarper

cwcw wrote: »

Sorry, the asking price of £280k is about 20% to 25% higher than similar properties sold for in 2006, ie. they sold for around £220k and £235k. Sold prices in the postcode as a whole are down 6%, so I'd expect to pay less than the 2006 ones, but priced at £280k that's not going to happen. Asking prices are 12% higher than 2006 (stats from home.co.uk). I think it's what Brit calls the delusion index?

The 280k one has a bigger garden, but hard to value that. We're thinking of offering £240k?

Looking at something like nethouseprices.co.uk can you see what similar houses have sold for recently and where did you get the 6% from.