Home selling - reducing the price

ruth_b1

Hi there,

I've used this site for years and although this is my first post, I find everyone's advice invaluable, so thanks! :T

I would love your advice on an issue I have at the moment.

My one-bed flat has been on the market since August initially for £89,950 and I've since dropped the price to £87,000. The home report value is £95,000. I unfortunately paid £105k for it 4 years ago but I guess my loss isn't as big as some other people's.

I'm not in any desperate position to move however I now have the option of moving into another flat for a couple of months, rent free, to allow me to save extra money, I estimate £1k p/month.

The estate agent (who're on a fixed commission unfortunately) wants to lower the price to £85k now however I don't see much point in doing this if not many people are looking at this time of the year. A new email alert will go out with the revised price so it seems like a bit of a wasted opportunity. Would I be better waiting till the new year to revise the price?

As with everyone, every £1k I miss out on affects what I can afford for my next property, selling for £85k and not £90 means £20k less of a mortgage for my 2nd property.

Any advice would be appreciated, this is the first time I've sold a property and the estate agents haven't been the best, they just want it off their books asap and aren't interested in getting the most for me. I don't know if it would be worth moving agents.

Ruth

DMFR

ruth_b1 wrote: »

Any advice would be appreciated, this is the first time I've sold a property and the estate agents haven't been the best, they just want it off their books asap and aren't interested in getting the most for me. I don't know if it would be worth moving agents.

Ruth

Change estate agents. Your current estate agents, as you have said, are not the best. You could end up lowering the value of your property more and more on the advice of the estate agents till someone does eventually buy it, but not at the price you would of liked, and in that time you are still paying the mortgage.

Have you had many people viewing the property, how long will this rent free offer be open for you, have you decided on what would be the absolute minimum you would accept? How much have other like for like properties sold for?

Mr_Moo_2

As above - the Agent has motivation to sell at any price, so they might not give you the best advice. But be careful with price - do your research in terms of what is selling in your locality and at what price. Check the T&C's carefullly for exit periods / notice requirements.

ruth_b1

DMFR wrote: »

Change estate agents. Your current estate agents, as you have said, are not the best. You could end up lowering the value of your property more and more on the advice of the estate agents till someone does eventually buy it, but not at the price you would of liked, and in that time you are still paying the mortgage.

Thanks for the reply DMFR. It cost £400 to put the property on the market with this agent but I guess I could make that up if I go with another agent who gets more for the property. I can also try negotiate a lower commission.

DMFR wrote: »

Have you had many people viewing the property, how long will this rent free offer be open for you, have you decided on what would be the absolute minimum you would accept? How much have other like for like properties sold for?

I've had 5 viewings. I realise my initial expectations to get in the early £90ks were too much now and I think I perhaps missed out on a few opps because of this. I would accept min. £87k now. A property next door identical to mine but needed lots of work done went under offer just before I put mine on the market and sold for £87k, others have sold for between £84-89k. I guess it's timing. The rent free offer is probably 4 months max (although i may be pushing my luck!) so I guess £4k savings.

LandyAndy

thecollege123 wrote: »

Hi there! My name's Andrew and I'm new here... hope to learn more from you guys..:)

Ok here's a quick lesson. Don't put the same post in 11 different threads. HTH.

ruth_b1

Mr_Moo wrote: »

As above - the Agent has motivation to sell at any price, so they might not give you the best advice. But be careful with price - do your research in terms of what is selling in your locality and at what price. Check the T&C's carefullly for exit periods / notice requirements.

Good points Mr Moo, thanks. Will dig out the T&Cs from the agent. I noticed that you can remove your property from the market for up to 28 days and the home report is still valid.

bryanb

Ruth, I don't understand how living in another flat will help you save. Surely your outgoings on the one you own will remain the same?

ruth_b1

bryanb wrote: »

Ruth, I don't understand how living in another flat will help you save. Surely your outgoings on the one you own will remain the same?

Thanks for the reply I should maybe explain my situation more.

I could sell the flat and move into the other rent free flat for a few months (the rental-free option is available until the spring). I can carry my mortgage to my next property (as my rate is fantastic) and add onto it - I'm allowed to pause my mortgage for up to a year.

Moving into the other flat would let me to save some money and take advantage of well-priced properties that need a quick sale as I will be chain free, etc.

Not sure if I've explained that clearly...!

MelaBella

LandyAndy wrote: »

Ok here's a quick lesson. Don't put the same post in 11 different threads. HTH.

:eek:



No comments

SleeplessinScandinavia

You mentioned 'It cost £400 to put the property on the market with this agent' - I would have looked for the kind of 'No Sale No Fee' type arrangement that always seemed to prevail when I last sold a house.

Having said that it took me four agents, and 18 months, before a buyer was eventually found. My penny's worth would be to take the flat off the market and try again in the spring - and rent it out in the meantime

Good luck!

bryanb

ruth_b1 wrote: »

Thanks for the reply I should maybe explain my situation more.

I could sell the flat and move into the other rent free flat for a few months (the rental-free option is available until the spring). I can carry my mortgage to my next property (as my rate is fantastic) and add onto it - I'm allowed to pause my mortgage for up to a year.

Moving into the other flat would let me to save some money and take advantage of well-priced properties that need a quick sale as I will be chain free, etc.

Not sure if I've explained that clearly...!

I think I understand a little better. You move into rent free after selling?
I thought selling was your problem