How much do investors knock off the house price on average?

Generali

In reply specifically to the OP, I think that it's not really an answerable question.

If someone is buying a house then I'd expect them to know in pretty intimate detail what any given house on any given street is worth, excluding the odd unusual place for the area.

When I've bought in the past I've made sure I understand that level of detail and search out places that look cheap to see why the seem cheap to me: perhaps I'm wrong and perhaps the seller is but it's always worth finding out.

I sold a small 2 bed flat once. Next door wanted £150,000 for his and it had been on for ages so he was obviously wrong. I put mine up for £145,000 and sold shortly afterwards for the asking price. It took forever to settle but that's another story.
Our flats were identical (mine was more recently refurbed but done on the cheap) yet had different asking prices.

stanley2012

The house has only been on the market for 5 weeks and none of us are in a chain so we are all cash buyers so to speak. The area has no other equivillant property around here and is a well situated area for motorways, schools etc. Property has been static but is starting to shift now and same property on the street sold for 10k more than we are asking only last may. I cant take too much of a hit or I cant afford to purchase the next property.

IveSeenTheLight

stanley2012 wrote: »

The house has only been on the market for 5 weeks and none of us are in a chain so we are all cash buyers so to speak. The area has no other equivillant property around here and is a well situated area for motorways, schools etc. Property has been static but is starting to shift now and same property on the street sold for 10k more than we are asking only last may. I cant take too much of a hit or I cant afford to purchase the next property.

How much interest is in your property?

robmatic

the_flying_pig wrote: »

it's not about emotion so much as it as about practical considerations - someone who's in a chain etc will usually have to complete, exchange, etc by particular dates or risk everything falling through & needing to start the whole rigmarole of buying & selling again. this gives a BTL-er buying from an owner-occupier the whip hand in any negotiations.

a BTL-er who's buying can afford to wait for, well, as long as it takes really.

The same applies to a FTBer.

In fact, I would suggest that an FTBer is generally speaking in a better position than a BTL investor (deposit size being equal) as finance is cheaper.

the_flying_pig

robmatic wrote: »

The same applies to a FTBer.

In fact, I would suggest that an FTBer is generally speaking in a better position than a BTL investor (deposit size being equal) as finance is cheaper.

That's usually not true in my experience.

A FTB-er who has told his landlord that he's going to move out quite often can't just extend his contract by another three weeks or however long it takes to sort things out - you're typically talking about initially signing up to 6 months +, maybe with 2 month notice periods... and of course delay might mean there's a need for the FTBer to move from his original rented house to some kind of short-term solution before being able to buy... and moving itself involves both a monetary and, er, time and effort cost.

Whereas a BTL-er is totally flexible, doesn't really give a damn when the deal goes through. Of course, there is a potential upside to this, e.g. if there's an unavoidable delay further up the chain, a BTL-er might be prepared to wait for a very long time in a way that a FTB-er won't... but as stated earlier, there's a strong potential downside.