Any advice on getting the price right when buying a house?

suebfg

We're looking to buy a house and have looked at lots of properties. But I'm finding it difficult to decide if a house is worth what is being asked for it. I look at houses in the same area, zoopla etc but it is really difficult.

I've started doing a square footage calculation to work out the price per square foot. Maybe I'm over-analysing. What are your tips please?

suebfg

Thanks. I know it isn't foolproof (what is!) but it's just to give me an indicator.

hazyjo

Don't think square footage always comes into it. Even a tree lined street can add thousands where I've been looking! Compare against sold prices of similar nearby properties. Don't take any notice of zoopla 'valuations', and don't pay too much attention to what things are priced at to sell, especially if they've been on the market for a while.

I (predictably) had a RM alert set up for where I was looking. Lots were coming onto the market for around £330k and going within a week. Obviously that would give you some indication as to value (presumably near asking price) - and the EAs usually help too if you ring. Some will give you the agreed price, others might say 'very close the asking price'. Other houses up for say £330k that weren't selling were in need of work or had major compromises. A lot are still hanging around and will probably sell for a lot less.

Jx

suebfg

Thanks. I've only been using the square footage comparison to compare two properties on the same street i.e. to try to work out in my own head if one property is worth 5% more than another because it is bigger (with other factors such as more parking etc).

bryanb

Some say it's all down to location, could they be right?

martinsurrey

you sound to be on the right path, with your head screwed on.

I wouldnt use any one method as a house price bible, use many and build a picture of what you think its worth.

£ / Sq ft, sold house prices, rightmove activity (around me 40% of properties are sold within 14 days of hitting right move), time on market, should all influence your opinion, but one day you'll find one that ticks all the boxes you want and is priced at a price you want.

It took me and other half 6 months of looking and 4 properties offered on to find the one for us but we're so glad we didnt just jump on the first thing we found.

(FYI of the 4 we offered on, 1 we bought, 2 didnt sell - now rented out, and one got into a bidding war so we just walked away)

Davesnave

suebfg wrote: »

Thanks. I've only been using the square footage comparison to compare two properties on the same street i.e. to try to work out in my own head if one property is worth 5% more than another because it is bigger (with other factors such as more parking etc).

Have you considered aspect? Privacy? Potential to extend easily?

The list goes on. It's about much more than £/m2.

But at the end of the day, it's what you're prepared to pay that matters.

Two people might view a house. One will think "Lovely!" and the other will see £20k worth of work to replace the hideous mahogany UPVC leaded light windows and the outrageous red kitchen etc.

hazyjo

Consider which way the gardens face if they're on different sides of the street. A south or SW or west facing garden can add tonnes more to a property with a N facing one (some people won't even consider a N facing garden).

Jx

JimmyTheWig

suebfg wrote: »

Thanks. I've only been using the square footage comparison to compare two properties on the same street i.e. to try to work out in my own head if one property is worth 5% more than another because it is bigger (with other factors such as more parking etc).

The fact that you are having such troubles deciding which is the better value suggests they are both similar value to me.
You could always say to the vendors of the bigger place that you prefer theirs but would they price-match the one down the street?

I would make a list of the benefits of each one. Forget about value, this now becomes what it is worth to you.
On the cheaper property, what will that lower price mean to you? Lower monthly mortgage payments, presumably? Then put that as a benefit of the cheaper house. Work out how much cheaper it is and what you would do with that money.
Likewise, with the bigger house establish what benefits it would actually bring you.
So you might end up with the situation of (for example):
Room for a fish tank in the lounge and always able to park on our drive Vs an extra takeaway each fortnight but sometimes having to park up the road.

Only you can then decide which of those sound the better option.

suebfg

I was comparing the price of a house that had recently sold with one that is up for sale. The house that is up for sale is clearly worth more than the one that sold (we've been round both) - just a question of how much more!!!