What to offer?

matt1987

Evening all

In a bit of a predicament. Iv seen two houses i like the look of. One is up for £229,000 and the other £249,000.

Now both i think are very overpriced. Iv look at previous house prices and the exact same houses both sold back in 2006. The one up for £229,000 sold for £221,000 and the one up for £249,000 sold for £229,000.

Now correct me if i am wrong, but wasnt there a "boom" on back in 2006 and house prices were at an all time high??

Were now in 2013 and i am sure house prices have fallen considerably since then?

Are they asking too much? What would be a good offer on both of them?

Any advice appreciated

Matt

DRP

matt1987 wrote: »

Evening all

In a bit of a predicament. Iv seen two houses i like the look of. One is up for £229,000 and the other £249,000.

Now both i think are very overpriced. Iv look at previous house prices and the exact same houses both sold back in 2006. The one up for £229,000 sold for £221,000 and the one up for £249,000 sold for £229,000.

Now correct me if i am wrong, but wasnt there a "boom" on back in 2006 and house prices were at an all time high??

Were now in 2013 and i am sure house prices have fallen considerably since then?

Are they asking too much? What would be a good offer on both of them?

Any advice appreciated

Matt

Where I live, the boom is NOW!

I would forget what they sold for in 2006. Do the research on what houses in the area are currently selling for (use Rightmove, Zoopla or Land Registry website) and work out your strategy from there. When setting asking price, most vendors would be happy to achieve around 95% of it. If their house hangs around they may even go lower.

Remember, if you really think you like a place you may need to pay what you perceive is 'over the odds' to secure it.

Duskylady

I agree only recent sold proces are going to tell you what properties are worth. The previous selling prices from 2006 are only useful as they tell you about the position and mentality of the seller. I.e. are they likely to struggle to sell for a lower amount an they bought. What will they perceive as a profit.

ukcarper

According to Land Registry the average house price in 2006 ranged from £159.7k to £170.7k and is now £162k that is for England and Wales. In the South East it was £196k to £209.8k and £209.7k now.

pawpurrs

As useful as these websites are they don't tell the whole story, some areas have increased whilst others haven't, they might have got. Bargain, might have totally re renovated etc.
I bought my house for £164 in 2009 and its just been valued by three agents at £275.

I bought it the day before repossession, and it was practically a wreck, no way would i sell any where near £165.

matt1987

Thanks for the advice.

In the end we decided to not offer on the one up for £229k We didnt feel comfortable with dealing with the vendor and thought it was priced too highly, not to mention the fact that the neighbouring property looked very very scruffy and not in with the standard of the area!

I was upfront with the vendor of the one up for £249k before asking to view it so as to not waste anyones time, and they just wouldnt be able to go down to the figures I could afford.

The hunt carry's on!

Matt