House sale logic

moneyistooshorttomention

That's the thing though, re the different circumstances. When I sold my last house (ie last year) I knew what the house was worth and no-one was going to get it out of me for less than that (and they didn't:)). However, very similar houses were nearby and one sold for rather more than mine (and particularly fast at that) because it was all newly and fashionably done-out. Two others were giving me extra grey hairs because they were being sold under value.

Of the houses sold under value, one was being sold a little under value because they were after a particularly quick sale. The other one was being sold quite a bit under value because they were obviously desperate.

So, there you are = 4 very similar houses in the same time period and 2 after a fast sale, 1 desperate and only one of us (ie me) determined to have correct value and prepared to hold out for a reasonable length of time to make sure I got it.

movilogo

Just assume house value follows no logic and you will never be upset

DRP

movilogo wrote: »

Just assume house value follows no logic and you will never be upset

yes put succinctly that is what I was getting at. i.e. "market value" has little relevance when talking about individual sales as it amounts to an average of the price for that type of property in that condition in that location...

AndyT678

DRP wrote: »

yes put succinctly that is what I was getting at. i.e. "market value" has little relevance when talking about individual sales as it amounts to an average of the price for that type of property in that condition in that location...

No. Other way round. The market value is specific to the individual item and loses relevance when aggregated.

If I have 2 paintings of the Mona Lisa; 1 by Da Vinci and 1 by me each has a market value but to add them together and take an average is meaningless.

Mallotum_X

HAMISH_MCTAVISH wrote: »

No.

A house is worth whatever value both a willing and able buyer and a willing and able vendor can agree on.

Without both parties agreeing to the sale, there is no sale, and therefore what a potential buyer thinks it's worth is of no relevance.

A sale takes place at whatever value both can agree. But if a vendor wont agree it doesn't make it worth any more.

House is worth what someone will pay. Sale only takes place if the vendor "agrees" on the worth.

If vendor thinks his house is worth £1m but only gets offers at £100k then its not worth more than £100k regardless of vendors view.

movilogo

Not just vendor and buyer - the bank/lender also needs to agree on the price (unless cash buyers). A bank won't lend £200k for a house which has market value of £100k even if both buyer and seller agree on £200k.

Alphamare

The difference you are seeing is a) 2006 boom time and b) the property was a new build which usually sell less well the second time. There is a premium for new builds. You can't compare sales prices in 06 with now.

moneyistooshorttomention

Not to forget the personal factors. I was only being told earlier today the reason why a nearby house is up for sale for noticeably more than its worth. Basic reason (ie there are other people trying to influence this as well.....) is down to its a Divorce Sale and therefore there are two people both trying to get as much as possible out of this particular house (ie regardless of whether its worth that much or no).

Running_Horse

What on earth are you going to do when you have finally completed?