House priced above market average - should i proceed ?

J332

I have just had an offer accepted on a house, i should be filled with joy but i am not learnt late that it has been marketed 25K over the current market value for 2 bed houses on the estate. Yes it is nicely decorated but not to any extent that would warrant such a price hike.

What do i do ? Prices in the area have increased so if i pull out i may not find another similar property, yet if i continue i will worry it will fall down at valuation or that i have been taken for a ride/paid over the odds and may not recoup further down the line.

Note the property returned to the market a few days ago after the previous buyers mortgage fell through, due to undervalue ? Also seller works for the EA. All should have rung alarm bells !

Any advice gratefully received

csgohan4

Did you compare the prices before you offered???


If prices have increased in the area, have they done so to make your price more reasonable?


People get cold feet all the time, the question is, is the house worth x amount to you, if not then walk or ask for discount. Only you will know.

ManofLeisure_2

It is interesting that you say that the seller is an employee of the EA. Was this stated on the property details? - it should have been.

There is a property very close to where I live which is vastly over priced. The details show that the seller is an employee of the EA. To be honest, I've seen this situation many times.

I think csgohans4's post offers some shrewd observations. I would think carefully before proceeding.

csgohan4

ManofLeisure wrote: »

It is interesting that you say that the seller is an employee of the EA. Was this stated on the property details? - it should have been.

There is a property very close to where I live which is vastly over priced. The details show that the seller is an employee of the EA. To be honest, I've seen this situation many times.

I think csgohans4's post offers some shrewd observations. I would think carefully before proceeding.

Not to mention a conflict of interest. But like most things, it boils down to market forces. If it is priced high, it won't sell and it will be forced to reduce it depending on how quick it wants to shift the property.


What ever you do DO NOT use EA services such as broker, surveyor e.t.c They are generally a rip off and provide poor service.

J332

Hi
Yes i looked at prices on the estate for 2014 as this was the only data available on the Land Registry, prices showed upward trend but i couldn't find any data for the most recent sales.

I questioned the EA on 2nd viewing about the difference in price between the 2 two bed properties currently for sale and was advised that marketing price was due to the internal decor and position of the property on the estate and that the agent who took on the property was sure that the value could be achieved.

Only after submitting my offer did i think to ring around the other agents and found that those sold in the last 6 months sold for just under asking, 25K less than this one is being marketed for. Prices in the area have increased over the past two years with an influx of buyers due to co relocation.

Having pulled up the details of the last sale in 2014 it is clear that apart from general decor only the bathroom has been updated. I can not see how this could justify the price

As for conflict of interest, it was just a passing comment at the first viewing that any questions should be directed to the seller who works in the same office. Another companies EA also confirmed that the seller worked at the EA.


New to the forum so apologies for any error in etiquette

libf

Either the house is worth it to you, or it's not. Beyond that the only concern is if the mortgage company will lend what you need, and you won't know that unless you proceed with the valuation. So... you need to decided yourself whether you want to proceed.

Pixie5740

The fact that a previous buyer pulled out because the survey didn't match the asking price would ring alarm bells for me. Combine that with a similar property selling in the last 6 months for less as well as other 2 bedroom properties in the area being marketed for £25k less tells me the vendor is living in Cloud Cuckoo Land.

A lick of paint and some wallpaper does not add £25k of value to a property.

Personally, I would walk away before you waste any money on surveys and solicitors.

AdrianC

libf wrote: »

Either the house is worth it to you, or it's not. Beyond that the only concern is if the mortgage company will lend what you need, and you won't know that unless you proceed with the valuation. So... you need to decided yourself whether you want to proceed.

This.

You decided recently that it was worth the amount you offered.
You are worried that, if you pull out, you won't find anywhere comparable for the money.

Make your mind up.

If it's over-priced, pull out and offer on somewhere else.
If you can't, then it's probably not over-priced.

J_i_m

I think it's important to take what the estate agent / vendors say with a pinch of salt.

Last week I offered on a property but I also did my research. I found two same spec properties in the same street which had sold for more than 25% less than the asking price less than two years ago. Average price rises for those type of properties have been approximately 4% for the past few years.

I made my offers based on that research, but went in above 10% above those previous sold prices which I felt was already generous, they rejected, I increased my offer by 5k, very generous I thought. They rejected again and offered to accept 2k below asking price at which point I smiled politely, left my previous offer on the table and bid them good day.

That property has been on the market for a good few months, and still is now. I suspect it's mainly due to the vendors unrealistic expectations.

jbainbridge

If you are unsure at this stage - withdraw your offer and walk away. Don't worry about it you won't be the first one.

anselld

J332 wrote: »

it has been marketed 25K over the current market value

J332 wrote: »

Prices in the area have increased so if i pull out i may not find another similar property

These two statements are contradictory.

If you are confident that the correct market value is £25k below your offer then wait to get one at that price.

If you are worried that there is nothing better at the offer price then stick with this one.

It can't be both!