What would you do- overvalued flat?

Booge

Hi I have put in offer of £360k on 2 bed flat in Uxbridge in london Borough of Hillingdon

Zoopla estimates it is worth 402k.

Bank's surveyor thinks it is worth £360k

However have now found out from solicitor that whole block of flats is owned by an investment company that bought the flat in job lot of 700 other flats in london with this one being transferred at price of £325k in December 2015. They bought them to sell in immediately. Prices have not gone up in Uxbridge since Dec 2015.

This suggests I am paying over the odds by 35k

I am now getting my own surveyor in to value it. Do you think this is sensible approach?

What would you do?

2 flats in the block have gone but rest are still in the market which is giving me doubts.

Many thanks

Jonathan

HappyMJ

The bank will usually agree the price you offer is fair and reflects the value of the property.

The investment company may have got a significant discount (10%) for buying 700 all at once so your offer of £360k is probably fair value.

dc197

Above advice is good. One professional valuer already says 360k is fine, you may see no variation by hiring another to do the same job.

frugalsmurf

As someone else said, they possibly got a discount for buying so many. Or maybe they just got a good deal-knowing their real value.

robatwork

Zoopla is worse than a random valuation by some herbert on the internet.

What have other flats there gone for?

ReadingTim

What the current owner paid for it is irrelevant unless of course you travel back in time and outbid them.

Do let us know how that tactic works out for you.

Mossfarr

'Properties are worth what the highest bidder is prepared to pay' - especially true in the London Area. If you aren't prepared to pay the asking price I'm sure there will be plenty of desperate buyers who will!

AnotherJoe

Prices have not gone up in Uxbridge since Dec 2015.
This suggests I am paying over the odds by 35k
=====

Not necessarily. Did they pay £35k under the odds perhaps?
Have you looked at sold prices of similar flats in the immediate area since around that time?
Plus, surveyors are normally on the conservative side, so if one employed by the bank thinks its £360k I'd be happy you were in the right ballpark.

Hoploz

I'd be asking for a good discount if I was buying 700 of anything

hazyjo

There would have been no point in the investment co buying the flats to sell if they weren't going to make a profit. Of course they would have got a good deal/job lot.


Compare price with similar sold properties and establish a price from that.


As above, Zoopla will just add/subtract a percentage taken from the local market's performance. Cannot be trusted for a valuation. It overvalued a house I once bought by nearly £200k. Once I bought it, they valued it at what I'd paid. If prices would be worked out mathematically by a computer, we'd do away with all the EAs...


Jx

martindow

hazyjo wrote: »

we'd do away with all the EAs...

What a tempting idea ...