Listing prices vs. sold prices

Bossworld

Just as a quick caveat at the start of my post, this isn't meant as a moan, just a general question to ask for guidance.

For reference we're based in the North East where it would seem sold prices haven't risen as much as other parts of the country.

We've just accepted an offer on our house, and are in the process of finding where we want to buy. The problem I'm struggling with is the asking prices versus what others on the street have gone for. There's a difference of up to about £30-£35k between the most recent sold price (anywhere from the last 6 months to a year ago), and what they're advertised at now.

They're all very similar 1930s semis with a garage, some of which have already got a conversion over the garage.

We made an offer of £199k today on one that's up at £230k and were told by the agent that it's nowhere near what they're after - fair enough that's what I was expecting. When they called back, I was told that £222k to £225k would do it - realistically we'd be happy going up to about £208 max, which is just under 10% off the asking.

In the last two years, for the other four on the street that have sold, they've gone for £186k in 2015, another one for £185k in 2014, then another 2 at £202k and £215k respectively earlier in that year.

I could understand it if the area had risen that much in the space of 6-12 months, however...

One on a parallel street we saw a few weeks ago was listed last year at 195,000, then taken off. It was put back on in Feb 2016 at £209,999 with a different agent, then dropped to £199,999 about a month later. It's since been taken off as their purchase has fallen through, but similar properties on that street have gone for about the £180k mark.

For reference, there's another pair just round the corner that have both been listed at 205k - one is huge but needs far too much modernisation, the other was closer to the main road than I'd like.

I know a house is only worth what someone is willing to pay for it, but am I alone in feeling stupid ringing up an estate agent and going in at 10% under knowing that it's close to the recently sold prices on the street, but absolutely miles away from the current asking?

Andypandyboy

Out of interest, how much under your asking price did you accept?

AnotherJoe

Never forget there can be a big discrepancy between what a property is worth ( as measured by what people are willing to pay and by similar houses ) and the inflated it over hopeful price that a vendor may think it's worth or what they want. So you may well offer a "fair price" and be turned down. In which case you will presumably walk away.

I suggest you offer a few £k under your 208k and then when that's (most likely) rejected offer a last and final £208k to the EA so it's clear you aren't going to be continually edging up towards their price. They will,probably reject it but no point paying more than you think is reasonable in an area where prices aren't rising.

melstar11

Sound advice there. I would also make it clear why any revised offer you make is not as close to the asking price as the EA has said is needed. Remember that the agent is relaying what the vendor has said.

Bossworld

AnotherJoe wrote: »

Never forget there can be a big discrepancy between what a property is worth ( as measured by what people are willing to pay and by similar houses ) and the inflated it over hopeful price that a vendor may think it's worth or what they want. So you may well offer a "fair price" and be turned down. In which case you will presumably walk away.

I suggest you offer a few £k under your 208k and then when that's (most likely) rejected offer a last and final £208k to the EA so it's clear you aren't going to be continually edging up towards their price. They will,probably reject it but no point paying more than you think is reasonable in an area where prices aren't rising.

Fully understand where you're coming from, I'm just concerned that with the agent suggesting £222 to £225 would do it, me coming back with another offer of say £206k would just look like I'm not listening?

Appreciate it's gamesmanship on both people's sides and that the agent is acting on the vendor's behalf and not mine. But given the other prices in the area, even if it's not this particular area, I don't want to build a reputation of offering stupid amounts with only a finite number of agents available. Equally, I'm not keen on paying over the odds.

melstar11 wrote: »

Sound advice there. I would also make it clear why any revised offer you make is not as close to the asking price as the EA has said is needed. Remember that the agent is relaying what the vendor has said.

I did mention the sold prices plus the other house on the parallel street and the two others up at 205 as the reasoning for my (opening) offer. Would you say it's still a reasonable point to stick to or am I just wasting everyone's time?

Cheers folks. The daft thing is in 6 months' time, everything that's sold in the spring will have the land registry prices up and clarify it once and for all, but that's the benefit of hindsight.

Going to give it a few days and hope a couple of others might come on the market yet.

Another one we've come across a mile down the road was purchased last year for 40k less than they're currently listing it at, less than 10 months later. I'm all for trying to get the money back that you've put into a place, but I doubt they're going to get it.

AnotherJoe

Fully understand where you're coming from, I'm just concerned that with the agent suggesting £222 to £225 would do it, me coming back with another offer of say £206k would just look like I'm not listening?

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Not if, as you have already said,you point to other sales in the area for comparable houses being in this region. I wouldn't worry about getting a "reputation" they aren't going to turn you down later if for sake of argument you offer full asking on a place that meets what you want at a price you think is reasonable. "Sorry we can't accept full asking from you as you previously wouldn't match other vendors unreasonable expectations"

Give it a go at £205 and a final at 208. You never know if no other offers come in over the next few weeks and the vendors find somewhere they desperately want at a low price they may be more amenable. I don't see what you've got to lose.

Wassa123

It depends on the estate agent.

Here one agent lists the asking price high and they either reduce it later or accept offers under the asking price.

Another agent lists it really cheaply, and everyone compares it to others on the market and it gets loads of interest and goes for way over the asking price.

Cakeguts

If the houses are on at 30 to 35K over what anyone is willing to pay for them then they won't sell so there is no rush.

alchemist.1

Sometimes the sold prices don't reflect what is happening the market in that period of time. EA's might be receiving offers around the figures quoted for other properties.

Bossworld

Thanks all, lots of food for thought.

Cakeguts wrote: »

If the houses are on at 30 to 35K over what anyone is willing to pay for them then they won't sell so there is no rush.

alchemist.1 wrote: »

Sometimes the sold prices don't reflect what is happening the market in that period of time. EA's might be receiving offers around the figures quoted for other properties.

I've been watching the market in the area since February and houses are seeming to go as 'under offer' after a couple of months. To both points though, without being outbid on something, I guess there's no real way of knowing what the current actual 'sold' prices are.

eddddy

Bossworld wrote: »

Fully understand where you're coming from, I'm just concerned that with the agent suggesting £222 to £225 would do it, me coming back with another offer of say £206k would just look like I'm not listening?

If you want, you can change the dynamics of the negotiation by saying something like...

I'm not prepared to go to £222k, but if the seller decides to reset their exceptions closer to the £200k or £205k, give me a call.


So the ball is in the EA's court, to contact you. (The EA will probably relay what you say to the seller anyway.)