Reasonable increase in house price in 10 months?

phatbear

Have you had a chat with a mortgage adviser as you may find it very difficult to get a mortgage if the house you are looking to buy has only been owned for 10 months

wjr4

phatbear wrote: »

Have you had a chat with a mortgage adviser as you may find it very difficult to get a mortgage if the house you are looking to buy has only been owned for 10 months

I never even thought about this to be honest.. Why would this be an issue? Sorry .. First time buyer so I am a bit naive when it comes to buying a house!

AdrianC

rjw4 wrote: »

I never even thought about this to be honest.. Why would this be an issue? Sorry .. First time buyer so I am a bit naive when it comes to buying a house!

Six months is normally the cut-off below which lenders will run. The logic is that if the previous owners are selling so quickly, there's very likely to be a good reason.

As far as the original question goes, it matters not one jot what the previous people paid when. That's utterly irrelevant to everybody but the buyer and seller in that last transaction. The ONLY thing that matters is whether it's a price you're prepared to pay for that property, in that location, in that condition, today.

glasgowdan

AdrianC wrote: »

Six months is normally the cut-off below which lenders will run. The logic is that if the previous owners are selling so quickly, there's very likely to be a good reason.

As far as the original question goes, it matters not one jot what the previous people paid when. That's utterly irrelevant to everybody but the buyer and seller in that last transaction. The ONLY thing that matters is whether it's a price you're prepared to pay for that property, in that location, in that condition, today.

Yes, in your imaginary world. But sold prices are highly relevant and important to every buyer I've ever spoke to; nobody wants to feel ripped off. Previous sold prices are part of the info used by agents and surveyors when valuing a house too.

wjr4

glasgowdan wrote: »

Yes, in your imaginary world. But sold prices are highly relevant and important to every buyer I've ever spoke to; nobody wants to feel ripped off. Previous sold prices are part of the info used by agents and surveyors when valuing a house too.

That's one of my main issues. The other issue is paying asking price and the mortgage valuation is a lot lower - and the price that I feel it is worth & then we have to make up the difference. We aren't looking at properties that are way over our budget but I thought maybe this property, which does clearly need a bit of work, might have dropped their asking price slightly. It is still early days though so they may drop the asking price in the future I suppose. It is a nice house, just it doesn't stand out - but I don't think any house will stand out on our budget!

Kynthia

glasgowdan wrote: »

Yes, in your imaginary world. But sold prices are highly relevant and important to every buyer I've ever spoke to; nobody wants to feel ripped off. Previous sold prices are part of the info used by agents and surveyors when valuing a house too.

I agree sold prices in general are very relevant but current sold prices of multiple comparable properties is what is relevant. I believe the point being made is that the previous sold price for just this property is irrelevant. This house could have had work done to it since it was purchased, it could have been a quick sale as a discount by a desperate seller to a cash buyer or with a few thousand knocked off because no estate agent was used, or sold at a cheap price by a family member. The seller getting a bargain 10 months ago doesn't change what the property us worth now.

AdrianC

glasgowdan wrote: »

Yes, in your imaginary world.

No, in reality.

But sold prices are highly relevant and important to every buyer I've ever spoke to; nobody wants to feel ripped off.

That's just a fluffiness. No more than that.

If you had two identical houses for sale at the same price, and told a buyer that one had been sold for £20k less than the current asking price a year ago, while the other had been sold for £20k more - I can guarantee you that the buyer would go for the latter every single time, even though there is no other difference. I would also suspect that they would STILL go for that latter, even if it was actually more expensive than the former today - with no other difference.

Previous sold prices are part of the info used by agents and surveyors when valuing a house too.

You're getting confused with comparitives.

Marvel1

AdrianC wrote: »

If you had two identical houses for sale at the same price, and told a buyer that one had been sold for £20k less than the current asking price a year ago, while the other had been sold for £20k more - I can guarantee you that the buyer would go for the latter every single time, even though there is no other difference. I would also suspect that they would STILL go for that latter, even if it was actually more expensive than the former today - with no other difference.

Now I'm confused as too why

AdrianC

cjdavies wrote: »

Now I'm confused as too why

Because they're so busy focussing at the old sale price, they think they're getting a "bargain", rather than getting "ripped off".