Having second thoughts about selling !! not sure what to do??

bikingbarney

So this is the situation.

We currently rent our property and the tenant wants to move out and we weren't sure about renting out again so decided to put the house up for sale.

We had three estate agents around and all of them said to market at offer over 190k and to achieve 200k easily.

We have had over 17 viewings and the only decent offer we have had is at 195k.

Now we have had a firm offer I guess you could say both the wife and I are getting cold feet about selling for a number of reasons....

* We are not sure what the future holds for house prices.

* We arent sure if we could better ourselves in the future

* We are scared of coming off the property ladder.

Here is the house..........

Link removed just for security

If we were to keep the house it would need alot of work doing to it to get it to how we would want :- New bathroom, kitchen, windows, remove conservatory and also a major layout change downstairs which is all going to cost quite a bit to do and also we wouldnt recoup any of that cost if we decided to sell in the future because of house values.

If we sold and paid off the mortgage and all fees etc we will be left with between 50 and 55k profit as a deposit to go towards our next house.

We were hoping for an offer closer to 200k which we think is fair considering what else is on the market locally. The person who offered has flat out refused to budge on his offer saying they will look elsewhere but really there is nothing to compare to it in the area?

What would you do??

Sell or keep and rent it again?

Can you see house prices dropping in the next couple of years or not?

XKC-Me

I don't want to sound rude, but I'd spend some time working out:

1. What it is I actually want from the next 5-10 years; and
2. My risk appetite

and then make a decision based on those. This isn't something we can tell you, since neither choice is 'right'. There are advantages to renting the property out and advantages to having the money and using it to buy your own place. It depends on which appeals to you more and how much you worry about house prices. If you are planning to sell and buy somewhere else reasonably immediately (within the year) I wouldn't worry too much. They move quickly these days, but not enough to hurt you badly in that timeframe.

If in doubt, don't sell and think about it for another month or two. House prices are more likely to go up than down. But there is no 'No Risk' option. House prices can crash, and have done in the last decade.

Mojisola

bikingbarney wrote: »

If we were to keep the house it would need alot of work doing to it to get it to how we would want :- New bathroom, kitchen, windows, remove conservatory and also a major layout change downstairs which is all going to cost quite a bit to do and also we wouldnt recoup any of that cost if we decided to sell in the future because of house values.

So, if you don't sell, you will move in and live in the house?

Isn't renting out again an option until you decide for sure what to do?

bikingbarney

I should of explained that Im in the military and have just over 3 years left before I retire.

We arent sure where we are going to settle down when I come out as its job dependant however we were hoping it would be around the area we have this house.

bikingbarney

Mojisola wrote: »

So, if you don't sell, you will move in and live in the house?

Isn't renting out again an option until you decide for sure what to do?

Rentng is an option I guess but having done it three times now and each time having bad tenants we are very wary of it !

Mojisola

bikingbarney wrote: »

I should of explained that Im in the military and have just over 3 years left before I retire.

We arent sure where we are going to settle down when I come out as its job dependant however we were hoping it would be around the area we have this house.

So that three years gives you the option to continue to rent out for, say, another two years and then review the decision in the light of house prices and job opportunities at that time.

harrys_dad

You seem to think house prices in that area may be falling. £195000 is not far off £200000, and in three years time it might buy more than it does now. Then again prices might go the other way.

AnotherJoe

Stay in the market. There would need to be a massive fall in house prices for you to benefit (because of the costs of buying and selling) and if there is even a modest rise in house prices you lose out big time. Plus you lose out on the rent which presumably is profitable for you ?

And if there is a fall, well what is your next more expensive place wil also fall so relatively speaking you only lose out on the fall in the difference between the two.

bikingbarney

Its currently rented to a relative who is moving out.

We live in Military married quarters and can do until I leave the services.

We would have between 50 and 55k equity and plan to put that into a savings account.

Also when I leave the forces I will get a gratuity payment of around 35 -40k which will go with the equity towards a deposit on another house

Hoploz

Are you going to retire when you leave the military? What does the money you'd have buy? Will you still need a mortgage? Will you get one if you aren't working? Is the property large enough for you to live in?

I think if I was having a major life change in 3 years I'd leave sleeping dogs to lie, and rent it out again for that time. Crossing fingers to get good tenants - use a reputable agency to find good quality tenants.

bikingbarney

Hoploz wrote: »

Are you going to retire when you leave the military? What does the money you'd have buy? Will you still need a mortgage? Will you get one if you aren't working? Is the property large enough for you to live in?

I think if I was having a major life change in 3 years I'd leave sleeping dogs to lie, and rent it out again for that time. Crossing fingers to get good tenants - use a reputable agency to find good quality tenants.

When I say retire from the forces that doesn't mean retiring for good. I will be 43 when I leave the military so that gives me a good 20 odd years to work more if I had too.

The list of what needs doing to it to make it our "home" is quite long and very expensive and to be honest Im not sure its worth doing to that particular house.

If we didnt sell and decided to rent then it still needs a fair bit of work to bring it up to scratch for that... namely new soffits and gutterings, two rooms need plastering, a new window in one room and two window units in the conservatory that have blown plus a lot of painting and tidying up !

my estate agent approached the people that have offered 195k and said that we would accept their offer if they can wait to complete until our fixed term is up (end of november) or pay the fees for us. They flat out refused and said they would look elsewhere. to be honest there isnt anything else comparable and as big in the area for this price point!

Ive suggested to the EA that as a compromise we are willing to split the fees with them. just waiting for a reply.