First Time Buyer - How to Value a Property?

Cakeguts

You cannot compare the price of a 2 bed ex council flat with a 2 bed always been privately owned 2 bed flat in the same street. Some council blocks have really high service charges or you can be faced with an enormous repair bill. It is a risk with buying ex council flats. Generally ex council flats will cost less than privately owned flats. So you can't do valuations by ex % rises per year or buy price per square metre. You have to do a direct comparison with a flat that is in similar ownership in a very close area. Prices in London can vary from street to street. If you are thinking of buying an ex council flat you can only do a price comparison with another ex council flat. Anything that isn't ex council is going to be much more expensive even if it is smaller. A non ex council flat in the next street could be a lot more expensive.

LdnFtB

That's exactly what I've been doing - comparing 2 bed ex-council flats against other 2 bed ex-council flats. The closest identical property (in the very same block) sold for £410k last year, and since then the LR index says that prices have fallen in this area. But the seller is asking for £450k. I just don't understand where these asking prices are coming from.

Cakeguts

LdnFtB wrote: »

That's exactly what I've been doing - comparing 2 bed ex-council flats against other 2 bed ex-council flats. The closest identical property (in the very same block) sold for £410k last year, and since then the LR index says that prices have fallen in this area. But the seller is asking for £450k. I just don't understand where these asking prices are coming from.

They are coming from estate agents who are all competing with each other to get business.

Crashy_Time

hazyjo wrote: »

Generally yes, although in certain areas there is a massive shortage of buyers at the moment. My local EAs are saying there are a quarter/third of usual buyers/sales. I expect it'll pick up slightly after the election. People don't like a deadline so will be hanging on until after...

Of course, that may bring prices down - but I've found cheaper properties don't always mean more buyers. If anything, if the market drops, it can scare them away even quicker as they panic they're buying at the peak.

Funny ol' game this property malarkey.

Jx

Doubt it is the UK election causing this, buyers have been falling away for some time........

hazyjo

Crashy_Time wrote: »

Doubt it is the UK election causing this, buyers have been falling away for some time........

Agree in some areas it was getting slow/prices were dropping and certainly not saying it's the election causing this - but definitely made it worse and many people are waiting until after. Not saying it will fully recover after, but it should pick up a bit.

LdnFtB

Cakeguts wrote: »

They are coming from estate agents who are all competing with each other to get business.

What's the best way to get around this then? Any offers which aren't asking at the moment are being knocked back. So frustrating knowing that things a) aren't selling and are b) overpriced but people still aren't willing to negotiate. Is my only option waiting?

Crashy_Time

hazyjo wrote: »

Agree in some areas it was getting slow/prices were dropping and certainly not saying it's the election causing this - but definitely made it worse and many people are waiting until after. Not saying it will fully recover after, but it should pick up a bit.

Maybe, but all this election is about is getting a mandate to go ahead and thrash out a Brexit deal? That is the thing (among other things) that is causing the real uncertainty? Plus the fact that you can`t prop up a property bubble and maintain record low rates indefinitely.......although they have been doing it for some time now! In a functioning property market the "Waiting for a buyer" thread wouldn`t need to exist.

hazyjo

Crashy_Time wrote: »

In a functioning property market the "Waiting for a buyer" thread wouldn`t need to exist.

Beg to differ. Most houses have compromises and it's a rare few which sell on Day One. Even then, the thread would exist. I've never in my lifetime (and never will) seen a list of houses on RM all SOLD, or all selling on the day they're up. Impossible. Tosh.

gycraig_2

LdnFtB wrote: »

What's the best way to get around this then? Any offers which aren't asking at the moment are being knocked back. So frustrating knowing that things a) aren't selling and are b) overpriced but people still aren't willing to negotiate. Is my only option waiting?

You can't force someone to sell you a proper at a price you think is suitable. Sadly you and everyone else values property differently. It is just a case of waiting till they get desperate or a reality check.

Every time iv tried this it's sold before coming down to what I deemed appropriate

Crashy_Time

hazyjo wrote: »

Beg to differ. Most houses have compromises and it's a rare few which sell on Day One. Even then, the thread would exist. I've never in my lifetime (and never will) seen a list of houses on RM all SOLD, or all selling on the day they're up. Impossible. Tosh.

Nobody is claiming a house should sell on day one though, just that a market where people literally have houses on the market for years without proceedable offers is broken. The government know this, hence the reason they have started to put the brakes on the BTL market.