Sold for 85k & Back on Market for 120k in a Week?

AdrianC

Smodlet wrote: »

What they paid for it does not matter. What they can sell it for is what someone is prepared to pay for it.

This.

Is it worth £110k today, in the condition it's in now? How does it compare to other £110k properties now?

What happened last year is irrelevant. What happened 15yrs ago is even more irrelevant.

phoebe1989seb

Some neighbours near the house we just sold bought their current house before selling their previous home of forty years. Four years later they still hadn't put it on the market, during which time it deteriorated quite badly - subsidence, damp etc - plus it hadn't really been touched since they originally renovated it in the 1970s so it was fairly dated.

In 2016 they finally put it on the market and because of its condition it took almost a year to sell for well below asking price.........despite having 90+ viewings!

A week later - having not so much as set foot in the house and having done nothing to it - the buyer entered the house into auction with a guide price of about £10k less and a reserve of roughly the price they paid.

It sold at auction almost exactly a month after they had purchased it for £40k+ more than they paid.........

AdrianC

I can well believe that. Something that's in a "bit of a state" - auction is by far and away the best way to not only sell quickly, but sell well. Get the daytime-TV-believers in, and you're laughing.

There was a place we looked at locally. Small two-bed cottage, untouched since the 50s (guess the reason for sale...). The major structural issue at one corner was what put us right off - collapsed drain, probably. It was nicely located, but not perfect - edge of the nice town, but pretty much right next to a music venue.

It sold at auction for 40% more than the guide price - which we thought was optimistic... It was then pulled down, and a similar-ish new place built. Gawd knows what the total cost has ended up, but I'm absolutely certain they could have bought similar (or bigger) for less.

swtchick87

We bought a house recently from my brother in law. He bought it for £204k in 2009 and then we bought it off him for £240k even though the house value was at £340k. We were gifted a deposit of 100k so our solicitor said to amend the sold price to £240k so our stamp duty would be lower. Currently on rightmove, this sale looks like the house lost value in the market when it hasnt.
Sorry! I needed to add the money was gifted to us.

AdrianC

Your solicitor advised you to lie to HMRC to illegally evade tax...?!?!?

Mobeer

Maybe in a bad state, bought by someone to redevelop, but they would be willing to sell straight away for a profit. After all if you can buy for 85k and sell straight away for 110k then that's no bad thing.

paddedjohn

Possible a part ex sale by a building company

Gwendo40

Why does everybody seems to be assuming that the £85k price was ''too cheap'' and the current asking price must obviously be the real market value... when there doesn't appear to be any firm evidence for that?

Seems more likely to me that the current vendor is just a greedy chancer looking to ''flip'' the property to some gullible mug for a quick profit.

dawyldthing

Anyone can ask whatever they want, it doesn't mean they are going to get it. I bought mine for £12k in the end less than what it was on the market for and it had been reduced before that. It was a probate sale too and the valuations guy from the Halifax took £2500 off the value what I'd offered so that saved me money too.

SDLT_Geek

If in 2003 the property was a new build then the "price paid" of £93,950 entered on the transfer and at the Land Registry might well not reflect the true sum passing hands. With "cash back", "gifted deposits" and other incentives the true figure could be lower. Builders like to establish precedents, particularly for early sales on a development, to help sell the later ones for a high price.