is this house over priced?

mishmash

Hi All

Just after a bit of advice. I posted on here ages ago. Me and OH finally decided to move in together, making one big (happy?) family. I took the advice from this site to sell one house first. OH house has offer from ftb, mortgage in place with good deposit.

Mine is being valued this week, we have done all the bits of jobs now to make it presentable. I have asked 3 ea's to come round and will take their advice as I want to sell asap.

However there is a house we really like, it is on a very desirable street, all the houses are different, some very big detatched some large semi's. It has been up for about 8 months. This house is 3 bed detatched. Original asking proce was 270, now reduced to 250. The house needs lots of work to update it, like kitchen, bathroom, heating.

I have taken the advice from here, looked at comparitive houses, the market seems very slow, while I cannot compare like for like, I can find other houses there are a couple of 4 bed detatched which are all done up nicely with ensuite and downsatirs wc for 250.These houses are a few minutes walking distance away.

This house does not have these things but it is very big (the potential is there) and on a more desirable street.(school encatchment for little one)

I know that a 4 bed semi sold in Jan for 190, and did not need as much work (the buyers are friends of ours) so, I think even with the reduction this house is very over priced. I also know they need to sell.

I am going to book another veiwing and take a builder friend to get a guess at the cost of the work that need to be done. I will then talk to my finacial adviser (uncle).

I just wanted to check with you if I have missed anything.

The other thing, if we were in a position to put in an offer I was thinking of about 210, then moving up. Is this about right? I do know the position of the venders and feel a bit sad for them and their situation and do not want to take advantage. But that said I still feel the house is very overpriced.

Any advice would be great. Thanks

Mish

moneysavinmonkey

Given that you've not given us any information on the area that it's in and only very limited information to compare it with other properties I don't think anyone will really be able to offer any useful advice?

My gut feeling would be overpriced given that the 4bed semi not needing work went for 190 and I dont think prices have really gone up much since then.. may even have gone down depending on where you live. I wouldn't base a decision to spend £100,000's on my opinion though!!

Up to you whether you want to give information out on a public internet forum, but I would suggest posting the rightmove link so people can get a better idea and give their opinion.

PasturesNew

My first thought is that you haven't got a buyer on yours yet, which I presume you will need.

So there's no need to worry about what price any house is/is worth until that time. If, say, it took you 6 months to find a buyer .... the price of that house might have already dropped below any hypothetical amount you invent today.

mishmash

Hi

Sorry moneysavingmonkey, the house is not on rightmove for me to post a link, the ea do not use them? It's in greater Manchester, if that helps. I have checked the link to find out sales of houses on here and the only one is our friends this year for 190, houses don't come up on this street often.

I have looked at as similar as possible to houses I can find and it seems that 250 is for a house that is all done. However even these have been on the market for a number of months.

Pasturesnew, we do not really need to sell mine, I suppose we are lucky. We both have substantial equity on our homes. If the sale of OH's goes through ok, the equity on his would be enough to put down roughly a 30 to 40% deposit (depends on price of house). When mine sells the equity would be for doing up a house and our wedding. My mortgage is so low that my financial advisor has advised we could get a mortgage without selling mine.

Thanks for your replies

Mish

A_Nice_Englishman

I think I'd wait until I had exchanged contracts on the house you are selling, had a mortgage agreed in principle and present all this to the estate agent selling the house you want.

Presumably you can live in your house for a while and can therefore be flexible with the completion date? Make sure the estate agent and the sellers know this too.

If they are sensible, the owners of the house you want will jump at the chance to sell to you and accept a lowish offer.

carolt

It does sound very overpriced, doesn't it? If a 4 bed semi went for 190, I'd use that as your starting point - they may not like it, and obviously detached status does command some premium, but if it needs all that work done...

At least it sounds like you've got lots of choice - and the vendors will know that - so if they don't agree, there are plenty of (more reasonably priced) fish in the sea.

Running_Horse

Before someone states the obvious, it is worth what you are willing to pay, and what they are willing to accept.