A question for the LL's....

YoungBlueEyes

I'm wondering if I've read a situation wrongly, so I'm after some advice please.

I've put a quite cheeky offer (£115k, AP is £130k) on a house I like. It's been on the market since late last year, and it's sitting empty. The EA that showed me round said it's an ex-rental so the owner is more than ready to offload it. So I thought my offer was about right. The EA rang me straight back, the owner is looking for very close to asking price. I said I can't do AP but I'll up it by a grand. Small I know but maybe it's enough. I'll let you know asap he said. Nothing heard yet, and that was lunchtime today.

So have I read it wrongly? I thought someone who's ex-rental has been on the market since Nov last year would be happy to cash in and get rid of it, especially as it's sat there empty. I know my offer was a bit low but it's more than she paid for it (£104k in 2009 according to rightmove sold figures).

Another factor for my offer being kinda low is she bought it as a 3 bed, now it's a 2 bed + loft room. Building regs issue I'm guessing? Also I'll be an actual cash buyer.

So my question is what makes a LL keep an ex-rental on the market, after viewings have dried up, and no offers near the AP?

Thanks for any replies

sevenhills

YoungBlueEyes wrote: »

Another factor for my offer being kinda low is she bought it as a 3 bed, now it's a 2 bed + loft room. Building regs issue I'm guessing? Also I'll be an actual cash buyer.

It probably has always been a 2 bed in fact, just advertised correctly this time. Either they have all the paperwork, or they dont.

G_M

This has nothing to do with the fact it is an ex rental.

* you don't know if the LL was a 'professional' or someone who inherited and started renting. Or something else. Their motivation might be different

* but either way, there are many reasons why an owner might keep an empty property on the market, irrespective of whether it's an ex-rental, an inheritance, a family home vacated for any one of numerous possible reasons

- they anticipate the market might pick up/rise next year
- they have no mortgage and minimal running costs
- they have a misguided understanding of the market value
- they've already had 1 or more buyers at the asking price, who withdrew for unrelated reasons (eg loss of job, death in family)
etc etc

[Deleted User]

Is the AP realistic for the area?

If it is, you might have problems.

Is the owner one of those that is just completely unrealistic about what their house is worth?

The fact that its been on the market for so long would make me wonder if the AP is realistic or if there is something wrong with the house that makes the AP too high.

ancientofdays

2009 is quite a while ago in house-selling terms. I have seen quite a few with a proportionally higher rise in AP in a shorter time. But you might find that the seller needs a little time to think it over.

AnotherJoe

The price it was sold for in 2009 is irrelevant. It's worth what it's worth (which is unlikely to be as high as 130) but the price they paid 9 years ago is really not a factor. Even aside inflation you don't know what state it was in and if it was cheap because it needed renovation. . If they'd bought it for £20k in 1989 would you offer £30k on the grounds "that's more than they paid for it".

What are nearby comparable houses selling for ?

HampshireH

You put an offer in which you acknowledged as cheeky.

When told they want near asking price, you upped it by 1k which means its still nowhere near asking price.

The LL may feel you are winding them up. Esp if the agent confirms you have been told they are set on the AP.

Or the agent may have left for the day and you may be pleasantly surprised on monday.

YoungBlueEyes

There are similar houses on for about the same price but they haven't been on as long. I don't know the area, I wondered if the owner is sticking because it's a good road/part of town, so she wants AP cos she thinks it's worth it. If that's true I'll have to find another house.

The previous sold photos show it in the same state, no major renovation works done. If they've had it rewired or whatever they've repainted it in the same colours.

Thanks for your comments everyone, I'd be lost without this place.

Here's a link
https://www.rightmove.co.uk/property-for-sale/property-70225607.html

Hopefully Monday brings a nice surprise.

need_an_answer

YoungBlueEyes wrote: »

The previous sold photos show it in the same state, no major renovation works done. If they've had it rewired or whatever they've repainted it in the same colours.



Here's a link
https://www.rightmove.co.uk/property-for-sale/property-70225607.html

Hopefully Monday brings a nice surprise.

The images you are picking up on rightmove as historic probably relate to when the property was marketed in sept 2015 not when it was last sold in 2009

Although I'm not able to see the price it was marketed for.


My guess might be that the LL tried to sell in 2015 but then got tenants,they've now moved out so again theres a try at selling it.

It may be that they want to liquidate the equity,but it could also be that if a set of tenants expressed an interest then it goes back to rental again.

YoungBlueEyes

Ah ok. I didn't think of that....

need_an_answer

I've just found the zoopla link that will give you a bit more back information ...marketed in 2015 and picures and asking price.

Towards the bottom of the page is a little more listing history back to 2008 although the 2008 info looks to be for a different property so mis listed.

https://www.zoopla.co.uk/property-history/39-kilbourne-road/belper/de56-1ha/36318470