Are we fighting a losing battle for a severely overpriced property?

novelty-socks

I think the information you need is already covered by other posters, but I just wanted to reiterate that the numbers are what counts. You know what you're wiling to offer, the seller knows what their asking price is.

There's no harm in making your offer and no harm in increasing it a bit if you think the place is worth that. But if you're too far apart no amount of evidence-based justification is going to help here, even if it is grounded in reasonableness and logic.

I wanted to reply really because you've taken some flak on here, but as a fellow first-time buyer I kind of understand where you're coming from. Not sure where you're looking but here in north London not that much is moving: a place we viewed a few months back has been reduced by £100k and is still on the market, so there are some unrealistic expectations out there.

You might need to play a waiting game with this one: give it six months, the see where the seller is with their price. But don't burn any bridges now with over-elaborate justifications for what the seller might see as a low offer. Bide your time, and good luck!

MysteryMe

Although I've not got the will to live reading all the letter to be fair to the OP they relied on the advice of a buying agent, whatever that may mean. Presumably someone like Phil & Kirsty although I've never seen them suggest writing such a detailed analysis. I hope the OP takes the comments on this thread in the spirit they are intended, they are not meant to be mean but what the OP has done is quite unusual.

The issue is, at first thinking an £150000 uplift in price does seem incredible but we really don't know the full picture. As already pointed out the purchase price paid by the current vendors may have been lower for some reason and we don't appear to know in detail what has been done to the property to bring it up to the present asking price. I would imagine an EA would be reluctant to list a property so vastly over priced as it's a waste of time as no one will buy it and it makes them look like chumps (no laughing please)

What I would have done is just ask politely what improvements the vendors have made.

Use this as a learning experience, no one has died, you've not spent a shed load of money on a lost cause. Carry on looking but remember buying a home is not the same as buying a commodity such as a precious metal where 1 kg = £X Do your research but don't get too hung up on data as unless you have the full picture it's not always going to assist.

Oh and get shot of the Buying Agent

Doozergirl

I'd file that letter in the bin before I read much past the first paragraph

If you want it and you think that's what it's worth then you'll have to wait for the price to fall and see if it falls within your reach.

As someone who renovates properties for profit, there is no logic applying HPI to a house that has had extensive work. After 20 years, call it arrogance but I'd spit my drink at a FTB telling me that a shower room adds 3-5%. That's TV talk.

Square footage is what counts, not how much a bathroom costs. There might be a modicum of sense somewhere in the attempt to throw the kitchen sink at the vendor, but much of it isn't true at all.

No one cares why someone thinks a house is worth less. If you want something cheaper, flattery is a far better way to get it. I'd plead poverty before even considering the estate agent showing the letter to all their mates and blocking your number

We've been harsh, but that letter is also insensitive and amateurish, trying to masquerade as being informed. The house might be overpriced, but it might not. It's not your buiness to tell them why.

"I love your house, this is my offer. I can't afford what you're asking" will appeal to their humanity.

Winter_Phoenix

You've done a terrific job in your detailed analysis of the situation ... but it's only useful to YOU.

The Estate Agents will either be offended by your letter ("We're the professionals, and this amateur thinks s/he knows better!") or will find it entertaining ("Here's one for the In-House Magazine - I've been in this business for twenty years and never seen anything so funny.").

As others have said, make your best offer, look at lots more houses, and don't challenge/argue with the Estate Agents/vendors - especially if you're right!

billy2shots

Winter_Phoenix wrote: »

You've done a terrific job in your detailed analysis of the situation ... but it's only useful to YOU.



As others have said, make your best offer, look at lots more houses, and don't challenge/argue with the Estate Agents/vendors - especially if you're right!

Very simple yet perfect advice. All your research can help you come to the figure you are prepared to pay. Said research should never leave your brain in the detail you have gone into.

Oh, and get your money back from whatever the hell a ' buying agent' is, if that letter was based on their advice. Sure fire way to get offers turned down.

Mutton_Geoff

My last house (renovation project) sold for two and a half times what I had paid for it 3 years earlier. My asking price was met and there was no discussion on how much I had spent on it as the results were visible and most importantly, it stood well with comparables in the area.

The question is, can you do better with your money in the area? If so, then why bother looking at places outside your budget regardless of what they sold for in the past.

I’m in the process of another major renovation project but I am very mindful of my spend because, looking at comparables, I have a good idea of what someone will pay for the finished item in the current market. I know if I overprice it, someone without regard for cost will buy it simply because they love it or it will languish on the market until either house price inflation catches up or I get sensible with the price.

I wouldn’t listen to a buyer try to explain to me why they thought I had pitched it too high, I would let the market decide.

justjohn

The letter to the EA is too aggressive and makes too many assumptions.


The house is worth what someone will pay. If he gets his asking price you were wrong. If he does not the you may have some valid points lol


You are accusing the seller of being hard at it. Thats just not going to go down well,


I have just sold a property on Monday. First time buyers were a nightmare for us.

need_an_answer

OP ...you have decided what the house is worth to you and that price is quite a substantial difference to the vendors expectations.

What is the way forward,realistically up your offer or walk away.

You asked for others thoughts and boy have you had them,In essence some comments have been harsh,maybe truthful but you've had an internet form view based on the facts you have given.

Are you brave enough to post the RM listing of the property?


At the moment those who are commenting are doing so without actually seeing what they are commenting on!

Therefore there are many reasons why the property has increased in value to the vendor in a short space of time. Renovation projects can easily distort market data so if the property has undergone some that must surely be reflected in the price.


A few years ago we renovated a property that shot the price up substantially in a short space of time so its not uncommon but without seeing what is being commented on or indeed the area of the countery you are buying in its very difficult for anyone to give you a balanced view.


The other thing that you need to be mindful of is that the EA is not working for you,they are there to secure the best price for the vendor and in sending them a letter or email of the type you have written is very likely to alienate you with them at a time when you are trying to get them onside to ease your negotiations going forward.


My advice would be to not get too hung up om property prices in the area and start looking at buying as not a science of how much something is worth per square foot or even its projections going forward but as what this property means to you in terms of somewhere to live and make a home.


Offer based on that and if the offer is rejected you must either look for something within your allotted price frame or change your expectation of home buying


The best of luck with your search....

FTBuyerGlasgow

Hi OP, I was a FTB 5 years ago (hence my username). I understand your motivations for wanting to back up your offer with what you view as significant factors in how you arrived at your offer.

But the reality is no matter how much you justify it, if it doesn't match up with the EA's or vendors valuation no amount of reasoning is going to make them agree with you.

In essence you are putting in a cheeky bid, albeit one I genuinely think that you think is fair.

I get that you want to be taken seriously but that letter will go straight in the bin.

You're new to the process so let me give you a hint: the EA was probably appointed based purely on their valuation of the property. If person A tells you "I can get you £400k" and person B tells you "I can get you £450k", who do you think gets the commission?

The EA just hopes someone comes along and offers what they've pitched to the vendor. If not then they gradually manage the vendor's expectation downwards to a price point they'll accept and someone will pay.

It really is cat and mouse, but you'll not get anywhere by sending that letter, sorry but you will regret it if you do.

robatwork

One of the all-time classic house buying threads.

I wish I had as much time on my hands to craft such a pointless, masterful diatribe!