House listed for 40k more than sold for a year ago

Supa_Fletch

Hi all,

I am a FTB looking at at a house which was sold just under a year ago for 210k, and is now listed again for 240k (Vendor has dropped from 250k after a month on the market).

Nothing has been done to the house whatsoever, which is shown by the old listing's pictures and confirmed by the EA.

Surely the EA / vendor has unrealistic expectations for the property, as in addition next door sold last year for 205k?

If I was going to put an offer in it would have be similar to what it sold for last year, as surely the bank valuer would put it much closer to it's sold price last year?

For context, it is in a desriable location with limited supply - although it was in the same situation when it sold for much less last year.

quantumlobster

Supa_Fletch wrote: »

Hi all,

I am a FTB looking at at a house which was sold just under a year ago for 210k, and is now listed again for 240k (Vendor has dropped from 250k after a month on the market).

Nothing has been done to the house whatsoever, which is shown by the old listing's pictures and confirmed by the EA.

Surely the EA / vendor has unrealistic expectations for the property, as in addition next door sold last year for 205k?

If I was going to put an offer in it would have be similar to what it sold for last year, as surely the bank valuer would put it much closer to it's sold price last year?

For context, it is in a desriable location with limited supply - although it was in the same situation when it sold for much less last year.

Rightmove link?

Chandler85

A house is worth what someone will pay!


Some places in that year could have gone up by 40k (unlikely at the moment but not impossible). We recently sold our property, for what I thought was a decent amount. 2 weeks later a smaller house with orse decor (in my opinion) has gone up for more then ours and sold already. Obviously we don't know what for yet but I don't think it was worth what it went up for, but someone must have.

warby68

Sometimes the online sale price is not a 'true' one eg might have been a discounted sale to a family member.

More likely, a bit of kite flying if the area is in demand just to see if its made a quick buck

Another one is an unwilling seller (matrimonial issue perhaps) - price too high to actually get it sold.

You can always ask the agent or the vendor - the sale price is public information and does beg the question especially if comparables are cheaper (and next door's sale a year ago doesn't really matter - same increase could apply to them). You may get a sensible answer, you may not. People often assume that agents lie every time but in our experience asking questions does glean useful information even if not the whole story. You can see how they react to a proposed offer similar to last year.

Obviously that's all without seeing the property

getmore4less

Supa_Fletch wrote: »

Hi all,

I am a FTB looking at at a house which was sold just under a year ago for 210k, and is now listed again for 240k (Vendor has dropped from 250k after a month on the market).

Nothing has been done to the house whatsoever, which is shown by the old listing's pictures and confirmed by the EA.

Surely the EA / vendor has unrealistic expectations for the property, as in addition next door sold last year for 205k?

If I was going to put an offer in it would have be similar to what it sold for last year, as surely the bank valuer would put it much closer to it's sold price last year?

For context, it is in a desriable location with limited supply - although it was in the same situation when it sold for much less last year.

You need a bigger sample to determine where the prices are going.

DO a "more like this"(examples in other threads) and include SSTC that will give a guide to what people are viewing and buying.

then look at the sold data for the last couple of years to see if you can judge the trend(this data will be a couple of months behind)
Then watch all the SSTC as they sell through.

Ideally you should have been doing this as soon as you decided to buy to get some real "asking to sold at" data.

if you don't know how to do the research you will need to provide a link so someone can do it for you.

AdrianC

Supa_Fletch wrote: »

Surely the EA / vendor has unrealistic expectations for the property, as in addition next door sold last year for 205k?

Maybe, maybe not. If so, then they won't sell it.

If I was going to put an offer in it would have be similar to what it sold for last year

Which, of course, you can do.

as surely the bank valuer would put it much closer to it's sold price last year?

Maybe, maybe not. And, even if they do, that doesn't mean somebody can't still pay more. Maybe they're happy with a higher LtV. Maybe they don't need a mortgage.

If you don't think it worth that number, then don't offer that number. The vendor is, of course, free to refuse your lower offer.

SG27

Firstly I would be questioning why someone is moving again after a year.

If a legitimate reason, I would offer something around the previous sales price depending on the local market. For example in my area, I would be looking to pay about 10% less.

Supa_Fletch

Thank you for all the replies - very helpful! I'll try and answer some of the points you guys have raised.

Another one is an unwilling seller (matrimonial issue perhaps) - price too high to actually get it sold.

I believe the reason for the sale is the vendor moving in with a partner - consequently no chain.

You can always ask the agent or the vendor

I have asked the EA, who admitted nothing had been done to the property since the sale last year, and simply said that it was sold "too cheap".

You need a bigger sample to determine where the prices are going.

Yes I agree - will dig out the threads you mention! I have looked at the last couple of years worth of sold prices (via Zoopla) on the adjoining four terrace roads (all similar properties), and generally the houses going for 240k+ have an extension to make the 2nd bedroom a double, and have been renovated. Just a bit more context - it is a Victorian terrace (2 bed - 1 small double and 1 small single) which is fairly outdated.

lookstraightahead

Why don't you ask what has made it go up so much in the past year? I can't think of anything.

need_an_answer

OP...there are lots of properties where the vendor is in this situation....

https://forums.moneysavingexpert.com/discussion/6002009/character-property-but-very-few-viewings-recently

You are not perhaps looking at a character cottage by any chance?


Have a read of the thread it might make you see that sometimes there isn't any justification for a price rise...its circumstance.

Sadly a circumstantial price inflation doesn't always mean the property will sell for that price,its just a case of waiting for the vendor to become more realistic...or the desire to move becomes more to the forefront.


If you've got a link to what you are looking at someone will always give you an opinion if its genuinely worth it....

[Deleted User]

You can always make an offer for what you think it's worth.