Buying - 'correct' price for a unique house

SuperHan

The property we are in the process of buying was similar - a relatively unique property (in that there were no overly similar like for like comparables in the area).


We had a budget, the vendor had a price they were willing to achieve. We went slightly under both of those numbers (by £5k). We looked at what it last sold for a few years ago, and then paid c 25k more than that.


If you really want to know, you could instruct a surveyor to carry out a valuation. Otherwise the answer really is what you're willing to pay and what the vendor is willing to accept.

OldMusicGuy

You answered your own question. It's worth what you (or someone else) is prepared to pay for it and what the buyer will accept. A surveyor's valuation might be of interest but if the seller doesn't agree with it then that won't help.

You are conflicted - one moment you say it's a long term home, then you say you want to be able to get your money back in a few years. If you really care about protecting your investment in the short term, you need to go for something that is easy to sell. This doesn't sound like it will be.

In the 1990s we owned a Grade II listed building with an outbuilding and a right of way issue regarding access to the garage that had been built at the rear of the property. We had to sell because we moved abroad (after living there for a few years). It was a beautiful house but it wasn't easy to sell because of its "quirkiness" and the right of way issue. That put a lot of prospective buyers off and it took a long time to sell. We did just about break even IIRC.

Slinky

We put in a much higher offer on a house we particularly wanted than was being asked, to secure a particular property. A couple of others in the same street that we didn't want sold for less just after (this was 18 months ago). One of those (which went for £70K less than ours) has subsequently been updated, new kitchen, bathroom, wiring etc and has been re-sold for £50K more than we paid.



We raised the ceiling price for the street. People will pay what they feel something is worth.

Crashy_Time

pinkteapot wrote: »

Thanks. Things we've viewed around the same price are smaller and less nice houses, in more expensive areas. They're more expensive due to location - desirable villages whereas this one is rural so amenities are a short drive away. We understand the logic of the market pricing things that way but we're happy with the location.

The other complicating factor is that hardly anything is coming to the market or selling - and our search area is about 20 miles across! Most houses have been on the market for months, if not years. Occasionally one will go. In one of those more expensive, apparently desirable villages, one house sold last year, there's nothing Sold STC, and there's half a dozen houses for sale, most of which have been on the market for ages.

We relocated here from a fast-moving market in the south-east so we're highly confused by the whole thing. :rotfl:

Just sounds like a bog standard deluded over-priced market, hopefully the Tories getting on with a WTO Brexit will help some markets find their clearing price.

pinkteapot

Hey crashy. Was wondering if you'd stop by.

OldMusicGuy

Here's a perspective from someone that has been looking for a property for 18 months and also monitoring our home market closely. We are downsizing to Somerset and selling in the SE (near Reading).

The SE market is very lively, lots of properties for sale and plenty of buyers (although it is more a buyers market than a sellers one).

We have been looking in the Somerset area for 18 months and the market has definitely gone quieter down there (in the areas we are looking). Nice properties seemed to be moving quite fast in that area early this year but there seem to be fewer coming on the market now and several we looked at last year are still on the market. New properties don't seem to be going that fast either.

Just a question of supply and demand so I think it's going to be harder to find the market price in a more rural area. You need to decide how much you really want this house and make an appropriate offer.

SouthLondonUser

Slinky wrote: »

We raised the ceiling price for the street.

OP, bear in mind that, when the market is very small, it is very hard to guess what the 'market' is, and one or two transactions can skew it substantially.

If you're looking at, say, a few London areas, each with dozens of properties on sale, you can infer something about the market. One or two buyers with very odd preferences won't skew the overall market too much.

If you're looking at a rural areas with few properties , each radically different from the other, good luck understanding what the 'market' is and what the comparables should be!

Crashy_Time

Slinky wrote: »

We put in a much higher offer on a house we particularly wanted than was being asked, to secure a particular property. A couple of others in the same street that we didn't want sold for less just after (this was 18 months ago). One of those (which went for £70K less than ours) has subsequently been updated, new kitchen, bathroom, wiring etc and has been re-sold for £50K more than we paid.



We raised the ceiling price for the street. People will pay what they feel something is worth.

More and more that will mean a lower ceiling price for the street.