House overpriced? Making an offer fears

Shortricci

Hi.

We have viewed a house this week in a quite desirable part of Leeds, near to the airport. The house is a four bed terraced house on the market at £340,000. We viewed the house a few months ago but an offer was accepted and the house taken off the market however that sale fell through due to the purchasing party not being able to sell their own home.

We have managed to find the listing of the house from when the current owners bought it in 2014. The asking price at that time was £275,000 but the house was sold for £250,000. Looking at the photographs in the advert in the old listing, the only work the current owners have done is add an en-suite to the master bedroom in the loft. The kitchen is the same (same oven/kitchen table), living room is the same as are all the other bedrooms and two other bathrooms.

We cannot understand how the house valuation has increased by £90,000. An en-suite would likely cost up to £5k, if not less. An inflation calculator based on the 2014 sale price suggests circa £285,000.

We do know that the owners have made an offer on a house that they wish to move to and we are currently only renting on a rolling monthly contract and will be first time buyers.

I guess what I'm trying to ask is what would be your offer?

We do not think we would offer anymore than £300,000 (although if that would be our opening offer, I'm not sure), which is extremely unlikely to be accepted.

Calpol4life

340k (if you want it) m

What’s gone before is entirely irrelevant.

scholesfan88

There's no right or wrong answer. Offer what you think it's worth, ensure the EA knows it's your best and final offer. Be prepared to walk away.

Gwendo40

I wouldn't even waste my time viewing, never mind offering, on one as overpriced as this one appears to be.

Highly likely the previous sale fell through due to a mortgage down valuation rather than the potential buyers being unable to sell their home.

PasturesNew

A house is worth the price you're prepared to pay to not lose it.

At what price would you feel regret you'd not offered more?

If you only want to offer £300k, would you cry if somebody else paid £330k? Or would you just shrug and say "it wasn't worth that to me".

Find your crying and regret price.

davidmcn

The price it sold for 5 years isn't a great indication of its current value. What are similar properties currently selling for?

AnotherJoe

What it sold for 5 years ago is irrelevant. What are similar houses selling for now ? That's what's relevant.

warby68

Forgetting what the house is actually worth, an offer of £300k on a £340k asking price may well be in the 'not to be taken seriously' from the vendors' perspective.

Recent selling prices on similar properties are your best guide. This one has been for sale for a while with a deal fallen through so they may be more open to offers but you do want to pitch your offer sensibly to make them want to deal with you.

As long as it isn't ridiculously overpriced once you've done some recent comparisons, then I'd probably pitch an offer something above £300k rather than £300k or just below as, mentally, it will seem so much more. That's assuming you really want the property. If you just want to chance your arm that you might get lucky with a desperate seller but aren't bothered if they refuse, then that's the time to go really low.

Generally though, if you can only afford £300k you might be punching above your weight looking at £340k properties.

AdrianC

Shortricci wrote: »

We have viewed a house this week in a quite desirable part of Leeds, near to the airport. The house is a four bed terraced house on the market at £340,000. We viewed the house a few months ago but an offer was accepted and the house taken off the market however that sale fell through due to the purchasing party not being able to sell their own home.

We do not think we would offer anymore than £300,000 (although if that would be our opening offer, I'm not sure), which is extremely unlikely to be accepted.

This is the only bit of your post which is relevant.

How does the house compare to what else is on the market currently? If they've already had one accepted offer, it suggests that others think it is worth something in the region of £340k. Sure, you can make a lowball offer - but don't be surprised if it's rejected.

Your lack of a downward chain is in your favour, but being FTB is not necessarily.

kathrynha

At £340 near the airport I think I know which house it is, and knowing the area well I think it is over priced. There are other houses of a similar or bigger size, in equally good of better areas for less money.

AnotherJoe

Shortricci wrote: »

We do not think we would offer anymore than £300,000 (although if that would be our opening offer, I'm not sure), which is extremely unlikely to be accepted.

If you won't offer more than £300k, whether that's because you cant afford more or you dont think it's worth more, you've got nothing to lose by making that as a last and final.

As someone else said if you can't afford more than £300k you are looking at too expensive houses.
If you wont offer more than £300k because of your theoretical calculations to do with last sold price and house price inflation calculators, I think you are going to end up being disappointed on many houses.