Unrealistic asking price?

MortgageDonkey

Hi All,

Currently looking for a new house and we've found one we are interested in, but some of the numbers don't seem to be stacking up. Would be good to get any thoughts.

Previously on market for - never sold
13th Jun 2009: £285,000!-!5 bed detached house - Bramleys
20th Nov 2010: £268,000!-!5 bed property -!iSold
9th Nov 2011: £268,000!-!5 bed property - unknown agent
current listing: £325,000 guide price - Purple Bricks

The house hasn't had any major changes, just seem to be cosmetic decoration. The numbers suggest they hVd an unrealistic asking price and we are considering a substantially lower offer

Am I correct in thinking house prices are currently similar to 2011
The house is in West Yorkshire

Thanks for reading

[Deleted User]

MortgageDonkey wrote: »

Hi All,

Currently looking for a new house and we've found one we are interested in, but some of the numbers don't seem to be stacking up. Would be good to get any thoughts.

Previously on market for - never sold
13th Jun 2009: £285,000!-!5 bed detached house - Bramleys
20th Nov 2010: £268,000!-!5 bed property -!iSold
9th Nov 2011: £268,000!-!5 bed property - unknown agent
current listing: £325,000 guide price - Purple Bricks

The house hasn't had any major changes, just seem to be cosmetic decoration. The numbers suggest they hVd an unrealistic asking price and we are considering a substantially lower offer

Am I correct in thinking house prices are currently similar to 2011
The house is in West Yorkshire

Thanks for reading

It doesn’t really matter what this particular house sold for in 2011. What have similar properties in the area sold for in th last 6 months?

daveyjp

House prices reflect recent transactions for the area, not what it was advertised at 8 years ago.

Search the area for sold prices in 2019.

mundibananas

Not in the south west - houses purchased for around £220k in 2010 are going for over £300k now.

System

It is always prudent to consider if you yourself could sell that house for that asking price.

If you were to buy it but then you had to sell again, would you incur an immediate large loss? If so, paying that asking price just means making a large free donation to the sellers, in excess of the house's true value.

PasturesNew

It doesn't matter what they're asking for it. They might get it, they might not. They might get it as people from London are looking and think it's a cheap steal.

They might never get it.

As annoying as these houses are, you can't make them sell it to you at the price you'd like.

I've one on my list. Listed 11 months ago at £295k, sold immediately for £280k/completed early 2019. For sale six months later for £315k with the same selling agent. Zoopla indicates that the local market price changes makes the house worth less than they paid for it.

I'd like it.... not desperate for it.... and it's very annoying

But you can't make anybody sell for the price you'd like to pay.

System

PasturesNew wrote: »

It doesn't matter what they're asking for it. They might get it, they might not. They might get it as people from London are looking and think it's a cheap steal.

They might never get it.

As annoying as these houses are, you can't make them sell it to you at the price you'd like.

I've one on my list. Listed 11 months ago at £295k, sold immediately for £280k/completed early 2019. For sale six months later for £315k with the same selling agent. Zoopla indicates that the local market price changes makes the house worth less than they paid for it.

I'd like it.... not desperate for it.... and it's very annoying

But you can't make anybody sell for the price you'd like to pay.

No, you can't make a seller sell, but you can control whether you are willing to pay the asking price.

The current stagnant market is generally the result of a stand-off between sellers refusing to accept lower prices, and buyers refusing to pay higher asking prices. I have read that historically these situations usually result in general price falls, rather than the opposite. It is therefore a big risk whether you would make you money back if you bought that house but then had to sell it again for some unexpected reason. Bigger risks generally mean that a buyer should be more cautious.

ethank

The best indicator of prices is the current sold prices so have a look in the area and try to compare on the same type of houses.

House prices are nothing like the prices in 2011!

Nationwide Price Index indicates that in Yorkshire there has been just over a 15% increase. See below

vacheron

We're in the North East.

Our neighbour (an older chap) put his house up for sale with purplebricks at "offers over" a silly asking price. When we were talking to him about it about 6 months later he said that this was the price purplebricks suggested when they valued it.

Any basic land registry sold price search would show that the similar houses in the street have never sold for anywhere near what theirs is listed for.
I explained that any modern buyer would simply do this in 5 minutes and never even bother contacting them as the price, plus the "offers over" caveat often suggests an unreasonable seller with unrealistic expectations.

He seemed to listen but didn't do anything with the price.

Last week (another 6 months later) we were having the same conversation again and he is expressing annoyance that it still isn't getting much interest at his same original price!

System

ethank wrote: »

The best indicator of prices is the current sold prices

A buyer also needs to consider that 'current' sold price date can be 6 months out-of-date (3 months between acceptance of offer and sale, and then another 3 months for sale price to appear on Land Registry). 6 months can be a long time during a period of change, so 'current' sold prices data needs to be treated with caution.

verybigchris

IME every house listed through Purplebricks is somewhat over-priced. PB get paid whether the house sells or not, so they overvalue to get the business and then don't care if the house sits there unsold.