Sellers are valuing their house £130K above what they paid

Samuel745

A house i really like was purchased in 2016 for £270,000. The sellers are pricing the house at £400,000. Identicle newbuilds in the area were all purchased the same year with similar prices.

It was put on rightmove 20 days ago for £400,000. Also says "offers over".

I will be geting a viewing this week. But honesly im very confused as to how they came to a £400,000 valuation. What is their motive?

I plan to offer them £300,000 for the house. I honestly just want to go to the viweing and ask them straight up, before looking around, "will you even consider £300,000?". Because I don't want to waste my time if they are adamant on atleast £400,000 for a newbuild property they have done 0 work on.

When I spoke to the EA, they mentioned sellers were looking for a property to buy; however, they would be willing to move out if they get a sale.


Has anyone experienced something like this? Is it some kind of stratergy? Because anyone who offers 400K+ will have to deal with a hefty mortgage survey undervaluation.

roddydogs

You can of course value your house for whatever you want.

BoGoF

Or you could not waste anyone's time and ask the agent if an offer of £300,000 is going to be laughed at.

What they paid 3 years is irrelevant. Are there any recent sales of similar properties in the area. How do you know it will be undervalued at valuation?

To be honest it sounds like you just want to have a nose at the property.

Samuel745

BoGoF wrote: »

Or you could not waste anyone's time and ask the agent if an offer of £300,000 is going to be laughed at.

What they paid 3 years is irrelevant. Are there any recent sales of similar properties in the area. How do you know it will be undervalued at valuation?

To be honest it sounds like you just want to have a nose at the property.

I did ask that and she just gave me the "its worth whatever you're willing to pay"

warby68

I would say you are in miracle territory, if you find a seller asking £400k who is willing to accept £300k after 20 days on the market.

Recent similar property sales are what you need to compare with and not the original purchase price.

£400k might be pie in the sky but the vendor will have a reason and unlikely to change their mind so quickly.

I suppose there is a remote chance its a mistake, but probably as remote as the above miracle.

If you really want a nosy, making your £300k offer before you walk in, is quite likely to not get you over the threshold. You can ask via the agent without going to view if you really don't want to waste anyone's time.

daveyjp

On new builds it isn't unusual, especially on large developments where the later phases can sell for much more than the first phases. Friends paid £100,000 less than properties finished a few years later.

The later sales dictate the market value.

FtbDreaming

People are greedy. I had my heart set on a house that was empty/ for sale for 18 months for £80,000. (Was just getting mortgage ready) anyway somebody bought it in may probably for way less than £80,000. Theyve painted literally everything grey (it looks awful) and put it back up in august for £125,000 even though thats super overpriced for the area. Greed.

csgohan4

FtbDreaming wrote: »

People are greedy. I had my heart set on a house that was empty/ for sale for 18 months for £80,000. (Was just getting mortgage ready) anyway somebody bought it in may probably for way less than £80,000. Theyve painted literally everything grey (it looks awful) and put it back up in august for £125,000 even though thats super overpriced for the area. Greed.

And when people like you come to research the house, they will know its over priced and will languish in the market for sometime

trailingspouse

Samuel745 wrote: »

I did ask that and she just gave me the "its worth whatever you're willing to pay"

She 'gave' you that, because it's true. If you don't want it for £400,000 then don't buy it.

At the end of the day, they only need one buyer.

RelievedSheff

You are making the mistake of looking at what the owner bought the property for. That is largely irrelevant. You need to look at recent property sales for similar houses in the area to find out what the likely value of the property is.

If you post a link to the property, or even the postcode, people will be able to offer you better advice as to if it is over priced or not.

I would think that your offer 100k below asking price though would be flat out refused and most likely get the door shut in your face.

eddddy

Samuel745 wrote: »

I plan to offer them £300,000 for the house. I honestly just want to go to the viweing and ask them straight up, before looking around, "will you even consider £300,000?". Because I don't want to waste my time if they are adamant on atleast £400,000 for a newbuild property they have done 0 work on.

Your post makes it sound like your main reason for booking a viewing is to tell the seller that they're an idiot.

That might make you feel better, but it's not a good starting point for negotiating the purchase of a house.

I suspect that, in the unlikely event that they do eventually decide to drop their price to £300k, you would have made yourself the last person in the world they would want to sell to.