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

Mutton_Geoff · 24 September 2019 at 8:20AM

Samuel745 wrote: »

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.

Whether it will sell for £400k or not isn't the point. If you offer £300k you'll be letting the agent know what type of buyer you are and you may find it harder to be taken seriously when looking at and offering on any other properties that agent may be selling in the future.

A more professional approach is to tell the agent you are interested but feel the asking price is optimistic and you would like them to show you some recent comparables.

Acting like a Morrocan market negotiator won't get you far.

https://www.youtube.com/watch?v=51_Qs8tq5c8

AdrianC · 24 September 2019 at 8:23AM

The only question that matters is how it compares to other properties on the market at that price.

If it's massively overpriced, relative, then why are you even looking at it?

POPPYOSCAR · 24 September 2019 at 8:26AM

Do you have a link to this property?

Samuel745 · 24 September 2019 at 9:11AM

property-for-sale/property-74102146.html
Apart from the extra garage, i dont see what warrants it that value compared to other 4 beds

I called the EA again this morning telling and they think that the sellers would decline £300,000.

They also mentioned the market value for that house was £390,000.

Davesnave · 24 September 2019 at 9:23AM

Samuel745 wrote: »

property-for-sale/property-74102146.html
They also mentioned the market value for that house was £390,000.

The market value is what it sells for and they cannot know that till it sells.

So, they've estimated that it will sell for around £390k, but then they would say that, wouldn't they? It's probably what they told the seller too.

In the real world, it doesn't matter too much to the agent whether it sells at £390 or £360K, so long as it sells, preferably in a reasonably short time frame. They'll get their commission.

However, right now, £300k is out of the ball park.

AdrianC · 24 September 2019 at 9:35AM

Tea_Pea_Dee · 24 September 2019 at 9:39AM

https://www.rightmove.co.uk/property-for-sale/property-74102146.html

Nice house for a new build. Don't know Coventry or anywhere North of Watford, so can't comment on price.

In the olden days (post Queen Victoria) we didn't have this wealth of info. re what a house cost previously. If I liked the house and it was comparable to others in a similar area, I bought it. Grrrrrr at Right Move et al, it has made most purchasers so bitter (not to mention deluded. You listening Crashy?? :cool::D:p:beer:)

hazyjo · 24 September 2019 at 9:42AM

OP - you've offered £300k without viewing? Gawd. You are making yourself look like a very flakey buyer (sorry!) or an investor at best.

If it's overpriced, go buy something else. If you can't afford anything else, then it's not overpriced.

House prices vary. They can easily go up (and down!) that much. As AdrianC has demonstrated, there are houses up within that bracket - it doesn't look unreasonable (not looked at links, just prices).

One of mine nearly doubled within 3 years. You should not be comparing it against what it sold for 3 years ago. And an offer £100k less than asking price on a newly advertised property is, even in a static or falling market, especially without viewing(!) just a bit cringey. If you had offered that much below on my property (with or without a viewing), I'd not let you view (or view again) (sorry again!).

Samuel745 · 24 September 2019 at 9:45AM

AdrianC wrote: »

Less than a mile away, new - £390k
Less than a mile away, new - £350k

2.5 miles away, £425k
2.5 miles away, £420k
3 miles away, £400k
2 miles away, £390k
...or...
Less than a mile away, £300k
That's the only £300k-ish 4bed within a mile

2.5 miles away, £285k

Thanks for these examples. I did come across these properties when searching for prices in the area. I guess my mentality will still taken aback by how much it could of increased in the past 3 years. Because i did see alot of 4 bed properties in high £200k to low £300k. So i was comparing it to those. But i guess the price could drop after a few months on the market.

Thanks for this insight. A true learning experience

AdrianC · 24 September 2019 at 9:50AM

Again: What they paid back then is totally and utterly irrelevant, unless you've invented a time machine. You have no knowledge of the circumstances of that sale.

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

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