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

edgex

As per cakeguts;

that garage to the right of the house is your neighbours, & every time they park in front of it, they could pop their head over the fence between garage & house.


"The property is situated in the Radford area the city on a Private Road."

It's not just the block paving you'll be paying towards, but the whole of Jaguar Close. 14 houses on the close.
It was built 3 years ago, so if the council haven't adopted it yet...


Also, the floor plan is for a different property.
Strange layout anyway, the way that the lounge doesn't open up into the back garden, but there's a utility room in the way.

Samuel745

Just for anyone wondering:

I am currently in the process of buying a 3 bed house in the area (coventry) for 255k. I am actually quite deep in to the process; just past mortgage lender valuation.

I saw the property in question and was an impulse to try and get it for £300,000 (because i believe that's what it's worth to me & comparing it).

Since it was rejected by the EA, I will continue with my first love.

This has been a lengthy discussion and I thank everyone for thier input. I am very young and I'm learning alot. Thanks!

Mutton_Geoff

Samuel745 wrote: »

I saw the property in question and was an impulse to try and get it for £300,000

I suggest you don't "impulse" buy something that represents the most expensive purchase in your life. Especially using other people's money.


Current values are not relative to the original purchase price, to highlight this, my first purchase (a studio flat in Putney) cost me £19,950 (1979). Today they sell for £250k+


My previous house I paid £730k and sold it less than 4 years later for £1.8m. I spent close to 500k renovating it. For my next (and current) property, like you, I offered 100k less than the asking price (which had already been reduced twice) and eventually it was accepted, but that discount represented 8% of the price, not 25%.



The only real valuation is what a buyer is prepared to pay. Somebody may offer £380k on that house and feel they are getting a bargain, especially if they've fallen for my MSE least liked phrase - their "forever home".

getmore4less

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.

That sounds like the ONLY research you have done is check what they bought it for.

Do some proper research to work out what it would be worth to the people that are buying and then decide if is worth around that amount to you.

I see other posters have helpfully started to help you with that research

Look through everything SSTC in the price range to see what people are buying.
Then look at the sold prices to see what people are paying.
Sold prices lag a couple of months but you soon build up a picture of asking/sold.

Then you can work out the pecking order of the forsale stuff.

ReadingTim

getmore4less wrote: »

Look through everything SSTC in the price range to see what people are buying.
Then look at the sold prices to see what people are paying.
Sold prices lag a couple of months but you soon build up a picture of asking/sold.

Even if you did arrive at a statistic showing the average "discount" off the asking price sellers were accepting, what "the market" says, or what "the internet" says vendor Bloggs should accept doesn't mean vendor Bloggs is going to accept it.

A property will only sell at a price both buyer and seller agree on.

Research on sold prices etc starts the conversation, but doesn't conclude the argument/negotiation, except perhaps when you agree that you'll never agree on price.

newatc

We bought our first house for £15k (1977) and sold it j two and half years later (we needed a bigger house for growing family) for £28.5k (1980) after doing no work on it all. I didn't feel greedy just sensible in listening to the Estate Agent.
If you believe the price of the house you are thinking of buying is way overpriced then you must walk away from it.

Crashy_Time

Samuel745 wrote: »

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

https://www.propertylog.net/

I found a 30k price drop near you, after about a 40 second search, and there will be more no doubt and more to come as the general economic/political picture darkens IMO.

Grenage

Our last house sold for 30% above what we paid, with no work done. Another year later it would have sold for 45% above. We did however buy 3 years after the crash

Markets are rather capricious.

RelievedSheff

Crashy_Time wrote: »

https://www.propertylog.net/

I found a 30k price drop near you, after about a 40 second search, and there will be more no doubt and more to come as the general economic/political picture darkens IMO.

I have found two near us that have raised their asking prices after a 30 second search.

https://www.rightmove.co.uk/property-for-sale/property-84042233.html

https://www.rightmove.co.uk/property-for-sale/property-82205717.html

No doubt there will be more to come as people realise the economic/political picture isn't as bad as project fear is portraying :cool:

MEM62

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.

It is not greed, it is property speculation. It is how some people make money. And if the house does not warrant the £125k price tag then the seller will not achieve that.

If you had your heart set on it you should have put in an offer when it was at £80k.