How often do houses sell for above the asking price?

AdrianC

Diocletian_II wrote: »

Indeed, I imagine houses that need a lot of work and expense are so popular they often command a premium to equivalent houses that require no work or expense.

Not a premium compared to the finished property.

But a premium compared to the finished property once the expense of the work's taken into consideration.

Let's take a hypothetical example...
£250k-when-finished property.
Needs £100k work.
Would you expect it to go for more or less than £150k?

I'd expect there to be a rush and it probably end up around £180k.

System

AdrianC wrote: »

Not a premium compared to the finished property.

But a premium compared to the finished property once the expense of the work's taken into consideration.

Let's take a hypothetical example...
£250k-when-finished property.
Needs £100k work.
Would you expect it to go for more or less than £150k?

I'd expect there to be a rush and it probably end up around £180k.

I know. It's absolutely crazy economics. The reverse of good value.

Surrey_EA

AdrianC wrote: »

Not a premium compared to the finished property.

But a premium compared to the finished property once the expense of the work's taken into consideration.

Let's take a hypothetical example...
£250k-when-finished property.
Needs £100k work.
Would you expect it to go for more or less than £150k?

I'd expect there to be a rush and it probably end up around £180k.

Exactly.

I come across a lot of people who don't want to pay the 'premium' for a property that's been all done, as they don't like the style or design.

They would prefer a property with an old/tired kitchen/bathroom that they can replace, rather than pay more for something that has a modern kitchen but one they don't like which will still end up being changed.

AnotherJoe

ACG wrote: »

If I was a betting man, I would say builder/developer/friend of the agent.
Offer will get reduced either:
1) Once the survey is done or;
2) At the last minute.

Dont get me wrong, there are times the property goes for more than the asking price, but not usually on properties that are empty, owned by old people and need work doing to them.

.... unless priced accordingly for a quick sale.

Crashy_Time

RelievedSheff wrote: »

In some areas it is quite common for properties to sell for over the asking price.

In Sheffield for example the asking price is more often than not the starting point for negotiations with properties often selling for well over the asking price.

Depends how many people want that property I guess.

Sales volumes for Yorkshire at 25 year lows, so I guess the answer is that less and less people want the property?

Thrugelmir

kdotdotdotdot wrote: »

If that's true, I'm wondering why on earth the vendors haven't already agreed the sale and taken the property off the market. It's been empty (it's a deceased estate) for about six months already.

Delay in obtaining probate.

Depending on the interest shown. The executors of the estate may well hold out for a higher selling price. As the cost of the empty property to them is minimal.

peterhjohnson

spadoosh wrote: »

EA has just replied and said they're waiting for proof of funds from the other person.

Sounding more like a phantom bidder.

The EA may be telling the truth :eek: I have been the "other person" with a winning offer but the property still on the market while my mortgage people got their act together.

kdotdotdotdot

Update: I guess we'll never know if the other bidder was real or not. EA accepted my revised offer of full asking price because I'm a cash buyer in no chain and the other (phantom?) buyer is in a chain and can't move quickly. EA says the vendor prefers a quick sale now, for less money than waiting it out. Hmmmmm.

Could I have got the property for £2,500 less just by sitting it out? No idea, but the difference is worth it to me, and obviously makes either the EA or the vendors happy.

"Diocletian_II wrote:

I know. It's absolutely crazy economics. The reverse of good value.

Not sure I'm really following that conversation. I would buy a fully done-up place but they're going for around £320,000 and over, and I just don't have that money. On the other hand, I will have the money over the coming years to do this place up, room by room. And yes, live with bare floorboards and plasterboard walls for quite some time.

System

[QUOTE=kdotdotdotdot;76387911._Not_sure_I'm_really_following_that_conversation.__I_would buy a fully done-up place but they're going for around £320,000 and over, and I just don't have that money. On the other hand, I will have the money over the coming years to do this place up, room by room. And yes, live with bare floorboards and plasterboard walls for quite some time.[/QUOTE]

Will this house plus cost of works come to more than £320,000? Also, years of living on a building site can be soul destroying with the dirt, dust and inconvenience, especially if you are getting no compensation for that in the price you pay.

kdotdotdotdot

Diocletian_II wrote: »

Will this house plus building costs come to more than £320,000? Also, years of living on a building site is soul destroying with the dirt, dust and inconvenience, especially if you are getting no compensation for that in the price you pay.

Why would I be living on a building site for years? All I need to do is decorate. The biggest 'building' I need done is full rewiring, plus converting the shower room back to a bathroom, which is not a minor thing, but hope to have that done before I move in.