What would you do in our situation?

Rocket92

Myself and partner have been house hunting for the past 5 months and have finally found a house we like however the house prices / market are very unpredictable and all over the place in the area and we are struggling how to offer when prices vary so much.

Area is Newport, South Wales. The reason house prices are so unpredictable is due to the Severn Bridge tolls being removed, it means that property that cost £120k a few years ago now sell for £150k+!

Property in question: zoopla.co.uk/for-sale/details/53288083 (Forum doesn't allow me to post links sorry)

Listed price is "Guide price: £150,000 - £160,000". We questioned the EA on the guide price when viewing and the explanation given to us was along the lines of "we aren't sure how to price as the market is so volatile, certain houses will sell for far less and some will sell for far more"

Listed: 9/11/19
Viewed: 15/11/19 (first day of viewings, 1 person before us)
Offered: 15/11/19 (£150k)
Declined: 18/11/19 (They asked if we had another offer, at that time we said no)

We can stretch to £155k (AIP is only £135k) however we aren't sure when we put that offer in? On one hand you can offer too early and they decline it or you can offer too late and it goes to someone else. Do we offer £155k tomorrow or next week? Is £155k a fair price? We can't find anything similar to this house locally to get a good idea of what it's worth.

I appreciate the thread is a bit of a ramble but I am just after some advice / opinion of what others think in regards to price and what strategy to use when offering. Thanks!

getmore4less

https://www.rightmove.co.uk/property-for-sale/property-86446280.html

77 East grove road.

only been to Newport once and got the distinct impression it has some seriously grotty areas and some very nice.

numbers are forsale/SSTC

looking up to 3miles from that place upto £160.

2beds 3beds+
00/01 01/03 detached(really a linked)
04/08 23/27 semi
56/61 97/92 terrace

now looking at the price distributions(All, so includes flats)
price...2b........3b+
0-100 031/035 003/010
0-110 051/056 010/017
0-120 072/073 023/029
0-130 086/100 046/057
0-140 101/110 068/076
0-150 116/121 100/101
0-160 126/126 123/126
0-max 146/143 450/377

Massive amount of stock but shortage of 2bed semis

Quite a big overlap of the 2beds with the 3+ beds

A lot of properties are listed at the low end of "quide" prices.
Looks like EA are pricing as a sellers market and letting the buyers decide.

What does your research data tell you about the asking and sold prices since you have been looking there must be quite a few hitting the land reg by now?
(* see below)

looking at just semis and detached
price...2b..3b+
0-140 1/4 03/13
0-150 4/9 14/18
0-160 4/9 24/30

What features of this 2bed are you keen on that you can't find in the other semis available?

With 3 beds around you can probably get somewhere that does not have front access and the stairs in the living room.
Also looking at maps north facing garden, with trees to the north and west
Is that artificial turf?

Given the toll road effect(do you need access) are there any better options the other side of the town?


If you buy at £150+ how much cash is that going to leave you for the things that will come up?


* asking to sold.
have a look at a few that have hit land reg

15 in the last year 1/4 mile semi detached.

you can look up the rightmove add from property number in the links

RelievedSheff

If you can't establish if £155k is a fair price then I'm not sure how anyone else can.

If you like it and are willing to pay the £155k make the offer.

Skiddaw1

It's very well presented I think and how nice to see a house that isn't predominantly grey


I'd have to get shot of the fake grass but other than that...


I think if I were you, OP, I'd up my offer as you suggest but make it clear that's it. If the seller won't bite then walk away. There really will be other houses.



Good luck!

AdrianC

Rocket92 wrote: »

Listed price is "Guide price: £150,000 - £160,000".

Listed: 9/11/19
Viewed: 15/11/19 (first day of viewings, 1 person before us)
Offered: 15/11/19 (£150k)
Declined: 18/11/19 (They asked if we had another offer, at that time we said no)

We can stretch to £155k (AIP is only £135k) however we aren't sure when we put that offer in?

I'm really not sure it makes any difference.
The house has been on the market less than a fortnight. You've offered the bottom end of their guide range on the first day of viewings. No wonder they've not accepted.

There will be other people viewing. Will you kick yourself if one of them offers £155k and gets accepted? Just offer it. If they're inclined to wait, then make sure your offer is kept on the table. Perhaps next week, after a second weekend on the market, they'll accept if there's no better offers.

Is £155k a fair price? We can't find anything similar to this house locally to get a good idea of what it's worth.

Your money, you tell us if you think it's worth it...
What else have you seen for the money that's been better or worse?
What have you seen that's similar quality but more or less expensive?

need_an_answer

I don't really know Newport that well nowadays. I had close relatives in the area until about 10 years ago,but I would certainly agree with the view that opening the bridges toll free has had a very positive affect on prices.

I do have a friend who lives in Newport,whos a mortgage advisor and I've just sent them the details ...in their opinion an offer between £150 and £155 should be more than sufficient.
Any more than that and the vendor is out to create a bidding war with the hope that several people are interested.
The fact that the vendor has asked if you are prepared to offer more might indicate that if you were to offer it would get serious consideration.
In your position I might go back soon and say you have managed to increase by £2k but that would be the final offer.
As yet no one else has offered even if they have viewed so I think they are just trying to squeeze that little bit more.

If you think about it logically,anyone who wants £155k would have listed it as that,or indeed offers over....they want between £150-£155

getmore4less

From looking at a few listing the adverts have a price with guide in the listing being a range(£10k) above that price.

Probably to avoid "offers over"

Seems to be a local sellers market based on the numbers

Would need an analysis of the asking/sold data to see if it is effective.

robatwork

Someone needs to buy the EA a real camera and a copy of "101 Beginner Mistakes With Photoshop". Love the stairs anyway.

FWIW if I was the seller and had an offer in the first week I'd think "aye aye I've priced it fairly. Let's wait to see if someone offers more".

So...feeling lucky punk?

If it were me I'd wait a week or two and if I lose it so be it...otherwise go back with full and final of £152k but not yet. You'll need to keep your cool.