Idential houses, one sold for 460k and one for 420k?

NaughtiusMaximus

Another possibility, maybe the buyer of the more expensive property happened to share the vendor's hideous taste in home decor

yksi

Beauty is in the eye of the beholder.

AKA value is subjective. You can't put all houses into a machine and it spits out the value, because the value is what someone's willing to pay and what someone else is willing to sell it for. Maybe one seller was rich and the other broke, maybe one buyer's mum lives around the corner and the other one paid more attention to previous sale prices so offered less. Maybe it was Tuesday and there was a rainbow.

Murphybear

I like pink, but that house is overkill. All those swags and tails too.

johnathan45

yksi wrote: »

Beauty is in the eye of the beholder.

AKA value is subjective. You can't put all houses into a machine and it spits out the value, because the value is what someone's willing to pay and what someone else is willing to sell it for. Maybe one seller was rich and the other broke, maybe one buyer's mum lives around the corner and the other one paid more attention to previous sale prices so offered less. Maybe it was Tuesday and there was a rainbow.

Had it been a couple of grand or worst case £20k, that's understandable. But isn't £40k over £420k property a big difference? Assuming it was a mortgaged house, wouldn't the surveyor have picked it up?

Cakeguts

I would guess that it is down to the roads. One is an access road to other roads the other is a dead end.

AdrianC

johnathan45 wrote: »

Assuming it was a mortgaged house, wouldn't the surveyor have picked it up?

Perhaps they did, but the buyer wasn't that bothered, and had sufficient affordability that it wasn't an issue?

pinkteapot

£460k house has much better kerb appeal with its drive and front garden. That alone can add to the value.

The interior is... interesting. :rotfl:

wesleyad

johnathan45 wrote: »

Had it been a couple of grand or worst case £20k, that's understandable. But isn't £40k over £420k property a big difference? Assuming it was a mortgaged house, wouldn't the surveyor have picked it up?

9.5%.. no not really that big. In other parts of the country that's the difference between a 60k terrace and a 55k on the same street which happens every day.

Perhaps the valuation, if needed, came in at the higher price, so the mortgager were happy to lend at both 420 and 460.

In the housing market there is very limited demand compared to a normal product. So pricing will never be set as you are dealing with an exponential curve. At the very top price there may be only one buyer. If you get that buyer you are quids in.Once that buyer is gone you may not see another buying at that price ever again (ignoring overall price increases). As you get lower in price you start bringing in more people who were willing to compromise or see it as a fair value, and as you get lower still you will get people who will buy just for investment or because its cheap.

davidmcn

johnathan45 wrote: »

Had it been a couple of grand or worst case £20k, that's understandable. But isn't £40k over £420k property a big difference?

Using the average of these completed sales, the value appears to be £440k, with those prices being +/- £20k, or 4.5% - which is within the usual rule of thumb of 5% for surveyor negligence.

johnathan45

pinkteapot wrote: »

£460k house has much better kerb appeal with its drive and front garden. That alone can add to the value.

The interior is... interesting. :rotfl:

Personally I prefer the cheaper house drive as I could park 3 cars and don't have to mow the front lawn!