The value of a house - Am I wrong ?

Grumpy_chap

OP advertising at £330k and been offered £280k.  

If the prospective buyers are not that fussed about the property, you can't blame them for trying it on.  

The OP can and should decline.  Prospective buyers may offer more, or the next viewing may just *love* the property.  It's a case of being lucky to find the buyer who ♥️💞💕💓💟 the property.

Sometimes a "crazy" offer might be accepted if the seller desperate.  A flat near me was up for £1.1m and went for £920k.  Combination of optimistic seller and cheeky buyer.  Or vice versa

princeofpounds

We are emerging from a pandemic. Some people are just going to try their luck with low offers - and why not? No-one is forcing you to accept.

Besides, this offer isn't even that low. It's very common, almost to the point of being customary, that people will bid about 10% below asking prices, with the assumption that the asking price is normally a little bit inflated (just like initial EA valuations tend to be) - so that both sides have room for negotiation in the middle. This is just 15% below; it's just not that different at all. 

And yes, you'll find that some people will come into a house, and then price up everything it would take to make it perfect for them, and deduct that from the price. That's a bit silly, but it's a very common psychology - I had two of them the last place I sold. It's what it's worth for them, but that doesn't mean that's what it's worth on the general market.

Furthermore, don't expect that £70k of improvements increases the value of your property by an equivalent amount. You should get some of that money back, but certainly not all. Only certain types of improvement really add value over cost - normally those that fix significant problems.

So you're not wrong, but to be frank you don't know if you're actually right yet either, because it's really only decided when the bid-ask gap is bridged and the property sale is agreed.

Despite all that, I am sympathetic with you - selling can be horrible with strangers putting a value on everything you have done. Just try not to stress out about individual feedback - see what happens over time, with larger numbers of viewers. 

Angela_D_3

It’s not 10% though it’s 15% at least.  

The house was a wreck when we bought it,  not a single room habitable.  Was a bit of a kick in the teeth to almost imply it’s still a doer upper.  Hate this process 

greatcrested

What you paid is irrelevant to what it's now worth.

What you've spent is irrelevant to what it's now worth.

Compare it against the 'sold' prices (and to a lesser extent the 'advertised' prices) of other similar-sized local properties in similar condition.

AdrianC

Angela_D_3 said:

We had viewers look around and feed back to the estate agents they felt the house was worth £20,000 more than we paid for it in 2007

Irrelevant.

We have spent £70,000 on the house

Irrelevant.

it was valued at £330,000

BING!

and to get it how they wanted it they felt an additional £50,000 could be knocked off the asking price.

Irrelevant.

Are they being cheeky ?   Or do I do the same ?  I'd fully expect to get told to !!!!!! off tbh.

It's very simple...
How does it compare to other places on the market at the two price-points?
If it sits well with the £330k places, and they're selling, then it's worth £330k.
THEY might not want to pay £330k for it... Hey-ho. Others will. They aren't the only people looking... But a cheeky offer never hurt. What's the worst that'll happen? The vendor might be desperate enough to say "yep, alright."

GJB1954

We know the feeling. House was valued before work done. Have brought up to area market value from four EA evaluations . But is well below figure of pre work + money spent. 

Angela_D_3

AdrianC said:

Angela_D_3 said:

We had viewers look around and feed back to the estate agents they felt the house was worth £20,000 more than we paid for it in 2007

Irrelevant.

We have spent £70,000 on the house

Irrelevant.

it was valued at £330,000

BING!

and to get it how they wanted it they felt an additional £50,000 could be knocked off the asking price.

Irrelevant.

Are they being cheeky ?   Or do I do the same ?  I'd fully expect to get told to !!!!!! off tbh.

It's very simple...
How does it compare to other places on the market at the two price-points?
If it sits well with the £330k places, and they're selling, then it's worth £330k.
THEY might not want to pay £330k for it... Hey-ho. Others will. They aren't the only people looking... But a cheeky offer never hurt. What's the worst that'll happen? The vendor might be desperate enough to say "yep, alright."

Well no not irrelevant though is it, because house prices have risen significantly since 2007 and one simply couldn't have spent £70,000 on a house without improving it in someway.  I mean come on.

Angela_D_3

If every other house locally had only gone up by £20,000 then no blooming worries but it hasn't.

ProDave

Just because you spend £70K on a house does not automatically mean it will be worth £70K more.

Angela_D_3

ProDave said:

Just because you spend £70K on a house does not automatically mean it will be worth £70K more.

No but it does mean it's not derelict or a do er upper, that was my only point. 
New kitchen, bathroom, electrics, damp, garden, every room replastered.  It does make a difference.