Is it a red flag when a property takes a while to sell?

1122abc

I’ve been looking for a 2 bed flat in SW19 for a while with a max budget of around £580k. I’ve offered on a few properties but have rapidly been outbid. I found an ideal property (81814699 Rightmove) but it’s been on the market since mid-late July. The location is so perfect for me. It was initially £625k but the price has now fallen to £580k. Quite a big drop I feel. Viewing the property in person, I feel that it’s worth £550k but I was advised that this offer will not be entertained....and it wasn’t. I’ve heard that several offers have been rejected, none have moved forward in anyway. I suppose I could offer £580k but is it a red flag if a property has been on the market for a while? Also, what’s with the huge drop - might there be a structural problem?

Angela_D_3

Not always.  Could be lots going on in the background that have nothing to do with the property itself.  

FinallyStoppedLurking

You've answered your own questions:
Listed for £625, you think it's worth £550. A house overpriced by £75k is unlikely to sell.
£75k over priced so a big drop required. 

Speak to the estate agent and ask them if any offer have previously been accepted and, if so, why the sale collapsed. 

1122abc

FinallyStoppedLurking said:

You've answered your own questions:
Listed for £625, you think it's worth £550. A house overpriced by £75k is unlikely to sell.
£75k over priced so a big drop required. 

Speak to the estate agent and ask them if any offer have previously been accepted and, if so, why the sale collapsed. 

I did ask. All above £580k rejected. No offers moved forward. Maybe I’m missing something and I should just look elsewhere. 

1122abc

Angela_D_3 said:

Not always.  Could be lots going on in the background that have nothing to do with the property itself.  

Any idea how I’d find this out? 🤔

FinallyStoppedLurking

1122abc said:

FinallyStoppedLurking said:

You've answered your own questions:
Listed for £625, you think it's worth £550. A house overpriced by £75k is unlikely to sell.
£75k over priced so a big drop required. 

Speak to the estate agent and ask them if any offer have previously been accepted and, if so, why the sale collapsed. 

I did ask. All above £580k rejected. No offers moved forward. Maybe I’m missing something and I should just look elsewhere. 

You seem to be making up your own issues for no reason.

If you like it offer what you think it is worth. If the offer is accepted follow this up with surveys to check for issues. 

1122abc

FinallyStoppedLurking said:

1122abc said:

FinallyStoppedLurking said:

You've answered your own questions:
Listed for £625, you think it's worth £550. A house overpriced by £75k is unlikely to sell.
£75k over priced so a big drop required. 

Speak to the estate agent and ask them if any offer have previously been accepted and, if so, why the sale collapsed. 

I did ask. All above £580k rejected. No offers moved forward. Maybe I’m missing something and I should just look elsewhere. 

You seem to be making up your own issues for no reason.

If you like it offer what you think it is worth. If the offer is accepted follow this up with surveys to check for issues. 

I’m just an inexperienced first time buyer that’s all. 

TBagpuss

1122abc said:

Angela_D_3 said:

Not always.  Could be lots going on in the background that have nothing to do with the property itself.  

Any idea how I’d find this out? 🤔

You can't, unless the agents tell you.

In this case, it sounds as though the sellers have inflated ideas of what the property is worth so it's going to take a while to sell - as it won't happen until either house prices rise to the level they want, or they realize that they have overpriced it and entertain realistic offers. 
It can be for reasons such as a seller 'needing' a certain level of sale price because they have a large mortgage and other debts and 'need' enough to pay them off, or (especially where there is more than home owner) one person thinking that the property is underpriced and holding out for more, or because they have spent money on home improvement and believe that they should be able to get the cost of those 'back' on sale

One option would be for you to tell the agent that you are interested, put in an offer at what you feel is the right level and tell them  that if it is rejected, you'd like them to contact you if the sellers change their mind or reduce the price. Meanwhile, keep looking. And be very clear with the agents that you believe it is significantly overpriced so won't be upping your offer to the sort of figures they are asking. The agent can't change the seller's mind but they may b better placed to encourage them to review the price if they have specifc feedback about the property being overpriced,.

FinallyStoppedLurking

Houses that are over priced don't usually sell. Vendors either have to accept it won't sell or drop the price. 

They may have hoped for a high price and rejected good offers oping to achieve more. Then they find themselves in a position where the offer have dried up and they need to sell. That equals a price drop. 

Do your research and establish what it is worth. Offer (below) what it is worth. Negotiate agreeable price (at or below what it;'s worth). Get surveys done. Only exception for this if it is your perfect home and you plan on living there for a long time so are willing to overpay (and accept the risks that come with this) to ensure you get your perfect home. 

AdrianC

The price has dropped because potential buyers thought £625k was too much.
£580k is bringing interested people in... You, for one.

https://www.rightmove.co.uk/properties/81814699#/
It didn't even start at £625k...
7th Jul - £650k
29th Jul - £625k
24th Aug - £600k
15th Oct - £580k

It's very nice, and beautifully presented. It stands need to be - at that price...
There's a whole stack of comparables - and it's looking around the right ballpark now, local wrinkles notwithstanding. But, of course, they're asking prices. And quite a few have been for sale for a while.

So what is selling?
https://www.rightmove.co.uk/properties/72951114#/
https://www.rightmove.co.uk/properties/94510565#/
https://www.rightmove.co.uk/properties/85390732#/
https://www.rightmove.co.uk/properties/82281124#/

Salemicus

That property was actually initially £650k! There's no mystery here.

No, this price drop is not likely caused by a structural issue. No, it is not a red flag that it has stayed on the market while the asking price was up to £100k more than people are willing to pay. The vendors asked for more than the market would bear, so they've had to come down.

If you would be happy to make a higher offer, bid more, and see what happens. But I wouldn't go straight to asking price.