What's the right price.

thecrazy1_2

Both myself and another family member are selling our properties. They have been valued at £550,000 and £535,000. One is a 3 bed terrace in need of some modernization - plastering new kitchen and bathroom. Valued at £550,00 The other has been a 2 bed house with new electrics new kitchen, bathroom, carpets and decoration valued at £535,000. The only thing that has been left is the flooring downstairs as that is personal choice. However, the offers we have received are £505,000 and £485,000 respectively. I personally feel this is too low but don't know how to work out the best value. All the estate agent is worried about is their commission and since the offers there have been no more viewing. This is the first time selling so advice appreciated.

Crashy_Time

The right price is what someone is willing to pay you for the house.

MFWannabe

The right price is what someone is willing to pay and what you are willing to accept 🤷‍♀️

greatcrested

* how long on the market?

* how many viewings?

* what feedback?

* What have other similar local properties sold for recently?

* What have other similar local properties been marketed for recently?

* how long have those properties been on the market?

* how desperate are you to sell. Is time on your side?

* how many valuations did you receive to arrive at the ones you quoted?

thecrazy1_2

greatcrested said:

* how long on the market?
Abou 6 weeks

* how many viewings?
10 on the 3 bed and 4 on the 2 bed

* what feedback?
3 bed needs lots of work to bring up to date but looking at loft extension plus knocking kitchen and bathroom through. The other house they say it needs new windows but has potential.

* What have other similar local properties sold for recently?
There are not many similar but the nearest is other 3 beds £525,000 -£575,000 and 500,000. - £525,000

* What have other similar local properties been marketed for recently? About the same

* how long have those properties been on the market? Most have been on since sept, Oct.

* how desperate are you to sell. Not very. We are both chain free.
*Is time on your side? Depends on stamp duty holiday

* how many valuations did you receive to arrive at the ones you quoted? 3

See quote for answers

greatcrested

Given the conditio and required work they both seem over-priced and the offers seem fair.

You've had viewings but only two offers (or were there other lower ones?) whichsuggests what people think when they view.

On the other hand you are not in a hurry so could choose to hold out for more.

warby68

The offers are roughly 10% below asking in each case. There is nothing unusual in that. If there are a few on the market and yours offer nothing special in comparison then price can be the way you get a sale in time for the stamp duty holiday.
You haven't said if these are opening offers or whether you have negotiated and whether there are competing bidders. 
Its probably fairly common not to accept a first offer - your choice is counter offer or decline or you can say not currently willing but its really not much difference to decline and probably no point if there are no more viewings coming.
You have to decide whether to wait it out in the hope of more (but 6 weeks, a good few viewings and a couple of offers is a good test of the market) or get a deal done now if you can.

lookstraightahead

My thoughts (some cynical):

The agent possibly had someone lined up who could afford to make an offer, and partially based the valuation on that.

The valuation is partially down to the equity/affordability of the potential buyer - can they afford the property when/if an independent or mortgage provider potentially 'down' values the property which is happening a lot

Are you ready to move out/are your buyers ready to move in as the market is fickle.

i personally would always go in with an offer of 10% less but that's always been my strategy. 

Theres so so much more at play at the moment than what you or the purchaser or in fact the estate agent thinks a property is worth.

FTB_Help

thecrazy1_2 said:

Both myself and another family member are selling our properties. They have been valued at £550,000 and £535,000. One is a 3 bed terrace in need of some modernization - plastering new kitchen and bathroom. Valued at £550,00 The other has been a 2 bed house with new electrics new kitchen, bathroom, carpets and decoration valued at £535,000. The only thing that has been left is the flooring downstairs as that is personal choice. However, the offers we have received are £505,000 and £485,000 respectively. I personally feel this is too low but don't know how to work out the best value. All the estate agent is worried about is their commission and since the offers there have been no more viewing. This is the first time selling so advice appreciated.

Do you have RM links you could share?

Both offers are approx 10% below price which is not unusual offers to receive.
The 3 bed one that need modernisation - sounds like the buyer has possibly factored that into price
The 2 bed one is I'm assuming in the outskirts of London somewhere (zone 4-6?)? If so, depending on where in London £535k for a 2 bed sounds about reasonable, but people who look to buy 2 bed houses generally would probably like a 3rd bedroom (especially if its a youngish couple purchasing) so may have bided a bit lower to factor in the cost of potential loft extension.

thecrazy1_2

FTB_Help said:

thecrazy1_2 said:

Both myself and another family member are selling our properties. They have been valued at £550,000 and £535,000. One is a 3 bed terrace in need of some modernization - plastering new kitchen and bathroom. Valued at £550,00 The other has been a 2 bed house with new electrics new kitchen, bathroom, carpets and decoration valued at £535,000. The only thing that has been left is the flooring downstairs as that is personal choice. However, the offers we have received are £505,000 and £485,000 respectively. I personally feel this is too low but don't know how to work out the best value. All the estate agent is worried about is their commission and since the offers there have been no more viewing. This is the first time selling so advice appreciated.

Do you have RM links you could share?

Both offers are approx 10% below price which is not unusual offers to receive.
The 3 bed one that need modernisation - sounds like the buyer has possibly factored that into price
The 2 bed one is I'm assuming in the outskirts of London somewhere (zone 4-6?)? If so, depending on where in London £535k for a 2 bed sounds about reasonable, but people who look to buy 2 bed houses generally would probably like a 3rd bedroom (especially if its a youngish couple purchasing) so may have bided a bit lower to factor in the cost of potential loft extension.

Definately helpful to get opinions. The original offer on the 3 bed was £505,000 but they have increased it to £510,000 and the 2 bed is the first offer.
https://www.rightmove.co.uk/property-for-sale/property-85571344.html
https://www.rightmove.co.uk/property-for-sale/property-74878119.html

AdrianC

The first one has been on the market since the start of October. It's enough time to get plenty of viewers round and interest going. You aren't wrong it needs modernisation... that bathroom... <wince>
There's plenty of comparables to suggest that £550k might be about right once all the work's done, but...
https://www.rightmove.co.uk/properties/75513306#/ - £550k
https://www.rightmove.co.uk/properties/75033768#/ - £535k, but half of a Victorian conversion
https://www.rightmove.co.uk/properties/74505033#/ - £550k reduced to £515k
https://www.rightmove.co.uk/properties/73295103#/ - £525k reduced to £500k, four-bed half of a Victorian conversion

The other one's definitely nicer, but that bit smaller. Given it's in the same road, the same comparables apply.