Reduction in property price?

sticko24

Can’t post links I’m afraid as I’m a newbie to these parts 😬

Se99paj

I'm currently trying to sell a 1 bedroom flat, it's been on the market since September last year, with no chain.
There's been very little interest and my property is a fairly reasonable price, there are other similar properties asking for much more.
As far as I can tell the problem has been the availability of first time buyer mortgages and the number of investors losing interest in the market.

Crashy_Time

End of FOM would have been a blow to the flat/BTL market anyway, Covid is an even bigger blow on top of that.

numbercruncher8

If there is an outside area then this should be emphasised, it may be that buyers like it.

Common reasons people do not like ground floor flats is the privacy aspect, after all it would be hard for someone to look into your windows if you were on the third floor - and also one of security - you could leave windows open on higher floors without fear of break-in.

If there is something in the development that knocks out those concerns then try to show it. 

Also another plausible reason is the competition above; a desire for more space may see people trade up. What is the cost of 2-beds for example? If it is only 10% more or so people may just choose to bypass yours.

sticko24

Hello Se99paj 

thank you for sharing. This was my feeling on what may be the issue as well, as 90% of flats are like this is the immediate area, definitely not alone there. Many of us also have no chain, me included. 

Number cruncher : yes I had heard all these things and definitely does make sense. For me wasn’t a concern. The windows all have anti-theft safety catches and if somebody wanted to look in on my boring life that’s up to them 😂 there are fences surrounding it so not all that easy. But understand for sure why some people dislike ground floor. 

The pricing is more complicated. There are 2 or 3 developments in the area considered to be “premium” due to location (proximity to pretty canal side views and the train station, with direct links into London). Mine is one of these. 

A 2 bed next door just sold at 220k so 50k on top of my current asking price.

that said, in the other parts of town further out, a 2 bed can be had for around 180k so only 10k more. Usually an older building and in need of an update but some people like that! 

Guess it’s just down to finding the right person for each flat. 

For anyone wanting a nose on RM the area is Leighton Buzzard 

AdrianC

sticko24 said:

I have a property up for sale currently, a 1 bed ground floor flat. Been on the market for just over 6 weeks, had I think 6 viewings, no offers. 

...
To complicate things there are 4 other identical / similar flats in my very same block all up for sale! They are currently listed at 175k at the highest, all the rest at 170k. All are with a different estate agent.

...

The longest one has been up for sale since September last year with no offers either. Owner of this one is talking about reducing down to 165k. 

It seems very simple.
Nobody currently wants to pay £170k for one of those flats. If they did, they have a choice.
Does anybody want to pay £165k? They would probably have offered - even £160k - if they did.

You don't mention how many viewings you're getting...

Similar nearby properties are also all the 170k mark with the odd one at 165 or 160k. 

Sold, or asking and not getting?

That, of course, is the current situation...
Experiences selling in the past aren't comparable.
Nobody knows what the future will hold.

Leighton Buzzard has massively expanded in recent years - there is, quite probably, an imbalance between supply and demand even without taking pandemic considerations into account. You MIGHT be able to benefit from London workers accepting a longer commute, fewer days of the week...

numbercruncher8

Is this one near it? 
That sounds similar.
If it is, that has been £190k since the start of November and not been sold, either something is wrong (ie EWS) or more likely nobody is willing to pay that price.

If you do not need to sell now you could just hang on as changes in the Budget are likely to be quite favourable for property.

sticko24

Number cruncher : yes, same development. Townbridge Mill phases 1 to 5.
5 is the latest one completed early last year and all up for rental currently instead of sale

This one you posted is in the “affordable housing” block which puts SOME people off, no judgments here. It’s also about 15 years older so maybe the reason for a lower price. 
the next block along, phase 4 built in 2017 my estate agent has literally just sold one at 220k, 30k over that one and literally right next door 🤷🏼‍♀️ 

So there are some buyers out there it seems 

I don’t HAVE to sell it’s not like I’d be homeless, but I’d like to sell as we’ve had that tentative offer accepted and I’m paying out for a home I don’t live in. Trying to find that balance I guess 

sticko24

Hi Adrian.

No, it seems they don’t want to pay 170k as all are unsold. And not just my block. ALL of them in the area that are similarly priced are struggling. But estate agents are adamant they are valued correctly we have all asked our various agents. 

They say it’s just a slow market for flats at the moment. 

I said about the viewings. I had 6 in the first four weeks. None these past 2 weeks. 

Nearby STC vary but are getting 150 right up to 180k, but EA did say the offers are slightly under asking price so maybe 155 to 178 for similar size to mine. Age / presentation varies.

And these have sold reccengly, I know as I stalk them 😂 so there’s a few buyers out there

feedbacks I got so far were : x2 said it’s small. I mean it’s a 1 bed flat but not tiny. “Small” I suspect correlates to “small for 170k” if you ask me. EA disagrees as mentioned. One didn’t like the general area of Leighton buzzard. A BTL investor said too much work required and bought elsewhere. One liked it but then decided no. One liked it but never heard anything further. 

One viewing request is waiting to speak to mortgage broker.

numbercruncher8

If it is the case that 'too small' = 'too small for the price'
why isn't it the case that 'slow market' = 'slow market for the price?'

IMO if something was listed at a great price it would go pretty quickly in most parts of the country. But that means being priced below all of the comparables.

Here you have other flats in the same development at the same price. The one on the first floor is also 567 sqft vs 443 sqft for yours (if I have got the right one) and that is the same price. That's a difference of 124 sqft, or almost 30%. Are the calculations wrong? It seems like quite a large difference for a new development.

The choices are really to either price it below the others or wait for someone who wants the trade off of a smaller flat on the ground floor for some outdoor space.