Reduction in property price?

csgohan4

if your flat was priced reasonably at this time, you would have had offers. Either drop the price or cary on waiting and risk your vendor dumping you in the near future

AdrianC

sticko24 said:

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.

How to define "value" in a way that doesn't include somebody being willing to pay that amount...?

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

But for how much?

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.

I presume there's a dimensioned floorplan, including floor area, on the listing?

sticko24

Csgohan : i mean this is why I’m canvassing opinion. Currently I’m just going by what the estate agents are advising as the “experts”.

By that logic every flat this price bracket is overpriced and needs to drop. Fair enough, maybe we are. But nobody is yet dropping. 

If the vendor wants to “dump me” as you so nicely put it, that’s entirely their right and I would expect nothing less. Anyone would choose the most proceedable buyer.
Since it’s been 16 months and they reject all lower offers I assume they aren’t in any major rush so who knows I may well get lucky. 

Time will tell 

NinjaTune

I'm guessing it's this one

https://www.rightmove.co.uk/properties/88300897#/

The black walls would put me off - I know they can be painted but it would be a PITA.  The bathroom would definitely put me off I'm afraid.

What's the length of your leasehold and what are the annual charges?

csgohan4

sticko24 said:

Csgohan : i mean this is why I’m canvassing opinion. Currently I’m just going by what the estate agents are advising as the “experts”.

By that logic every flat this price bracket is overpriced and needs to drop. Fair enough, maybe we are. But nobody is yet dropping. 

If the vendor wants to “dump me” as you so nicely put it, that’s entirely their right and I would expect nothing less. Anyone would choose the most proceedable buyer.
Since it’s been 16 months and they reject all lower offers I assume they aren’t in any major rush so who knows I may well get lucky. 

Time will tell 

Why would you trust Estate agents, who's sole aim is to make money, from you. They will quote the highest price they can get your house for, so you will go with them, then ask you drop the price once your house has languished on the market for months. 

they are no more experts than the viewers that come to view your house. Your house is only worth as much as someone is prepared to pay for it, not what the EA slaps on Right move. 

If you want an expert, a RICS surveyor are more accurate in their valuations, as these are the ones used by lenders. 

If your house is overvalued, the lender will lend less money and the buyer will reduce their price or walk away, so it is self defeating cranking up the price hoping to make a large profit

It's clear you have competition, do you actually know the sold prices from the Land registry? recently?

Clearly as I mentioned, if it is priced to the market you should have offers now. 

My house was on the market for 4-5 months, I offered below and after negotiating still got it under the offer price because I knew I had the upper hand

In some areas, it is a buyers market, which it seems to be in your area

GDB2222

sticko24 said:

Hi nightingale .
Thanks for your reply. This is a similar situation, they were built in 2015 and no cladding or balconies to speak of, but maybe people are still concerned. 

Numbercruncher8 spoke to EA today they stand by their valuation and advise against reducing for at least 2 / 3 weeks so 🤷🏼‍♀️

They also have sold a 2 bed one in the identical block next door and say EWS1 has not been requested by the lender. 

Regards the ground floor / layouts. Not quite identical. Mine and one other are bigger and have x2 additional windows. 

Estate agent seem to think ground are the most desirable as they have little garden spaces. I guess they are thinking regards to lockdowns etc.
when I was buying I absolutely didn’t want an upper floor one, I wanted the little garden bit so guess it’s just whatever people’s preference may be. 

Crashytime unfortunately a 20k drop is too high for all of us selling. Nobody would then be able to move forward to their next step up on the property ladder. I could accept 160 as I’m fortunately moving into a much lower cost area, but 150 would be pushing it. 

To further complicate things, it is subject to a second charge as it was purchased using the help to buy scheme. So if I went too low and RICS surveyor valued higher than I sold it for HCA can refuse to release their 20% of the property. 

I guess I just have to monitor the situation and hope for the best.

Thanks for your input everybody. 

Obviously, we have no knowledge about your flat, but the HTB scheme helped developers to get top dollar for their flats. When you sell, your buyer won't have the aid of HTB, so that limits the number of buyers. In addition, your flat has lost the 'new build premium', which is generally thought to be worth around 10%. 

sticko24

Hi Adrian C 

Indeed. I feel it’s too high if nobody is willing to pay it. They disagree, their argument is the others have had far less viewings and that I wouldn’t get any if it was overpriced. 

Using STC and sold on rightmove I can see many have sold for 150 / 160/ right up to 190k recently. 

It’s difficult to pinpoint exactly why, just the right buyers for each property and price I suppose.

There is indeed a floor plan 👍🏼

Snuggles

NinjaTune said:

I'm guessing it's this one

https://www.rightmove.co.uk/properties/88300897#/

The black walls would put me off - I know they can be painted but it would be a PITA.  The bathroom would definitely put me off I'm afraid.

What's the length of your leasehold and what are the annual charges?

If it is that property, I think it looks very smart and well presented. There is nothing in the photos that would put me off.

I just think the market for typical FTB type properties is limited at the moment. In my area anything from a 3 bed detached up is selling like hot cakes. Smaller properties, including houses, are sitting on the market for much longer. With flats you also have the EWS issue and all the recent bad press about leaseholds. 

sticko24

Ninja tune 

Yes that’s mine

Thank you for your feedback on this. 

I will be repainting the black I think. EA said no negative feedback on that but agrees probably worth doing.

Any input why the bathroom would put you off? It’s actually brand new since the old one starting cracking and failing after 5 years since new built. 

But nothing is ever going to appeal to everyone’s taste, I understand this. 

Leasehold 125 years 
Ground rent £295 per annum 
Maintenance £68 per month paid quarterly 

Flat with the same charges as above, similar size and even more wildly painted colours has just sold for £160k so maybe this is a more reasonable price point for current market 

sticko24

Hi snuggles 

thank you very much for the kind feedback. It’s this one yes.

I think this is probably the case as it’s the same here and also where I’m moving to in Wales. Houses flying out the door within days. Not all, but mostly. Flats and little houses all struggling.

I have no way of knowing if the EWS1 will pop up until I have an offer, as I’ve heard conflicting things. Some sold no issue, some it’s a problem.  So just trying to arm myself with information and be ready for it!