House price

aamadami

Neighbour has decided to sell his house. As I was interested in the house couple of years ago, they have asked me if I wanted to purchase the house. What is the best approach to get actual property price. He has estimated 25k more than price based on Zoopla valuation. I believe Zoopla valuation is also not correct and showing quite high. I suggest him to get estimate from three local estate agents and we go for average price. There is no recent house sale on same street. He inherited house from his dad two years ago and made lots of (unnecessary) changes. Question: What is the best approach to get correct price. Do estate agent always put higher price so they can negotiate?     

moneysavinghero

Ignore Zoopla prices. The 3 agents approach is the best.

cheeky-peach

All I would say is to offer what you are comfortable paying. If you think the Zoopla valuation is showing as quite high, this would imply that the vendors estimation of 25k above that price would mean you would be looking to offer a lot lower than what he is expecting. Having EAs in to value is only useful if they are actually able to sell it at that price. They could suggest a figure and the house be marketed at that figure with no interest etc.

movilogo

There is no correct price here. Seller wants as much as possible buyer wants as less as possible. Estate Agents always inflate price because often vendors go with highest quoted price. If house does not sell EAs will press to reduce price later.

If you want to buy it at a price you are comfortable with, you need to convince seller that your offer is better as it is a guaranteed sale and he'd save EA fees. 

AnotherJoe

aamadami said:

Neighbour has decided to sell his house. As I was interested in the house couple of years ago, they have asked me if I wanted to purchase the house. What is the best approach to get actual property price. He has estimated 25k more than price based on Zoopla valuation. I believe Zoopla valuation is also not correct and showing quite high. I suggest him to get estimate from three local estate agents and we go for average price. There is no recent house sale on same street. He inherited house from his dad two years ago and made lots of (unnecessary) changes. Question: What is the best approach to get correct price. Do estate agent always put higher price so they can negotiate?     

I suggest you speak to him and get agreement to get a RICS valuer in and use that value. You both agree on the firm to use, and split the cost.

EA's tend to price on the high side for multiple pretty obvious reasons so that would only benefit him.

aamadami

thank you for your replies. Last two posts have given me something to discuss further. 

lookstraightahead

The fact that they could sell to you straight away gives them a quick sale - let them go on the market if they're being greedy / not happy with the offer. You're doing them a favour after all.

aamadami

It's been nearly three years since I last updated everyone. My neighbor returned with an offer of £290,000, which I declined. Consequently, it went on the market at £285,000. Despite some time passing without any offers, he eventually reduced the price to £255,000-£260,000. Finally, an offer came in at £250,000, which was accepted. However, after a few weeks, the surveyor valued the property at £230,000. The buyer withdrew their offer as they couldn't afford a higher deposit. At this point, I lost interest, particularly considering the initial offer of £290,000.

annetheman

aamadami said:

It's been nearly three years since I last updated everyone. My neighbor returned with an offer of £290,000, which I declined. Consequently, it went on the market at £285,000. Despite some time passing without any offers, he eventually reduced the price to £255,000-£260,000. Finally, an offer came in at £250,000, which was accepted. However, after a few weeks, the surveyor valued the property at £230,000. The buyer withdrew their offer as they couldn't afford a higher deposit. At this point, I lost interest, particularly considering the initial offer of £290,000.

I love follow-through, thanks for coming back for an update! What did it sell for in the end?

BobT36

I swear most houses are double what they "should" be.
(Of course that doesn't match actual reality based on what people are willing to pay, due to money magicked out of thin air and given to the banks, then made available as credit, and the rising demand for houses due to "other" reasons blablabla)

The other one I see a lot if people taking a perfectly reasonable 4 bed, adding an extra 2 crap rooms to the attic with dormers and thinking it's now worth £250k more etc. Whereas all they've done is just made it both logistically and financially unfeasible for most of buyers (who would have been happy with just the 4 bed), and then sit there lamenting why it's not selling, lol.. 

Pure greed. All the older folk talk about on my street is house prices "Oh good they've had a new conservatory done, that will help my house price" etc. Wanting them to go up, up and up for endless cruises. Forgetting that young people need to be able to afford somewhere stable to live and start families, to actually pay for those pensions they're looking so forward to..