Will anybody pay £40k more on house that sold for £295k 8 months ago?

RelievedSheff

TripleH said:

I saw a house that was £120K higher than its previous sale price about 18 months previous.

BUT whilst it looked good, it was a new build property 18 months ago, and the price was what you would pay for a recently finished new build on the same development. (That the area looked naff put me off as well).

I think with some new build houses, people forget that once they buy it, like a new car driven off the forecourt, it is no longer new and looses that 'new' tag. Yes you can pay to have peace of mind guarantees with developments and cars.

I have seen a few properties that look priced for what the owner 'needs' to buy their onward purchases and not what the property in my opinion is worth.

Whilever people are buying properties for those prices they will sell for those prices.

A similar thing is happening on the new build estate where we live. Houses that are coming up for resale are selling for much higher prices then they were initially bought for.

The developers still building on the estate can't build houses quick enough for the demand. So people are paying top money for the resale properties that are 18-24 months old.

We think it is absolute madness but others clearly don't if they are willing to pay the price.

TripleH

Strange isn't it. I understand that if it is a forever home then you are prepared to pay more because you intend to get full enjoyment out of it.

I think some people are either expecting a boom or are acting to a snap decision without thinking longer term. We are buying because we want stability and have relocated from a long way otherwise I wouldn't want to buy on this market.

Skiddaw1

There's certainly a touch of house panic-buying going on IMO. Sort of the house equivalent of toilet roll or Marmite. Just so glad we sold and moved when we did.

RelievedSheff

Skiddaw1 said:

There's certainly a touch of house panic-buying going on IMO. Sort of the house equivalent of toilet roll or Marmite. Just so glad we sold and moved when we did.

Same here. We moved to a new build in April 2019, so we had time to settle in before Covid struck and I ended up working from home.

I really don't envy people who are finding themselves in the situation of having to move right now.

lookstraightahead

I think sometimes we have to separate noise from fact. 

The only way is to look at sold stats. Not what houses are on the market for, not at estate agents subjective valuations, not at what buyers think they can afford, and not at what vendors think they can get.

gingercordial

A small 3-bed semi near us sold for £655k in February 2020.  It was relisted in June 2021 for £750k.  I noticed as we'd been interested in it the first time.

The blurb says "The current owner has fitted a new gas central heating boiler, electric fuse box and bespoke shutters to the front windows."  Comparing the listings, other than a few licks of paint that's all they've done.

That is in no way worth a £95k / 15% uplift in just over a year.  Given we've had similar work done in that time on the place we did buy, a new boiler would be £2k and our full rewire (not just the fuse box) was £5k.  Not sure of the cost of (front-only) shutters, but charitably let's say £10k for all those three things together.  Ridiculous asking price.

user1977

gingercordial said:

A small 3-bed semi near us sold for £655k in February 2020.  It was relisted in June 2021 for £750k.  I noticed as we'd been interested in it the first time.

That is in no way worth a £95k / 15% uplift in just over a year.

But as pointed out above, the relevant gap is from offer-to-offer, not from last-completion-date-to-initial-remarketing. So probably more like two years (or even longer, given how long some people's transactions seem to drag on) than "just over a year".

Ramouth

In some areas (our area of Cornwall for instance) prices have risen by at least 15% over the last year.  So this kind of price rise isn’t all that crazy.  It is just more visible on a property that has been owned for a short period of time.

GDB2222

AdrianC said:

The previous price is irrelevant, unless you have a time machine.

How does today's price compared with what else is on the market now?

Surely, the price from a recent sale is relevant as a pointer to the current market value? And that matters for mortgage purposes, as well as not wanting to pay over the odds.

getmore4less

nicknameless said:

Am I just naive?  Who is taking the **** here - vendor or EA.  Why sell after 8 months?  Estate agent has a few 'overpriced' sticky properties on books.

https://www.rightmove.co.uk/properties/112091723#/?channel=RES_BUY

What's the game here?

previous listing  

https://www.rightmove.co.uk/properties/112091723#/

asking £315 Aug 2020  Completed Dec for £295

Asking uplift is only £20k in a year, 6.3%