Can a property (flat) price be guided by a neighbour’s recently sold price?

1122abc

There are two flats in one building which is a semi detached Victorian terrace. It is share of freehold. 

Ground floor flat - 2 double bedrooms, bathroom, open lounge/kitchen/living room and a garden. 550sqft excluding garden. Sold for £530k in 2014 and for £600k (asking price) in 2022. The seller was held out until she found someone to pay the asking price, around 5-6 months. 

First floor flat - loft conversion, 3 double bedrooms, 2 bathrooms, living room, kitchen, no outside space, 1000sqft. Sold for £585k in 2021 (on the market for £600k). 

Could this potentially mean that the first floor flat can be marketed at above £600k given that the smaller ground floor flat sold for this…or is a garden really that valuable and essentially the equivalent of an extra bedroom and separate living space?

Hannimal

A garden is really rather valuable but setting that aside, yes a purchase in a similar property near-by (even better if in same building) would help guide valuation of your property. 

user1977

Probably depends on local factors (and how big/nice the garden is!), but generally surveyors would regard it as good evidence, just not sure what the adjustment ought to be for the garden and floor area.

gingercordial

It is going to depend completely on the buyer's preference.  Outside space is crucial for me and so yes, I would pay more for the flat with the garden (assuming it is not just a tiny courtyard) than a flat double the size with no outside space - I would never even consider the upstairs flat.  I think a lot of people probably think the same way post-lockdown. 

But yes if the upstairs flat sold for £585k in 2021, and assuming prices are generally rising in your area, I am sure there are people who would value the space more highly than the garden and so £600k doesn't seem unreasonable as a starting point.  Nothing to do with the ground floor sales price though.

However you say it *is* on the market for £600k - presumably that means it hasn't sold at that price?  In which case, no matter what anyone here thinks, for that particular flat in that particular location in that particular condition that probably means the price is too high.  

1122abc

gingercordial said:

It is going to depend completely on the buyer's preference.  Outside space is crucial for me and so yes, I would pay more for the flat with the garden (assuming it is not just a tiny courtyard) than a flat double the size with no outside space - I would never even consider the upstairs flat.  I think a lot of people probably think the same way post-lockdown. 

But yes if the upstairs flat sold for £585k in 2021, and assuming prices are generally rising in your area, I am sure there are people who would value the space more highly than the garden and so £600k doesn't seem unreasonable as a starting point.  Nothing to do with the ground floor sales price though.

However you say it *is* on the market for £600k - presumably that means it hasn't sold at that price?  In which case, no matter what anyone here thinks, for that particular flat in that particular location in that particular condition that probably means the price is too high.  

Sorry, I meant that the upstairs flat was on the market for £600k and sold for £585k. Thanks for answering 

thanks all too