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smt34
Forumite Posts: 9
Forumite


We recently viewed a property that we could potentially be interested in.
Unfortunately none of the other properties in the village are very comparable.
It’s about 5 years old, built by an architect - just a small number of houses done on the same street by them (ie not a big estate/development).
What we’re struggling with is how to work out what the value of the property really is. None of the other houses have been resold since they were originally built, and the market has obviously changed a lot over the last few years.
Unfortunately none of the other properties in the village are very comparable.
Other than going off the valuation the house is on the market at, how would we get some indicators around the real value of the property?
If we are seriously interested, we’d want to avoid any situation where we ended up in negative equity, and ensure we’re paying a fair price.
If we are seriously interested, we’d want to avoid any situation where we ended up in negative equity, and ensure we’re paying a fair price.
Thanks in advance!
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The estate agent will have valued it at a marketable price. Expect it to be marketed at slightly over what they expect to sell it at, in the current market. Depends on the price, location, demand in the area etc. as to the difference between the advertised price and expected sale price. If I was looking at a £200k house now, I'd be looking to put an offer in around the £190k mark. A couple of years ago, you might be starting at £205k or more.
There are a lot of variables, but if you end up paying for a survey, they will also give you a real value and a list of things that may need doing to it. Of course, you have to pay for that survey.
Negative equity is only a problem if you have to move. If you are thinking of living in a new house for any significant period of time it is unlikely to be an issue.
Do you know how much the houses were sold for when they were built? 5 years isn't that long ago, so it shouldn't take much calculation to start from that value.1 -
For a house that hasn't been altered since last sale, in an area that hasn't significantly changed in that time, zoopla may be worth a look https://www.zoopla.co.uk/house-prices/ not always accurate, but a reasonable starting point for an unchanged house.
The first sale on this small development could dictate the price going forward.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Would a RICS surveyor be useful in this situation? Rather than relying on either a) what the seller wants for it, or b ) what an EA has put it on for.Right, and what are you going to do about it?2
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Bigphil1474 said:
Do you know how much the houses were sold for when they were built? 5 years isn't that long ago, so it shouldn't take much calculation to start from that value.
If there are no comparables in the village then you'll need to look further afield - and apply a larger margin for error.3 -
Get a RICS valuation. That's what I've asked the seller of a house to do that I am interested inAdvocate in the County Court dealing with a variety of cases, attending the courts in the North East and North Yorkshire1
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Any property is only worth what the buyer and seller agree it's worth. You can have as many comparables and RICS valuations as you like, but if the seller doesn't like the number you're offering, then you ain't gonna be buying their house. Equally, you can only offer what you're willing and able to pay, so you either reach an agreement, or you don't.
Unless the place has been on the market a seriously long time, or the seller is absolutely desperate to sell, you're probably going to need to be within 85-95% of the asking price to buy.2 -
You could also look at average £ per m2 for recent sales in the local area, even for properties that are not comparable. It'll give no more than an indicator, but you'd want to know if, for example, they're asking twice per m2 for the property.1
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YoungBlueEyes said:Would a RICS surveyor be useful in this situation? Rather than relying on either a) what the seller wants for it, or b ) what an EA has put it on for.
How do you think an RICS surveyor arrives at their valuation? Serious question.
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silvercar said:For a house that hasn't been altered since last sale, in an area that hasn't significantly changed in that time, zoopla may be worth a look not always accurate, but a reasonable starting point for an unchanged house.
The first sale on this small development could dictate the price going forward.0
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