My first property - but left confused

glmrz

After renting for a long time and due to personal circumstances, I hadn't been able to enter the property market. Now that I'm somewhat ready, I find that prices have skyrocketed and interest rates are incredibly high. Nonetheless, I am eager to proceed.

I had hoped my first purchase would be a house, but it's starting to seem less feasible. I've been monitoring the market in my area for a long time and have attended a few viewings in the past, but there was always something off that deterred me.

A few days ago, I had my first viewing in months, and it seems I've finally found a place I like. I'm considering making an offer; the current asking price is £250K. However, after doing some research on propertychecker[dot]co[dot]uk/  this morning, I came across some surprising information:

1. The total floor area listed on the website is 45m², whereas Rightmove lists it as 65m².
2. The estimated value according to the website is £170K, which is significantly lower than the asking price.

This discrepancy has left me a bit confused and uncertain about how to proceed. I'm not sure how reliable the information from propertychecker[dot]co[dot]uk/  is, but it seemed legitimate to me. Any advice or guidance would be greatly appreciated.

user1977

glmrz said:

I'm not sure how reliable the information from propertychecker[dot]co[dot]uk/  is

Not at all, I would expect. What gave you the impression it would be a useful resource? They haven't measured the property. They haven't carried out any sort of individual valuation of it.

If you want to measure a property, take your own measuring tape (or figure it out yourself from the room sizes in the listing!).

lika_86

I wouldn't pay too much heed to third party property websites, they're often wildly off. The movemarket for example lists the house next door to us as having a higher value than ours despite the fact that it's one bedroom smaller, has no outside space and is terraced whereas ours is end terrace. 

You should be able to ascertain who is right on floor area based on size of rooms on the floor plan.

EssexHebridean

Interest rates aren't incredibly high at the moment I'm afraid - historically, they're quite low, indeed, the mortgage we took in September for a house purchase as the lowest rate we've ever had (previous mortgage was paid off in 2016)! 

What does the floorplan for the property suggest in terms of area? Or is that what you mean by Rightmove saying the higher figure? What does the EPC say? (Although this may just give you another figure to add to the confusing mix!) Sometimes outside space is included to make a property feel bigger. Have a look at listings for identical properties nearby (Zoopla can help here as you can see historic listing details) and compare - does the one you are looking at add up, or not? 

The propertychecker website just appears to be a screenscraper site of lots of information available across lots of different sites so it's going to be getting the floor area figure either from one of the property listing sites (RM, Zoopla etc) or from the Government EPC Checker site I'm guessing. As a clue - our old flat is listed there with it's last sale date being when we bought back in 2003 - and the value stated on there is £30k less than we sold it for in September... the longer since a property has been sold, the less accurate this figure is likely to be. (As a comparison, for the house we just bought, propertychecker is showing a £10k increase in value - but I don't believe that, either!) 

I'd suggest that the bigger question for you is does the place you're looking at feel big enough for you? Do you like it, and want to live there? You might want to compare prices with other similar properties that have sold relatively recently to get a feel for value, but ultimately, it comes down to what the place is worth "to you" as that is what house prices are - how much someone will pay for them! 

RHemmings

@glmrz - what area are you in? £250K could be wildly inadequate to buy a house anywhere near where you are. Or, it could be enough to buy a nice house. 

Albermarle

Interest rates aren't incredibly high at the moment I'm afraid - historically, they're quite low,

OP - As above. The very low mortgage rates of the last few years were abnormal, and it is highly unlikely they will return for the foreseeable future. So when working out what you can afford, probably best to take into account that current mortgage rates ( or thereabouts) will persist for some time. They may go down a bit during this year, but then again they may rise again at some point.

gwynlas

EAs cover themselves by saying things might not be accurate eg they either measure at widest point even if it is in to aa norrow alcove, estimate if they cannot physically access or round up figures. What is important is the layout of a room to make the best use of space, placement of doors for easy access with sufficient wall space to accommodate sofas beds and other large items of furniture. If it is your first purchase look at houses that have not sold as they might now have been reduced to within your budget and check with a mortgage broker to find you the best fitting deal. Do not splurge on new furnishings fot the sake of appearances, check out local ads and selling sites as people change their minds all the time and forget they cannot fit king size beds in single rooms, there can be bargains out there.

glmrz

RHemmings said:

@glmrz - what area are you in? £250K could be wildly inadequate to buy a house anywhere near where you are. Or, it could be enough to buy a nice house. 

Sorry for confusion. This is not house. This is a 2 bedroom flat with garage.

glmrz

gwynlas said:

EAs cover themselves by saying things might not be accurate eg they either measure at widest point even if it is in to aa norrow alcove, estimate if they cannot physically access or round up figures. What is important is the layout of a room to make the best use of space, placement of doors for easy access with sufficient wall space to accommodate sofas beds and other large items of furniture. If it is your first purchase look at houses that have not sold as they might now have been reduced to within your budget and check with a mortgage broker to find you the best fitting deal. Do not splurge on new furnishings fot the sake of appearances, check out local ads and selling sites as people change their minds all the time and forget they cannot fit king size beds in single rooms, there can be bargains out there.

Thank you for your valuable advice. This property checks all my boxes in terms of location, size, and the availability of a garage. However, there are some downsides regarding its condition; it appears it hasn't been maintained for a long time, and the current tenant doesn't seem to be bothered about keeping it tidy.

glmrz

EssexHebridean said:

Interest rates aren't incredibly high at the moment I'm afraid - historically, they're quite low, indeed, the mortgage we took in September for a house purchase as the lowest rate we've ever had (previous mortgage was paid off in 2016)! 

What does the floorplan for the property suggest in terms of area? Or is that what you mean by Rightmove saying the higher figure? What does the EPC say? (Although this may just give you another figure to add to the confusing mix!) Sometimes outside space is included to make a property feel bigger. Have a look at listings for identical properties nearby (Zoopla can help here as you can see historic listing details) and compare - does the one you are looking at add up, or not? 

The propertychecker website just appears to be a screenscraper site of lots of information available across lots of different sites so it's going to be getting the floor area figure either from one of the property listing sites (RM, Zoopla etc) or from the Government EPC Checker site I'm guessing. As a clue - our old flat is listed there with it's last sale date being when we bought back in 2003 - and the value stated on there is £30k less than we sold it for in September... the longer since a property has been sold, the less accurate this figure is likely to be. (As a comparison, for the house we just bought, propertychecker is showing a £10k increase in value - but I don't believe that, either!) 

I'd suggest that the bigger question for you is does the place you're looking at feel big enough for you? Do you like it, and want to live there? You might want to compare prices with other similar properties that have sold relatively recently to get a feel for value, but ultimately, it comes down to what the place is worth "to you" as that is what house prices are - how much someone will pay for them! 

The floor plan I have is from Rightmove. When I sum up all the sizes, it hardly makes up to 55m², whereas in the Rightmove advertisement, it is noted as 65m². Naturally, the agent claims it is 65m². The EPC rating is C, and it potentially still remains within the C bracket.

Yes, I like the property in terms of its location, availability of a garage, and size. However, it will require some upgrading.

EssexHebridean

The garage may well be included in the overall floor space.