What to offer based on 'recent' sold prices?

NervyBuyer

House I'm interested in is on for £280k. Originally-identical house on the same side of the same street sold for £250k in March (on for 260 - I viewed it but didn't get an offer in in time). Another on the same side sold for £225k last November. They all have basically the same footprint and layout, and appear to be in the same condition/decorative order (good) but have slightly different extensions. £280k has an additional shower room, £250k has a larger kitchen, both of which make quite a difference to the original house but obviously in different ways (the shower room to me is more valuable). Otherwise I can't see anything to choose between them.

Asking prices do seem to have been going up in the area (very little data on sold prices as they take so long to show up online), and there seems to be no shortage of buyers at that price range, but an additional 20-30k seems a little optimistic. House has already been on the market 6 weeks which is unusual (although it's maybe a quieter time of year) - comparable properties are usually going in less than 10 days. It's also right at the top end of current asking prices for that size of house in the area.

I really like the house and don't want to lose it quibbling over small thousands or with an insultingly low first offer, but equally want to preserve my pot for repairs as much as possible - 2 windows will need replacing before any other issues are found (old property). I'm a cash buyer, immediately proceedable, but the vendor appears not to be in a rush as they have already moved out to their partner's house. 

Would £265k be a reasonable opening gambit?

BarelySentientAI

If you don't want to quibble about a few thousand, offer what you think it is worth without thinking about "opening gambits".

tacpot12

I'd offer £270k (subject to survey and searches) and see how it is received. 

NervyBuyer

Thanks - I was thinking 270 but that's effectively a 20k increase in about 4 months which doesn't sit quite right. I'll probably have to accept it though! Also 270 was going to be my second (and final) offer as I don't like it that much considering what else is on the market.

swingaloo

If you offer 270 the seller will probably come back with 275.

BarelySentientAI

NervyBuyer said:

Thanks - I was thinking 270 but that's effectively a 20k increase in about 4 months which doesn't sit quite right. I'll probably have to accept it though! Also 270 was going to be my second (and final) offer as I don't like it that much considering what else is on the market.

It's not 20k in 4 months, unless you have a sale price for this house 4 months ago.

A similar but definitely different house sold for 20k less 4 months ago.  You've already said that you think that this one is more valuable to you than the other, so why are you assuming the price should be identical?

NervyBuyer

This house hasn't sold for about 17 years IIRC from the sale history.

The 2 houses are very very very similar, they have just used the small extended space differently. I don't see anywhere that I have said the prices should be identical. I thought 15k over the other's sold price might be reasonable bearing in mind prices going up and the difference in value to me. 

sheramber

Then you offer what you think is reasonable.

Whwther the seller accepts the offer is another matter.

BarelySentientAI

NervyBuyer said:

This house hasn't sold for about 17 years IIRC from the sale history.

The 2 houses are very very very similar, they have just used the small extended space differently. I don't see anywhere that I have said the prices should be identical. I thought 15k over the other's sold price might be reasonable bearing in mind prices going up and the difference in value to me. 

You've said that you thought this house was worth £250k in March because the other one sold for £250k in March.  It's where your reluctance to pay "a 20k increase" has come from.  That's identical pricing to me.

You have a choice.  You seem to like it but not want to pay more than £270k.  Offer that and stick to your guns, or offer less and see if they negotiate.  Impossible to tell how either will be received by the vendor and if they will read any future 'issues' into either approach.

NervyBuyer

BarelySentientAI said:

NervyBuyer said:

This house hasn't sold for about 17 years IIRC from the sale history.

The 2 houses are very very very similar, they have just used the small extended space differently. I don't see anywhere that I have said the prices should be identical. I thought 15k over the other's sold price might be reasonable bearing in mind prices going up and the difference in value to me. 

You've said that you thought this house was worth £250k in March because the other one sold for £250k in March.  It's where your reluctance to pay "a 20k increase" has come from.  That's identical pricing to me.

Yes I do think that they would have been on at the same asking price had they both been on at the same time earlier in the year - they are 100 yards apart and exactly the same terraced build, same outdoor space, same (apparent) condition. Some people would value the kitchen space more, swings and roundabouts. I didn't say I would pay an identical price.

I bet if this was a vendor's thread wondering why they'd had no offers in 6 weeks people would be saying 'look at comparable sold prices nearby'.

BarelySentientAI

NervyBuyer said:

BarelySentientAI said:

NervyBuyer said:

This house hasn't sold for about 17 years IIRC from the sale history.

The 2 houses are very very very similar, they have just used the small extended space differently. I don't see anywhere that I have said the prices should be identical. I thought 15k over the other's sold price might be reasonable bearing in mind prices going up and the difference in value to me. 

You've said that you thought this house was worth £250k in March because the other one sold for £250k in March.  It's where your reluctance to pay "a 20k increase" has come from.  That's identical pricing to me.

Yes I do think that they would have been on at the same asking price had they both been on at the same time earlier in the year - they are 100 yards apart and exactly the same terraced build, same outdoor space, same (apparent) condition. Some people would value the kitchen space more, swings and roundabouts. I didn't say I would pay an identical price.

I bet if this was a vendor's thread wondering why they'd had no offers in 6 weeks people would be saying 'look at comparable sold prices nearby'.

There would be.  And your position would sound more sensible if you said "I don't think this house is worth 20k more than that one", rather than ascribing a price increase from a baseline that doesn't exist.

Because that's your question - what is this worth - not has the price increased by X or y since March.