What to offer on a house

Linton

You need to have a look round the house .  Then if you want to buy, but only at a very low price, discuss with the EA first.  Putting in a very low offer which is met with an outright rejection could sour the relationship with the vendor from the start.

The EA should give you an honest opinion since their top priority would be to simply get the hose sold and off their books.  How much it sells for is less important. 

jp1233

Sorry for slow reply all.
So we haven’t viewed the house inside etc. we have taken a couple of drive bys and also know the area well. It’s only 15 mins from our current house. Not sure what it was originally listed for, as it was (and still is) out of budget. We will arrange a viewing in the first couple of days of the new year, after mentioning to the EA about what sort or price we are looking at. 

The comment about the land being overgrown is an observation as to how it is now, compared to multiple dates from google street view.

ReadySteadyPop

jp1233 said:

Hi all,

I’m looking for some advice. House has been on the market for over 4 months (video from estate agents), and was reduced to 750k late November. It’s a countryside house with 5 acres of land so not a lot to compare it to of similar style. It sold in December 2017 for 565k. Looking at google street view the land has basically become overgrown and abandoned, so my guess is it is too much for them. We hadn’t thought about it in initially, however with the extended time on the market, we are now considering offering £650k. I know you are not the owners but would this be worthwhile?

I wouldn`t offer any more than 565k, interest rates have moved up a lot since then and mortgage rates are almost certain to rise next year, what have they done to the house that they think increases the value? Are you using PropertyLog to follow price movements on similar property?

Herzlos

ReadySteadyPop said:

jp1233 said:

Hi all,

I’m looking for some advice. House has been on the market for over 4 months (video from estate agents), and was reduced to 750k late November. It’s a countryside house with 5 acres of land so not a lot to compare it to of similar style. It sold in December 2017 for 565k. Looking at google street view the land has basically become overgrown and abandoned, so my guess is it is too much for them. We hadn’t thought about it in initially, however with the extended time on the market, we are now considering offering £650k. I know you are not the owners but would this be worthwhile?

I wouldn`t offer any more than 565k, interest rates have moved up a lot since then and mortgage rates are almost certain to rise next year, what have they done to the house that they think increases the value? Are you using PropertyLog to follow price movements on similar property?

Please stop giving people such terrible advice. If it sold for 565k in 2017, it's almost certainly worth more now and has presumably been valued by experts at over 700k. It's debatable whether the vendor will even consider 650k.

jp1233

So again not helped by internet prices really. Zoopla has it at 629k and nationwide index at 752k. My current house is on nationwide at 376k which is about 25k to high, and not on zoopla, so I don’t really think either of those are useful.
zero change to the house since it was bought

[Deleted User]

jp1233 said:

So again not helped by internet prices really. Zoopla has it at 629k and nationwide index at 752k. My current house is on nationwide at 376k which is about 25k to high, and not on zoopla, so I don’t really think either of those are useful.
zero change to the house since it was bought

You will need to understand the data. My property 1 mile outside the city centre was inflated on Zoopla as it took into account the cost of city centre apartments in the same postcode.

Whereas Nationwide and Halifax valuations have proved to be quite accurate in my experience. We all know that prices have on average risen significantly since 2017. Neither the pandemic not interest rates have crashed the market. I have bought and sold in that timeframe.

In any case you are bound by what you can afford to offer.

It's not really about being certain of an absolute value either. The same house may sell for substantially less or more depending on such things as the desperation of the seller or alternatively if multiple buyers become interested at a given price point.

For example I am in the market at your price range. If any property listed at 750 was suddenly in the running at 650, I would anticipate several estate agents alerting me.

ReadySteadyPop

Herzlos said:

ReadySteadyPop said:

jp1233 said:

Hi all,

I’m looking for some advice. House has been on the market for over 4 months (video from estate agents), and was reduced to 750k late November. It’s a countryside house with 5 acres of land so not a lot to compare it to of similar style. It sold in December 2017 for 565k. Looking at google street view the land has basically become overgrown and abandoned, so my guess is it is too much for them. We hadn’t thought about it in initially, however with the extended time on the market, we are now considering offering £650k. I know you are not the owners but would this be worthwhile?

I wouldn`t offer any more than 565k, interest rates have moved up a lot since then and mortgage rates are almost certain to rise next year, what have they done to the house that they think increases the value? Are you using PropertyLog to follow price movements on similar property?

Please stop giving people such terrible advice. If it sold for 565k in 2017, it's almost certainly worth more now and has presumably been valued by experts at over 700k. It's debatable whether the vendor will even consider 650k.

Unlikely. The only valuation that counts is the one done by your lender.

ReadySteadyPop

[Deleted User] said:

jp1233 said:

So again not helped by internet prices really. Zoopla has it at 629k and nationwide index at 752k. My current house is on nationwide at 376k which is about 25k to high, and not on zoopla, so I don’t really think either of those are useful.
zero change to the house since it was bought

You will need to understand the data. My property 1 mile outside the city centre was inflated on Zoopla as it took into account the cost of city centre apartments in the same postcode.

Whereas Nationwide and Halifax valuations have proved to be quite accurate in my experience. We all know that prices have on average risen significantly since 2017. Neither the pandemic not interest rates have crashed the market. I have bought and sold in that timeframe.

In any case you are bound by what you can afford to offer.

It's not really about being certain of an absolute value either. The same house may sell for substantially less or more depending on such things as the desperation of the seller or alternatively if multiple buyers become interested at a given price point.

For example I am in the market at your price range. If any property listed at 750 was suddenly in the running at 650, I would anticipate several estate agents alerting me.

PropertyLog is better than estate agents in my opinion.

Herzlos

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

jp1233 said:

Hi all,

I’m looking for some advice. House has been on the market for over 4 months (video from estate agents), and was reduced to 750k late November. It’s a countryside house with 5 acres of land so not a lot to compare it to of similar style. It sold in December 2017 for 565k. Looking at google street view the land has basically become overgrown and abandoned, so my guess is it is too much for them. We hadn’t thought about it in initially, however with the extended time on the market, we are now considering offering £650k. I know you are not the owners but would this be worthwhile?

I wouldn`t offer any more than 565k, interest rates have moved up a lot since then and mortgage rates are almost certain to rise next year, what have they done to the house that they think increases the value? Are you using PropertyLog to follow price movements on similar property?

Please stop giving people such terrible advice. If it sold for 565k in 2017, it's almost certainly worth more now and has presumably been valued by experts at over 700k. It's debatable whether the vendor will even consider 650k.

Unlikely. The only valuation that counts is the one done by your lender.

And who do you think is going to be nearer the lenders estimate? An estate agent or some guy on the internet with the worst track record of real estate dealing I've ever encountered?

They know the area, the market, the trends, what the bank is looking for etc, and you troll the internet about a house price crash that's been impending for 21 years now.
You are also the only person I've ever seen mention PropertyLog, which I'm not sure is even useful here. It'll show if a selling price has been reduced but it won't show what properties are actually selling for.

Given how much house prices have gone up by since 2017, 700k isn't unreasonable, though the increase was biased towards the sub-300k properties. Prices are up here in rural nowhereville by about 30%, which would be 734k.

shinytop

You can ask; our buyers did.  Slightly cheaper (also rural) property but they initially offered about 85% of our asking and are buying at 95%.  

That was about a 24% increase in 4.5 years.  The Nationwide index was spot on.  

From my recent experience selling/buying there is a shortage of properties but prices are holding up.