Price adjustment for smaller homes

jake_jones99

This idea that it's not "nice" to gazunder is beyond me. If there is new information surfaced that changes things, then I need to "keep my word"?

To justify their valuation, the seller's agents have previously said that the houses have increased by "at least" 3-5% per year. This last sale, of an identical house 2 years later, has shown the increase was only 1.8% per year. Meanwhile all statistics show the houses dropping.

So they can make false claims to justify their price, but if I bring this up to them then I "gazunder" and I am not nice. 

I simply wanted a way to relate the prices of two houses with identical characteristics based on size. While I did receive a lot of advice that I appreciate, I feel like most of it missed my point. 

silvercar

jake_jones99 said:

This idea that it's not "nice" to gazunder is beyond me. If there is new information surfaced that changes things, then I need to "keep my word"?

To justify their valuation, the seller's agents have previously said that the houses have increased by "at least" 3-5% per year. This last sale, of an identical house 2 years later, has shown the increase was only 1.8% per year. Meanwhile all statistics show the houses dropping.

So they can make false claims to justify their price, but if I bring this up to them then I "gazunder" and I am not nice. 

I simply wanted a way to relate the prices of two houses with identical characteristics based on size. While I did receive a lot of advice that I appreciate, I feel like most of it missed my point. 

You are buying a house to live in, not a business. 

My point earlier stands, take garden size for example. If one house has a 200ft garden and the other 150ft, it could make no difference to the price. But if one has a 10ft garden and the other 20ft, that makes a difference. So things like whether the kitchen would be a kitchen/ diner or just a kitchen will matter more than whether the main bedroom is 12ft long or 14ft.

lincroft1710

Sellers do not have to justify the price they ask. If a potential buyer does not like the price they either offer less or look elsewhere. What a buyer should not do is make an offer which is accepted and then when the sale is progressing start finding ways to reduce the offer just prior to exchange 

jake_jones99

silvercar said:

jake_jones99 said:

This idea that it's not "nice" to gazunder is beyond me. If there is new information surfaced that changes things, then I need to "keep my word"?

To justify their valuation, the seller's agents have previously said that the houses have increased by "at least" 3-5% per year. This last sale, of an identical house 2 years later, has shown the increase was only 1.8% per year. Meanwhile all statistics show the houses dropping.

So they can make false claims to justify their price, but if I bring this up to them then I "gazunder" and I am not nice. 

I simply wanted a way to relate the prices of two houses with identical characteristics based on size. While I did receive a lot of advice that I appreciate, I feel like most of it missed my point. 

You are buying a house to live in, not a business. 

My point earlier stands, take garden size for example. If one house has a 200ft garden and the other 150ft, it could make no difference to the price. But if one has a 10ft garden and the other 20ft, that makes a difference. So things like whether the kitchen would be a kitchen/ diner or just a kitchen will matter more than whether the main bedroom is 12ft long or 14ft.

Thanks for addressing my point. So I agree with everything you said. The similarity between the houses is actually very high. The structure is the same, both got kitchen/diner combined and living room etc. Even the number of bathrooms the same. It literally boils down to size. So you are saying that a 20% difference in size would not amount to any price adjustment? 

Chief_of_Staffy

jake_jones99 said:

This idea that it's not "nice" to gazunder is beyond me. If there is new information surfaced that changes things, then I need to "keep my word"?

But there is no new information. That's the point. Even if prices were solely dependent on size (which they're not - indeed a house 20% larger would mean higher maintenance, higher council tax possibly, higher energy bills), it would make no sense to adjust your offer because there is no reason to assume the sale price of the other house is somehow definitive. I don't know why you assume your offer is excessive rather than the other buyer got a good deal. There's no logical reason to adjust your offer because you have received no pertinent information that would inform your opinion, although of course you can if you like.

gwynlas

Did you view the larger house or just the smaller?
Even in areas that use price per square foot/metre there is still variance
Both are 3 bed 2 bath houses built at the same time what was original price difference?
Take any EA statement with a pinch of salt they talk up the market when it suits them, are they responsible for both sales?
It is your decision but if you would harbour resentment that you overpaid then perhaps you should withdraw

theartfullodger

It's worth whatever it is worth TO YOU.  There are no rules or laws on prices,  (A fundamental problem with capitalism)  e.g. it will be worth a different amount to me.. 

YOU decide what it's worth to you.  End of. 

silvercar

jake_jones99 said:

silvercar said:

jake_jones99 said:

This idea that it's not "nice" to gazunder is beyond me. If there is new information surfaced that changes things, then I need to "keep my word"?

To justify their valuation, the seller's agents have previously said that the houses have increased by "at least" 3-5% per year. This last sale, of an identical house 2 years later, has shown the increase was only 1.8% per year. Meanwhile all statistics show the houses dropping.

So they can make false claims to justify their price, but if I bring this up to them then I "gazunder" and I am not nice. 

I simply wanted a way to relate the prices of two houses with identical characteristics based on size. While I did receive a lot of advice that I appreciate, I feel like most of it missed my point. 

You are buying a house to live in, not a business. 

My point earlier stands, take garden size for example. If one house has a 200ft garden and the other 150ft, it could make no difference to the price. But if one has a 10ft garden and the other 20ft, that makes a difference. So things like whether the kitchen would be a kitchen/ diner or just a kitchen will matter more than whether the main bedroom is 12ft long or 14ft.

Thanks for addressing my point. So I agree with everything you said. The similarity between the houses is actually very high. The structure is the same, both got kitchen/diner combined and living room etc. Even the number of bathrooms the same. It literally boils down to size. So you are saying that a 20% difference in size would not amount to any price adjustment? 

Depends what else is on the market. I would expect a small price differential, but nothing major. I'd also ignore zoopla, it doesn't allow for the fact the previous buyer may have got a great deal. 

silvercar

gwynlas said:

It is your decision but if you would harbour resentment that you overpaid then perhaps you should withdraw

I agree with this. If it is going to eat you up, then offer less or pull out. On the other hand, if you would regret not buying it then you continue with the purchase.

MeteredOut

silvercar said:

jake_jones99 said:

This idea that it's not "nice" to gazunder is beyond me. If there is new information surfaced that changes things, then I need to "keep my word"?

To justify their valuation, the seller's agents have previously said that the houses have increased by "at least" 3-5% per year. This last sale, of an identical house 2 years later, has shown the increase was only 1.8% per year. Meanwhile all statistics show the houses dropping.

So they can make false claims to justify their price, but if I bring this up to them then I "gazunder" and I am not nice. 

I simply wanted a way to relate the prices of two houses with identical characteristics based on size. While I did receive a lot of advice that I appreciate, I feel like most of it missed my point. 

You are buying a house to live in, not a business. 

My point earlier stands, take garden size for example. If one house has a 200ft garden and the other 150ft, it could make no difference to the price. But if one has a 10ft garden and the other 20ft, that makes a difference. So things like whether the kitchen would be a kitchen/ diner or just a kitchen will matter more than whether the main bedroom is 12ft long or 14ft.

Some people would pay more for a larger garden as they like gardens. Some would pay less as they see a large garden as an unwanted maintenance headache.