Selling price vs. Asking price

John_M_Business

I think that the asking price can be very misleading... therefore all you can judge a house on is what you (or someone else) is willing to pay for it.

Look at houses in that price range, but be sensible. If you think a house is overpriced at £180k it might be worth a cheeky offer, but if you walk round a place and it looks 'worth' the asking - then it's probably not worth having a go.

Saying all that (and contradicting myself) - every offer is worth consideration, even if only for a split-second. I 'insulted' two estate agents with low offers before I bought this flat at over the asking price... but EA's a pretty thick skinned and I offered what I thought those flats were worth...

keithmdw

We are going to view an appartment at the weekend.

It's in an area that used to be very bad, but after £millions of investment the area is very much improved, although it still has that bad reputation.

It's up at £90k where similar properties in areas with good reputations are probably double that.

It's been on the market for 6 weeks apparently. Currently vacant (was bought by someones father while they were studying and now needs to sell as they have left Uni).

What would you good people say should be an opening offer if we wanted to make one?

Don't want to make a stupidly low offer and insult anyone, but don't want to start out too high.

One thing the estate agent did say is that there is another viewing of the property by someone else right after us (literally next time slot). Obviously not a good thing.

Will the fact the area still has a bad reputation (even though unfounded in the main) be a good bargaining point? There is no onward-chain on the property either, and as FTBs we could act immediately, so would this put us in a better or worse position to haggle?

John_M_Business

You've got to look at the area - at least at similar properties (space-wise, accommodation-wise) - then you'll get a better feel for the property and it's value. It's no good comparing apples with oranges: I live in Hammersmith and Fulham, yet just half a mile up the road is Kensington. Were my flat to be in Kensington it would be worth 10-20% more... but it isn't. The only way you can compare accurately is with properties within the same area.

IMHO it is unlikely that they will accept less than £80k on such a low property price.

Doozergirl

I did say cheeky - not silly! Cheeky is offering £160k on a £180k property. I of course recommend that you are polite and sound out your offers with the agent.

Estate agents are obliged to pass on offers though and really shouldn't be that bothered - commission is commission if they get a sale.

Pal

A point worth noting: If the average sale price is currently 93% of the asking price, and we know that some people are selling for the full asking price, then there are other house deals going through at 86% of the asking price.

Just because 93% is the average does not mean you cannot offer less than that. Try a few cheeky offers. Who gives a !!!!e what the estate agent thinks.

anitha

Hi,

it is so difficult at them moment to know what to offer.
I have used the 93% guide and looked at what houses in the street we have found a property sold for in April05.

The person selling the property is adamant he wants very near the asking price which is exhorbatant, because his property is priced higher than what his neighbour sold for and his property needs a gutting as it is so antiquated you could not live in it without redoing it

John_M_Business

If, in your opinion, they are not being realistic, then move on...

sukey13

Only just realised this section is here... so busy in the other parts of this board - silly me - property is what we do fulltime - buying/renovating/converting/refurbishing/letting...

We have bought a house for £83,000 in 2002 when the house next door was up for £125,000 - It was a repossession. We spent £17K doing it up and sold for £139,950 8 months later.

Next we bought a couple of grotty flats for £129K (on market for £149K) converted back into a lovely house, spending £25K, valued at over £200K.

Now we are creating a 3 bed flat out of a really large garage on the side of a property that we currently rent out as rooms.

Basically go for it. An offer is better than no offer at all. The worst they can do is say no. Summer and Christmas is the best time to pick up property bargains as everyone else is too busy holidaying.

bridiej

nelly wrote:

First of all dont fall in love with a pile of bricks.

Easier said than done though...