Another one - no interest in house

Pez2

I wonder about this £3k of work as well. As it looks like quite a new property I'm assuming that this work was mostly redecoration and cosmetic changes, a lot of which a new purchaser would alter anyway, so debatable if they've actually added £3k of value.

The truth is that the days of making money by buying a property, redecorating to a higher standard and then selling 12 months later are gone. In a flat market the OP should be looking to break even as the default position, not expect to be making 10%.

Jorgan_2

GavP wrote: »

I wonder about this £3k of work as well. As it looks like quite a new property I'm assuming that this work was mostly redecoration and cosmetic changes, a lot of which a new purchaser would alter anyway, so debatable if they've actually added £3k of value.

The truth is that the days of making money by buying a property, redecorating to a higher standard and then selling 12 months later are gone. In a flat market the OP should be looking to break even as the default position, not expect to be making 10%.

£3k spent on cosmetic work & redecoration will usually increase the saleability rather than the profitability. The two should never been confused, but very often they are.

mikelivingstone

johnycoldears wrote: »

I think you've answered your own question here.

Bought within the last 12 months for £135k + £3k spent = £138k.

Latest Nationwide figures indicate price falls for the last 5 months giving an overall year on year increase of 1.1%.

According to that your house is "worth" £139.5k if bought 12 months ago. Add to this the fact that you are selling into a falling market and therefore need to undercut the competition in order to sell.

Yet amazingly you think your house has increasedin value by 12% to £155k and are somehow surprised that it won't sell.

Yes, this is exactly how I would have approached it, so saved me doing the maths. The price might have been 10% more had the sale been in August, but prices are back down 10% since then. Essentially we are now back to where they were last March. In April it is likely that the Year on Year growth will turn negative, ie average prices in April 2008 being lower than in April 2007.

My advice would be to knock another 5% off £139.5k suggest above to try and get a quick sale, so perhaps £132,500. If you do that you may get some competitive bids, which could take the figure back up.

The mistake would be to hold out too long, price falls will accelerate and we could be down 20% by the summer, in which case you'll be looking at sub £120k. Sorry to not sound optimistic, but pretty much all sellers are in the same boat, the brave will cash out with a smaller drop, whilst those who hang in will lose big style.

cells

if something doesnt sell (be it a house, a cat or your old TV) there are only 2 reasons

1: its not been on the market long enough

2: it is overpriced

so if you think it has been on there for long enough, you need to address point two.

cells

ginvzt wrote: »

And most of those houses below £150K are terraced, ex-council and dodgy area of the town.

We bought the house for £135K a year ago and did work on it for about £3K. I wouldn't like to loose money on it as we still need to afford the house in the new location.

is this it?

• 17, Chaplin Close, Sileby
• Type : Terraced
  • Sale Date : 06 March 2007
  • Price : £135,000 (Freehold)

just FYI, the largest price anyone on your street sold for was

• 5, Chaplin Close, Sileby
• Type : Terraced
  • Sale Date : 30 March 2007
  • Price : £146,250 (Freehold)

so unless your home is far better than no 5 you will be setting a record on your street if you sold for 150k


oh, the person who bought before you seems to have sold it to you at a loss!

• 17, Chaplin Close, Sileby
• Type : Terraced
  • Sale Date : 25 March 2004
  • Price : £144,995 (Freehold)

interesting stuff

SquatNow

You think the proprety is worth £150k. Buyers think it is worth less.

They are the ones with the cash. This means they are right and you are wrong.

You need to drop the price until your price matches the buyers price.

Knock £10k off the price now and £5k off until you get interest.

Understand that on 1st April the market will start to be flooded with discounted ex BTL properties.

The bottom line is until the buyers cash is in your pocket, the house is worth exactly zero.

bluejake

This thread has been very illuminating. It shows the difficulty people have in coming to terms with the reality that those years of rapid house price inflation are behind us. I think many are still in the denial stage. When I hear people talking of 'spring bounce' and people thinking in terms of 'weeks' it really illustrates the point. The reality is it will be a very long time before we see rapid house price inflation again.

If you want to know where the market is heading look at the history of the UK housing market and look at where we are now. :eek:

SquatNow

bluejake wrote: »

This thread has been very illuminating. It shows the difficulty people have in coming to terms with the reality that those years of rapid house price inflation are behind us. I think many are still in the denial stage. When I hear people talking of 'spring bounce' and people thinking in terms of 'weeks' it really illustrates the point. The reality is it will be a very long time before we see rapid house price inflation again.

If you want to know where the market is heading look at the history of the UK housing market and look at where we are now. :eek:

Don't worry everyone, house prices only go up.

:rotfl:

PasturesNew

cells wrote: »

Sale Date : 06 March 2007
Price : £135,000 (Freehold)




Sale Date : 25 March 2004
Price : £144,995 (Freehold)

So it's losing £3k/year

So it's worth £132k now?


Seriously though, I hadn't looked at the house/prices .... it takes time and I stopped doing it ages ago, but it is a good way to see an area for what it is.

And the points made by this poster do show that perhaps the property price should now be viewed from various angles.

Any new buyer will also have looked at these figures and will see your price as a cheeky £15k win.

You don't say what you spent the £3k on. It would be difficult to improve a new house. If it was the dark paint on the walls I've seen in a couple of rooms, then this is a bold statement that might put off some buyers. I certainly preferred the lighter walls of your competition.

A house's value isn't related to how much you've spent on it, nor how much you want for it, nor for any desire you have for not losing any real or perceived value on it. A house's value is what a buyer thinks it is worth compared to others available to them.

gfplux

Now the market may be softening perhaps floor area's will become more important.
In my experience ( 40 years) of house and flat buying new and second hand, the newer properties may contain 3 bedrooms but the actual floor size gets smaller. This trend has been going on for a long time and if you have competition from new builds putting you total floor area in square feet in the advert might add to your competitive edge. Finding out the floor area of the new build might help if you can trust the builder!