Sticky situation!!! Please help!

pizzarelli7348

Hi,

I need your advice on this. My husband and I bought a 2 bed flat in 2004 for £109,000. Last year we had a baby and in November we put the flat on the market for £149,950. We had a viewing in a month and then silence, so the EA advised to reduce the price to £139,950. We have had one vieing in 2 months. Today I received a letter from the EA. I phoned him and he advised reducing the price further to £129, 950 and told me that offer should start at £120,000.

I really don't know what to do. We have a mortgage of £65,000 left on the property.If we sold for £120,000 ( but I am starting to doubt we will ever find a buyer) we would have made £11,000 profit but only in theory because by the time we pay the solicitor, the EA, all the other expenses associated with the sale, I think we will be at a loss.

The other thing we could do is to let the place out, but there are so many places to rent at present that I am even doubtful we will find somebody to let it to.

What do you think we should do ? Sell at a low price, rent it out, stay where we are ( The only think with staying is that we are in a flat on the first floor with no garden and with a small baby is a bit of a problem.

Any answer will be appreciated

carolt

Why on earth do you expect to automatically realise a profit?

Were you not aware that house prices can go down as well as up?

pizzarelli7348

I am aware, and that is why I was asking for an opinion. Nobody wants to lose money, especially when you have got a family.

fatboyonadiet

I'm sort of in a similar situation, I'm contemplating letting it out and making up the short fall (not really much) until the market is a bit better and I will a betetr price for the house, or at least some interest! I'm also thinking about letting it slightly less then the going rate to get more interest and to get it filled quicker.

flugellover

sorry to read about your sticky situation - how much are you expecting the fees to be? You will probably still have a good chunk of your £11000 left although I agree it doesn't sound much profit over the 4 years. I am guessing you will have a lot of other replies which are more informed - but the usual questions about what else is there around you on the market that is similar - are they offering a better deal? With so few viewers my gut feeling would be that there is something putting them off.....price, location, size, or poor marketing? Also the current market seems to be slowing.... sorry, more questions than answers!!

If you feel that the flat is priced well and has nothing glaringly off putting about it, then I would be tempted to either change EA or stay put for a bit and see what happens.

Hope that helps, more helpful replies will be on their way soon I am sure

Catblue

Was it a new-build flat when you bought it? A lot of people feel that these have been very overpriced recently, and the market is now correcting itself for this particular type of property. That might explain the lack of viewings.

Even for older flats, if it is in an area where there has been a big oversupply of new-build flats, then this has a knock-on effect.

Whereabouts in the country are you? What are similar flats selling for?

Have you seen any houses that you would like to move to? If prices really are falling in your area, then it would make sense for you to drop the price on yours and try and get a house that has also dropped in price (or was very reasonably priced in the first place). This should work in your favour as you are trading up.

pizzarelli7348

Thank you all for your replies.

The EA fee is 1.5% plus VAT.
The othe rproperties on the market are for the same price and not selling. There is nothing wrong with the property , long lease (120 years), low maintanace charge (£500 a year) there is a nice park just opposite, the sea is only 5 minutes away

I think it's just the way the market is at the moment but our hands are a bit tied in thi way

pizzarelli7348

this is the property advertised on right move

http://www.rightmove.co.uk/viewdetails-18023453.rsp?pa_n=1&tr_t=buy

pizzarelli7348

it's in hastings (east sussex) and it's a victorian flat (anybody interested ???)

pizzarelli7348

this is one for sale next door. It' smaller and on for the same price, so i think price wise it's not overpriced

http://www.rightmove.co.uk/viewdetails-19759310.rsp?pa_n=1&tr_t=buy

Catblue

It looks lovely, I think.

Those huge windows are gorgeous.

And the size of those two bedrooms are great.

P.S. Yours is far nicer than next door's.