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Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Thinking of putting an offer in, but....
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bookblogger
Posts: 22 Forumite
...I’m hoping you might be able to help me with my question about valuations and asking prices. We’ve seen a detached 4-bed house, but we’re questioning the asking price of £480k. We searched the previous sale history of the house – last sold 21 months ago for £285k. That’s right £285,000!
No major renovations or extension work has taken place in that time (we checked on the local authority planning website). So why the massive hike in 21 months? It previously sold STC last summer, which means the vendors had made the decision to sell up 12 months after purchasing it. I know one’s circumstances can change for whatever reason, but my question is not why they are deciding to sell now, but rather why are they marking up their house at 68% increase in 21 months when the local average is only 5% in that same period. It just doesn't make sense, unless I'm missing something?
It’s not located in the area of Birmingham where you’d say ‘you’re paying for the postcode’ – it’s an area we know well (J7 of M6), it’s not bigger than the other houses on the street (in fact a bigger house on the same street sold for £433k in Oct 2019) and we also know that on average similar houses sell for between £350k-£440k.
Should we be probing and asking the agent their justification for the valuation? It just seems wildly out of sync with the area, recent sold prices and the house itself is not unique or a stand out compared to others on the same street, so we have to question. Should we be concerned about putting an offer in? and what do we ask of the agent?
No major renovations or extension work has taken place in that time (we checked on the local authority planning website). So why the massive hike in 21 months? It previously sold STC last summer, which means the vendors had made the decision to sell up 12 months after purchasing it. I know one’s circumstances can change for whatever reason, but my question is not why they are deciding to sell now, but rather why are they marking up their house at 68% increase in 21 months when the local average is only 5% in that same period. It just doesn't make sense, unless I'm missing something?
It’s not located in the area of Birmingham where you’d say ‘you’re paying for the postcode’ – it’s an area we know well (J7 of M6), it’s not bigger than the other houses on the street (in fact a bigger house on the same street sold for £433k in Oct 2019) and we also know that on average similar houses sell for between £350k-£440k.
Should we be probing and asking the agent their justification for the valuation? It just seems wildly out of sync with the area, recent sold prices and the house itself is not unique or a stand out compared to others on the same street, so we have to question. Should we be concerned about putting an offer in? and what do we ask of the agent?
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Market value determines what a house is worth, not how much work has been done and what it sold for before. It’s worth what someone will pay and the owner will sell for.0
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:rotfl:Should we be probing and asking the agent their justification for the valuation?
Sellers can market at any price they wish, they don't have to explain their reasons to anyone.
Offer what you think it's worth. When they say no, go look for something else.0 -
Might be a divorcing couple, one half trying to scupper a sale.#JusticeForGrenfell0
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Have you checked the current market expectations (e.g. Zoopla)? And if a similar house sold recently nearby (if so by how much)?0
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Welcome to the crazy UK housing market, where buying a house 5+ years ago means you can now sell at a 50%+ increase, if they are advertising at that price then likely hood is that they will probably not accept anything lower than 5-10% off asking price, best to move on as someone will probably buy it for a crazy price and wonder why they're in negative equity straight away.0
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Surely you know how it compares to other properties in your price bracket? You're already saying it seems overpriced compared to others in the same road, so don't go deluding the vendors even further by viewing. I'd wait for them to drop the price. The EA may lie, plead ignorance or exaggerate so if you do view, ask the vendor(s) face to face. Much easier to see how people react.2023 wins: *must start comping again!*0
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Simply put and you're right, but I didn't expect this 68% increase on properties in Birmingham. Having followed the market for this area in the last 12 months, I find this particular valuation unusual from the norm, but perhaps I shouldn't be so surprised! Thanks for taking the time to reply @ec9wrr0
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Its probably the older sale price which needs explaining - could have been something peculiar about the sale at the time (someone buying in or selling at a discount) rather than the current asking price. The latter is judged by comparables NOW and not a previous selling price.
You won't get a deal by trying to factor that historic price in, only by what supply and demand allows you now.0 -
Interestingly the house had sold last summer, but the buyer pulled out citing his 'relocation plans had changed'. If they are a divorcing couple, then this sale presents a high risk of it not going through.
The viewings are being carried out by the EA, not the vendors, so difficult to ascertain vendor reaction, BUT the EA who accompanied the viewing lied twice when asked 'how long have the vendors lived here' to which she replied 'oh many many years', so I called her out and said 'when according to land registry they only bought the house 21 months ago....and when asked reasons why they were selling she replied 'oh they're just looking for a change' which makes me think 'divorcing couple' or 'couple who want to flip the house and make £200k profit in just 21 months'.
Gut instinct tells me something is not entirely rosy here. To buy a house and then to put it on the market just over a year later, does smell of a waring couple, but then I'm speculating and the EA is not going to tell us the truth. They'll just want a sale.
@Overdash - we checked on zoopla and the range is £350k-£450k. We're prepared to put in a offer of a similar house sold on the same street 4 months ago for £433k, but even that feels uncomfortable....
I think we'll choose to wait this one out and see what happens...thanks all for your replies.0 -
Which may, of course, be exactly what one of the couple wants.bookblogger wrote: »If they are a divorcing couple, then this sale presents a high risk of it not going through.
Just because it was sold two years ago doesn't mean they haven't lived there for a lot longer. Perhaps they were tenants before?BUT the EA who accompanied the viewing lied twice when asked 'how long have the vendors lived here' to which she replied 'oh many many years', so I called her out and said 'when according to land registry they only bought the house 21 months ago....
Looking for a change of marital partner. Looking for a change of bank balance.and when asked reasons why they were selling she replied 'oh they're just looking for a change' which makes me think 'divorcing couple' or 'couple who want to flip the house and make £200k profit in just 21 months'.
You're massively over-thinking it.Gut instinct tells me something is not entirely rosy here. To buy a house and then to put it on the market just over a year later, does smell of a waring couple, but then I'm speculating and the EA is not going to tell us the truth. They'll just want a sale.
THIS is the house.
THIS is the asking price.
What else is available that you like?
How does that price sit with what else is comparable?
Place an offer or don't place an offer. You aren't buying the vendors and their relationship or their backstory.0
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