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    • Barejester
    • By Barejester 10th Oct 17, 4:12 PM
    • 22Posts
    • 19Thanks
    How do you evaluate a house price?
    • #1
    • 10th Oct 17, 4:12 PM
    How do you evaluate a house price? 10th Oct 17 at 4:12 PM
    I understand that any house is only worth what you're willing to pay for it and so you can only decide for yourself. But there has to be some sort of baseline which is used to see if the property is worth anything close to what they're asking for - currently I'm looking at previous sales prices for properties that are similar, but is there anything else I should be looking at?

    My partner and I are going to look at three properties this weekend in Leeds, a couple of 2 beds and a 3 bed that are all within the same area of Leeds. Two of the properties are really close together, both 2 beds, both on for the same price - the 3 bed is about 1 mile away and is 5K more.

    So all the properties are broadly similar on pricing, looking at previous sales for the area in July and August the 2 beds that sold that are in close proximity and stylistically the same sold for a 3K less than the asking price on these but that's within the ballpark - this would suggest to me that the asking price is actually a reasonable price and that I should offer roughly that, give or take being a chancer and trying to get it for less.
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    • Surrey_EA
    • By Surrey_EA 10th Oct 17, 4:17 PM
    • 1,553 Posts
    • 2,042 Thanks
    • #2
    • 10th Oct 17, 4:17 PM
    • #2
    • 10th Oct 17, 4:17 PM
    When surveyors visit a property to carry out a mortgage valuation on behalf of the bank, their focus is primarily on similar properties sold nearby in the recent past, normally within the last 6 months.

    There's no exact science to any of this, and as you say any property is really only worth what someone is prepared to pay for it. Whether a mortgage lender agrees is a different matter, but that only becomes a concern when you require a mortgage.

    Most buyers feel they have over payed for a property, conversely most sellers feel like they haven't sold for enough!
    • Barejester
    • By Barejester 10th Oct 17, 4:33 PM
    • 22 Posts
    • 19 Thanks
    • #3
    • 10th Oct 17, 4:33 PM
    • #3
    • 10th Oct 17, 4:33 PM
    Local sales prices then are going to be my best metric to see if a house is priced right - both the two beds are a few streets away from each other, are both listed at the same cost and then the local sales prices for properties within 5 minutes for the past 3 months would support the asking price.

    Irrespective of if I think it's worth it - On the surface, they're priced right.

    Appreciate the help Surrey_EA, it'll be useful going forwards I'm sure.
    • Crashy Time
    • By Crashy Time 10th Oct 17, 4:38 PM
    • 6,147 Posts
    • 2,363 Thanks
    Crashy Time
    • #4
    • 10th Oct 17, 4:38 PM
    • #4
    • 10th Oct 17, 4:38 PM
    What will they be worth when the bubble finally pops? Then just pay whatever difference is worth it to you to bag one of them, and keep the seller happy.
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