HELP! My neighbours have gone on the market three days before me..

(44 Posts)
FergusSingsTheBlues Mon 18-Feb-13 06:52:25

What should I do? Is this a benefit or a hindrance? On one hand, they have put themselves on for the same price that we were thinking, but their flat is nowhere near as nice (honestly). It's been rented out for years, v dated. mine is in great nick as we just finished it.

So, do I raise my price slightly?
Keep it at their level?
Or just wait a few months?

These flats dont come up that often and tend to go fairly quickly. Could benefit from their footfall, right? On the other hand, don't want to end up in some gazundering stylee mess.

smellysocksandchickenpox Mon 18-Feb-13 18:30:23

(BTW can someone please explain whats wrong with being "greedy" when pricing your house, or anything else, for sale? surely noone would ever say "well the EA said its worth 190, but we actually can get by where we're moving to on 150, so lets not be GREEDY and put it on at that!" confused, doesnt everyone want the highest price they can get?

In Scotland we have home reports part of which includes a survey by a registered surveyor. That obviously values the property. Any seller would be bonkers to advertise at more than it is worth because the survey is what the mortgage lender will use for loan purposes. Of course, you can offer more but it needs to come out of your savings, a lender won't lend on an over offer.

Your price and the value of a property can be miles apart. A property will only sell for what someone is willing to pay for it.

That said, I'd be stunned if I had a property at £190k for a seller to market it at £150k but the Scottish way is very different.

gracielooloo Mon 18-Feb-13 18:43:52

Ha I wish Aberdeen wasn't recession proof, but yes I agree closing dates are not as common as they used to be.

FergusSingsTheBlues Mon 18-Feb-13 18:55:17

greggs does that mean that when we are looking for a property, we musn't exceed the valuation? Didnt realise that! i think that the home report system is very sensible. If we had had this years ago, my husband, dad and sister wouldnt have paid way over the odds for their properties. Ive had mine since 97 so am comparatively lucky.

CocoNutter Mon 18-Feb-13 18:56:25

We viewed two houses two doors away. The one we bought was on for very slightly more (2kish) but was a lot nicer - bigger bathroom (other still had separate toilet and therefore wasted landing space) and nicer kitchen. The other one sold for £1k less than the one we bought so we were pretty happy we got a good deal! We bought ours £5k under asking price, they sold theirs at £4k under asking price. This was at the bottom of the price crash.

FergusSingsTheBlues Mon 18-Feb-13 18:57:30

I was told my one EA to advertise at 15% less than valuation, with the intention of meeting that figure. Part of the reason why im amazed at the amount my neighbours advertised as. But then he do take account of sold prices in their valuation too. Dont they?

You can if you wish but the lender will only take into account the max value by the surveyor. A seller will love you though! Why would you want to pay more than a property is worth, unless it was your absolute dream, forever home.

I am sorry but as a start off I would never advise selling at 15 per cent under valuation. If it doesn't sell, where do you go from there?

Surveyors will take street and area sells into account but they generally don't know history to achieving sale prices. For instance you can get a family home where parents have died and executors/family just want a quick sale so do advertise well under and possibly accept a low offer. That isnt a true reflection on the Postcode. There are lots of other reasons too.

A good surveyor will always give you the draft of the hr to read through. Your ea should also get a draft too. This enables an ea (good ones) to talk you through it and if anything need attention making sure it is done. You can get a hr with all category 1 and may be a couple of 2's. those 2's can sometimes be easily rectified and upped to a 1 making it an excellent report. Similarly if you get a 3 I would always suggest getting works done or at least having quotes before marketing.

We had this happen to us (some years ago when there was more competition to buy). It worked against us - the neighbours' flat went to a closing date first, some of our potential buyers offered on it and lost out, then were put off getting a survey/making an offer on our flat as the neighbours' flat went for a good price and they didn't want to waste their time and money.

According to one who'd seen both ours was nicer, but in the end it went for 5k less.

Of course the market is different now so who knows?

FergusSingsTheBlues Mon 18-Feb-13 21:59:58

Notgood, did you have the same EA?

Don't think so.

SteIIaBeIIa Tue 19-Feb-13 07:59:06

OP - if you were buying a dress in Marks and Spencer's for 50 pounds and then Primark started selling the same dress for 50 pounds so M & S raised the price of theirs - what would you think? Greed or not?

To use your example stella, the primark dress would be an inferior quality fabric with poorer quality stitching. If they sold that for £50 then M&S would be wise to revisit their pricing strategy and review their supply chain, they might want to ensure that the people on the ground sewing the dress and cutting the fabric get an appropriate wage for the good job that they do, if it turns out that they had made a pricing error.

The OP says her flat is very different, is newly modernised and carpeted, whereas the other flat has been a student let.

Having been a landlord letting out to both students and others (including hb recipients before somebody kicks off), I know that some tenants will take care, and others wont and will treat the place like a dump. I know the kind of wear and tear you generally can expect. The repairs might go beyond just cosmetic.

It is a lot easier to redecorate to my own taste a flat that has been newly redecorated, as it will mostly just involve a lick of paint. A flat that has seen a lot of wear and tear will invariably require a lot more, including re-papering or making repairs to current paper lining before you can even think about repainting. New carpets will set you back a couple of grand, with underlay. Just a simple thing like poor quality and half falling out curtain poles will cost. It is amazing how all the curtain poles at our house was hanging loose. The holes had to be filled and make good, and new holes drilled next to them, etc.

So Stella, why do you think it is greed that motivates people to re-evaluate the price rather than adjusting to reflect the market rate?

FergusSingsTheBlues Tue 19-Feb-13 09:54:40

Stella, I refuse to engage in whimsical comparisons between frocks. Do you also forward that irritating email about the offside rules and shoes every world cup?

No, You would be better educating yourself on basic economics particularly the mechanisms of demand and supply.

You have, I suspect, a bad case of sour grapes.

SteIIaBeIIa Tue 19-Feb-13 12:26:40

Pure - HOW has the market rate changed because the neighbours have put their home on at the same price?

No sour grapes Fergus however as a bystander watching the Government allow the housing market to wreck our country. People have got so greedy and needy and it all makes me sick. "Our children" will never be able to afford to buy a home, so perhaps I come across as bitter because of all the lost chances for a lot.

I did not say that the market rate had changed due to the neighbour putting her flat on the market.

I wont engage any further with you Stella, it is pointless.

FergusSingsTheBlues Tue 19-Feb-13 13:04:53

I dont care. Im not some greedy bitch. We are about to make a massive loss on my husbands bachelor pad but have to sell because we cannot meet the mortgage through renting it out. I suppose im an asshole too for being a landlord though, right?

SteIIaBeIIa Tue 19-Feb-13 13:35:17

ooo...touchy!

GreenEggsAndNichts Tue 19-Feb-13 13:52:08

OP, don't feed him/her. It's just bait.

I say this as someone firmly in the camp that believes sellers need to be reasonable and yes, prices are coming down overall. I have just purchased a house and I know full well we'll be lucky if we manage to get the money we spent on it back. It's just a terrible time to buy.

If you and your neighbour have the same apt, and one of them is in better condition, then I would expect that apt to sell for a slightly higher price. That's common sense. As a buyer, I'd expect pay less for a run-down rental property that I would need to spend more money on.

I would personally put it on for a slightly higher price, to reflect work done.

Stella, can I suggest you raise your arguement over properties that are not in Scotland. We have home reports here that determine the maximum value of a property before it even comes to the market.

Greed has nothing to do with it. Wanting to get the maximum price is what we try to achieve.

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