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.

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.

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.

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

ooo...touchy!

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?

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.

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.

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.

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?

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?

Don't think so.

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

Notgood, did you have the same EA?

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?

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.

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?

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 18:55:17

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.

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.

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.

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?

I am not saying closing dates don't happen, just not like they used to pre 2008.

Aberdeen is all by itself. You cannot compare that area to anything else in the uk. Aberdeen has been recession proof.

Clayhead Mon 18-Feb-13 17:25:39

This has happened to us twice (!) and worked in our favour - potential buyers came to see both properties at the same time.

gracielooloo Mon 18-Feb-13 17:23:57

Have a look at the Aberdeen Solicitors Property Centre site Greggs, loads of closing dates advertised on there in city centre properties. A few in our area too, unfortunately!smile

FergusSingsTheBlues Mon 18-Feb-13 14:24:47

Havent had home report back yet. EA said to ask for more, but for the sake of a few thousand pounds, i dont want to be hanging around, id rather price to sell realistically. We are not in a hurry bit want to be gone before year end.

Neighbour on the other side went in six weeks, this Christmas, sealed bids etc. his asking price was about 10k more, finish on his house prob a bit better than mine, so it is possible even if he was just lucky. grin

Don't bet on it running to bids at all. I have not had a closing date for over a year in my office. They just don't happen very much at all these days. If you think that you will get a closing date you don't know the market and you seriously need to think again.

Where are you and what does your home report say? What does the home report of the neighbouring property say?

What does your EA say is the best plan of attack? Have they suggested and offers around, fixed price or offers over price? What is your neighbouring property advertised at?

It can make a difference both being advertised together but proper wording of advertising and a good marketing plan should make the difference very evident between your property and next door.

PM me if you want any help.

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