Overpriced house?

(27 Posts)
ButterflySandwich Wed 22-Jan-14 21:53:21

House we like is on the market at £495,000. Our offers of £465,000 and £475,000 were rejected. When considering a higher offer, we did some research and discovered the house next door sold only 2 months ago for £160,000 less. Google Earth shows that the houses are virtually identical in size but the one next door has a slightly larger garden. Rightmove shows that, inside, it was in need of modernisation and according to the EA (who asked the vendors), the owners were divorcing and were heavy smokers hmm. But probably nothing more than £20,000 worth of work. Zoopla estimates the house value as £445,000 to £465,000 (but we know Zoopla isn't all that reliable).

I had a chat to our builder neighbour, who felt we shouldnt be paying more than £400,000 for it. He was horrified at the overpricing, particularly as the area isn't as nice as where we are now in the same town and the houses aren't as much here comparatively (none available right now but talking recent sales). He also said that we'd find it hard getting a mortgage due to the massive difference in prices.

So... what should we do next? We like the house but are very confused as to what is best.

Any suggestions?

cavell Thu 23-Jan-14 11:29:30

House up the road sold fairly recently for just over half what I would see as "market value". Reason being that the owner was selling on to her daughter. Sometimes there is a hidden reason for low sales prices.

If you are looking at houses of 1200-1400 sq ft for £400k, then that suggests a market value of £285-£333 per sq ft. Giving a rough price range of £513k-599k for this house. Suggesting not so much that it is over priced, but that the neighbouring one was underpriced for some reason.

Mandy21 Thu 23-Jan-14 12:41:16

I agree with whats been said before. You are £20k below the asking price. If you went £5k or £10k higher, would the seller accept?

If you think its so massively overpriced, why are you considering it still? If its because it ticks all of your boxes, you've been looking for ages etc and unlikely to find anything else in the near future, why is it not worth an extra £5 or £10k (to you)?

FWIW, prices in our area have rocketed in the last couple of months and there definitely seems to have been a shift this month in market conditions.

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