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Fixed prices

(25 Posts)
Pinkjenny Tue 26-Jul-11 15:13:26

As is well documented in this topic, we have recently lost our buyer due to an issue with the garage roof coming up on the survey. We have been on the Market for 14 months, and have reduced three times. This is the second buyer that has pulled out, although the first ones didn't get as far as survey.

Because we accepted an offer of 10k under the asking price, agents have asked if we want to fix the price at that point and see if we get more interest, as it takes us down a level on right move. I'm not sure. We can afford to sell at that price, but I worry that it invites lower offers, or puts people off as we won't accept offers.

Any views? I would stress that the surveyor actually valued the house up.

Bunbaker Tue 26-Jul-11 15:21:59

A house is only worth what someone is prepared to pay for it, not what a surveyor tells you. It depends on how desperate you are to sell on whether you reduce the asking price. Where we live people are paying well below the initial asking price of houses that have been on the market for a while. I may sound cynical here, but I think estate agents often overvalue a house because they want to make more commission. A house two doors away from us sold for over £100,000 less than the asking price a couple of years ago, and I wonder how the estate agents could have got it so wrong.

Pinkjenny Tue 26-Jul-11 15:27:21

I don't believe our house is overpriced, based on our neighbourhood and all the research dh and I have done into sold prices. The question was about fixing prices, not whether you consider my house to be overpriced.

aquafunf Tue 26-Jul-11 15:37:59

would ignore agent re rightmove- i mean who actually only looks at those priced at what their limit is? iyswim- max you can afford to pay is, say £140, surely you look at those up to £160 anyway?

i think i would be reluctant to bring the asking price down any lower in the circs, sounds like you have a good idea of the value- what was the issue with the garage? tbh you might be better rectifying that rather than taking the value off the house

time for a different agent?

Pinkjenny Tue 26-Jul-11 15:41:33

We have a roofer coming out tonight to give us a quote. The issue is that when the house was built, the tile that was used is too shallow for the pitch. House has been up since the late 50s though, and the latest buyer was an idiot, imo.

They seem to think it might sell quicker but I'm unsure.

nocake Tue 26-Jul-11 15:45:30

You might not believe your house is overpriced but if it's been on the market for 14 months then potential buyers obviously think it is. Sorry if that's harsh but it's a tough time to be selling a house and you either have to drop the price or do something to make the house more attractive to buyers.

mylovelymonster Tue 26-Jul-11 15:51:51

Don't see why fixing price would attract more buyers, even at the lower price. Can you not stress 'open to offers' in the details instead? Seems more approachable?

Also, find out how much garage would be to 'fix' and talk to your buyer - take half the cost off the offer price?

Pinkjenny Tue 26-Jul-11 15:52:04

Thanks, that's really helpful. Now to the actual question.

Pinkjenny Tue 26-Jul-11 15:52:48

Monster - glad you said that, neither do I really!

SingingTunelessly Tue 26-Jul-11 16:08:16

Agree with Monster, can't see what the point of fixing the price tbh. Also the idea of finding out what the cost of fixing the roof will be is a good one. You can bet your life that this will come up again and again.........

Good luck! You can see why it is one of life's stressful experiences can't you.

halfbabyhalfbiscuit Tue 26-Jul-11 16:27:32

PJ - so sorry to hear you've lost your buyer. They seem to have really messed you around over a minor issue.

Another one here who can't really see the point of a fixed price - unless perhaps it's on a stamp duty threshold. I have seen a few advertised like that - but then I've also seen more advertised at just over the threshold and I imagine they've taken an offer on or around the threshold.

We did lost lose out on a house that was priced at "offers over £x" but it was obviously going to sell very quickly (and indeed sold within 2 days). I think that pricing was more to encourage a sort of sealed bids scenario so it may not be appropriate for you.

If I were you, I think I'd ask your agents to re-market your house at the old price but also add "chain has fallen through" or something similar and ask them to make it clear to any viewers that you had accepted slightly lower than asking last time and would be prepared to accept less than asking this time too.

May also be worth sorting out that pesky garage roof too (or getting a quote for it - isn't that what Kirsty and Phil always advise?!)

Good luck

lalalonglegs Tue 26-Jul-11 17:01:38

I don't think there is such a thing as a fixed price - people will always make offers - so, if you truly don't believe that the house is overpriced then keep it on a the original amount (or the amount after it had been reduced from the original amount iyswim).

Good luck

alliwant Tue 26-Jul-11 17:09:07

I agree with Lalalonglegs, if it was fixed price I would still make an offer.Our local estate agents always put "guide price" which I think is good. It makes you feel as though you can put in offers and thats ok. After all its a big decision and you want to feel you can offer what you like. People can always say no. Maybe try being very upfront about the roof and factoring in the cost of replacement into any offer. Or just get it fixed? but what a hassle sad Good luck

Becaroooo Tue 26-Jul-11 18:12:00

Could you put in on at "offers over" the price you accepted?

So eg: offers over £170k or whatever.

We did that and got a buyer within a week.

Hevian Wed 27-Jul-11 06:46:01

OP - buyers will offer what they think a house is worth to them. Sounds as if your house is overpriced if it's been on the market for over a year with so little interest. IMO the way the economy is going and if you want to sell you might be better to reduce now, rather than chase the market down.

greentown Wed 27-Jul-11 08:36:14

Fixed Price gets my dander up - makes me thing the vendors will also be 'fixed' and hard to deal with - and that's before I've even viewed the property.
Offers Over £x also makes me think - 'what do you really mean? I'm only ever going to put my first offer in at the amount you've specified - possible below.
Don't put guide £180 - £200 - makes me think you don't know what it's worth and I'll only ever start at the lowest.
My pricing policy is what's the absolute lowest (and it must be the lowest) you can bear to accept?
Take that figure divide by nine and multiply by ten.
Market it that price - no offers around, no guide price, no offers over and so on, no gimmicks - just a straight price that you can afford to offer a discount on(if you have to).

Pinkjenny Wed 27-Jul-11 08:50:01

That formula brings it out at almost 20k more than we could accept. Am I doing it wrong? House is on at £189,950, lowest we can go to is £179,500. And we started at £205k.

I am sick of people telling me the house is obviously overpriced. Look people, this thread is about fixed prices, nothing else. Jog on. I'm not in the mood.

oldenoughtowearpurple Wed 27-Jul-11 08:58:10

No to publicising the fact it's fixed; you can mentally decide not to accept offers but there's no need to publicise the fact. Just makes people think you don't understand how to sell a house.

Karstan Wed 27-Jul-11 09:14:47

I know some people go so far as to say they don't even consider houses that are marketed as offers over or fixed price. I just ignore whatever words are before or after and just look at the price. I don't think you gain anything by marketing at fixed price.

greentown Wed 27-Jul-11 16:43:31

That formula brings it out at almost 20k more than we could accept. Am I doing it wrong? House is on at £189,950, lowest we can go to is £179,500. And we started at £205k.

That's fine. There's no magic to it. Everybody ALWAYS wants money off - simple.
They'll usually ask for at least 10% off - simple.
My formula allows you to give up to 10% off and still get the price you want.
Just write the price in the advert (no flowery language, no special offers, no estate agent speak) and if people want to buy your house - they'll make you an offer.

lalalonglegs Wed 27-Jul-11 16:59:14

Yes, but if people won't view because they think it's overpriced then PJ may be stymied. Tbh, PJ, I would be asking some other agencies to value as you seem to have been pretty badly served by the ones you have had so far. They will give you a better idea of whether the price is unrealistic or not and if you remarket with others then the property shouldn't appear on propertysnake etc showing it has been on a while and the price has come down.

greentown Wed 27-Jul-11 18:38:01

I think we have to take the OP at face value if she says it's not overpriced - and she's had two nearly buyers.
If it's overpriced the market will give its own verdict but it seems to be a viable possible purchase for at least a couple of people.
14 months seems a long time on the market for any house - is this normal for the area/region? Has the market gone pop there?
If other similar stuff is selling then it's her house rather than the market that is the problem.
We came close to putting a place up for auction once as we were so keen to move but in the end, a big price drop found a buyer.

Becaroooo Wed 27-Jul-11 19:31:43

PJ I agree about going on with other agents too. Lots of houses round here are on with 2 or even 3 agents!

Have you checked the sold house prices in your area lately? What are houses like yours selling for?

A price drop always finds a buyer but its not always possible sad

We accepted £19.5k less than ours was put on for.....because we could (just) and because we had a no chain cash buyer.

Maybe figure what the rock bottom is you can sell for and go from there?

So sorry its fallen through again.....perhaps get a quote for the roof and see if it would be cheaper for you in the long run to get it sorted yourself? Did you offer indemnity insurance? We have had to offer it due to the velux window in the loft (which is all of 4 years old!!).

Pinkjenny Wed 27-Jul-11 20:02:23

We are now waiting for two quotes for the roof, and I have spoken in detail to the surveyor.

Not going to fix the price. Thanks for all the input, it has been most helpful.

Becaroooo Wed 27-Jul-11 20:09:01

Oh thats good PJ Good luck x

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