How to assess whether asking price is reasonable!?

[StarOfLightMcKings3]

Zoopla and mouse-price differ in their opinion, and vendor asking 10% more than the highest. Properties all around not very consistent with each other.

Help! Want to out in an offer but only planning to live there for 3 years so can't pay over the odds.

[wendybird77]

Offer what you think it is worth (or a bit below). The asking is just an asking. We got ours for 18% less than asking as it was over-priced and the vendors wanted to sell and move on. We also had low reasonable offers declined and walked away as we didn't want to get stuck over-paying in this market.

[specialsubject]

seconded. Offer what you think appropriate. Their choice as to whether to accept.

[StarOfLightMcKings3]

But I haven't got a clue what it is worth. There seems to be no rhyme nor reason to the sold prices of the neighbours.

We're terrible at this. DH is too much of a 'gentleman' to offer below the asking price in case he offends but the asking price is far too much so it just means we won't offer.

When we sold our house we sold it at what we knew the market rate was minus a couple of thousand. Loads of People were offering nonsense but we declined them all and still sold within a fortnight. I think we just don't play by the same rules as everyone else.

[lalalonglegs]

Using square footage/meterage will give you some idea if it is overpriced or not. Floorplans should give you the total floor area, divide that into the price to get price per sq ft/m. Compare with other properties locally - to get ballpark understanding if it is way off. Obviously you may have to add a bit for period charm or something special but it will help.

[StarOfLightMcKings3]

Thanks, but all the properties here are identical and they fluctuate by more than £150k. It's a mad school catchment thing I think.

So in many ways I can just compare house for house and try to take into consideration things like dropped kerb etc.

[AfterEightMintyy]

How can they be identical and fluctuate by £150,000? What is that - current asking price, or recent sold prices? I don't understand.

[Glitterknickaz]

Think lala has the best solution.
It's only worth what someone will pay for it.

[StarOfLightMcKings3]

Recent sold prices as well as zoopla.

Ah well. We'll put in an offer of about 8% less probably. BUT is that what you do straightaway, or do you have to build up to it by offering less first. No way would we offer more.

[noisytoys]

We offered 25% less and bought for 20% less than advertised. We were FTBuyers and had an agreement in principal so we were in a good position. The 20% less turned out to be 15% less than the survey valuation and the mortgage valuation because the asking price was more than the house was worth

[AfterEightMintyy]

Eeeek! Be very careful.

I live in a terrace of houses with an identical footprint and garden size. Some of the houses are 3 bedroom and some are 4 bedroom (due to internal walls being put up in some of the larger bedrooms). Some have been fully modernised, some are half done, and some are in a poor state or repair and could do with a complete renovation including expensive things like the roof and windows.

But the asking price really should not vary by £150,000 between them, even in London and even when you are talking about a £550,000 to £700,000 price difference.

If the asking price of the house you are interested in is at the very top end of the "normal" range then do think very hard before offering. Unless it has something amazingly special and spectacular about it.

[RedHelenB]

If it's only for 3 years have you thought about renting?

[StarlightMcKenzie]

Rent round here is 5x the price of an interest only mortgage so it wouldn't make sense.

[RedHelenB]

Thing is 3 years is such a short space of time that if the difference in 5 x , you may have to be prepared to take a loss but hopefully not as much as if you've rented. I wouldn't offer more than similar properties though.

[financialwizard]

Have you checked sold prices on Right Move? That is where I would start.

[newgirl]

On our 30s estate the prices vary from 480 to 650 - depends on how well they have been extended, whether garage or not etc.

We looked at about six in the area and two were 50K cheaper than the one we bought as the extension had not been done well eg bathroom weird shape and size, bedrooms out of proportion, and one had an old conservatory that we would have had to pay to remove.

Have a good look at the others nearby and think about what money would need to spend to get the home you want. Offering 8-10% seems perfectly reasonable.

[lightrain]

Zoopla is a load of rubbish in my opinion. It's not based on much substance.

I'd check what they bought for and when, check for sold prices in the very close area with similar houses and base it on that. Do t worry if less than asking price, you should be cheeky or your paying over the odds. They can decline, you phone up if your DH won't!