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Why would a house be on the market for £20k less than owners paid for it just 6 months after sale??

(40 Posts)
notamum3210 Sat 24-Oct-15 15:18:09

Currently flathunting - we're looking in a particular area and our offer for a flat we love is being considered.

It's a bit of a bidding war so I've been looking elsewhere and spotted that a property has just come on the market today on the same street. It's comfortably within budget just not quite as nice as the place we've offered on.
I had a look at the listing and spotted that the flat was only bought in April this year for over 20k more than its now selling for. Why would somebody a) sell so soon after purchase b) sell for a lot more than they paid - does the property market fluctuate that much in such a short space of time? Please let me know your thoughts.

Thanks

emotionsecho Sat 24-Oct-15 15:21:35

Possibly need a quick sale due to divorce, relocation, redundancy/financial issues.

Or it could be that there is something wrong with the house and/or neighbours and they just want to get the hell out of there as quickly as possible.

Mintyy Sat 24-Oct-15 15:24:09

House prices can go down as well as up.

Pancakeflipper Sat 24-Oct-15 15:26:44

Separation
It's haunted
Murder

Pancakeflipper Sat 24-Oct-15 15:27:48

Separation
It's haunted
Murder

Pancakeflipper Sat 24-Oct-15 15:28:36

Oops sorry, spooky double post

Palomb Sat 24-Oct-15 15:29:24

There's a lovely house round here that has been on the market several times over the last 3 years for the same sort of money each time. I'm afraid I wouldn't even look at it even though we are house hunting. I recon the neighbours must be twats. It's a shame as its a nice house!

MummaGiles Sat 24-Oct-15 15:36:11

Repossession and sale by mortgagee in possession?

babyiwantabump Sat 24-Oct-15 15:37:22

Ghost definitely wink

Nicegreenhandbag Sat 24-Oct-15 15:43:10

Your solicitor will find out! Things like that can potentially be a money laundering issue....or could be a probate sale. Interesting. hmm

MrsMolesworth Sat 24-Oct-15 15:44:35

Either neighbours from hell or need to sell quickly due to sudden change of circumstances.

clam Sat 24-Oct-15 15:48:52

My parents looked at a house last year in similar circumstances. An elderly lady had moved there six months previously, but was selling up apparently to move nearer to her daughter. Why would she not have factored that in the first time she moved? People of her age don't tend to move house lightly, I wouldn't have thought.
In the event, the house didn't tick a couple of vital boxes for my parents so it didn't materialise.

CheesyNachos Sat 24-Oct-15 15:51:54

They found their dream house and want to move no matter what? It's happening to someone I know now. They are selling the house for the same price they bought it for, which considering they renovated and added an extension is going to be a HUGE loss, but they have seen something else they are desperate for.

rainydaygrey Sat 24-Oct-15 15:53:06

Friends had to move fairly quickly and unexpectedly due to a change in family members' health overseas and needing to move abroad to help. They had absolutely not anticipated this.

In their case they had owned the house for a year or two and I don't think they took a loss on it, but they would have sold it regardless.

wowfudge Sat 24-Oct-15 15:59:30

I don't know what area you are in or what prices are like, but it is possible the purchase earlier in the year was with a vendor assisted deposit and the sale price now is the price actually paid. The Land Registry would record the higher price, including the VAD as the sale price. That's if that kind of thing is still allowed.

It might also have something wrong with it and needs a bit spending on it.

RaphaellaTheSpanishWaterDog Sat 24-Oct-15 16:53:43

The house next door to us (both ours and theirs are fairly large detached period houses) recently sold - at auction - for around 50k less than the vendors paid a year ago. We only purchased ours in Dec last year and never got to meet the neighbours as they had moved out/let to tenants, but apparently the couple split up and wanted a quick sale.

Overall sales in this area are slow unless the property is refurbed to a high standard or is priced to reflect work required. One wreck house locally has been on the market for 900k for four years shock

So, the house next to us went to auction with a guide similar to what they paid but failed to sell. House is potentially lovely but needed lots of work as it had been wrecked by a PO which the vendors obviously no longer wanted to do because of their circs. Second auction had much lower reserve/guide price and sold at reserve price.

New owner got a bargain and has loads of plans to restore/refurb the house which is great so everyone except maybe the vendor is happy.

Back in 2011 we were in the same position as rainy's friends - we needed to move back to home area as my parents were elderly/ill. We sold the house we'd spent 40k on a couple of years previously for 25k less than our purchase price.....so a stonking 'loss'!

specialsubject Sat 24-Oct-15 17:26:02

damn good question; ask the EA and the owners, see what they say and if you believe it.

could be plenty of good reasons which affect them but don't affect you.

JeffreySadsacIsUnwell Sat 24-Oct-15 17:46:57

Divorce, death, job relocation, redundancy (can't afford mortgage?), pregnancy (flat that suits a professional couple might not suit a young family - stairs/no garden/grandparents offer childcare so move closer to them/need another bedroom - all sorts, there!), parents sick/bereaved, flat owned by one person who then meets a partner who also already owns a flat...

Same reasons as for most sales, just more unexpected or really bad timing. I know someone who put their house on the market less than 6 months after buying - her one remaining parent died so she and family moved into her parents' huge house (house was nearby, absolutely massive and had no mortgage) and sold their 3-bed. One of the houses had to be sold, and the new one was in more saleable condition and the parents' one offered more potential long term.

PennyPants Sat 24-Oct-15 19:19:38

Lottery win
Inheritance
Multiple birth
Money trouble
Lots of possible reasons.

RaphaellaTheSpanishWaterDog Sat 24-Oct-15 19:39:49

Meant to add as re-reading my post I didn't make myself very clear - we spent 40k on restoration work to the house, that wasn't the purchase price! confused

BikeRunSki Sat 24-Oct-15 19:44:31

i know two cases of old ladies who moved to be near their daughters, then died a few weeks later, do their "new" houses were up for sale again soon. Market prices could change in that time.

catbasilio Mon 26-Oct-15 09:55:39

I used to be wary of the houses that come back on the market a lot, but I actually did it myself - tried to sell on and off as was hunting for a house in a particular area and had a bad luck.

If it is 20k less, I would be worried about bad neighbours - but if you could check that (just hangout there at different times), I think you could get a bargain. Most likely a sudden change in the circumstances.

I am likely to sell my house less than a year after buying as it is not working out for me - but there is nothing wrong with the house itself (in fact I made it look much nicer).

MissBattleaxe Mon 26-Oct-15 09:58:59

I reckon divorce and they need a quick sale because otherwise they have to stay in the same house.

limesoda Mon 26-Oct-15 11:25:24

The other thing might be some sort of issues around the mortgage-ability of the house. A house we REALLY wanted sold for loads less than asking price because getting a mortgage was nigh on impossible.

LonnyVonnyWilsonFrickett Mon 26-Oct-15 11:29:05

Divorce - it was a sticking plaster change of circs that didn't work out.
Death
Relocation
Money laundering
Horrible neighbours.

Obviously only the last point would be a problem. However I'd also consider some horrible structural problem and get a very careful survey before considering.

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