Property nearby sold for less(45 Posts)
I'm marketing my property at the moment. We've gone for half way point between what half a dozen agents valued it at (the difference between highest and lowest suggested asking price was 15k). Anyway we have had about ten viewings in the first week and so far two have come back and said the asking price is too high and we should be asking for what a flat in the same building sold for in August which I think is too low. I'm not sure if those buyers were in a hurry so went for a quick low sale and it was 5 months ago? Also I think it is less aesthetically pleasing than ours. Another one sold last month for a price we may consider accepting but it's sold price is not on the websites yet because it sold very recently so no one is looking at that . I guess I should be patient but it's so hard!
Ten viewings in the first week suggests the price is ok.
How does it compare to what else is on the market now in the area in the same price range?
It's never an exact science ..... You decide on an asking price, someone makes you an offer .... It'll either be acceptable to you or not, you'll take it or hold out for more.
How much has the property market as a whole (in your area) moved in the period you're comparing?
"Aesthetically pleasing" is often a matter of personal taste, so if I don't like your aesthetics my offer may reflect the fact I want to redecorate / re carpet / etc ..... But that looks like a "low" offer to you.
The old saying about a property only being worth what someone else will pay is usually true.
Not much on the market that's similar at the moment. There are a few that are further away from transport links that are priced lower and a few that are slightly higher priced because they have a concierge/ security. If you look at what's on the market now we are well priced I think. The only screw job is this one that sold in August for less. Two viewers have come back with offers based on that one. I don't think it's fair
By aesthetically pleasing I meant the other one clearly had older people living in it . Ours is more modern and the layout is very nice (have had quite a few comment on that). As most viewers have been young FTB would assume they would prefer something modern and stylish over somewhere older people have been living.
Did the other 8 viewings not result in offers? I think you need to be very objective - assuming there were no unusual circumstances, you have to be able to say why your flat is worth more than the sale in August. If you phone the estate agent who dealt with the recent sale and explain why you're asking, they will probably tell you what it sold for.
It's early days though.
When I was a FTB I bought the cheaper unmodernised wreck that needed doing up since all of the up-to-date houses on the street hadn't been done to my taste (gloss kitchens, expensive flooring I didn't like, jacuzzi baths etc).
You could be coming up against similar?
I know the recently sold one went for its asking price ( lower than our asking but exactly our lowest acceptable price). Issue is this sold for price isn't on the websites yet so people just look at the August one and say ours should be around the same. What if those buyers were in a hurry and accepted a lower offer?
As someone else said, it's worth what someone will pay for it. The valuation gives you a starting point. It totally depends on how desperately you need the money, how quickly you need to move, how keen the buyers are etc.
In terms of marketing it, can you find out how long the other was on the market? Are there photos so you can point out that yours has a newer bathroom? They just had different priorities to you.
I think 10 viewings and no offers is telling you the price is too high, especially as the feedback has stated this. You can look at it two ways, that you need to drop your asking price or you're in no rush and will hold out - time will tell you.
If another similar flat definitely sold for more recently then I too would hold out for better offers. Are you sure the other flat actually sold? Who told you about it? Beware that estate agents can describe something as sold before the prospective buyer has even exchanged which is very misleading because the may not even be able to get finance in place to buy at that higher price.
Check your facts and then review your position.
The other one that sold at a good price was stc for some time and the agents refused to tell me how much it went for. Recently I called them up because it was no longer stc and they confirmed it went for almost the asking price. The frustrating thing is that no one will know that unless they enquire because the sold for price is not on the Internet.
A number of agents in the area have told me properties nearby that they had been marketing went for around asking price. I really do think if we do a comparison with other properties in the area on the market now and ones that have sold recently we are priced reasonably. It's only this one particular one that sold is August that I think sold lower and unfortunately it's in our building but then like I said it had old people living in it so that may have had something to do with it. Their bathroom, kitchen were decent but other stuff like floral carpets and wallpaper I imagine would need changing. I would think that would affect the value somewhat?
I Think you have to be clear what is a comparable. A flat in your building (assuming it is same lay out, has the same service charges) is a better indicator of value than a flat a couple of miles away.
I think the internal spec can add value - kitchen, bathrooms, but not carpets and wallpaper. That's just personal taste and most people will want to put their own stamp on a property anyway.
Sadly with sold prices being available this will be a benchmark buyers will use. I know I would (and did) when we were looking. Most people once they move will redecorate anyway so whether yours is modern and the other one was own by a elderly couple won't do much for the asking price unless there was structural work that needed doing to the other property that didn't need doing to yours.
It's very much a buyers market; so this will come down to how much money do you need to get out of your house, how quickly do you need to sell? And is a cash buyer now for a few grand less a better option than waiting and hoping for a larger offer later.
I'm a ftb and we are looking at everything with modern decor or in serious need of modernisation. It makes no difference price wise. It's the square footage which is important.
The way I am looking at it (and maybe this isn't the right way) is that when we brought it, it was in the same condition that the elderly people's was in. We let it out and we're getting pretty low rental income. Once we did it up nicely we were able to ask for the highest rents that you can get in the area. An investor (we have had a few look around and also one offer) would need to do no work and could put it up immediately and get a professional couple to pay top end rent which is what we have done for the last 5 years whereas if they brought the other one they would either have to accept lower rent or do it up first.
I know people have their own tastes etc but pretty much everyone has commented on how nicely presented it is. It's very neutral and modern so I think meets most people's preferences. We are also on the ground floor whereas that one is on the fifth floor with no elevator so for people with kids or planning kids it's also much better.
Thanks for sharing all your thoughts. It's very useful.
We are not in a rush to sell and it's only been on the market a week so we will wait a few more weeks and see how it goes.
By the way how can I assess how much property prices have gone up in my area since last summer?
How does the price compare to the one sold in August? You haven't mentioned what that sold for.
You can see house price trends on Zoopla or Rightmove but they are not an exact science and can be wildly inaccurate.
Bear in mind that if your future buyer needs a mortgage than the surveyor will be quite heavily influenced by the sold property in your block when assessing the value of yours so if there is a big difference, it could cause valuation issues.
You see for me, I probably wouldn't be in the market for an flat with a family, and would prefer not to be a ground floor flat. So everything is about preferences. It's only been a week and your not in a rush so you could wait a week or so and see what happens. Did the people who placed low offers not offer to increase there offers at all?
two have come back and said the asking price is too high and we should be asking for what a flat in the same building sold for in August
Are they saying this to you or to the estate agent? If it is to you, point out that the other flat needed a fair amount of cosmetic work/modernisation and if is is the agent they are talking to, ask them to say the same thing.
The one that sold in August is the one that sold at a low price. 25k less than the one that sold in December. The August one is the one you can find on the rightmove sold for page.
I agree that a flat probably attracts a single young professional, or a professional couple and I would say being on the ground floor is a disadvantage (unless it has its own outside space?)
Identify your market - not many FTBs (most of your viewers) are looking at it with the idea of letting it out to professional tenants.
I'm not really sure why you won't disclose the actual amounts- just stating differences really isn't helpful.
£25k on a £150k flat is very different to £25k on a £500k flat.
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