What percentage reduction in offer?

[UptownFlunk]

I am a bit stumped & could do with some advice. The house we like has been on the market for seven months. The market around here is pretty static - same houses have been on for months, particularly the more expensive ones - and it is a one-off type of house so it's difficult to compare to others but I think it's overpriced by quite a lot. The current owners bought it just before the financial crash. They have decorated it tastefully but there's been no major works except a new kitchen - and it isn't a massive kitchen by any means. They want about a 50% profit on what they bought it for. I don't want to give too much away but in the area we live in this style of house is usually overlooked and a different type of house is considered a 'step up the ladder.' It is a lovely house though.

I think they've got their eye on another property which is good in one way as they're keen to move but, then again, they might need a certain amount to get the house they want.

What reduction in the price would you offer? Any help gratefully received.

[lovelearning]

What reduction in the price would you offer?

What is the house worth to you?

Offer what you're willing to pay

[wowfudge]

Are they downsizing or looking for their next move up? This will have a bearing on what they need to get for this house.

Reading between the lines of your post, it sounds as though you think they are being greedy based on them having done relatively little to the house. What have property prices done in the area since they bought the place? Is it obviously over-priced?

Make an offer based on what you think it is worth to you in comparison with other properties you've looked at and what you can afford.

[UptownFlunk]

wowfudge I'm not sure if they're downsizing, I think they might just want to change area but I'm not sure. They let slip they'd seen a house they'd like but not where it was. House prices for your average house here shot up between about 1998 & 2007 but have been pretty flat since then and worse since Brexit - we live in a small town in the rural north so we don't have the high prices or fluctuations of the south. So they bought at the top of the market and there's not been much rise since but they are asking for about £100,00 extra.

My issue with it is that it has loads of character and is in a good location for us but, practically speaking, though it would suit us it might not suit a lot of other people. This might be an issue if we ever want to move on and have bought it at too high a price - ie we've paid for style over substance. Usually, for the price it's selling for you'd get a detached house with four good-sized bedrooms, at least one en-suite, a bigger kitchen. It would be a newer house but that's what most people go for around here. Older houses tend to be bought by people moving into the area - but they usually want a detached house for that price too.

lovelearning I love the house and my heart says yes but my head says it's way overpriced.

[ChickenPoop]

No advice but following out of interest. I was looking at one bed flats near my home town, found a nice one online. It was purchased for £90,000 3 or 4 years ago and they are asking for £215,000! It's crazy. I don't see what they could've done to more than double the value in just a few years.

[UptownFlunk]

That's ridiculous Chickenpoop! I suppose it depends where you live though.

[blueistheonlycolourwefeel]

I'm keeping an eye on this too. Found a house I like which was £400k but now dropped to £375k after being on the market 6 months.
They boast in the particulars that everything has been modernised in the last 15 years?!
We are watching and waiting.....
Is the house reasonably priced for the area?

[FormerlyFrikadela01]

Another one following. I've lost count of the number of houses I've had on my list that are really overpriced in my area (grotty northern city) quick investigation shows that many were bought just prior to the crash and unfortunately prices haven't recovered to pretend 2008 levels here.

[UptownFlunk]

blue it's difficult to know as it is a bit of a one-off so there is nothing directly comparable but I don't think it is reasonably priced. For example, a much, much bigger, detached, period house was up for sale just down the road for about £30,000 more last year and it was on the market for ages but has now been taken off and rented out as it didn't sell. It needed more decorating but offered a lot more space and it was detached whereas this one isn't. Undortunately, we just didn't have the extra money for that one at the time as it was a bargain.

[daisydalrymple]

I know you say it's fairly one of a kind, but what's the average sold price for similar sized properties? And if you do put in an offer, make it very clear that it's subject to survey, as a surveyor may well knock the value down.

[UptownFlunk]

Probably about £45,000 less at least daisy. They wouldn't have period features but would be detached. That's a good tip about the survey. My feeling is it would come back lower.

[namechangedtoday15]

All you can do is make an offer. It doesn't really matter whether you think its overpriced, its what the vendor thinks that is important as s/he is the one that is selling. You can make the offer at what you're prepared to pay and then gauge the reaction.

For what its worth though, house prices in my area (NW) were reported this week as having increased by 17% in the last year so just be careful using those house price calculators or looking at general trends. There will be pockets where prices have bucked the trend. Also, the "sold" price is a good indicator, but thats all it is. You don't know what the position was with the then vendor, whether something structural came up on the survey etc which meant that they got it at a discount / have done works that are not visible on the current photos. Its either worth what they're asking to you or its not. Make an offer you're happy with but be prepared to walk away if they won't accept it.

[Bluebolt]

You need to remove all emotions, it is a one off house, the owners will know it's overpriced for the market but all they need is one person to love it enough and if they have the time they can wait. I would not trust the let slip as they will want to portray they are ready to move. My Friend owned a 1800s hundred house among lots of 1930s the estate agent valued at 400k and to put on at 425k to allow for offer, she chose to put on for 475k and got 460k it really did find its own value.

[ShortLass]

Could you now afford the one that didn't sell and ended up being rented up, Uptown? Might be worth getting in touch with the owner to see if they are willing to sell. I know notice would have to be served on the tenants, but worth a go?

With the one you're looking at now, would it worth a cheeky offer?

My dad bought his house for £125k, even though it was on the market for £250k. It was empty for more than a year before his offer was accepted. That was the early nineties and I couldn't imagine that sort of thing happening now.

[UptownFlunk]

It's not that unusual Bluebolt what I meant by it being a one-off is that although there are period houses around, they are either detached, or have a different amount of bedrooms, or a different size garden, or a garage etc. There's nothing that similar so it's not that easy to compare it to other properties in order to gauge the price.

Thanks for all the advice. I've decided to make the offer I think it's worth and if they don't accept then there'll be other houses.

[UptownFlunk]

Shortlass we could probably just afford the other house but it's big
and needs a lot of decorating, carpets, furniture etc so it would be a bit of a struggle. I am tempted though as it is a brilliant house.

On the house we like I am going to put in a lower offer. Not as low as your Dad's though what a bargain.