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Property/DIY

Why won't it sell?!

46 replies

lazyhen · 08/10/2008 19:45

OK - I know there's a credit crunch going on but we have a shared ownership property that we're trying to sell. It is Victorian (not part of any estate of social housing). And the actual mortgaged part is under 60k for 1/4 share.

It has 2 bedrooms, the second is pretty small (single room), and a small back garden. Because it's not on the open market we have to do all the viewings. I've done 5 and everyone has looked and sounded really excited... and then nothing. Once person was up front as she had 2 kids so I understood it would be too small. My DH did phone one person to ask for feedback and he said it was lack of space.

For each viewing we realy tidy up, clean properly, de-clutter and shift the dog out of the house.

I just wonder is there something we're not doing or saying or are we putting people off somehow. I haven't viewed any properties with the intention of buying for over 5 years, and that was as a single person so I don't know what it is that people are looking for and not getting.

Any suggestions would be really helpful.

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RubySlippers · 08/10/2008 19:47

just how small is the second bedroom?

Are you sure you aren't under selling it IYKWIM when people come to view it - ie small bedroom, small garden

TBH, not much is moving - is it priced realstically?

CarGirl · 08/10/2008 19:49

Perhaps people just can't enough of a mortgage to go ahead.

What is it on the market for and where are you or are you just selling the 25% share and they have to rent the rest?

lazyhen · 08/10/2008 19:50

Well we had to get it priced by a surveyor (paid £200 for the priviledge!) so the price is not mine to define. That was 3 months ago (229k), and now it has just been re-priced by the same surveyor for £217500

The second bedroom is just over 2m squared.

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lazyhen · 08/10/2008 19:52

We're in North Hampshire. I think people can raise the mortgage (and it's on the website clearly). The mortgage and rent each month only come to about £700 so it's still cheaper than renting around here.

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lazyhen · 08/10/2008 19:53

Meant to add that we can only sell the 25% share to begin with and then people can buy more once it's theirs.

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fedupandisolated · 08/10/2008 19:56

Depends if people can actually get a mortgage. I wanted to buy a place on a shared ownership scheme but could not get a mortgage at all. Didn't actually make an offer on the house I fell in love with as I wanted to see if I could get a mortgage first - now glad I didn't as I would have let the sellers down.

bleurgh · 08/10/2008 19:56

It's too complicated. The arrangement is too complicated. It's very unusual, and people are wary of unusual commitments at the best of times. They are very wary at the moment.

CarGirl · 08/10/2008 19:57

It does sound expensive still though, I think people will be waiting to see if prices drop further. Plus the type of income people have to go for shared equity may struggle to get a mortgage because they will take the rent into account.

RubySlippers · 08/10/2008 19:58

i think it sounds like a lot of £ for shared ownership

ThingOne · 08/10/2008 20:01

The housing market has virtually stopped. Whatever the benefits or complications of shared ownership may be they are hugely over shadowed by the fact nothing is selling. five viewings is hardly any at the best of times. We sold in early summer last year, just after the peak of the market but still very good, and we had about twenty viewings over six weeks or so. The clearing up is a nightmare but it's what you have to do whether you are doing the viewings or someone else is.

expatinscotland · 08/10/2008 20:02

that does sound expensive for 1/4 share.

lazyhen · 08/10/2008 20:03

I think it sounds like alot too but I think the price is OK for the location. The surveyor has to consider what other properties have sold for.

bleurgh - It does sound complicated but it's OK once you're used to it, just the same amount each month and that's it - nothing further. It is much cheaper than a mortgage for the full amount.

Anyway, if people are coming to see it then I would assume they knew how much they could afford so if we assume that they can afford it then something else is getting in the way...

Although it has occured to me that they expect more for their money.

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expatinscotland · 08/10/2008 20:04

'The surveyor has to consider what other properties have sold for.'

But are they basing this on what other properties have sold for that are not shared ownership?

CarGirl raises a salient point, people who have to take out such mortgages usually don't have a lot of money for things like deposits and the like.

lazyhen · 08/10/2008 20:08

I didn't have a deposit either. I had 100% of the 1/4 share so that can be overcome (although maybe those mortgages are harder to get now).

The value of the property is based on properties in the local area. Why would it make a difference if it's shared ownership expat?

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CarGirl · 08/10/2008 20:08

If you really want to sell now, you need to reduce the price.

Also the same people may be thinking if they ride out the falling market they may be able to get a lot more for their money elsewhere. After all they are very likely to be renting/living at home so ideal 1st time buyers.

I sold my DIYSO shared ownership at a rock bottom price in a rising market because I thought the buyer was ideal, woman in her 30's living with her parents who had the vision for the property and somewhere to live whilst she did the work ie she wasn't going to get cold feet about the deal.

lazyhen · 08/10/2008 20:12

Th price has just been reduced - It's not up to me to reduce it any further (can't even if I want to).

I think that's a good point about people wanting to see if their money gets them more if they wait.

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expatinscotland · 08/10/2008 20:16

'The value of the property is based on properties in the local area. Why would it make a difference if it's shared ownership expat? '

Because you're only buying a share, the mortgage is harder to get, you still have to pay rent and you're responsible for all the maintenance as well.

Shared ownership is for people who don't qualify for the full value of the flat, it's a different clientele.

And now they have to save for a deposit, too.

No more 100% mortgage.

expatinscotland · 08/10/2008 20:17

there's the size, too.

too small for a family.

might not be ideal for single person buying (second bedroom too small to let out to lodger/flatmate).

lazyhen · 08/10/2008 20:18

Oh I see what you mean.

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lazyhen · 08/10/2008 20:19

Good points all well made.

I can't so anything about the price, the market, the room sizes... I just wondered if there was anything I could actually do differently to shift it.

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expatinscotland · 08/10/2008 20:23

we've got some shared ownership houses sold just up the road here.

but the target market is families - so they're all built as family homes.

but the total price is £120K because they're also keyworker homes.

some friends of ours got one, but for that price they were able to get 60% mortgage (the wife is a teacher).

during the boom, even a quarter share on a flat that size in gorgie, a great area of edinburgh, was going for offers over £30K.

so £60K is a lot of money.

maybe talk to the agents to find out if there's anything you can do to make it more saleable?

lazyhen · 08/10/2008 20:28

The thing with this is that there isn't any agent involved, that's why I haven't had any useful feedback. I have to do all the viewings and then pay the housing association 1% + VAT if it does sell (instead of agents fees).

If it doesn't sell by the end of this month we will be able to put it on the open market, so at that point we will have agents involved that can advise us.

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lalalonglegs · 08/10/2008 21:32

My friend was looking at buying shared ownership place earlier this year but since then virtually all the specialist mortgages have been withdrawn she tells me making it much harder. Many people who might have considered S/O last year are now waiting to see if prices fall far enough for them to afford a much larger portion or a property outright. If you look on the listings in London, where there are a lot of S/O schemes, there are an awful lot being advertised and that is very unusual - they used to sell before they even needed advertising. Sorry.

lazyhen · 08/10/2008 21:38

That's really interesting - I didn't know that those type of mortgages are being withdrawn.

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noddyholder · 08/10/2008 21:47

it won't be long before 60k will be enough to buy all of what is really a 1 bed plus study.People are waiting to get a bargain now.If 60k is 25% then is it valued at 240?Why is it 217 because a quarter of that is only about 54k

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