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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To sell our house at well below market value?

31 replies

parmalilac · 29/03/2016 16:39

Would really welcome your opinions. Moved house 6 months ago, old house now empty and for sale since September. Could not sell while we were still there as I was very unwell, and could not deal with viewings etc (we had already agreed to buy new house). Thus we moved before marketing old house. Housing market pretty quiet around here, and price not increased since we bought a couple of years ago. Have had some viewings, and nothing wrong with the house, it's nice, in a rural setting a few miles from town. Neighbours are going to build a new house in their garden to the side of ours, so as soon as that starts it will put potential buyers off, at least until the building is finished. It will not be visible from our house at all, but who wants to live next to a building site? DH says we should just keep trying, but I worry about it a lot and think a drastic price reduction is in order to sell quickly before building starts. Not being sneaky, anyone can look up council planning info, and on the Home Report it asks if you have ever been notified re planning permission - of course we said yes. Up to buyers to follow through and seek more info on that, or to ask when viewing. We have ALWAYS checked planning info when viewing houses ...

We have a mortgage on our new house, no mortgage on the one we are trying to sell. Had 6 months without paying Council Tax, now have to pay 50% CT for next 6 months, then it's at council's discretion after that. Have to keep it heated, insured, do the garden etc ... I think we should reduce the price by some 15/20% and have done with it. It's a big hit but can manage with it. We can then pay off new mortgage and have this constant worry out of our lives. What would you do?

OP posts:

TheDuchessOfArbroathsHat · 29/03/2016 16:42

I might be tempted to rent it out or is that not viable?

FishOn · 29/03/2016 16:45

To be honest, usually the only reason a house doesn't sell is because the price is too high, so yes if you want to sell it you should knock the price down a bit.

Foxyloxy1plus1 · 29/03/2016 16:47

Rent it and use the rent to pay the mortgage. When the neighbour's have built their house, market it again so prospective buyers will be aware of the neighbourhood. You'll probably take a hit financially, but at least you'll have rental money in the interim.

SweepTheHalls · 29/03/2016 16:48

Also here to say rent it out

londonrach · 29/03/2016 16:48

If its not selling the price is too high anyway. Ignore market value a house is only worth what someone will pay for it. Maybe get it revalued by other agents with the aim of reducing the price as ct and heating etc are certainly going to cost you.

Bearbehind · 29/03/2016 16:49

it sounds like the problem here is the difference between the true market value and what you believe it is worth.

The 'market value' by definition is determined by the market and, in this case it isn't as high as your desired price.

If you want to sell sounds like it will have to be at a lower price.

Ifitaintfixed · 29/03/2016 16:50

Renting it sounds a good plan.

fredfredgeorgejnrsnr · 29/03/2016 16:51

Why not just put it for auction?

bibbitybobbityyhat · 29/03/2016 16:52

Definitely let it! The house will be kept heated, garden done, council tax paid, rent will come to you. Sell it in 2 to 5 years. It is honestly a very sound and solid idea when you have no mortgage on the property.

SugarplumMary · 29/03/2016 16:55

I'd work out how much a month it was costing to keep it empty and decide if it was worth selling it cheaper to be rid of the extra work and cost it was causing each month.

I would like TheDuchessOfArbroathsHat look into renting see about costs there.

Took ages to sell our last house and we were getting closer to our deadline - estate agents didn't want us to drop the price but it has been on over 12 months. It was costing us - DH was paying accommodation for week and transport to and from new area.

We dropped 5% and had an offer two days later - they offered under our price but had everything in place. We met our deadline which was very important to us.

Do think you need to be on the same page as your DH though - it wasn't until we saw what the house is costing each month and how that added up over the months that we both thought a price drop was the way to go.

Original poster

parmalilac · 29/03/2016 16:55

Thanks for the replies. Not keen on renting as rental prices are pretty low around here, and would worry about it having never been landlords before. We have looked into it and that is worst-case scenario for us. The valuation was given by the surveyor (seller must have Home Report in Scotland), so we had no control over that. We priced it at £10k less than his valuation, whereas most people seem to just use the surveyor's figure. Just trying to figure out whether to take the hit, really, by knocking off some £25k ... it would really hurt!

OP posts:

HarlotBronte · 29/03/2016 17:05

If it was on at market value, it would've sold by now or at least come close to it. You're asking for more than you can get, therefore more than it is worth.

Divathecat · 29/03/2016 17:10

Agents won't want you to reduce the price as they want to keep the prices in the area where they are now or higher. I say change Agents and reduce it by another £5K. It will look like a new property to market on the internet.

mummymeister · 29/03/2016 17:11

If I was looking to buy your house then I would be down at the planning office to see what was going on either side/across the road in terms of new builds or whatever. so I would think anyone else thinking about your property would be doing the same thing - a bit of research before viewing to avoid falling in love with the property then finding a horror story (like a chicken farm going in next door!)

had you considered an open house day? the agent would organise and host this if you didn't want to. what about talking to your local council? not sure if it is the same in Scotland but in England the council and some housing associations take your property on for a fixed rent for a fixed period. they then undertake to give the house back to you as it was. its renting and you would get less than on the open market but it takes the hassle factor away from you and gives you a guaranteed income from the council or HA. I wouldn't take the hit just yet but also be mindful that an empty cold and unlived in house is never as attractive as one with life going on inside.

SylviaWrath · 29/03/2016 17:23

if you would have to take of 25k to sell it then it is worth 25k less than you think it is.

Market value is what you can get for it.

RaphaellaTheSpanishWaterDog · 29/03/2016 17:33

We've twice needed to sell quickly because of relatives in distant parts of the country (England) with ill health. On both occasions we were in locations where houses that were large and/or quirky (and ours were both!) were just not shifting - in the second location we were told to expect to be on the market a year which just wouldn't do and we couldn't go into rented for a number of reasons.

Having had several valuations we opted to price the houses significantly lower - these were both houses that we'd fully restored, one from an unmortgageable wreck - which brought swift results. The first house went SSTC in 10 days - in fact from going on the market to completing on sale and onward purchase (no mortgage/survey) took a total of 14 weeks. Second house (different part of the country) took 5 weeks to find a buyer and, having gone on the market 1st Sept we were in our new home 16th Dec, having accepted an asking price offer.

Price is nearly always - if not always - the issue. Admittedly it could be argued we underpriced both of ours, and had we not needed to move quickly we could have priced higher, hung on and waited it out. On the first one we did take a 60k hit. In your position I'd be looking to drop the price significantly - so it appears in a new price search parameter - rather than it sitting around going stale.......

wheelofapps · 29/03/2016 17:34

OP.
I am in Scotland and also wish to sell my house.
Quite a few EA's around here have said that some 'very nice' houses are not selling for any money.
Normal price = not selling.
Drop it cheap = not selling as people wonder what is wrong with it / is local school bad / horrible neighbours etc.
Like you, I don't want to be an accidental landlord - would worry about getting tenants from hell.

It's hard, right enough.

mummymeister · 29/03/2016 17:39

is the renting it out through the council or housing association that you can do in England an option in Scotland wheelofapps?

Original poster

parmalilac · 29/03/2016 18:11

Thanks all, but we did not set the price, it was done by the surveyor and the agent agreed (as they would). We told them to drop it by £10k. Will look into the council/HA thing though, thanks. I have been told that people do not want to view a house empty - must say I don't get that, I LOVE to see an empty house as the flaws can't be hidden behind furniture/clutter/rugs etc and the 'stuff' doesn't distract you from looking at the bones of the house.

OP posts:

WhoTheFuckIsSimon · 29/03/2016 18:13

Are you getting viewings and no offers or no viewings?

Is your house unusual and ther efore hard to value?

Original poster

parmalilac · 29/03/2016 18:34

We've had 6 viewings, including one today! It's not unusual, 3 bed bungalow in good condition, nice large modern kitchen, bath and ensuite, garage. Only negatives I can see is it's not in town but 3 miles away, rural with good views, on small lane, and garden is quite small but lovely and private, so maybe appeals to older/those without kids.

OP posts:

TheBouquets · 29/03/2016 18:44

Crikey that sounds like a good house and it is not selling. I did consider a bungalow which had good views but then when I saw that there was close planning permission I decided not even to view. That house has dropped in price a fair bit too. As much as I like 3 beds en suite garage and views I would like to see the end product of the planning permission so that the view which would be a main feature for me is not totally destroyed. Maybe you should give details of how the planned new build will affect your property.

mummymeister · 29/03/2016 19:04

I have seen photo mock ups done to show where the new extension or new house/houses will be and how it affects the view. maybe that is something to consider as well in case it is what is putting people off. I think it sounds lovely.

WhoTheFuckIsSimon · 29/03/2016 19:12

So when the viewings dnt turn into offers what reason are they giving to the estate agent?

WhoTheFuckIsSimon · 29/03/2016 19:14

Six viewings in six months isn't a lot though.

I was always told no or low viewings indicate a price problem. Lots of viewings and no offers indivpcate a house problem.

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