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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To not want to line someones pocket to the tune of £45k?

47 replies

NapQueen · 17/06/2018 22:16

Seen a flat id like to buy. Its up for 125k, which imo (using comparisons such as others sold on that and surrounding streets) is too high. Id say more reasonable figure would be around 112k ish. A similar flat with excellent improvements on this one (rejigged the layout, bigger kitchen, second bathroom) went for around 120k about 2 weeks ago.

To make this one like that one would cost around 10k so 112-115 reflects that.

The current owner is a developer who I have since discovered today paid 80k for the flat this February. He got it for a steal - it went through probate and presumably the inheritors just wanted shot.

Having visited the flat a few years back myself as a friend of a friend of the owner, and again visiting this week as a potential purchaser, the developer has laid new carpets throughout. Thats it.

So now I feel like its leaving a bad taste that within 4 months and what? Max 4k spent on carpets being generous, they are anticipating 50% on top of what they paid back in profit?

I cannot see where they have spent any more - there are even prints on the wall and light shades that linger from the owner prior. The boiler is not new. No new doors/windows. No decorating.

Ive no doubt they got a bargain 4 months ago. But (1) the flat isnt worth 125k and (2) I am loathe to see someone profit 45k in 4 months after doing bot all to it.

Aibu?

OP posts:

Imchlibob · 17/06/2018 22:17

Yanbu

Theleftparing · 17/06/2018 22:19

Don't buy it then shrugs.

delilahbucket · 17/06/2018 22:20

Property is worth what anyone is prepared to pay. If you're not prepared to pay, don't buy it. The owner got a bargain and is selling it on for a profit. That's just good business.

Ragusa · 17/06/2018 22:20

Was there another issue with the flat prior?

Ie, a sbort lease that they had to pay to extend?

You can't really blame them for flipping it quickly to get a fast buck. Their good luck really.

Original poster

NapQueen · 17/06/2018 22:22

No lease issues at all. Yeah thats dhs opinion "they got lucky" and we carry on working on the figure we had in mind for it initially.

OP posts:

Babymamamama · 17/06/2018 22:22

Property is only worth what someone is prepared to pay. I wouldn't be too moralistic about it it is just the way of the world. Offer what you think is right. Good luck.

lordharvey · 17/06/2018 22:22

Unless you have your heart set on it and don’t want to risk them blacklisting you, go in with a lower offer. There is a possibility that the current owner is just trying their luck and would actually accept an offer in 90-100k range.

user1471517900 · 17/06/2018 22:22

You would not be unreasonable to not purchase a flat that is too expensive.

The rest of this is completely irrelevant.

birdladyfromhomealone · 17/06/2018 22:23

They wont make 45K as there will be capital gains to pay.

LordNibbler · 17/06/2018 22:26

Yes you are BU. So, they got it for a bargain, but no one is making you buy it. They can sell it for as much as they want. Good luck to them.
And good luck to you, when you find something you love at a price you want to pay.

FASH84 · 17/06/2018 22:27

Offer what you think is reasonable and be prepared to walk away if they turn it down. The owners of our house bought it 37 years before we did for 6k (find that.out when we got the deeds etc) then quibbled when we offered slightly below the 325k asking price, they were moving to another house they already owned, but ultimately it was theirs and they could hold out for what they wanted. We made the best offer we were going to considering the work needed and compared to other local houses we'd seen, and made it clear it was our final offer and we already had a (1st time) buyer for our flat so could move at their pace as he was living with parents and happy to wait. They accepted. If you're a 1st time buyer ready to go, make it clear, that will appeal to a developer.

Labradoodliedoodoo · 17/06/2018 22:28

Start with an offer of 90k. Then go up to 105 and go quiet

user1484247439 · 17/06/2018 22:32

Out of that profit would be capital gains tax to pay, they would have already incurred costs for solicitors and stamp duty as well.

Offer what you thinks it worth, if they don't accept it move on. They can price it however they want.

Pretty much everything you will buy someone will be making a profit from you so it's pretty irrelevant and you shouldn't let it bother you.

HarryLovesDraco · 17/06/2018 22:35

I hate that people can do this but they can. Make a reasonable offer and try not to get too invested.

elephantscanring · 17/06/2018 22:37

Why didn’t you buy it at probate?

If you can’t afford it, don’t buy...

Original poster

NapQueen · 17/06/2018 22:42

We didnt buy at probate as we werent on the market or looking at properties in February.

OP posts:

19lottie82 · 17/06/2018 22:44

Just a little note (unless you’re a cash buyer).

If the seller has only owned it for 4 months then you will be unlikely to get a mortgage for the property for another 2 months.

Lenders usually need it to have been owned for a minimum of 6 months. Something to do with money laundering I think.

Original poster

NapQueen · 17/06/2018 22:46

Oh really? Thats interesting.

OP posts:

Andromeida59 · 17/06/2018 22:53

If it was probate it was likely a cash sale. People will pay what they think a place is worth. If you didn't know this what would your offer be?

leghairdontcare · 17/06/2018 22:58

It'll be mortgageable. Agree with pp that questions might be asked about the quick turn around but won't be a deal breaker. If the mortgage company has any sense they'll be asking questions about why it's worth so much more after 4 months.

swimmerlab · 17/06/2018 23:00

Sometimes property is sold at an undervalue for a reason. Offer what it is worth to you.

19lottie82 · 17/06/2018 23:01

It'll be mortgageable

I was looking into buying a doer upper cheap, to re sell, and was advised by two solicitors that mortgage providers require a property to be on the land registers against the same owner for a minimum of 6 months.

AlessandroVasectomi · 17/06/2018 23:04

We bought our house 30 years ago for £135,000. It’s now worth £600,000. Do you think OP we would be reasonable in asking that amount for it?

You are perfectly entitled to make an offer to the vendor at the price you think is fair and he is perfectly entitled to reject it. If there has not been a great deal of interest in the property you may get a pleasant surprise.

BubblesBuddy · 17/06/2018 23:04

If you thought it was a bargain, then you should have bought it in Feb. The owners probably wanted a quick sale and no chain. They may well have preferred cash. That’s up to them. If it’s too expensive, walk away. Building companies don’t pay CGT. Only individuals.

gillybeanz · 17/06/2018 23:06

Surely the EA will have valued it.
Walk away if you don't think it's worth it.

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