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Original poster

Neighbours selling way below true value (impact on us.)

138 replies

GloriousGoodwood · 17/08/2017 15:51

This is a WWYD but I accept there is nothing to do really.
A neighbour has recently put their house on the market at 20-25% lower price than ours was valued at by the same agent, some time ago. It's also too cheap looking at other neighbouring houses that sold this year. This is in an area where prices are rising and always have been.

They clearly want a quick sale. The same agent sold an identical neighbouring house last year at the same knock-down price (sold in days.) Again, the vendors only wanted a quick sale and weren't fussed about the price.

However, as there are only a few of these houses of the same design in our road, it's not going to make it easy for us to sell ours at what we (and several other agents) consider the right price, when we decide to move.

Don't get me wrong, I'm not deluded, but these two houses were marketed way below their real value (elderly owners not really in touch with the market.)

We've muttered a few things to them querying their valuation compared to ours, but they don't seem to want to know.
How are we going to sell ours at the 'right' price?

OP posts:
Dawnedlightly · 17/08/2017 15:59

When are you planning on selling? The markets very low at the moment and it could be the right price, I'm afraid.

HorridHenryrule · 17/08/2017 16:05

They most probably bought their house back in the 60's, 70's or 80's at a very low price. They paid of their mortgage and don't care they're going to get a big hit of money anyway. I would keep it at the price your house can sell at you have to be patient. Good luck

wowfudge · 17/08/2017 16:06

Are you thinking of selling in the near future?

The right price for any property is what someone is prepared to pay for it.

Do these "knock down" prices reflect that the other two houses need modernisation? Is it possible that actually these houses have been priced correctly and that's why they've sold quickly? Unless the other agents who have valued your house have actually sold similar properties at the higher price you were told, then these two sales at lower prices may be the best indicator of value. Most estate agents are guessing at valuations as they are not experienced surveyors. Estate agents are notorious for telling prospective customers that their houses are worth more than they will actually get for them as flattery wins them business.

To some extent it's moot - if your house is appreciably better even though it's the same design, then you should be able to get more for it.

Original poster
GloriousGoodwood · 17/08/2017 16:08

no plans as yet but maybe a year or two.
The market here is still rising by 8-10 % annually and am comparing with other houses of same size / position sold not long ago.

OP posts:
HorridHenryrule · 17/08/2017 16:11

Have you done any work inside your home to update it. What you put in you'll get back.

HorridHenryrule · 17/08/2017 16:15

Have you done any work inside your home to update it. What you put in you'll get back. I know someone who has inherited a house on the road they are all priced over a million. He won't get that because the house looks worn out and cluttered. Since his mother and father bought it in the late 50's they done no work on it to update it EVER. Maybe that's the case with your neighbour it out dates from the 90's or 80's.

viques · 17/08/2017 16:17

Chances are the new buyers will take advantage of the low price, do some extending/landscaping/decorating and surprise surprise their house value will leapfrog your house value. That's the way it goes.

coriliavijvaad · 17/08/2017 16:18

If your higher price is truly the "right" value then when you come to sell there will be a bidding war because of a number of people wanting to snatch it up. Prices are set by the market.

Flicketyflack · 17/08/2017 16:22

A house is only worth what others will pay! Free market I am afraid, they can sell it for what they like there are so many other variables.

NomDePlumeReloaded · 17/08/2017 16:23

Errr, this isn't true that what you put in you'll get back. Up to a certain point, perhaps, but there is a glass ceiling to all values and you can overdevelop properties (either too many bedrooms squeezed out of a teeny sq footage or by over specifying you fixtures and fittings for the market). Home improvements often make your house more saleable but they won't necessarily raise it's market value by equivalent spend.

Original poster
GloriousGoodwood · 17/08/2017 16:24

I appreciate all of that. Nothing new. The agent who valued our house 8 years ago has valued the neighbours for the same price after 8 years! Yes, theirs does need some work and in some ways is not quite so good but it doesn't account for over £100K difference.

The thing is, the agent wants a quick hassle free sale so they'd rather price low than high and have it sitting around, especially when the owners are not fussed . But they aren't aware of the impact on other owners in the close.

OP posts:
Original poster
GloriousGoodwood · 17/08/2017 16:26

No one is telling me what I don't know. But the price paid for other homes is on the web and people will check then wonder why something sold so low...and how a neighbouring house can be worth more.

I'm just pissed off that they are going for a quick sale which will take down the average price for the road and also impact on us.

OP posts:
TestTubeTeen · 17/08/2017 16:28

The price is usually advised by the EA, and as EAs are paid on a % of sale price it is hardly in their interests to sell houses at a lower rate.

Unless of course it is a different branch of the EA business that buys houses, does them up and sells them...or a business that often does business with the EA.

It was the same EA that sold houses owned by elderly people at a knock down rate, you say?

HorridHenryrule · 17/08/2017 16:28

A house with 500 more sq feet than ours sold for a lot more than ours. What you sell your house for has to look flashy. When you rock up to show homes on a new estate that Bovis built they look flashy that's why they put big price tags on them.

LineysRun · 17/08/2017 16:29

They probably need refurbs

HorridHenryrule · 17/08/2017 16:31

The agent will sell it to a investor who will probably rent it out.

Loopytiles · 17/08/2017 16:31

They priced it to sell: fair enough. The "true value" is what a buyer is prepared to pay. The housing market in many areas has slowed right down.

HorridHenryrule · 17/08/2017 16:31

The agent will sell it to a investor who will probably rent it out.

BenLui · 17/08/2017 16:32

As a buyer I'd assume that there was something wrong with the other houses if they sold for a low amount.

If you aren't selling for two years I don't think it will make a difference to what you get. Buyers will view the market as it is at that point.

You will get for your house what someone is prepared to pay for it at the time, in competition with what else is available at the time.

You only need one buyer. There is no "right" price.

MadamePomfrey · 17/08/2017 16:32

There is nothing you can do people can sell for whatever they want. was the valuation 8 years ago the only one you have had or have you had a more recent one? My first step would be an up to date valuation from some estate agents then you can go from there.

Ropsleybunny · 17/08/2017 16:40

There's nothing you can do. We live on a small estate of new properties. A couple of properties have sold well below their value, just because the owners had to to move quickly. This has reduced the value of all the properties on the estate but there's absolutely nothing to be done about it.

Macncheesewithbacon · 17/08/2017 16:40

We did what your neighbours are doing and sold in a week. Our neighbours went 20% higher and sold for 15% higher 14 months later. They had over 30 viewings and made changes to the garden and driveway to reflect estate agents advice. It just depends what your goal is for the property - you can't blame them for wanting a quick sale!

ZoyaTheDestroyer · 17/08/2017 16:46

I'm sorry, I think there's very little that you can do except manage your expectations. Neighbouring properties might have gone for more but if the most comparable houses are selling for 25% less than your valuation then that is the market value. How many valuations did you get?

BeyondThePage · 17/08/2017 16:46

One of the first things I look on on rightmove is the "nearby properties sold for..." list at the side - so YES, I agree that they will have lowered buyers expectations on price.

However, there is diddly squat you can do about it. The market will make whatever it is at the point you decide to sell - if you are overpriced you won't get many viewings, or offers, if you are priced right for the time then you will.

So, since you are not selling right now, I would not worry about the neighbours. Since you do want to sell in a couple of years I would be cultivating nice shrubs out the front, making the frontage look nicer than anything else in the street, and making sure all maintenance gets done promptly - and would worry then, more about the effects of Brexit than what the neighbours sold for 2 years ago...

MovingOnUpMovingOnOut · 17/08/2017 16:47

Our old neighbour did this to us about 8 years ago and a year after we bought our house. She Priced hers £130k over what we paid for our house and tried to sell it on an online estate agent site (before Purple Bricks and the like took off). It didn't sell (obviously) and then she found a house she wanted to move to and needed to sell quickly. So she dropped the price to £100k less than we paid and sold it. It was probably worth £20k less than ours due to work that needed to be done to it but that big drop really hurt us due to the very small number of properties in our location.

For a long time after that our house was valued in negative equity. We couldn't sell up and move to a better house so we were stuck there.

But there's really nothing you can do except wait it out. We never reciprocated her Christmas cards though Wink