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Original poster

House price difference from 2016/2018

22 replies

HarryHenderson · 21/06/2019 20:14

Sorry, really couldn't think of a better title!

Interested in a house that is up for £215k.

This house needs a lot of work doing to it. It's liveable... but only just.
It has a lot of damp (obviously a survey needs doing) and has mould patches throughout the house. I'm yet to view it, just going by the pictures.
My main interest is because of the location. The house clearly belonged to an elderly person and has not been modernised at all.

Looking at rightmove, similar house have sold for;
£167k - 2016
£222k - 2018
These houses are in much better condition than the one I'm looking at. Same size gardens, similar layout. Obviously the same road.

Why would they be asking this much when the house is below par?
I know house prices change so much over a couple of years, but these similar houses are seriously in much better condition.
What would you offer in these circumstances?
I really am interested in this house. They go so quickly in this area and usually for much more money... but is needs so much work doing to it!

OP posts:
ChequersDog · 21/06/2019 20:24

They’ve overpriced it because they think they might get away with it. If houses sell that quickly there then maybe they will. But probably not. I’d take the 2018 as the baseline and make a rough estimate of how much work needs doing then subtract that from the 2028 price. Maybe add a bit back on if the market has gone up in the last year.

Original poster
HarryHenderson · 21/06/2019 21:46

Thanks @ChequersDog I'm new to all this so I appreciate the advice!
I do think it's overpriced by a few grand. Although I wouldn't be surprised if it sells for the asking price given the location! It's just disheartening when you see a nicer house that has sold for much less.

I'm worried about how little we could make on it if we do offer what they're asking, given that nicer houses have sold for not much more. It would definitely take more than 10k to get it up to scratch.

OP posts:
CalmFizz · 21/06/2019 21:50

although I wouldn’t be surprised if it sells for the asking price given the location!

There’s your answer really. The whole of the uk market is based on if there’s a chance someone will pay it, then sell it for that price.

I’d imagine if it’s an elderly persons home it’s quite possibly being sold by their children, so there’s no real urgency for a quick sale.

MrFartPants · 21/06/2019 21:55

Why does it matter "what you could make on it"?

Are you buying a home or an investment?

jarofheart · 21/06/2019 22:01

In my area the houses which go quickly and for asking price are the ones which need work doing to it. The ones which are nicely decorated and ready to live in stay on the market for ages. So if it's in a desirable area it probably will go for asking.

Original poster
HarryHenderson · 21/06/2019 22:05

@CalmFizz yep, I'd definitely say they're not after a quick sale so they may hold out for the asking price.

@MrFartPants I'm not looking to 'make money' as such. I want a family home. But I certainly don't want to spend thousands doing up a house to never see a return on it. Not even to make money... I'd like to break even. That's not an unusual ask, surely?

OP posts:
Original poster
HarryHenderson · 21/06/2019 22:06

@jarofheart I wonder why that is? I'd be over the moon if I could find a house that needs no work doing to it! But the ones that are a nice standard are too pricey in my area.

OP posts:
MrFartPants · 21/06/2019 22:08

Then buy a home Smile

Long term you're bound to end up with equity so don't worry about it too much. We're about to do a loft conversion for an extra bedroom. The cost is going to be more than the value it would add to the house but we want an extra room...I'm not trying to figure out if I'll break even or make a profit on it.

jarofheart · 21/06/2019 22:10

@HarryHenderson where we live there are lots of tradespeople. So I assume they can do the work themselves so the cost to them vs the cost of the improved property is better. (That's why we got a do-er upper anyway)

Original poster
HarryHenderson · 21/06/2019 22:14

@MrFartPants see, if I was already a homeowner I may have the same attitude. I think I'm just worried as nobody knows what will happen with the housing market given the current climate. It's a bit scary when you're new to parting with so much money Grin Am I making a big mistake paying, what I think, is over what it's worth, for a house when the market could crash?
But the other part of me is thinking, this is a house we'll be living in for at least 10 years... anything could happen in that time, right?

OP posts:
Original poster
HarryHenderson · 21/06/2019 22:17

@jarofheart that's kind of my situation. DH is a tradesman. So we can kind of work around these issues (if he ever gets the time off work to sort them! Another worry of mine)

But I have young children so I'm wondering if it's worth the hassle!
But it's so rare for a house to be so cheap around here...
I'm gutted I didn't see the other houses for sale in recent years, I would've snapped one up! 😭😬

OP posts:
WBWIFE · 21/06/2019 22:51

When you get the mortgage valuation done, they will tell you if its overpriced.

We bought a bungalow that needs full renovation it was up for 325k and they dropped to 300k. We bought it for 295k and then had mortgage valuation and they said it was worth 290k max. So the vendor dropped to 290k as that's all anyone who needed a mortgage would pay for it really!

Rhica · 21/06/2019 22:58

I'm not sure it is overly over priced (obviously difficult to say though without seeing the houses/location etc) the reason I say that is because a similar one sold 222 last year. And likely marketed for a higher amount

So assuming they might accept an offer for say 205, that's 17k less than the one that is in better condition, presumably to allow for the difference in condition. Obviously this is based on a lot of hypotheticals though

JoJoSM2 · 21/06/2019 23:39

It sounds like a pretty hot market in the area if there was a jump from 167 to 222 in just two years. I imagine that it hasn't slowed down recently and hence the new house is on 215 despite its condition.

Original poster
HarryHenderson · 21/06/2019 23:41

Good point about the mortgage evaluation, that's will put it into perspective a bit I suppose.
The house that sold for 222k was in so much better condition than the one I'm looking at. Literally walk in and not need to change a thing kind of condition.
But I guess there could have been a number of reasons the house sold for that price... maybe they wanted a quick sale?
But even the one that sold for 167k was kept much better. Even though that's was 4 years ago.

Given the info I've given (which, granted, isn't a lot) what would you offer? Knowing what the neighbours sold for and knowing that this house would need a lot of work doing to it?
Or would you not take into consideration what the neighbouring houses had sold for?

OP posts:
Original poster
HarryHenderson · 21/06/2019 23:44

@JoJoSM2 honestly, the houses sell so quick around here.
I guess it's supply and demand, people will pay just for the area 😭
I want to stay around here as my kids are at the local school (plus it is a nice location)
But my only options are either paying top end or buying a do-er upper... just hoping we can manage to do it up!

OP posts:
WBWIFE · 22/06/2019 00:00

Would depend how much needs doing and size etc. Hard to gauge really and to not know the area. Maybe right move link and then could have a look on right move in the area SSTC for similar properties

jemihap · 22/06/2019 05:47

''But my only options are either paying top end or buying a do-er upper''

Well at the current price you'll be both paying top end AND buying a doer upper.

It sounds like a probate sale, in my experience probate vendors are the the most unrealistic and greediest type of vendors to deal with

wowfudge · 22/06/2019 08:07

Don't assume it's a probate sale, but do ask the circumstances if you haven't already. It could be someone selling in order to fund care home fees. When it's the former family home being sold there can be a lot of emotional attachment that clouds the seller's judgement of the value. It's also possible the EA has over valued to allow for someone subtracting the £x it's going to cost to do up. I have also read that buyers will pay more for a place that needs everything doing than one that is done but not completely to their taste - figure that one out!

DustyDoorframes · 22/06/2019 08:12

Op, you need to do your sums to see what it's worth to you- how much do you need to spend on it? How much does that leave you for the purchase price? If that takes you within 10% of the asking price, start negotiating at 10% under and stop at your limit. If it's a popular location you are highly unlikely to end up with a house you can't shift without losing money. And assuming you are renting now you will be better off long term even if you do "lose" a bit.

another20 · 22/06/2019 11:57

No point worrying about missing out on prices 3 - 4 years ago. Clearly they have gone up and sales are rapid in your area - so you just have to get on with it.....otherwise you might be kicking yourself this time next year if it’s gone up another £10k and is out of your reach.

If it is a lovely area and near great schools and you want to be there for 10 years + ... just get on with it. Do you have your MIP in place are you chain free? Being in a strong proceedable position like this is also a strong negotiation tactic.

£215 asking price sounds perfectly reasonable given a £222 selling price a year or 18 months ago if you look at the rate of increase in your area and assume it is the same rate?

another20 · 24/06/2019 11:11

How are you getting on OP ? Have you decided to view it / put an offer in?

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