London flat not selling

[DespairingHomeowner]

Just wondering what people’s experiences are with flats in London at the moment? I have a 2 bed upstairs flat which I put on the market mid July 5/6 viewings, no offers. Dropped price 25k which generated 2 viewings and now interest has dried up entirely

My options now seem to be to undercut the market (it’s on at 425 so down to eg 410 for 400) or wait til next year perhaps

Pictures are good but agent doesn’t seem to make much effort... how can I encourage them, how much time should I give them, and if I go to an other agent should I just take it off now & remarket in Spring?

No garden of my own and downstairs neighbours garden is scruffy and overgrown which is part of my problem... it’s a nice flat and spacious though. I bought for about 5% under average value for area as flat was scruffy (needed full replaster etc) .. I can afford to drop by same if needs be (but want to make sure I’m doing the right thing. If it’s not the price but no interest in flats then not worth doing).

Other negatives:. Flat has a dated/worn kitchen (fine but cheap laminate put in to sell around 10 years ago, it’s a ‘I can live with it for a year or 2 kitchen’). No other major negatives, and don’t want to change kitchen as won’t get money back but know this is holding it back.

My motivation for moving is to go to a house - wondering whether I’d be better off waiting til Spring, or trying to get someone interested for a BTL now ... I’d never have believed before Covid that a zone 2 Victorian conversion, 20 min to C London would be hard to sell but this market seems to be very tough

I think if you reduce it enough it will sell, especially if you do it quickly.
You mention not being impressed with the estate agent - why not move to another whilst lowering price? They should work hard for you.

It's a mind-set adjustment isn't it. Prices dropping a bit are hard for sellers to take, but a significant drop is one many really struggle to get their heads round...,.and they resist it for ages and just don't sell.

In the end, it's worth what people will pay. It's irrelevant whether that amount will allow you to move to the kind of house you wanted or even if it will deliver negative equity, or how the price it's worth now relates to the price you paid or what a neighbouring similar property sold for last year.. It is simply worth what people today (or in a few weeks will pay).

Op, the message on here is pretty clear and you do seem to be getting your head round it and be willing to lower price. That's very hopeful, because if you don't, it might well be worth significantly less in 6 or 12 months. Doesn't make it any the less hard though!

I wouldn't bother doing the kitchen. It needs to be very competitively priced against other flats which lack gardens and aren't pristine. It might mean you have to lower your expectations of your property but at least you will receive enough in order to get a house somewhere and escape....you won't be trapped like lots of people will.

Sorry it's come to this for you.

The other thing to consider is to market it with no chain - basically tell prospective buyers that you intend to move out and rent so that there would be no delay.
Would it make a good rental property - targeting Buy to let buyers might help especially as interest rates are so low at the moment.

Thanks ... I can def move out with no chain as can move in with family, but wondered if that should be leverage to get any potential buyers to stick to agreed price (assuming I get any offers)

It’s perfect for renting: was a rental for years until I bought it, and I’ve brought it up to standard - new bathroom etc, would be ‘ready to go’ for that

Disappointed though I am... at least it’s not a modern block, that would be even worse re fire regs

With the agent: I’m so annoyed, NOW that I have dropped the price they are doing it as a ‘featured property’ - I also moved out for a few weeks when I first put it on to facilitate viewings... they turned up late & didn’t even open blinds etc

Plan to give them about 1 week then give them notice to move agent ... (I can give 3 weeks notice from today but they take good pics/are good for buyers I think!)

Is it the one on HG Lane with the purple walls showing as sold?

It is too expensive. Nobody is going to spend that much on a flat with no outdoor space when they could buy a house in a commuter town. Harsh but true.

I would lower by 10% and try to sell this year. As soon as the stampduty holiday goes 2-3 bed flats without gardens probably won’t sell at all.

@Requinblanc: not everyone wants to live in a commuter town, I have enjoyed 20 years of working in C London and being able to get in/back in 20 mins.

Young people will be the ones who want to be in London I think, makes me wonder if some areas will switch from owner occupied to rentals

@GrumpyHoonMain- that’s what I’ve done, I think likely prices will fall further

@DespairingHomeowner
Hi, how is it going? We are in the exact same position. We have a 3 bedroom flat ex council flat in a very nice and central area in London. It has been on the market since March, a week before the lockdown. Have had quite a few viewings but not offers. Last flat in our building was sold in March last year for the asking price our flat is on the market at. Reducing the price of the flat would seem like loosing a lot of money.
We moved out of London and left the flat last year in July and we are now renting a property. We'd like to sell our flat to buy a property where we live now but that seems rather impossible at the moment.
Our flat is on the market for both selling and renting but no offer for either of two.

@Requinblanc

It is too expensive. Nobody is going to spend that much on a flat with no outdoor space when they could buy a house in a commuter town. Harsh but true.

Absolutely not true - anyone who wants to live in a city will continue to live there. They may not be able to afford a flat with a garden but generally there are always lots of open spaces around for those who want fresh air.

We have just sold 2 flats in SW London - one for £425k and one for £525k - neither had gardens. And in any case we are now coming into the colder autumn and winter months when not many of us use our gardens anyway.

And as for being too expensive - there are flats without gardens near where I like which are on the market for well over £1m

Hello - thanks to all the helpful posters on this thread.

The price drop has created a flurry of interest (and a call from another agent who told me with the price drop I should expect a sale within a week or so)

8 viewings booked in between tonight & Saturday so hoping some of those will generate offers

I also agree that lots of people will stay in cities - not having a garden isn’t an issue in normal times as I’d be out doing things

I do wonder if city living will skew younger in future though

That's great - hope you get an offer soon. Sounds hopeful.

@nosellingflat: I’d suggest you drop your rental price as rents are coming down at the moment, and hang in there if you don’t want to sell on current situation

Is it a leasehold flat? If so this could also be putting people off.

All flats are leasehold as far as I know!

Some have share of freehold, especially in converted houses.

That’s true of course - could be share of Freehold. OP - how may years left on your lease assuming it’s leasehold and what are the service charges etc?

Wow that’s brilliant news. I am sure that something will come of all of that activity. I wonder if there are people with pre lockdown mortgage offer rates that are about to expire.

Be careful now about what offers come in - you don’t need another 10% under asking....

Most London conversions are leasehold, freehold costs more

Long lease, > 115 years

@Sssloou : yes about offers, esp now estate agents are calling their landlord buddies

I’m looking for asking price and will put pressure on agents - especially as it’s being marketed well under their valuation...

Just chipping in to say agree that not everyone wants to live in a commuter town. We have two young children and are well aware that we could get a bigger place for our money in Hertfordshire or whatever. We just genuinely prefer it in zone 2 (and our garden is the size of a postage stamp, but we have big, beautiful parks within 10 minutes of our front door). Good luck OP!

I'm sure you;ll get offers, OP. From experience straight after reducing people (evryone who offered) all made offers below asking, but not that much - they aer all excited as 400K isn't quite a great bargain but below that it would be!
Btw 115yrs isn't that long - in 15yrs it will be seen as bing in need to renew as otherwise will go into 'low' territory. Some leases are near 200 or even 999. I bet people will mention it when trying to negotiate - though purely on that it should be a tiny reduction.