House prices London

[catchyjem]

If you put your house on the market in London for 600,000. How close to that would you expect to achieve/accept as a good offer?

Completely depends on the actual value of the house.

Absolutely. But what determines that?

The location (down to the exact position on that street), the condition and state of repair, school catchment, proximity to the tube, neighbours, parking...

If a very similar house on your street has sold recently (check Rightmove) that will give a good indication.

£650,000

sorry meant £550k

£540k

Assuming you’ve put it on for what the agent valued it at rather than close to a recent sold price, and it’s a fairly desirable property, at the moment, I’d expect initial offers around the £540k - £550k mark. The market is definitely slowing, buyers know they aren’t going to get the stamp duty holiday so aren’t willing to pay over the odds, buyers being generally more cautious. Friend just had an offer accepted for the same price the vendors bought their house for in 2016, they’d had very little interest at the price they wanted.

But what determines that?

What somebody is prepared to pay for it.

It's all about supply and demand - the state of the house and how keen they are to move play a factor too.

If it's 600 and someone is willing to pay 600 and the bank values it at that you can offer 550 but they will obviously just go with the higher bidder

Look online to see the sold prices of similar properties.

If £600K is a great deal for a house like yours in your location you will get offers close to asking. If you are ambitious with your price your offers will be lower. You can set the price at anything you want but the house is worth what someone will pay for it.

That's interesting everyone thanks. I'm actually the buyer and I think the property is slightly overpriced. A similar property sold on the road last year for 565. I offered 580 and have cash no mortgage, but was turned down. Just wondering if I was wildly out with my offer really.

The buyer could have rejected for many reasons - maybe they need £600k for the house they have found, or maybe they just can't believe they aren't going to make £150k on their 'investment'.

I agree with PP who said 2016 prices. Properties around us are going up at 2017 ish prices (except my next door neighbour, who has put their house up for £80k more than I would have expected, and have had almost no interest as far as I can tell).

Totally depends if the house is on at a realistic or ambitious price. I bought my SE London house in 2016 for £400k, market has been slow with the exception of a bit of a boost in the last year or two. A few months ago we accepted an offer of £499k.

So I was contacted by the agent to see if I wanted to increase my offer as the vendor is looking for 590/595 They are apparently not in any rush and have other viewings lined up but will do a deal if I increase. I've said I think my offer of 580 cash is very good and I am also not in a rush and can wait to find another property. They've then responded with how about 585 that might be accepted. I'm thinking of just saying no actually. I really not that desperate for the property and I would resent being squeezed for an extra 5 when I really thought my original offer was already good. In fact it was the agent that encouraged me to put in my best offer otherwise I would have gone in a bit lower!

Sounds to me like someone is actually much keener to sell than they're saying!
Either the agent, and he thinks that the house is overpriced and thinks he can convince them to sell at the 585, or the seller has a crap poker face! If you're not going to be gutted if you loose it, I'd stick at your offer price tbh. They've already come back at you twice...

The agent is just doing their job, ie inventing every way they can to get you to part with more ££. If you don't particularly mind losing the property then you are in a strong position and can sit tight.

I would also sit tight - this is an uncertain time, and assuming 600k was their highest valuation, a cash offer of 580k may secure it.

I think the agent thought I would just come straight back with more money. I think I've really rattled him that I just went away. I think he's told the vendor he can get more from me and is now worried about losing face. I honestly don't mind losing the house. I'm just going to say that 580 is it and if the vendor wants to wait for a better offer from elsewhere than that's up to them.

It's not possible to say with the information that you have given us. It depends how realistic the original asking price was.

Could you negotiate a bit more? Say you'd be willing to stretch to 585 if they left the carpets/curtains/white goods etc etc so that you wouldn't have that expense.

I agree with the PP who said it sounds as if they are actually keen to sell!

They have negotiated with you and come down a bit so really, they have met you MORE THAN halfway from your original offer to their original asking price.

Thing is I had initially thought I would go to 585 but the agent was so rude and dismissive of my initial offer I kind of couldn't negotiate. So he's really mucked up as far as I'm concerned. If I was desperate for the house then I'd go with the 585 but I'm not and I'm just annoyed with them now.

Take emotion out if it. It's a business decision with over half a million pounds investment at stake. Don't let an annoying estate agent cloud your judgement.

Where’s the approx location?
How many bedrooms?
How many bedrooms?
Condition?

West London, nice area but not the best. 3 beds, decent condition but not great condition