Don’t know what to offer for property

[Jimmini]

So we’ve seen this property, love it. It’s very us. The current seller didn’t pay much for it at all, we’ve been told it was bought privately and they knew the previous owner (I’m not sure why that’s relevant, but that’s what we keep being told) and that the sale was agreed when the market had stalled during Covid.

either way the mark-up seem quite a bit. We like it, but are at a loss as to what to offer. It’s listed at 800k, they paid 425 for it. The one next door has recently sold and was listed at 725k but needed lots of work doing to it. Could I ask them what they paid? It will be coming up on land registry shortly anyway- but I need guidance

What they paid for it is irrelevant, you should be paying what it's worth in the current market. If next door was £725 in need of work and this one is renovated then £800 sounds a fair asking price. Offer £760 and see what they say.

It doesn't matter what they paid for it in the past
You need to look at price per sq ft or sq metre

It doesn't matter what they paid.

It only matters what it's worth to you and what they are willing to sell it for. If similar houses in the area are going for 725k and needing lots of work, then is 800k about right?

What are other houses going for in that area? Do they all support the 800k value?

They’re all very different. This is 2 bedrooms, a four bed has just gone for 1.2M, another 2 bed went for 450, (it is half the square footage) but still 2 bedrooms- which is what has got me wondering

What they paid is irrelevant, years ago I bought a house with my then boyfriend, we bought it from his Dad at around 50% of its actual worth. Even though the houses are all different 425k sounds very cheap if others are selling for so much more, what do you feel it is worth with local market knowledge? Also have they carried out any works on it? They make have spent 200k refurbing it?

The current seller didn’t pay much for it at all, we’ve been told it was bought privately and they knew the previous owner (I’m not sure why that’s relevant, but that’s what we keep being told)

That doesn't tell you anything at all. Maybe it was owned by two people and one of them bought out the other one at half the value. This is common during divorce or after a shared property inheritance.