What would you offer

[crumbsneverdid]

Property I love is on the market for 325k (1 bed Victorian conversion maisonette/share of freehold) - been on for a few months. It's on my dream street, of which there are only a few like this that never come up for sale (so, difficult to judge similar properties and sales). The street is important as it's just off the green (with all the shops/restaurants etc). Prime location.
Even with the location I feel it's overpriced, and with what's happened since it's been on - even more so.
I'm hearing 10-30% price drop is a possibility in the next 12 months.
How much would you offer?

If it’s been on for a few months I’d go in at £300k. Nothing to lose. If it’s not selling it’s almost definitely over priced but I’m finding where I am sellers (and agents) might not have quite switched on to the fact that the market is falling fast

It is very dependent on your area - what do other 1 beds go for in a similar condition and location?
I'm thinking 300k but only you can do the research necessary to offer the right amount for your particular area. 300k for a 1 bed sounds cheap to me but I'm used to London prices. For others it will sound expensive.

Test the water at £275k.
It’s obviously not worth 325 or it would have gone by now. If that’s a May or June price, it’s already 10% too high ignoring anything since Kwasi. Andrew Bailey plus all the experts are saying minimum of 15% price drops, more likely 30%. Mortgage affordability just dropped 30% as well. This will be reflected in valuations.
In any case, make enquires, go in and talk to the agent, but wait for the budget before you make a move. Anything could happen ( ie, with IR35, stamp duty etc).
However, what sort of conversion is it? Were the floors soundproofed? Does it have a garden or balcony? Have the electrics been done? Is there a sink fund for maintenance of the building? And can the other owners afford it? When will the exterior next need a make over?
£325k buys a newish (albeit small) 4bed detached where I am looking.

I was buying somewhere very similar in Brighton a few months ago but the sale fell through. There was no service charge and the exterior was very badly maintained. It would be a huge expense to fix and no guarantee the other freeholders would pay their share. Ensure there is a service charge if you do make an offer.

I'd go in at 300K it's a reasonable offer. Also depends where your property is. Demand in Brighton still seems to be high but with some reductions.

£325k for one bedroom?!?! That can’t be real?!

Of course it is. And as a pp mentioned it's even more expensive in London.

You’re just proving the truth of what I said to OP further up. No point discussing house prices as we all have very different views depending on the part of the country we live in.
325k would be incredibly cheap for London but expensive for many other areas .

275k like @C4tastrophe said.

I offered 320k on a 350k property in 2019, prices were flat and it was a buyers market, but nothing like now, where prices are already being reduced with further reductions baked in.

The property is in north surrey. London bus area but not London.

However, what sort of conversion is it? Were the floors soundproofed? Does it have a garden or balcony? Have the electrics been done? Is there a sink fund for maintenance of the building? And can the other owners afford it? When will the exterior next need a make over?

I'm waiting to see a copy of the lease agreement before offering and will know more then. It has a small garden and had what looked like an antique fuse board thing (not an electrician as you can probably tell!)

The price is far too high. I would offer something very low. I would also wait to see if you could get a 2 bed. Prices are going to drop.

Only other 1 beds in the area are smart, newish flats in small blocks (often gated) - from 290-315k

This is what I'm thinking over. There is a tiny two bed house in sane area for 385k - if it came down I might be able to stretch to it.

I'd be inclined to wait too until next year and buy a two bed. In the last recession, one beds seemed to tank the most. The only risk is interest rates rising further which may affect your affordability.

If it's you dream house, dream location ... pay what you can to live your dream!

If you can afford the house go for the house.

If the flat is slightly more expensive than others but has a much more reasonable maintenance charge and longer lease then it's worth it.

You don't say way the local market is like. Is it still strong or are prices falling? You can't make a very low offer on BoE predictions 12 months away, nobody will take you seriously. If the property ticks all the boxes, has a decent managing agent make a reasonable offer.

Nothing seems to be selling and haven't seen any price drops. Difficult area to judge as there aren't that many properties available to benchmark against.

I no would never pay that for a 1 bed in Surrey. I would in London though. I have seen a property that I liked reduced by £50,000 in Surrey and others are being reduced here daily along with more coming on to market.

@C4tastrophe

Andrew Bailey saying minimum of 15% price drops

Please can you provide a link for this?

@MightyOaks I'm not sure where the OP is, but you'd be looking at a good bit more than that here. North Hampshire.

@crumbsneverdid I'd want to know a lot more about the lease first. Plus all the charges.

If everything checked out, I'd go in at £301,500.

How long is a piece of string?

How can anyone possibly say without knowing the location? Is it in London or Londonderry?

OP said north Surrey.

If you love it and it's in a great location etc I'd go in at 295k considering it's been on the market a few months.