Purchased for £820k in 2020 selling for £1.5m

[Tead]

Just browsing on rightmove - saw a house that is on sale for £1.5m that was sold for £820k in 2020. Surely prices haven't increased that much. No extensions but new kitchen, bathrooms etc.

Possibly sold by parent to child to avoid tax of some sort

or maybe wanted to help child out, then child decided to move

Link?

It might have been a wreak back in 2020 and they have spent a few 100K's getting it to where it is now.

I've seen this a lot of this here.

Best way to work out if they're being CF is to look at local properties that are on a par and work out price/Sq ft for the property. Then adjust for land and additional amenities. Usually a good rule of thumb guide.

"On Sale For" doesn't mean the same as "Sold For". That price might be coming down in the next few months if they are being greedy/unrealistic.

Sounds ridiculous nearly double after 3 yrs? And objectively new kitchen and bathrooms added. Does that justify 600k+ extra? I highly doubt it. We bought our London house in 2019 and if sold now would expect if lucky 120-130k more now maximum and its been done up, drive/garden whole house brought into this century as last done in the 60s.

Would be interested in a link though

In London that’s not necessarily crazy. In 2020 it might have been a cheap sale for lots of reasons. Walthamstow and surrounding has boomed even since then. We bought a house for 490, it had a collapsed roof (not pictured), original Edwardian electrics, central heating in only a few rooms with a condemned boiler. It was a probate sale so was empty for over a year so stunk, had damp and families of foxes in the garden. The carpets were soaked in dog urine.

We spent £40k on initial work - completely new roof, rebuilding ceilings upstairs, electrics, heating, plastering, basic 3 unit kitchen, bathroom and flooring in most rooms. Then we built a >100k extension. Then we spent £££££ on renovating original windows and stained glass door. And another pile of money on gardens.

We’ve been valued at 1m and listed at OIEO 975K. I expect lots of people think it’s very overpriced if they don’t know the area. 490 was insanely cheap but reflected that it was basically uninhabitable. If you wanted to do our extension this year it would cost £200k at least so that is a value factor too.

The area has then jumped massively with Walthamstow gentrification, and 3 doors down, same house finished with a loft and extension sold for 1.1m. It seems insane but prob only slightly overpriced given the beautiful Edwardian houses on a quiet lovely road.

I linked to one near us that had done similar - sold last year for £950k, on now for £1.15m. Has not been updated, you can see the photos/see on the council website when the extension was completed (7 years ago).

Either something untoward (job loss, divorce, bereavement), something wrong with the house (or neighbours), or incredibly greedy sellers. Either way, I’d be wary.

Just a note about photos on rightmove, they can be misleading

We bought this house in 2009 and for a long time if you went into the sold details on rightmove the pictures corresponded to the 'sale' pictures of the property from when we bought it

We then put it up for sale in 2014 but couldnt find anything to buy so took it off and havent moved

If you go into the sold pictures from 2009 now, it shows the pictures from 2014. Its annoying as it will look as if the decor and kitchen etc is from 2009 and its not, we updated everything.

Interest rates are the main thing though, not the work done, I don`t think many houses would make a profit from 2019 now TBH.

Is there a link to the house? it is always interesting to look at similar houses with PropertyLog and monitor the speed of price drops, that gives you a good sense of the prevailing sentiment around that type of house/area.