Is it cheeky to go in with 700k under asking price

[namethisbird]

There is a Victorian townhouse for sale in our dream street but the sticking point is the asking price.
it is currently on the market for £1.7million however in my opinion based on research, independent valuation sites and recently sold properties it’s only worth just over £1mill.
it doesn’t seem it’s had much interest so my dilemma is would it be very cheeky to offer what i think it’s worth which is £1045000?

It's probably the location that's the demanding the premium price tag.

How long has it been on the market? There’s a house near me that went on for £1.5m, great house and plot, in theory well worth the money but it’s particular specific location devalues it compared to nearby similar properties.
it went down to £1.25m and now it’s on for £995k, I don’t imagine anyone will buy it for over £800k so it will eventually sell for around half its original market price.

id offer and leave it on the table with them.

They've had their time to test the market really. If one sold for £1m in the midst of the sellers market then they've no chance at £1.7m.

The market is drying up due to interest rates. This plus the house value being on the toppy side it makes sense that there's been little interest. If mortgaging, it will cost too much and could end up in a mortgage prisoner situation. If paying cash, too much to be lost in savings interest and little faith in its investment/future value.

I'd give it a go! Let us know how you get on, good luck!

These high numbers and overvaluing vendors hurt my brain.

independent valuation sites

^^

What are they called, please?

Worth a shot.

We've done this already today.

However, no, it isn't cheeky. It will give them a good laugh.

Houses round here (London) have doubled since 2011.

Post a link, op.

Estate agents don’t generally overvalue houses by 40% - it wouldn’t be good for business. OP, do come back and tell us how your offer call goes. Whether you can hear loud laughing from the Foxton’s office.

£800k to £1.7m in 12 years in a desirable London location isn’t too difficult to believe.

I would wonder what the issue was if it had only gone from
£800k to £1.045m in 12 years.

You need to ring the EA and say you have an interest in the property but your research indicates it's significantly overpriced. Give examples of recent sales.

Then ask why they believe the house merits the current asking price.

Make a decision based on that information.

Of course the price might be vastly inflated.

Some sellers haven't got used to the falling market, sometimes people list at a high price just in case they get lucky but aren't under pressure to move, sometimes there are messy family circumstances where a price is inflated deliberately to stop it from selling.

Or there may be very valid reasons you are not aware of.

For example I live in a village that is spilt in two by a river bridge. The larger part has the period properties, school, doctors, shops, pub and all the village amenities. The other is mainly more modern housing and you'd face a pretty stiff walk in winter on the school run for example and in rush hour the single lane bridge can get congested.

Houses on the amenities side routinely sell in excess of 30% more than the other (often much higher if they a period homes in the village centre) even though as the crow flies they are less than a mile apart than those over the bridge. If you compared two similar properties in the village without understanding this it would be easy to think the one on the amenities side was overpriced, when it wasn't.

I am guessing it's not London. I think if similar house sold recently then the owners will probably be expecting it. Doesn't mean they will accept it though.

I’d definitely talk to the agent to see what about the house makes it worth so much more than a recent similar sale.

My nosy hobby is following home sales where I live, and I saw last week one sold for $760k after going on the market for $1.2M. I saw the original listing and knew right away that $1.2 was a pipe dream. Some people are very unrealistic!

If a near identical house has actually sold for around £1 million in the last few months then its certainly way overpriced
But if they bought it 12 years ago for £800k then an offer around the £1 million mark seems far too low....prices have gone up massively in the last 12 years

Nope none of this if anything it’s dated. No swimming pool (i wish) it has a ‘courtyard garden’

You can chance it. They have two options-yes or no!

I would wonder what the issue was if it had only gone from
£800k to £1.045m in 12 years

A very good point in that the OP is starting from the assumption the house for sale is overpriced when possibly the house that was sold had issues/needed major renovation etc that merited a significantly lower price than typical for the street.

As per my example above re: my village you need to make sure you're comparing apples with apples.

Just because a house is in the same village/street doesn't mean they are of comparable value by default.

Best you look for houses more in your price range hun

Is ‘cheeky’ a euphemism for ‘a really, really low offer’ but by calling it cheeky you are trying to present yourself as charming and appealing rather than a time waster?

I know a few posts have mentioned London. This house is not in London. It’s Northern England.

Thank you for the helpful posts I will call the agent tomorrow and report back. I really don’t think it’s worth what they are asking so will see if I am right.

Houses on the amenities side routinely sell in excess of 30% more than the other (often much higher if they a period homes in the village centre) even though as the crow flies they are less than a mile apart than those over the bridge. If you compared two similar properties in the village without understanding this it would be easy to think the one on the amenities side was overpriced, when it wasn't.

The house that sold for just over £1mill is on the same crescent.

Does it have a blue plaque? They apparently add value

If they have it on for 1.7 million, I imagine they'd reject 1 million outright. and not engage with you further.

You may well be right in your valuation but they clearly have different expectations of what it's worth.

If someone offered more than 10% less than the asking price I'd think they were trying it on. If they offered 40% less I'd tell them to get stuffed.

Go for it.You have nothing to lose and a potentially an overpriced house to gain.

People who are saying she has nothing to lose...what she has to lose is the house because she's very likely to piss off the seller so much they would never consider selling to you even if you increased the offer. I'm saying this from experience having been given what I felt was an insulting offer. Having said that if you can only afford 700k less and you don't really care if you offend them then i suppose you have nothing to lose.

OP your 2011 comparison is meaningless. I’ve had a look at a local (albeit gentrified/often promoted on mumsnet) area near me (London). Houses in one estate (8 ish streets, close to the high street; catchment for good primary schools) tended to sell for between 350-450k (depending on size of garden/plot and whether they had been refurbished/extended or not). Currently there is nothing on the market under 1 mill and ceiling for an extended property (loft or kitchen diner) in good condition is closer to 1.5!! You can see that several of the homes have changed hands with limited to no work done, for multiple times their 2011 purchase value. One bed apartments are being sold for >£350.

Ps crossposted with OP saying not London. Always worth a call to the agent - but I still wouldn’t use 2011 prices as a reference point!