House price SE

[ZippyFish]

I viewed a one bed Victorian conversion flat which is listed for £350k in zone 3 SE. I made an offer for £312500 as the house was bought for £304k in 2021 and the prices have not gone up since 2021 to expect a premium of £45k or15%. Do you think it’s fair. It has been listed in last 10-15 days

Sounds like a very reasonable offer. Much depends on whether they’ve done work since last sold though.

Depends where it is. Some parts of SE London have seen decent rises in that time.

I can't comment on fair as don't know the area or property.

What I can say is it's very unlikely they will accept £312,500 on a flat they only listed 10/15 days ago. I expect you will get a quick No from them.

Depends what, if anything has been done to the property by the current vendor

Also on the desirability of the area, is it getting more popular..

And also on how keen the vendor is to sell.

It’s a very low offer wrt to the asking price though.

It’s in Forest Hill and the current vendor just changed the windows. The previous vendor bought for £330k in 2015 and sold for £304 in 2021 when I believe market was at peak. I am afraid that if I pay what they are asking for would land with a negative equity in future

Do you mean bought for 220k in 2015 because if bought for 330k in 2015 then that would appear to be the peak?

Negative equity is a concern at the moment with London flats but I just think the amount you suggested is unlikely to be accepted at this stage.

i mean £330k in 2015 and therefore 8% loss on sale in 2021 for £304k. Do you think others will not factor this?

I'm just confused by you saying 2021 was the peak when it wasn't for this flat?

Would be interested in know why the flat fell in price between 2015 and 2021.

peak I mean generally for house prices in London and not specifically for this one

It all sounds very odd, but I think they are very unlikely to accept 312500 for a flat listed at 350 10 days ago.

I can tell you I sold such a flat in SE London for £115k having bought it 4 years earlier for £43k.

Man, do I regret not renting it out.

Forest Hill is a popular area so I doubt they'd take £312K. One bed flats are not that desirable though, especially if there's no outdoor space.

The price doesn't sound too out of the ballpark for a conversion flat in Forest Hill, tbh. I doubt they would accept your offer.

For reference, friends bought a house at a similar time and sold it for almost £100k more than they paid.

If the chance of negative equity is an issue for you (because you think you'll want to move on in a few years, or whose job is not as secure as one may like, etc) then you should avoid any property that has the appearance of a frothy price.

This wouldn't apply to anyone who is in for the long term and has greater financial resilience.

Thanks, yes given it’s a one bed I think I will look to upsize in future if I end up finding a partner which in itself is a task but problem for some other day!

you mean bought in 2015 or 2021?

If that's a reply to me, then in Forest Hill in 2021!

Thanks