What would a reasonable offer be?

[Floopdifloo]

For the moment this is purely hypothetical as I’m not viewing until later this week (so I might not even like it), but I’d be interested to get some feedback before then on what a reasonable offer could be so I can have that in mind when I view.

The flat is on the market for £159,950, last sold a couple of years ago at £150,000 and from looking at zoopla nothing at all has changed. At that time it took 5 months to sell, and it also appears it was listed in March this year but the listing was removed.

First floor flat, from photos it looks like only cosmetic work needs doing (by personal preference). I’m chain free and wouldn’t need a mortgage.

How low do you think I can go without being offensive?

What are similar properties selling for. Sold prices not asking prices.

Most recent sold prices for others in the block:

2024: £157,000 (1st floor)
2023: £158,000 (ground), £150,000 (the one I’m viewing)
2022: £140,000 (second (top) floor)
2021: £140,000 (ground)

I’m not sure how much, if at all, the market has changed since 2023. The flat in viewing is exactly the same as it was then, so really it’d only be market fluctuations which would affect the “real” value.

Real selling prices on flats are back down to around 2021 prices in my area. I would try a bit under 140k

I would try around £140k although what do i know but feel the seller would want to get what they paid for or near to £150k. It depends how many other flats are for sale near by. Good luck.

It's impossible to say without seeing the lease details - remaining length and cost. And also the area. In many areas the prices for flats have declined since 2022.

Two resources to check.

1. Houseprices.io (what would the price be now if increased by HPI)
2. Ottaproperty.co.uk (click on Trends, select the postcode, see how the average price of flats have changed since last purchased)

Also use the Area360 add-in for RM to reveal data that may shed light on the property such as flood risk, noise levels, crime rate, distance to station, etc

Lease is over 900 years, doesn’t say cost on that listing but on an old listing for a different flat in the same block it said peppercorn rent.

Another flat in the same block has recently been put on at £170,000 (only just listed, not a sold price). I’ve checked all the flats in that block and they don’t seem to go up for sale very often, so I think that’s just a coincidence.

Larger over 55s flat in local area with an extra bathroom is listed for £180,000.

Houseprices.io said £152,250

If I really liked the flat on viewing it and the price 150k seems reasonable compared to other flats for sale in the area, I would try offering that.

Based on those prices, id say the price is fair. You can offer less but that doesn’t make it worth less.

I would be wondering why they're selling so soon. I'm always wary of neighbour issues since this has been a reason we've moved in the past. You don't want to inherit problems.

I think they’re selling because from the photos there are two children sharing a fairly small room, and the listing actually mentioned moving in with a partner so that would make sense to me - they possibly bought the flat after a break up and now they’re able to move back into a house.

The flats in the block haven’t actually been up for sale very often, and I’d also assume they’d be up for sale more often than houses as for some the flat would be a first step into the housing ladder.