Selling extended house for less than purchase price: how will buyers react?

[Spotteddaisy]

Grateful for any advice please re house selling.
We are not strangers to house selling as have moved 5 times in the last 15 years, (but in the same area) We have always made a small profit on the house sales to put towards the new property.

In Autumn 2023 we moved to Dorset, 10 mins from the coast.
Detached 4 bedroom house with a plot of just under an acre. In a lovely village, good schools etc nearby. Previously lived in Hampshire.

We have extended the house by rejigging the layout and adding a big dining/family room downstairs. We've made other improvements too like insulation, adding solar panels etc.
Had a couple of estate agents out last year to value it who said to market at £850k. But we have been on the market since last June with no offers at all. We have now reduced the price by £100k and changed agents at the end of last year.

We have had a few more viewings with this agent but still no offers. Which obviously means it's the price. So we asked our agent what we can do as we're aware that properties still on the market after 9 months don't look good.

He said we should drop the price to £695k. We are not sure what to think about this (my DH is fuming)as we bought the house for more than that 2.5 years ago and have spent a substantial amount on the extension and improvements. Surely anyone who has done their homework and looked up house prices etc will see that we bought it for more then added an extension so to then list it for less just makes it look really dodgy? I don't think the market has decreased so much in less than 3 years that we would have to list our (bigger, improved) house for less than we bought it for?! I know that ultimately no one will care what we've spend on it but the fact that it's now bigger than it was must count for something?

We really aren't enjoying it here and now need to move to somewhere cheaper and to be back nearer to family. This has all been a massive costly mistake and I feel so guilty. The fact that we could end up in negative equity is just stressing me out even more. We've never made a loss on a house and ploughed all of our savings into this one. We were so full of hope when we moved here, but it's all just been awful.

As a potential buyer what would people think about a house being listed at less than it sold for not even 3 years ago, even after its been extended?

It’s a very bottom heavy house that’s now fairly out of proportion. It doesn’t have the bedrooms or bathrooms required to be useful for most people. It’s a renovation that’s been done to suit one family which is perfectly fine but now they’re taking a hit on the resale. The pic showing the development and the graveyard have really got to go! You won’t get people through the door that way.

It’s not as big a deal as people are making out. You can turn the smallest bedroom into a bathroom and use the office as a spare bedroom.

@Spotteddaisy have you had any luck yet with selling?

A different take on your situation- Have you looked at developing part of the garden as it's big and wouldn't directly affect your house ( I suspect two building plots would make minimal difference to the original house value but could be worth £100-£150k each). I know you're keen to sell but you could apply for a permission in principle cheaply and have a decision by the summer. A PIP is the fastest, cheapest type of application as you need minimal supporting documents and could do it yourself. If it's granted you fence off half the garden and market the plots and house separately. This would allow you to drop the house price further if needed but still recoup what you've spent, plus more.

I was going to suggest talking to the developer about selling the house and plot to them. The plot is a good size so might be a better prospect as development potential.

At the moment you have the challenges of selling in a dip compared to when you bought, especially for larger / more expensive houses in this area. It's not the posh side of Weymouth, or an outer village really. Plus a graveyard and church limits the market, and a lot of new housing being built around. The freestanding solar panels would put some people off (why not on the roof?).

I'd expect the EPC to be much lower with the work you've done. In the summer you must be making money off the panels! Maybe get a second EPC booked.

Is the paddock yours? The listing isn't clear.

I see the OP has now dropped the price to under the 700k bracket. I sincerely hope that's starts to generate some interest. Its a lovely home. Maybe still a bit out of reach for most locals but wishing them luck.

Just wanted to say that this is the nicest house anyone has ever put on here wanting feedback.

I think it is just a poor market sadly.

I hope you get it sold and are back closer to family soon.

Paddock? You mean the front garden with the big tree? Yes that's ours. The whole plot is surrounded by a stone wall.

Already looked at this. Apparently there's something in the deeds that says the access road can only go to one dwelling or something.
Planning has been previously been approved to extend/convert the garage and build a new triple garage in the garden though.

Hi @Spotteddaisy . Sorry to see you haven't sold yet.
Did nothing at all come of the people who were coming for another look?
I think it's a lovely house and someone will love it, especially with the potential of that size of a garden. Best of luck at the new price!

No yet. Just reduced again and have a second viewing booked in ....🤞

Thank you. We are pretty fed up with it all now. We've had a few people say they want to come back for a second viewing but who have then found somewhere else. Hoping the reduction will create more interest but it seems like the market is tough everywhere currently.

The market is indeed tough. I would have thought you'll get a lot more interest at the new price though.
Fingers crossed for you!

It took us 2 years (with a year in a rental so we didn't lose our buyers) to sell and buy and it drove me totally potty. We finally got into our new house last October, and thank god it's (mostly) lovely. I am never, ever, EVER, moving again unless forced by ill fortune of some kind. So I get how frustrating and upsetting it is.

Your house is beautiful and living next door to a churchyard is lovely but I would want at least one more full bathroom, preferably en suite, so I wouldn’t view it. Sorry.

Unfortunately I think you overpaid for it. There was a bit of a mad rush for people to move to the countryside after covid with the inflated prices but that seems to have bottomed out now.
All electric including heating would put me off too unfortunately.

It’s a nice house but has the graveyard nearby and the new builds are a bit unsightly too. Did you pay £716k for it? I’d take this as a lesson learnt and try to sell for £630-£650k

If you change estate agents people are unlikely to know its been on the market for 9 months ... unless they are avid followers of the area on rightmove.

I know this isn’t any use to you, but your house and plot are exactly what my dh and I are currently looking for…except it needs to be in a specific part of Bedfordshire. We have been looking for months and months now and nothing even remotely suitable has come up in that time and we’re losing hope it will happen any time soon. If only your house and plot could be picked up and plonked over here. Good luck, OP. It’s a gorgeous house.

People could borrow cheaply then, that is over now.

Thank you so much, that's very kind of you to say. I just hope someone else can appreciate it enough to want to buy it soon.

Thank you, we feel the same! Would love to be able to put it somewhere nearer to "home."

I posted earlier and also think it's a lovely house. I hope the price reduction works for you.

If this was near me would be around £1m. Maybe £1.5m.

I love it! I can’t understand why it’s not sold.

Sorry it is tough going. I think unfortunately as people have said before it is a tough market and Weymouth isn’t where people generally look for bigger houses, especially with the drift back into the office.

Friend’s bought land, got planning and for various reasons need to sell and the first valuation was lower than they paid for it, not that far from you. Fingers crossed you can get home soon. We spent 3 years trying to get back home from Dorset once the DC were through school so totally get what you are going through. Good luck .

Agreed, and as it is making them unhappy they should just cut the price until it sells, they bought it in a very different more manic market, unless there are serious viewers making serious offers it is overpriced I think.