john banks

We have had our property on the market for 10 days and had no contacts/viewings. This surprises us at this time of year, so we think the solicitor/estate agent has over-valued it.

We have already found the property we would like to buy and would like to proceed to an offer on it (subject to survey, but this sort of offer is more binding than I gather it is in England). We have a fixed rate mortgage reserved to go on it that needs to be completed within 16 weeks. LTV is 56% based on the deposit being the "offers over" price of our present property that has no mortgage on it. To 100% mortgage it is 3.6 x joint income and affordable at present rates, but 2 x joint at a fixed rate as planned is rather happier! However, we'd rather sell our present property and don't think the rental yields would justify letting it although we may be wrong.

Maybe I am being negative, but if we fix the price on our present property or lower the price aggressively to sell it we should be OK, but I'm worried I end up with two houses.

I feel that there should be a market for a 3 bed detached bungalow on a nice estate with a train station with good links to the capital and other amenities, just that the price is putting off prospective buyers because of the premium price a bungalow and the location apparently attract

There is another almost identical property next door but two up for 1% less that has not shifted for a few months, and one nearby fixed price for £15K more that is also almost identical plus a single garage.

Suggestions?

TopBanana

Wait for everyone else to lower their prices or lower yours first and get a quick sale!

imlach

Gotta guess going on your data, but.......

3 bed modern bungalow in fife?
I'm guessing it's gonna be priced around the £200k mark, so the o/o price may make people scared of the 250k 3% stamp duty threshold....

If modern, you're also up against a glut of new modern estates in Fife. For similar money, some people prefer shiny brand new. If old and characterful, this doesn't apply so much.

If other one at fixed price for £15k more is not selling, then yes, suggests price is too high. However, fixed price is negotiable, and it may just be that said owner is just not budging, and has overvalued their own house.

If you really want to sell more quickly, then yes, go fixed price, but remember that often used to add a stigma (not so much in 2006 market).

If it's priced right, it'll sell. Simple supply & demand.

If you've not had any viewers yet after 9 days, then it does suggest price too high. If similar house at 1% less has been on for months, why would anyone want to buy yours over it?

john banks

Thanks imlach. We're about £20K lower and not worrying the 3% stamp duty on sale. If we can get viewers through the door they would see that the quality is very good, but you can't tell that on paper compared with the glut of other stuff going up (some real horrors but they look excellent value on paper). This made us buy it originally, and I can't see any bungalows of comparable quality presently being built now in the area. I still think it is over-priced though, so if our offer is accepted we'll need to sort the pricing.

imlach

Well, the oldest trick to get viewers through the door is to put the o/o price WAY below, which will get viewers through the door, but you're taking a risk in getting the buyers through the door who have the cash you want.

Often works though....especially if you're confident your overall presentation is top notch, and attractive to the majority. ie, if it has the wow factor that will get people really WANTING your property....

Alas

Yep - as above I'd make the o/o price really aggressive to get buyers through the door. At least you'll have someone to negotiate with then.

imlach

My only worry is that generally the "way below valuation" trick really only works on older properties in well established "traditionally classic" areas.......

I've been involved in bidding wars in Edinburgh where things have ended up going up to £200k over the asking price, with no-one getting in a sweat over this. Mainly due to limited supply & demand, and unique selling propositions.

Modern properties tend to have a more limited appeal, with modern estates offering a steady turnover of similar-ish properties, and no uniqueness to justify an offer that is WAY over the asking price.

So, you have to be careful over this, and I suspect that your solictor/estate agent will be wary of lowering the o/o price too far on a modern estate. They often tend to sell on a more predictable cost proposition - ie, a fairly predictable 5-10% over the asking price.

Diablo

Change estate agent and stick it on at a fixed price 5k less than the one nearby.

The danger with changing your o/o price is that agents tend to slap "reduced" all over it, which makes people think "why"?

We sold a house in Perthshire recently, stuck it on at an o/o price £5k LESS than a similar house up the road from it that had been on for a few months.

BTW, an offer subject to survey is not at all binding (and as a seller, not worth much). You are under no obligation to disclose the result of the survey to the seller and can simply walk away saying you are not happy with the survey results. Also remember that any acceptance of your offer will be conditional on a number of points, as your offer will be conditional itself. Only when missives are concluded are you contractually bound, and that can take weeks.

HTH

PG

Can't believe you had to lower the price! People should pay a premium to live in Perthshire

lightning101

I agree

Diablo

LOL

We didn't "lower" it, the one up the road was slightly overpriced..

matchmaker

So do I

john banks

Thanks Diablo.