I am looking to buy a property, but getting a little bemused about some prices.
Case in point: We viewed a nice property yesterday on a street of very similar houses all built around 2006/2007 - we really like the house and would consider an offer; however on getting home and spending a few hours researching we can see that all the houses that have sold on that street in the last 3 years have all gone for less than the original purchase price, or equal to the original purchase price. The last example being 2013 so I appreciate things may have changed since then.
However, this road backs onto a small estate that was developed at the same time (cheaper houses) and there are 2 or 3 of those that sold this year (2 last month) that also sold for less than the original asking price.
Now the EA has priced this property we viewed at 120k above the original purchase price, even with a deal he thinks the best we can get is £20k off.
For me that seems to be a red flag; but I seem to be in the minority as we have taken advice off more experienced people and the general consensus we get is that "a properties true value is only what you are prepared to pay for it". I genuinely don't understand that - we like the property and until we saw this we'd have happily made an offer that would in hindsight have been well overt the purchase price, but we don't want to overpay, we want a fair price for the property we come to buy and have the option of selling it on at market value.
Are we being totally unreasonable to be concerned?
Admittedly all the properties are different. 3 beds, 4 beds, 5 beds, terrace, and end of terrace; but I have placed my assumptions on the price differences between original asking price and recent selling price that I have found to be relative.
This pattern seems to be the same in other developments near where we live, for houses buult in the last 10 years; though for buildings with more period features / character they have often increased in price since 06.