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Ananda

Huge Price Difference For A Property Once Renovated - What To Offer?

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Wow, thanks to Propertymove I have just found out that a flat I viewed recently, guide price £200,000, was sold last December for only £130,000!! It is completely refurbished, 'to a high specification' as the EA says, brand-new modern kitchen and everything and I've got to say, I was impressed. Well, a surveyor will have to see if it is really good quality or just good-looking. Developers must have bought it in a very bad state, did it up and now expect a big profit. The EA already told me that they had potential buyers but their mortgage application fell through and the sale couldn't be completed. And offers are invited. This says a lot about the market for me.

I just thought about making an offer, felt a bit guilty about offering let's say 20% below asking price, but since I know that the flat was made up by developers, who are (still) in for the money, I think differently. I can only guess how much it costs to completely refurbish a 2 bed flat, 10,000? 20,000? and I'm astonished about the price they bought it for, sounds like a reposession.

It's a lovely flat and I liked it immediately, it's also a great area. But I don't want developers ripping me off, so what do you think? Should I just offer something in the area of £160,000?

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Wow, thanks to Propertymove I have just found out that a flat I viewed recently, guide price £200,000, was sold last December for only £130,000!! It is completely refurbished, 'to a high specification' as the EA says, brand-new modern kitchen and everything and I've got to say, I was impressed. Well, a surveyor will have to see if it is really good quality or just good-looking. Developers must have bought it in a very bad state, did it up and now expect a big profit. The EA already told me that they had potential buyers but their mortgage application fell through and the sale couldn't be completed. And offers are invited. This says a lot about the market for me.

I just thought about making an offer, felt a bit guilty about offering let's say 20% below asking price, but since I know that the flat was made up by developers, who are (still) in for the money, I think differently. I can only guess how much it costs to completely refurbish a 2 bed flat, 10,000? 20,000? and I'm astonished about the price they bought it for, sounds like a reposession.

It's a lovely flat and I liked it immediately, it's also a great area. But I don't want developers ripping me off, so what do you think? Should I just offer something in the area of £160,000?

We refurbished a very grotty 2-bed flat a few years ago: replaced virtually everything but the walls (inc. new boiler) and completely re-decorated (properly, not a quick-lick) throughout. Kitchen and flooring etc. were good quality mid-range and total cost was around £25K - and that included expensive re-doing of a couple of mess-ups by one of the tradesmen. And this was in London.

So that might give you an idea of what they spent - if they're professional developers with their own contractors on tap they'll probably have spent a good deal less.

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We refurbished a very grotty 2-bed flat a few years ago: replaced virtually everything but the walls (inc. new boiler) and completely re-decorated (properly, not a quick-lick) throughout. Kitchen and flooring etc. were good quality mid-range and total cost was around £25K - and that included expensive re-doing of a couple of mess-ups by one of the tradesmen. And this was in London.

So that might give you an idea of what they spent - if they're professional developers with their own contractors on tap they'll probably have spent a good deal less.

Thanks, that's very useful information. So my guess was not so wrong. I just made an appointment for a second viewing tomorrow and afterwards will have to decide about the offer price...

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On yesterday's HUTH was a house that the developer bought for 115k in October 2009.

They did a complete refurb for about 30K and the EA's said that they should sell for 175k, down from a peak of over 200K.

The guy said "I think that's too low, I want 200K".

It's still for sale at 195K through three different agents and the guy hasn't reduced the price one penny.

http://www.rightmove.co.uk/property-for-sale/property-29514107.html

So you could have an equally greedy developer.

tim

Edited by tim123

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They did a complete refurb for about 30K and the EA's said that they should sell for 175k, down from a peak of over 200K.

The guy said "I think that's too low, I want 200K".

I want him to squeal, and burn....

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On yesterday's HUTH was a house that the developer bought for 115k in October 2009.

They did a complete refurb for about 30K and the EA's said that they should sell for 175k, down from a peak of over 200K.

The guy said "I think that's too low, I want 200K".

It's still for sale at 195K through three different agents and the guy hasn't reduced the price one penny.

http://www.rightmove.co.uk/property-for-sale/property-29514107.html

So you could have an equally greedy developer.

tim

Hi Tim,

yes, it's actually the same case here. I made a higher offer than I had planned to, 180K. Today the EA told me that the vendor wants to achieve a price closer to the asking price (200-220K). It's a miracle how they got to these numbers when you compare the price with the sold prices of other flats in the street, all well below 180K.

Greedy developer, definitely. I had already the feeling that buying a flat from a developer can't be a good move as they are out to make lots of money. I didn't budge an inch regarding the offer and told the EA that I have time and that I'll continue to look for other flats. I hope other people do the same and don't fall for it because the flat is refurbished and pretty-looking - it's still not worth that price.

Ananda

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  • 195 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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