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Gavin1927

How To Work Out What A House Is Actually Worth?

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Hi All,

Have been a lurker for the past few months & thinking of taking the big step into buying a house for myself & pregnant gf (not yet set in stone though).

I have read a lot of good information on here especially about offering what you think the house is worth, but without sounding silly how would I actually work that out? As a FTB all of this is new so I am a bit blind....! This is the property my gf likes:

www.rightmove.co.uk/property-for-sale/property-19099131.html

Do I automatically offer quite a bit below the guide price? Sorry if this has been asked a million times.

Cheers

Gavin

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Hi All,

Have been a lurker for the past few months & thinking of taking the big step into buying a house for myself & pregnant gf (not yet set in stone though).

I have read a lot of good information on here especially about offering what you think the house is worth, but without sounding silly how would I actually work that out? As a FTB all of this is new so I am a bit blind....! This is the property my gf likes:

www.rightmove.co.uk/property-for-sale/property-19099131.html

Do I automatically offer quite a bit below the guide price? Sorry if this has been asked a million times.

Cheers

Gavin

A house is worth what the highest bidder is willing and able to pay.

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If in doubt I'd say go low, low, low. I just found out that net mortgage lending dropped from £116Bn in 2007 to just £3Bn in 2010, this is why nothing is shifting, the banks aren't lending to idiots who want would happily shackle themselves with a lifetime of debt. So, there will not have a queue of buyers with sufficient loans behind them to sell at the price the sellers want. So you have the power to negotiate the price way down.

Patience is the key, I reckon show slight interest, but don't make an offer. Leave it a month or two, it'll still be there and they'll be more desperate. Toy with them for several months like this, until they can take no more and their circumstances are hopefully getting desperate, then offer them a low offer you are actually happy with yourself. Hopefully they'll accept. If you target several properties like this, hopefully one will be in a position of weakness that they will capitulate for a low price.

Also check out what they paid here, as this will show you what they paid. Many will foolishly refuse to sell for less than they paid or just flat won;t be able to if the mortgage was really big, so it'll give you a bench mark of sorts. So, if they bought early in the bubble, chances are your bargaining power will be amplified, unless the MEW'd the hell out of the place!

Having said all that, I'd only go down this route now if you've convinced yourself you absolutely must buy now. Personally I'm waiting it out.

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I would work it out several ways.

I'd look at what similar houses are selling for. I'd look at what similar houses on the market for. I'd look at what the owners paid for it and apply the local house price inflation figures to bring that price up to date.

I'd use PropertyBee in Firefox to see how long the house has been on too.

I'd always offer less than the asking price and gradually work my way up to what I thought it was worth.

Be patient and don't get carried away and spend more than you can comfortably afford. And bear in mind that interest rates WILL go up at some point so make sure you can afford that.

Good luck.

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I would work it out several ways.

I'd look at what similar houses are selling for. I'd look at what similar houses on the market for. I'd look at what the owners paid for it and apply the local house price inflation figures to bring that price up to date.

I'd use PropertyBee in Firefox to see how long the house has been on too.

I'd always offer less than the asking price and gradually work my way up to what I thought it was worth.

Be patient and don't get carried away and spend more than you can comfortably afford. And bear in mind that interest rates WILL go up at some point so make sure you can afford that.

Good luck.

Agreed

Plus have a look at this site:-

http://www.home.co.uk/search/price_info.htm?property=2376760504

It appears to have been reduced.

Nice views, all the best.

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Thanks for the replys, I am new to all of this so I am trying to get my head around everything. I see the property has been on sale for 2months & they have already dropped the price by 10k.

I can't seem to find what the owners paid for it & how do I work out the local price inflation? Sorry for seeming dull!! Lol

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Thanks for the replys, I am new to all of this so I am trying to get my head around everything. I see the property has been on sale for 2months & they have already dropped the price by 10k.

I can't seem to find what the owners paid for it & how do I work out the local price inflation? Sorry for seeming dull!! Lol

I use this site to try and find out how much houses have sold for:-

http://www.nethouseprices.com/

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Thanks for the replys, I am new to all of this so I am trying to get my head around everything. I see the property has been on sale for 2months & they have already dropped the price by 10k.

I can't seem to find what the owners paid for it & how do I work out the local price inflation? Sorry for seeming dull!! Lol

Go here

http://www1.landregistry.gov.uk/houseprices/housepriceindex/report

follow the instructions entering your postcode and buying/selling date.

It has data back to 95.

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Im in a similar position to you Gavin, Mrs is pregnant (set in stone).

The way i look at affordability is that no matter what you offer you will still think maybe i could of got it for less, for me its about affordability, and gut feeling, I put an offer in for a 3 bed mid-row today 20k below asking, it was a house i could see myself living in for a long time with a fammily and weather it went up or down it didnt matter as with the offer i made i would still be able to live.

It had been on the market since feb and went to a closing date last month but nobody offered "enough".

The day i viewed it apparently there had been a few viewings that day also (yeah). Anyway the next day the EA told it was going to close date (today).

They expressed scorn at my offer saying the house was cheap enough but the Solicitor still put the offer in anyway, I guess they are not that confident in their advice, and said vendor be insulted but i stuck to my guns anyway.

It was refused but the house is empty and winter is coming, i have my deposit in the bank, negative press reports about house prices in the news and time on my side :)

If it is still refused i will resubmit my offer next month with a further 2k reduction.

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  • 276 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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