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How do I value a house?

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There's a property I like... But how do I ascertain fair value. I could do the old 3.5x average local income, but what should that buy? A flat? 2 bed terrace? 3 bed semi? Certain square footage?

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12 minutes ago, Grab_Some_Popcorn said:

There's a property I like... But how do I ascertain fair value. I could do the old 3.5x average local income, but what should that buy? A flat? 2 bed terrace? 3 bed semi? Certain square footage?

Zoopla is generally quite good to get a feel. 

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10 minutes ago, Grab_Some_Popcorn said:

There's a property I like... But how do I ascertain fair value. I could do the old 3.5x average local income, but what should that buy? A flat? 2 bed terrace? 3 bed semi? Certain square footage?

Why 3.5 x local income many banks are lending 5x joint income.

so 5x joint income minus 10-15% deposit. 

Actually that's a crap way to value :-) Surveyors use 3 similar comparable pwoperdies sold in the last 3 months in a set radius.

or yield at about 4% depending on your location.   

Or ask an estate agent ;-£

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Just now, houseface2000 said:

Why 3.5 x local income many banks are lending 5x joint income.

so 5x joint income minus 10-15% deposit. 

Actually that's a crap way to value :-) Surveyors use 3 similar comparable pwoperdies sold in the last 3 months in a set radius.

or yield at about 4% depending on your location.   

Or ask an estate agent ;-£

5x joint income gives the "crazy" price. I want real price. I also don't want to know what things sold for recently, I want the "when it reaches X - buy it!" price.

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Just now, Grab_Some_Popcorn said:

5x joint income gives the "crazy" price. I want real price. I also don't want to know what things sold for recently, I want the "when it reaches X - buy it!" price.

I'm in Oxford and homes start about 8 x joint income. So 5x would be crash times. 

Way to many variables but naybe aim for 2013 prices pre bubble on a bubble prices?!

 

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Just to add it's a 3 bed detached bungalow, large south garden, nothing needs doing. South coast, hr train to London. If they accept 15% under asking price, my mortgage reps would be 30% of take home on a 10yr fix. Plus I'd have £50k left in cash for loft extension etc.

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2 minutes ago, Grab_Some_Popcorn said:

Just to add also... I'm just 40, two young kids. Rented all my life. F#cking sick of it.

Hmmm I'd wait, see how things pan out over the next 12 months. If they jump in with new silly props maybe buy but things look to be turning. But who can say. Is it rare to get a house like this, do you really like it?

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Just checked on propertybee ... was £350k in june, reduced 5 times, now £290k! That smacks of desperation!

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On 09/08/2017 at 6:36 PM, Grab_Some_Popcorn said:

Last sold £100k in 2000.

You could use a buying agent. Henry Prior charges £100 for some phone calls and a report and advice on what to offer, how to deal with agents etc

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On 09/08/2017 at 6:12 PM, Grab_Some_Popcorn said:

Just checked on propertybee ... was £350k in june, reduced 5 times, now £290k! That smacks of desperation!

I agree........maybe a distressed seller which could work in your favour.  I would look at comparable property recent sold prices on Rightmove to see if it is a bit of a bargain.  If you buy now prices could fall further but if you're sick of renting and think this is a good property then maybe it is time to take the plunge and be prepared to sit tight whatever happens to prices..........:)

Try to find out the sellers circumstances from the EA as well eg does he need to move because of his job or is he getting divorced etc etc.

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Our offer (£250k) was declined. It's an 80yr old who wants to move ASAP to live with his girlfriend. They've found somewhere and are desperate. Seemed like a sweet chap (well tended garden, model aeroplanes). I'm guessing he's letting the EA guide things, didn't seem like a money grabber. I'm tempted to put our offer through the letterbox just in case the EA hasn't passed it on.

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8 minutes ago, Grab_Some_Popcorn said:

Our offer (£250k) was declined. It's an 80yr old who wants to move ASAP to live with his girlfriend. They've found somewhere and are desperate. Seemed like a sweet chap (well tended garden, model aeroplanes). I'm guessing he's letting the EA guide things, didn't seem like a money grabber. I'm tempted to put our offer through the letterbox just in case the EA hasn't passed it on.

Leave it a week and go back with £252,500. Then wait....

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21 hours ago, houseface2000 said:

Leave it a week and go back with £252,500. Then wait....

£249,500 more like!

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23 hours ago, Grab_Some_Popcorn said:

Our offer (£250k) was declined. It's an 80yr old who wants to move ASAP to live with his girlfriend. They've found somewhere and are desperate. Seemed like a sweet chap (well tended garden, model aeroplanes). I'm guessing he's letting the EA guide things, didn't seem like a money grabber. I'm tempted to put our offer through the letterbox just in case the EA hasn't passed it on.

Hand your £250k offer to his girlfriend. She might fancy him having some cash to lavish on her and persuade him to push through a sale before he pops his clogs.

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