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japanesemagoo

Developing Selling Price For Odd Properties In Down Market

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We have a very odd property in Norfolk and need to sell as we expect to be forced to move for work. We can't figure out how to price it. Abbotts was over and said we could just about throw a dart at a dart board to pick a price as there aren't other places around like it. Where would we go to get a good realistic price to sell at given this uncertain market place. The house is on a river and has an odd shape but 300 feet of river frontage. It used to be an old pub and has been also used as a B&B and a restaurant. It has three kitchens. (someone was going to turn it into three flats but never completed the job.) We are using it as a single family home but it could have a second story rental and the main house with a granny annex. It also has the added kicker of possibly being able to split the property and build a new house on the river behind the existing house. We started the process, but we won't have it finished before we are force to leave. Our problem is trying to figure out who to go to or how to figure out what is a reasonable guide price. Does anyone have any suggestions?

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Downturns are terrible times to sell odd properties. They are hard enough in a good market.

But how about this for starters... if you know how to plug numbers into a spreadsheet so much the better.

Work out a price based on square footage as a baseline. Call this B. Use average sold price / floor area of local property.

List every positive feature, call the number of positive features P

List every negative feature, call the number of negative features N

These numbers are arbitrary, but pick your own, I'd suggest 5-10k for a positive feature and 5-10k for a negative feature.

Assume that most normal people don't like 'odd' so subtract 25-50k for being odd, Call this O

Price = B + (P*5k) - (N*5k) - O

You can play with the ranges 5-10k and 25-50k to get a range of possible sale prices.

Unfortunately I'd view proximity to waterways as a -50k feature over the next 20 years or so, as the UNEP report just found that glaciers are now melting 7x faster than they were 10 years ago and 3x faster than about 5 years ago. At least having a mooring means you need not drown.

Another strategy... if the big plus is that the house has a mooring, advertise it where there are people with boats.

Edited by 2MeterBear

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Downturns are terrible times to sell odd properties. They are hard enough in a good market.

(snip)

I agree with everything you've said here, except perhaps the price penalty for the property being odd. I don't believe that the typical buyer will accept an odd property just because it's had some money knocked off, I think those buyers will simply not be interested. Conversely, buyers (like myself!) who do want an unusual property will probably pay a premium rather than requiring a discount, because it's just as hard to find such a property as it is to find a buyer for one.

Having said that, the majority of buyers will be price sensitive at the moment, and I wonder if lenders will now be more inclined to lend against 'bread-and-butter' properties that have a good chance of moving at auction, should things come to that...

Anyway, I think the downside of selling such a property is more about the difficulty of selling it at all, than about the price. If the right person turns up you're sorted, if not then you might have to wait and wait...

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I would also take into account the different rents that could be taken in from renting it out and would it would cost to "finish it up" so it could be rented.

it's possible it would hve more value to a BTL than a tradition single family home buyer.

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We have a very odd property in Norfolk and need to sell as we expect to be forced to move for work. We can't figure out how to price it. Abbotts was over and said we could just about throw a dart at a dart board to pick a price as there aren't other places around like it. Where would we go to get a good realistic price to sell at given this uncertain market place. The house is on a river and has an odd shape but 300 feet of river frontage. It used to be an old pub and has been also used as a B&B and a restaurant. It has three kitchens. (someone was going to turn it into three flats but never completed the job.) We are using it as a single family home but it could have a second story rental and the main house with a granny annex. It also has the added kicker of possibly being able to split the property and build a new house on the river behind the existing house. We started the process, but we won't have it finished before we are force to leave. Our problem is trying to figure out who to go to or how to figure out what is a reasonable guide price. Does anyone have any suggestions?

I used to live in Norfolk. Loved it. Where is it? Can't imagine you will have a problem selling...just price it at 3 flats worth minus the money to complete the job....and be patient.

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A couple of answer to questions posted:

1. the property is in PE33 9TB which is Stoke Ferry on the River Wissey

2. It doesn't flood. Something has been on the site since the 1700's but it burned in 1900 and again in 1930

3. it is slightly above the flood dike which is behind the house.

4. we have started a site to support the sale but it isn't public yet. http:.//www.TheOldBull.co.uk

5. someone had started splitting it into three apartments... It has three kitchens, three electric meters, and about 2 bedrooms per each apartment, three separate accesses to the outside and optional doors that could be closed off inside that could allow you to totally divide the property up. The thing it DOESN'T have is three heating systems. It is setup all on one heating system.

Edited by japanesemagoo

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Aaaah now I understand. I knew you were talking about the Wissey fro your IP address - I had hoped you were from the Millers (because that is a good buy!)

Yours is the house with all the cars vandalised out front (ok - a while ago now but you can't deny it happened)

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Aaaah now I understand. I knew you were talking about the Wissey fro your IP address - I had hoped you were from the Millers (because that is a good buy!)

Yours is the house with all the cars vandalised out front (ok - a while ago now but you can't deny it happened)

So how did you know about the vandalism? That was about two years ago. Actually they only vandalized one car and one window. We had two cars in front of the house so with a total of 12 windows available to them, when they only broke one I am feeling pretty lucky. I am thinking that some kids had too much to drink and they went on a rampage one night and they walked down that street and did a lot of damage. It was only that once but we do have a camera in an upstairs window now though. :-)

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Lovely house though - I've always admired the river frontage as I drive past - did Abbots come up with a price eventually?

M.A in Downham are quite good but for the sake of your own sanity steer clear of WHB - when we STR'd we used them and things ended very badly.

I'll keep an eye out for it - maybe I will win some more cash on the Lottery or Premium Bonds and be able to afford it.

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Lovely house though - I've always admired the river frontage as I drive past - did Abbots come up with a price eventually?

M.A in Downham are quite good but for the sake of your own sanity steer clear of WHB - when we STR'd we used them and things ended very badly.

I'll keep an eye out for it - maybe I will win some more cash on the Lottery or Premium Bonds and be able to afford it.

Abbotts came up with 450 and if I was forced to sell because of needing to move they said I could aucton it and if I did that, they would put a reserve on it of about 410. We are spending anothe 5,000 on painting it which isn't going to be done until the end of April. That is too bad as I would like to get it on the market as soon as possible based on the current economic situation and the fact that I might have to move. Ahhhhh well, we live in interesting times.

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A couple of answer to questions posted:

5. someone had started splitting it into three apartments... It has three kitchens, three electric meters, and about 2 bedrooms per each apartment, three separate accesses to the outside and optional doors that could be closed off inside that could allow you to totally divide the property up. The thing it DOESN'T have is three heating systems. It is setup all on one heating system.

Is there planning permission for this?

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We are spending anothe 5,000 on painting it which isn't going to be done until the end of April. That is too bad as I would like to get it on the market as soon as possible based on the current economic situation and the fact that I might have to move. Ahhhhh well, we live in interesting times.

Do you think you will get the 5000 back?

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Just checked the area in houseprices.co.uk under King's Lynn, Norfolk

If you sort the sold prices in the list, the most expensive is £2.5M.

http://www.houseprices.co.uk/e.php?f=pd&am...orfolk&n=10

I just checked your website - that is a lovely house - it must be in the top 10% bracket of nice houses in the area, easily. Its not a odd house - its a unique house!

I therefore value this house before the credit crunch at about £1.5M to £2M

Looking forward in the short term - you should be able to get £750K ???!!

Try listing the house with estate agents in London as well to capture this group of buyers.

Edited by notanewmember

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You know I've got exactly the same problem.

I've got these mortgage-backed securities and collateralised debt obligations that my boss the fund manager says I just have to put a price on.

But none of them are selling round here.

Apparently it's okay though, he says you're allowed to just pick a number out of the air.

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Why leave?

I've been up the Wissey on a boat and it's wonderfull. The house sounds charming and if you are into getting away from the rat race this sounds brilliant. And you've got a big garden.

I'd buy it (if I didn't work 60 miles away and if I had a lot more money than I do)

Perhaps I'll get back to you in a couple of year's and see if it's still for sale.

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Is there planning permission for this?

The planning permission could be argued both ways. The last owner got planning permission to turn it from three apartments into one but it was never completed in the appointed time frame. It has three kitchens, separate access doors and separate off street parking. The only thing it doesn't have is separate heating. Oh, one more thing, it only has one water meter because when I got the house it was illegally plug into the water main and so when I hooked it up, I only put a meter on the single incoming line.

I talked to a letting agent and she said the she would handle the paperwork for me and she could get it let out at 500+ .

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Do you think you will get the 5000 back?

I am not sure but it will certainly show better. It has cast iron drain gutters on the second floor with some bad boards behind them. I am can't really sell it the way it is and if they put up scaffolding, one might as well do it right.

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Why leave?

I've been up the Wissey on a boat and it's wonderfull. The house sounds charming and if you are into getting away from the rat race this sounds brilliant. And you've got a big garden.

I'd buy it (if I didn't work 60 miles away and if I had a lot more money than I do)

Perhaps I'll get back to you in a couple of year's and see if it's still for sale.

I am an American and I need to leave for work reason. We have been here since 2004 and, you can't just take all the foreigners in even if they would like to liver here.

We have loved living here and I wouldn't have given up the opportunity to have lived in this house and on the Wissey. This is the sort of place that would be idyllic for retiring to.

As to it being available in a couple of years... :-( I hope it won't be.

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Just checked the area in houseprices.co.uk under King's Lynn, Norfolk

If you sort the sold prices in the list, the most expensive is £2.5M.

http://www.houseprices.co.uk/e.php?f=pd&am...orfolk&n=10

I just checked your website - that is a lovely house - it must be in the top 10% bracket of nice houses in the area, easily. Its not a odd house - its a unique house!

I therefore value this house before the credit crunch at about £1.5M to £2M

Looking forward in the short term - you should be able to get £750K ???!!

Try listing the house with estate agents in London as well to capture this group of buyers.

I like your thinking. :-) It is a bad market though. Just had the real estate agent over measuring the place up. They sell real estate and were trying to be positive but when I commented about the last couple of days they just looked at each other and sort of nodded and changed the subject. :unsure:

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I d definitely list with a London agent - thats still where the hot money is, and i work in a second home owner town, where Londoners buy houses here and stay for the weekends. Theres nothing to lose on that front.

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  • 293 Brexit, House prices and Summer 2020

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