[Misc] Big reduction in property price

[Westdene Seagull]

Should have added. Given you are buying a flat that may well have big service charges coming up, your solicitor should withhold a certain amount for the chance of undeclared maintenance charges - say £3k. They hold it in a secure account and release it back to the sellers solicitor after a year from completion - or use it to cover said undeclared maintenance charges. Won't cover REALLY big bills but does give some peace of mind for the next year.

 

[deletebeepbeepbeep]

Apologies if already said but isn't this to help with the way RightMove works - I think in order for your listing to get shunted back up the top of the search pages you have to put a price a certain % below the original asking price that it was listed for, otherwise your listing will just drift towards the bottom.

But yes if buying a flat ask what the service charge is AND if there are any planned works with a significant cost attached to them. I would also get at least a level 2 survey for peace of mind if not anything else.

Some sellers still think we are in the post covid property bubble - one of my friends has listed his flat near Preston Park (just a bog standed 2 storey flat) for 375k where the top end for bog standard (without some amazing views or some other attractive feature) as far as I can see is 315-25k.

 

[thedonkeycentrehalf]

Could be a combination of being over priced in the first instance and other circumstances. For example, my parents want to come back South but are struggling to sell their place on the Notts/Yorks border. It's been on the market for months (and Sussex residents would weep at the low price it is up for) but they are now dropping the price as they would rather take a hit on their budget / savings so that they can move more quickly than hold on for longer waiting for an offer at the higher price.

 

[Tim Over Whelmed]

So I'm thinking of buying a flat. It initially went on the market for £350k, then just a month later was reduced to £300k. I can understand that it was overpriced in the first place, but why would anyone make such a drastic reduction early on? Surely you'd reduce it to £325 or something first? I think they want a quick-ish sale but it still strikes me a bit suspicious. Any views?

Never underestimate the greed of SOME estate agents and the blind faith we place in them. Let's say their commission is 1.25%, you've placed it on the market at £350k, and they stand to make £4,375 commission. It's a quiet quarter and they can see their commission pot in a few months time being very low, so they MAY recommend you reduce your price or accept a silly offer because to them an offer at £300,000 still relates to a commission of £3,750. They lose £625 their client loses around £50k. Clearly not all estate agents are like this, and it may not be the case in this instance, but a seller has to ask them selves are they really acting in my interest?

 

[kevo]

Never underestimate the greed of SOME estate agents and the blind faith we place in them. Let's say their commission is 1.25%, you've placed it on the market at £350k, and they stand to make £4,375 commission. It's a quiet quarter and they can see their commission pot in a few months time being very low, so they MAY recommend you reduce your price or accept a silly offer because to them an offer at £300,000 still relates to a commission of £3,750. They lose £625 their client loses around £50k. Clearly not all estate agents are like this, and it may not be the case in this instance, but a seller has to ask them selves are they really acting in my interest?

Good point, thanks.

 

[kevo]

Apologies if already said but isn't this to help with the way RightMove works - I think in order for your listing to get shunted back up the top of the search pages you have to put a price a certain % below the original asking price that it was listed for, otherwise your listing will just drift towards the bottom.

But yes if buying a flat ask what the service charge is AND if there are any planned works with a significant cost attached to them. I would also get at least a level 2 survey for peace of mind if not anything else.

Some sellers still think we are in the post covid property bubble - one of my friends has listed his flat near Preston Park (just a bog standed 2 storey flat) for 375k where the top end for bog standard (without some amazing views or some other attractive feature) as far as I can see is 315-25k.

Yes - RM and I think Zoopla send out alerts if a property has been reduced, but it has to be by a certain percentage.

Any big extra costs in the pipeline should be revealed in the form the sellers fill in and also in the form the freeholder has to complete. So a bit stupid because if that was the case I would either ask for a discount or withdraw from the purchase - and that's not in anyone's interests.

 

[Springal]

With flats loads of valid reasons as well - break ups , couples moving in together and wanting a ‘quick sale’ for deposits etc

 

[alanfp]

Like you I get surprised that sellers don't reduce asking price a little at a time. But could be that they have found property that they desperately don't want to lose and therefore desperate to sell quickly. Reducing asking price to 300 rather than 325 brings in a whole new bunch of buyers searching on Rightmove.

Advice:
1. Do checks yourself as much as you can.
2. Get your solicitor to specifically ask "Has the property ever suffered from structural movement or cracks?" (aka subsidence). NB This question is NOT on the standard forms (well, not in 2023 anyway).
3. If they answer "no" to the neighbour dispute question you have to accept that they might be lying. If they ARE lying the legal costs of suing them will approx equal the compensation they will have to pay you for its assessed drop in value. Hence point 1. above.

 

[kevo]

Like you I get surprised that sellers don't reduce asking price a little at a time. But could be that they have found property that they desperately don't want to lose and therefore desperate to sell quickly. Reducing asking price to 300 rather than 325 brings in a whole new bunch of buyers searching on Rightmove.

Advice:
1. Do checks yourself as much as you can.
2. Get your solicitor to specifically ask "Has the property ever suffered from structural movement or cracks?" (aka subsidence). NB This question is NOT on the standard forms (well, not in 2023 anyway).
3. If they answer "no" to the neighbour dispute question you have to accept that they might be lying. If they ARE lying the legal costs of suing them will approx equal the compensation they will have to pay you for its assessed drop in value. Hence point 1. above.

Useful advice, thanks. I also want to ask them about damp - which may be another potential issue.

 

[Bodian]

Have you asked @Live by the sea?

[Brighton] - Living in a flat

A couple of months ago , I sold my house & moved into a flat in Hove . I moved because I got offered a good price & I felt it was sensible to bank a decent amount of money & move into a less expensive flat . The flat is in a great central location & is quite spacious with 3 beds & 2 baths but I...

www.northstandchat.com

 

[alanfp]

I also want to ask them about damp - which may be another potential issue.

By all means alert you surveyor to anything you specifically want him/her to cover. But I shouldn't worry too much - surveyors love a damp-meter!
He/she SHOULD also advise you of the consequences of what they find, but in my experience some do, some don't. If they don't, then ask them about their report, e.g. "Your report said there is a damp patch in the N.E. corner of the kitchen - how much will it cost me to fix it?" THAT's what you want to know, isn't it!