Is the purchase price fair? Start by understanding the local market on Rightmove and Zoopla. Record how much similar houses have sold for or are being sold for in the your area.
Its best to compare house prices by calculating the price per square meter. Zoopla and Rightmove show the area of a house on floor plans. Divide the price of the house by the square meter area. You can then use this data to build a table of similar properties as a guide.
We have set out an example below. Note that we have included a comments section so you can list anything which makes the property more or less attractive.
Price Area Sqm Price/sqm Comments
5 Acacia Gardens £375,000 157 £2,389 large garden
2 Emerald Square £400,000 180 £2,222 great decoration
25 Connaught Ave £410,000 195 £2,102 noisy road
13 Northcote Rd £380,000 175 £2,171 small bedrooms
- also have a look at our Valuation Tool. This gives estimates of the price of the house you are looking at
- use this knowledge to demonstrate to the estate agent that you have done your homework. He/she will then have to justify why they value the house more than similar properties in the area.
Other key factors are
- the length of time the property has been on the market and
- the amount of interest it has been on the market.
- If the property has been on the market for some time quiz the estate agent and find out why.
- If it has been on the market for some time, offer an initial lower bid, and potentially a significantly lower bid. In many ways, this is a sighting shot which will set the parameters for the subsequent negotiation.
All of this can then be fed back to the seller who may not have the information you have and may have had unrealistic expectations on the value of his/her house.
If the property has been on the market and not sold, consider putting in a low offer as a sighting shot