Mysteriously rising house price!

[nykkieberry]

We have found the house we want and we want to put an offer in. It's been on the market two weeks and is 180k. Speaking to a friend about it last night and she said that the same house had been on the market previously and she had viewed it a couple of months a go. A bit of research and I have managed to track down that it was on for the market for six months and was taken off the market in January. It sold at 'less than the asking price' but fell through. The asking price was 165k. Why has this house gone up 15k in two months? They have not done any extra work...a house up the road in a better area and without needing restorative work has gone for 190k...and the estate agent that valued ours and is selling their house informed us last week that house prices have dropped substantially in our area.

We want the house but we are loathed to spend 15k more than the vendor's original asking price, especially as it needs quite a bit of work on it. How do we play it?? Or do we leave well alone?? Thanks!

[Hammer]

Any house is worth as much as someone is willing to pay for it. It sounds like the seller is being optimistic, but there's no harm in putting in an offer for 165, or even less. If you don't ask, you don't get.

[Clanad]

In the U.S. at least, some realtors believe that if a house is not selling, especially in a market conducive to sales, that it's best to ask more for the house than previously listed since this will attract a different group of prospects.  That, at least, is what a couple of real estate agent friends tell me...

[Miss Zippy]

I'd go along with Hammer and make an offer for �165k or less telling them/their agent that you know it was previously marketed at this price and that you think it's a fair price in light of the work that needs to be done. If they've accepted an offer at this level before, then they might again. If your offer is rejected there is nothing to stop you going back in a couple of weeks' time or so and making a higher offer (don't go back immediately with a higher offer unless you know there is competition from other potential purchasers).

[nykkieberry]

Thanks Miss Zippy - you do look after me!

[Miss Zippy]

You're welcome! Good luck :o)

[erimus1]

If a car dealer wants �5,000 for a car, the on screen price will always be �5,500 - common ethic.

[holroyd]

I've never paid full price for a house, the last one we bought was on the market for 275 we bought for 230. pay what you think it is worth not what so called experts think (estate agents, surverors), theirs is only an opinion at the end of the day, I see a lot of houses that are on the market for what the vendors/agents think they "could" be worth, not what they are worth.

Be cheeky, you already have a good idea of what they will accept, maybe you can get away with more - good luck.