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My flat's been on the market for 10 weeks! Why isn't it selling?


tom878878

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Hi please see below flat. 

 

its been up for sale 10 weeks , ideal investor / couple/ first time buy. 

 

All appliances , furniture offered , modern , lovely area - close to station and a40 to london in 30 mins. parking spaces for x2 

 

we have had 2 viewings , can i have some feedback re this flat as to why we aren’t getting views? for me it’s well priced ( reduces from 215k) has everything . 

https://www.rightmove.co.uk/property-for-sale/property-69002338.html

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Hi Tom

I'm not familiar with the area or demographics, so can't offer too much insight into that.

A quick look on RM and it seems reasonably priced, but there's quite a lot for sale within a 1/2mi radius of HP10. Not sure what the actual demand is for 1 bedders as it is limiting to singles or couples with no kids.

From a stylistic viewpoint, the furniture in the photos are quite large, which makes the available space look smaller. There's another 1 bed flat advertised in the same block and same agent but without furniture, and those photos make it look larger and lighter/airy. Perhaps replace the furniture with more minimalistic or smaller pieces, or perhaps sell it unfurnished? 

Sorry can't be of more assistance. Good luck! 

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Thanks derek , 

The flat above for sale is 35k more in price and is a bit bigger in fairness. 

we will look at new pics and limit the furniture. 

The area is very nice and close to beaconsfield which is a really nice place and great connection to london. 

Could it be brexit delay in possible suitors ? i genuinely think it’s a great buy? 

 

Maybe it will sell soon 

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Potentially. The uncertainty of Brexit definitely has caused some slowdown in the property market as vendors and buyers wait to see what happens next.

I'm not familiar with the area but are there fundamentals there? E.g. transport (I see the train station is some way away so you'll most likely need a car to get around?), Large employers, good schools (although as it's a one bed may not be targeted by families)?  Might be a case that there's other properties on the market for that price range that investors are more drawn to.

But based on your price and its comparables, seems alright. What are your agents doing in terms of promoting your flat? 

 

Personal Blog: https://abcdad.co.uk
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Not sure, sorry. Looking on Rightmove and there's quite a few on sale within a 1/2mi distance from yours, but not an overwhelming number showing as "Sold STC / Under offer".  

Might just be a lull in your market or oversaturation of sellers trying to get out at the same time as you.

Is there a reason for the sale or can you rent it back out if you can't sell it? 

Personal Blog: https://abcdad.co.uk
Property Spreadsheet and Deal Analyser: https://abcdad.co.uk/property-spreadsheet
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Hi derek 

Thanks for your replies and advice with my post.

I think we are looking at a pre brexit market which clearly has a lot of potential buyers sitting down . 

we will see post brexit and see if things change . The flat i’m confident will sell - has everything and area is lovely . we will have to see - i think it has a 5% yield for investor type buyers . Is there something i can do to reach these people bar what’s happening already ? 

 

Tom 

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HI Tom,

In fairness your 10 weeks does include the run up to Christmas when buyers become very few & far between. Then take away the first couple of weeks in January & its really only been on the active market for 5 weeks. People talk in averages when they say how long something takes to sell, so some take much longer. Brexit means there are people waiting to see what happens so there are fewer buyers about. If it is a good flat at the right price it will sell, you just have to be patient.

Good luck!

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Hello Tom

looks like a nice flat. agree with previous comments.  The photos don’t present it well in that the place looks crowded.   Ground rent and maintenance is a tad expensive for my taste  would put off some investors 

One tip on negotiation   I can see baby stuff that immediately shows that you are looking to sell as your family grows.  Might flag you as “needing to sell” and I’d make a lower offer   

 

Good luck with it. 

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Too expensive (in the current Brexit-runup market) for where it is and for a small one-bed. I see it's been decked out for an airbnb or for renting to a professional. That means you're selling to investors mainly, but then you're competing with one-beds in the centre of popular urban destinations. Example: you can get beautiful one-beds in the centre of Liverpool for 140k, and great one-beds in Manchester, near the centre, for 175k, or less if buying off-plan (thus locking in some equity by the time of completion). Yields are better there than the "just under 5%" that you specify in the ad for yours. Also, it's one of those old 60s or 70s blocks that well off up-and-coming professionals don't like buying into, and that's also quite difficult to rent short-term (as I say, visitors on e.g. airbnb want to be near a popular town centre and in older, or else new-build, blocks - this is neither). You're making exaggerated claims in the ad, e.g. very desirable development - it isn't. Another potential problem is that it doesn't have a bath, as far as I can see, which again, restricts it to letting - an owner-occupier is unlikely to buy a flat without a bath, especially a woman buyer. The main problem, though, is that it's small - especially the bedroom. That bed with the huge headboard was not a good idea, as it makes it look even smaller - a white wooden, slatted-frame bed with some clearance would make the room look bigger. But anyway, whatever you do, you wouldn't be able to sell it to an investor like me, because I wouldn't give you anywhere near the asking price for it - more like 175k. But that's because I look all over the country and it's not competitive as an investment.

My advice would be to take it off the market for the time-being (unless you're desperate for the money) and wait till the early summer, after Brexit, when the market should be a bit more buoyant. Try short-term letting it in the meantime, just to see how it goes, as you've furnished it for that, which can't have been cheap.

When you feel the market has got a bit stronger, test it by putting it back on at around the 195 mark, though I still think 175k is more realistic for an investor, but worth a try...

Alternatively, try auctioning it. You never know - I've had properties that didn't sell on the open market but that I got a surprisingly good price for at auction, because they were good investment properties and because they got bid up on the day. 

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Hi Tom,

Aside from everything others have mentioned, particularly the photos and the general cramped feeling, the thing that jumps out at me is you're not making the most of the 'key features' feature.  30 mins from London, 2 x parking spaces, these are all major selling points.  Hi spec kitchen with top end appliances? What's the security like? It looks like it's in a nice area, with the woods nearby and the river, is it 'quiet and peaceful yet only minutes from the M40?'  Riverside walks?  What's it like to actually live there?  I've no idea from your ad.

Personally I'd get rid of all the baby stuff which is really working against you and re shoot the whole thing, that's a lovely shower room, show it off.  Ditto the headboard and the LOVE sign.  Would turning the bed around give the impression of more space?

I don't know the market in your area but just under 5% would not do it for me at all (I'm in the north).  I'd seek out advice from people in your area that do know.  I'd be tempted to take it off the market for now though, regroup and relist when there's a little more confidence around.  I'd probably look at a short term let for now.

I do sympathise because I struggled to sell my beautiful family home a couple of years ago and ended up making a paper 'loss'.  Reshooting definitely helped though, as did getting in a new agent, not that the new one was any better but it certainly focused the mind of the first one :)

Good luck!

Sarah

 

 

 

 

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Focusing on things that you can control, I agree with those who have said that the furniture is too big. The highest priority for me would be a sleeker bed - minimise the length by going for one with a thin headboard that doesn’t stick out from the wall any more than it has to - watch out at the other end of the bed too. Some stick out another few inches beyond the mattress, which is a problem somewhere like that.  Are you sure the bedroom is 9’1” x 10’11”? If so, the bed must be about 8’ long! 

A smaller sofa would help too. 

However, selling with furniture limits your audience to those who are prepared to get rid of the furniture for you, or who want to do furnished lets. Either way, you’re reducing your market a lot. 

Rather than spending more money on furniture, I would sell or give it away (The British Heart Foundation are happy to collect furniture they can sell) and offer the flat empty. That will increase your market and make the flat look larger, although you may find it needs a lick of paint once you expose the walls. 

Good luck, whatever you decide. 

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Hello guys ,

Thank you for your replies , i think i need to clarify a few things from my post .

i live in the flat with my fiancé and baby boy , i can’t just get rid of baby furniture or furniture which i can assure you is very nice . we actually have a viewing tomorrow from a first time buyer which could be successfully. 

i’m amazed with the comments about it not being desirable ? it’s a modern block ( built in 90’s ) and refurbished 3 years ago into flats - it’s not a 60’s block . we are 2 miles from beaconsfield which if people don’t know one of the most appealing places to live outside of the capital and also the most expensive - 30 mins into london by train. Marlow , windsor , bourne end all close enough by car . 

i appreciate some of the furniture may take up room but we are living in the flat. We are getting new photos tomorrow also , we will look to get more on the description . 

im from the north and i’m sorry but the wages and overall opportunity in london is a lot bigger than northern cities. You can’t compare liverpool with outer areas of london especially this one. 

Thank you all for your comments though , i do appreciate all . And maybe we will sell tomorrow - with or without a love sign ....Thanks again 

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Your flat is lovely but I think one problem might be down to the description targeting landlords. If the purchaser is in the higher paid bracket or portfolio landlord, they'd have to put £48,750 down and tie it into a 5-year product.

Looks like you'd get about £900 pcm rent. So after a mortgage payment of £365 (based on 3% interest only), ground rent and service charge £80 pcm, an agency fee of 10% + VAT they'd be left with £347 profit a month. This is before voids, repairs, mortgage fee, etc. 

Not a great return for such a large downpayment. Being a one bedroom flat, capital appreciation is limited too.

Personally, I'd target first-time buyers or rent it out until the market is more buoyant.

Good luck.

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  • 1 month later...
  • 3 months later...
  • 7 months later...
On 2/26/2019 at 10:40 PM, janeen morris said:

Your flat is lovely but I think one problem might be down to the description targeting landlords. If the purchaser is in the higher paid bracket or portfolio landlord, they'd have to put £48,750 down and tie it into a 5-year product.

Looks like you'd get about £900 pcm rent. So after a mortgage payment of £365 (based on 3% interest only), ground rent and service charge £80 pcm, an agency fee of 10% + VAT they'd be left with £347 profit a month. This is before voids, repairs, mortgage fee, etc. 

Not a great return for such a large downpayment. Being a one bedroom flat, capital appreciation is limited too.

Personally, I'd target first-time buyers or rent it out until the market is more buoyant.

Good luck.

Hi @janeen morris. How did you get to the figure £48,750 in this post? Just want to learn how to calculate these numbers. Thanks in advance. 

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Agree with feedback re rental - as an investor I would look for 2 bed for that area/Wooburn green for not much more. As a first time buyer someone who wants to be in the area might appeal as they’d be priced out otherwise. It’s a tricky one as no tube and train from Beaconsfield is expensive. I used to drive to tube in Hillingdon from Beaconsfield in c 15-20 minutes and no problem parking - so if you have commuters interested that might help sell it. Hope you find a solution soon? Maybe when lockdown subsided you could look at corporate let or advertise in websites there? Hovis in high Wycombe, General Mills and few others in Uxbridge / only 20-30 min drive? Good luck 

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  • 3 weeks later...
On 3/28/2020 at 8:32 AM, zamshabeer said:

Hi @janeen morris. How did you get to the figure £48,750 in this post? Just want to learn how to calculate these numbers. Thanks in advance. 

Hello - £48,750 is 25% (percentage required to get a BTL product) of the £195k asking price. Whilst it is possible to get a 20% mortgage product, I doubt anyone buying this would go for the 20% option as the rate is higher with these productions and the cashflow on the 25% downpayment is already tight.

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