We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How to price house - help please
Options
elliewelly_2
Posts: 104 Forumite
Hi, I would appreciate some opinions please if possible. My OH is seling her house - first time seller - and trying to choose an estate agent is proving harder than we first thought. Mainly due to the different valuations that have been given.
One agent has valued the house at £135,000, which we think is probably over-priced (similar houses in the area at that price have better kitchens & bathrooms, ours has a shared drive but ones at £135,000 have their own drive - that type of thing)
The other agents have valued in a range pretty much from £120,000 to £130,000. On a house in this price-range, the different valuations seems to be astounding really.
We dont have a desparate need to sell, but were hoping to have it sold in about 6 months. We both agreed that we would price the house realistically in order to sell it, but now knowing that some agents are saying we might be able to get more has put us in a real dilemma. OH doesnt want to be screwed over if she could have sold for a better price.
Can any one offer any advice and what do agents have to gain or loose by over-pricing / under-pricing houses?
Thanks
One agent has valued the house at £135,000, which we think is probably over-priced (similar houses in the area at that price have better kitchens & bathrooms, ours has a shared drive but ones at £135,000 have their own drive - that type of thing)
The other agents have valued in a range pretty much from £120,000 to £130,000. On a house in this price-range, the different valuations seems to be astounding really.
We dont have a desparate need to sell, but were hoping to have it sold in about 6 months. We both agreed that we would price the house realistically in order to sell it, but now knowing that some agents are saying we might be able to get more has put us in a real dilemma. OH doesnt want to be screwed over if she could have sold for a better price.
Can any one offer any advice and what do agents have to gain or loose by over-pricing / under-pricing houses?
Thanks
0
Comments
-
The agent who prices it high gains at first in that you might be swayed by the higher price and list it with them - and might have an offchance of selling at the inflated price; but then when it's been on the market a while with no interest, you have to reduce the price.
The agent who prices it low gains with a quick sale, in theory, but loses slightly by getting a lower commission on the lower price, and you lose slightly by not getting the optimum price.
The agent who judges your local market well, and prices it right on the nose, gets the best gain by selling it in a reasonable time, and getting a decent commission on a decent price.
All of the above may be a moot point, as at the end of the day, there'll be a surveyors valuation in your Home Report or HIP - and even if an agent quotes you a value above this, the chance of acheiving more than the Home Report valuation is looking slimmer and slimmer in the current climate (unless your house is particularly in demand)
What do the various sites like nethouseprice, zoopla etc indicate as a realistic price for the house?
Lastly, you shouldn't be choosing an agent on the basis of either the valuation figure they quote you, or on the fees they'll charge. You should be picking your agent on the basis of their service, and what they'll do for you, and who'll market your property to the best effect.0 -
Thanks, this is very useful. We havent checked nethouseprice / zoopla so I will have a look now. Sorry, I probably wasnt clear, we have seen in total five agents and discounted a couple but are left with three who all seem to be much of a muchness really to be honest - except for their valuation of the house. The agent we would honestly like is this one:The agent who judges your local market well, and prices it right on the nose, gets the best gain by selling it in a reasonable time, and getting a decent commission on a decent price.
but it is proving so hard to know which one that is.0 -
You ask him or her HOW they arrived at the valuation.
You ask what experience they have of selling similar (or other) properties in the area.
You ask if those properties sold at or near to the agents' valuation(s).
etc etc
This type of questioning should separate the wheat from the chaff, and establish who is your best choice.0 -
elliewelly wrote: »Hi, I would appreciate some opinions please if possible. My OH is seling her house - first time seller - and trying to choose an estate agent is proving harder than we first thought. Mainly due to the different valuations that have been given.
One agent has valued the house at £135,000, which we think is probably over-priced (similar houses in the area at that price have better kitchens & bathrooms, ours has a shared drive but ones at £135,000 have their own drive - that type of thing)
The other agents have valued in a range pretty much from £120,000 to £130,000. On a house in this price-range, the different valuations seems to be astounding really.
We dont have a desparate need to sell, but were hoping to have it sold in about 6 months. We both agreed that we would price the house realistically in order to sell it, but now knowing that some agents are saying we might be able to get more has put us in a real dilemma. OH doesnt want to be screwed over if she could have sold for a better price.
Can any one offer any advice and what do agents have to gain or loose by over-pricing / under-pricing houses?
Thanks
If you don't have a pressing need to sell the property, what is the point of putting it on the market?"You were only supposed to blow the bl**dy doors off!!"0 -
elliewelly wrote: »what do agents have to gain or loose by over-pricing / under-pricing houses?
Thanks
Over pricing................ Under pricing
more clients....... / .......actual sales...............................I have put my clock back....... Kcolc ym0 -
elliewelly wrote: »The other agents have valued in a range pretty much from £120,000 to £130,000. On a house in this price-range, the different valuations seems to be astounding really.
I don't know, when we sold our previous house, I got 3 valuations (late 2003) and they were £215k, £260k and £290k! :eek:
The £215k was the last valuation and I actually laughed when he said it... I managed to "talk him up to" £225k (but that was the most he was prepared to market it for) :rolleyes:
In the end we set an asking price at £260k and happily accepted £256k. Who knows, we may have got £290k, BUT I just didn't see that as realistic (when looking around at the rest of the market). Also we sold to a neighbour (not through an agent in the end) and it was all hassle and fee free
Well it looks as though you have discounted the higher valuation. Look again at the houses in your area (both onsale and SSTC): where does it fit? Also bear in mind that people could get a house with "it's own drive and a better kitchen and bathroom" for £135k... who much less than that do you need to be to distinguish yourself from those properties (if it is only £5k, then some people may say "spending the extra £5k for the benefits is worth it").
Pay particular attention to those properties similar to yours going SSTC - since it is those that are actually getting acceptable offers (although what constitutes an "acceptable offer" varies from seller to seller...).
Remember to choose your agent seperate to your valuation: normally you can negotiate an asking price with an estate agent (if you can't then they are probably too inflexible anyway). You want to be on at the right price with the right EA (not the right price with the wrong EA or the wrong price with the right EA),
Also, when you set you asking price, think about how much you will actually be prepared to accept for the property: so, when you do start receiving offers, you know how far you will negotiate.
Good luck
QT0 -
One estate agent suggested we put the house on for more "as people like to feel as though they are getting a bargain at the moment"
Do people here tend to agree with his approach?0 -
elliewelly wrote: »One estate agent suggested we put the house on for more "as people like to feel as though they are getting a bargain at the moment"
Do people here tend to agree with his approach?
Personally no: if I was buying in our area, then I would have done my research and know how much your house is worth... People DO want to know that they are getting "good value for money" at the moment, BUT if you price your house too high, then most people will see through that and certainly some will be put off viewing.
BUT it takes all sorts... You will see a lot of people posting on here "How much % below the asking price should I offer?": many people believe that you should offer a certain percentage below an asking price (irrespective of how fairly priced it is, what area it is in etc)... :rolleyes:
It is all a gamble... people are unpredictable.
What I would say is that you have said that there are houses priced at £135k that are distinctively better than yours (i.e. private drive, better kitchens and bathrooms) - you cannot compete with them. Anyone looking in that bracket, will see those other properties and discount yours (unless yours has something else going for it - i.e. bigger plot, better views, nicer area, better school catchment).
I think that where-ever you price yours, you want to be "competitive": you want people to see yours in the listing and say "yes, I want to view that one!" (then, once you have them through the door, you want your property in a state to "sell itself"... ). Being competitively priced and having good photos/advertising/EA are the best way to achieve this.
QT0 -
although you pay more for multiagency fees, I suggest that you put the house on the market with at least 2 agents. a bit of competition between the agents is a good thing.
As far as pricing is concerned, stage one is to look at what houses have actually sold for on the websites such as nethouseprices. I think of these prices being the best indication of the true value of the property. Buyers are familiar with these websites, and they will base their offers on those prices. Stage two is to decide whether you want to put an asking price which is close to the true value, or not. I expect you will get the same sort of offers whether you price the property competitively or not, but you will get more interest if you price it competitively.
Finally, bear in mind that prices are dropping at 1% to 2% a month, so it will make a considerable difference whether you sell the property now or in six months time. What will you do if the property does not sell in six months?
If you are, in effect, forced sellers (even though you are not desperate sellers), you need to price the property accordingly. If the property is empty, you are not in the same position as an owner occupier. On the other hand, you have advantages as the property is chain free.No reliance should be placed on the above! Absolutely none, do you hear?0 -
elliewelly wrote: »One estate agent suggested we put the house on for more "as people like to feel as though they are getting a bargain at the moment"
Do people here tend to agree with his approach?
No. If you think the market value is £250k, say, and you put it on at £285k expecting to lower your price, all that will happen is that the people who CAN afford £250k will pass you by and go buy something similar that IS priced at £250k..... and they're unlikely to be still around, and most probably won't come back when you lower the price to £250k.
Judge the market, get the realistic price right first time, and market it at that price.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards