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What is my home worth, what to offer, downvaluations - tips
chickmug
Posts: 3,279 Forumite
WHAT IS MY HOME WORTH, WHAT TO OFFER, DOWNVALUATIONS - TIPS
There are so many posts asking all of the above so I have attempted to encapsulate all the usual advice backing one place. But when asking these questions it is better to include a Rightmove link as you will get more responses. The purpose of this post is to give guidance on establishing the value of a home and in a similar way to how agents would do it. However agents will always have that last bit of the jigsaw, from local knowledge and experience, on which no one can write help notes.
You need to do some very through homework the same as a good agent should do. You need to ignore those who say offer 20% or even more lower without justification. When thinking of offering your course of action must be logical especially if you are trying to outmanoeuvre agent, seller or provide evidence to a valuer. ‘Silly offers’ are met with ‘silly responses’ by agents and sellers when there is no evidence provided to justify your figures.
Bear in mind that the agent WILL know full well if the price is: -
1) Sensible.
2) High because of a deluded seller.
3) A knock down price due to an urgent sale being needed.
But will the agent tell you how they feel but many will give a clue. But firstly you need to establish what the house sold for last time. You need to go on the ‘Prices Sold’ web sites of which there are many such as Rightmove but sometimes you may need to look at more than one as no site is 100% up to date. Others include mouseprice.com, Zoopla.co.uk, propertypriceadvice.co.uk. A site useful for seeing price drops in an area is propertysnake.co.uk. The Land Registry is likely to be more comprehensive but will cost £4 per search.
http://www.rightmove.co.uk/
http://www.mouseprice.com/
http://www.zoopla.co.uk/
http://www.propertypriceadvice.co.uk/home/
http://propertysnake.co.uk/
http://www.landregistry.gov.uk/wps/portal/Property_Search
In addition, to the above stage, you are advised to look at price history of homes on the market by using the Firefox Browser with the Property Bee ‘add’ in which works with Rightmove. You will need to register as a user, with Property Bee, to look at all the price history, of all homes on the site, from the moment they went on sale through all the changes including pricing and when marked, or unmarked, as ‘Under Offer’.
http://www.mozilla-europe.org/en/firefox/
http://www.property-bee.com/
Then since the last sale have there been any improvements, or extensions that could have an affect on today’s value. Any of this type of work can add from zero (like decorating in garish colours) to the full amount spent (good well built extension or garage) on the value.
Now go on the ‘House Price Calculator’ web sites such as: -
http://www.nationwide.co.uk/hpi/calculator.asp
http://www.hbosplc.com/common/includes/housepricecalculator_lbg.asp
Some look at Zoopla and Mouseprice.com but some of the figures are all over the place and also bear in mind if you are negotiating with an agent they would laugh at you if you use comparison from these types of sites. So the Nationwide and HBOS calculators are the most respected.
By now you should have a good ideas of the price and to fine tune it you need to go on the main property web sites - rightmove.co.uk, teamprop.co.uk, findaproperty.com, globrix.com, primelocation.com. to look at comparables. But make sure the comparables are realistic with regard to size, condition, area, etc.
http://www.rightmove.co.uk/
http://www.teamprop.co.uk/index.aspx
http://www.globrix.com/
http://www.findaproperty.com/
http://www.primelocation.com/
So now you should be getting a more detailed picture of the value.
Next is to make the offer which means you need to put your case across as being a serious buyer with by covering the following points: -
1) That you have a MIP/AIP - if you haven’t get on the case.
2) If you have a bigger deposit than the minimum that will make you be seen as a better buyer.
3) Explain in some detail about any chain that you are in and is being formed. But it must be complete otherwise the agents would not consider offers.
4) Say that you have a solicitor appointed, who is waiting your instruction, once you make a decision to buy somewhere.
5) If you don’t intend having more than a basic valuation tell the agents as they will like that although you must make sure that is the right decision. You can always change your mind once the sale has been agreed! Agents do NOT like the repercussions after Homebuyer Reports & Structural Surveys
6) Say you are able to complete within the time frame to suit the seller.
So the agents should be attentive as they will now know you are being deadly serious and then make the offer explaining thoroughly the homework you have carried out but do confirm by email to the agent.
Bear in mind some of my other thoughts from experience: -
1) When making really silly offers even if you agree at a sensible/acceptable price you could be seen as unreliable and someone who may pull out if you find a better bargain elsewhere. So the seller may feel they are better off finding a new buyer - one who hasn't felt they were paying too much.
2) Do NOT form any emotional attachment to the seller or the agent.
3) Do not waffle when making the offer thus NOT giving away your hand.
4) Always go in low. Experience shows me those that start low end up paying less than those who try and make a fairer offer.
5) So go in low and if you do a deal great - but if not you must have the courage to walk away. There will always be another home where the seller may be more desperate that you will get there, with a bargain, but have patience.
6) Remember the agent will try and charm you or bully you so keep very very focussed.
Shout if I have mised anything?
There are so many posts asking all of the above so I have attempted to encapsulate all the usual advice backing one place. But when asking these questions it is better to include a Rightmove link as you will get more responses. The purpose of this post is to give guidance on establishing the value of a home and in a similar way to how agents would do it. However agents will always have that last bit of the jigsaw, from local knowledge and experience, on which no one can write help notes.
You need to do some very through homework the same as a good agent should do. You need to ignore those who say offer 20% or even more lower without justification. When thinking of offering your course of action must be logical especially if you are trying to outmanoeuvre agent, seller or provide evidence to a valuer. ‘Silly offers’ are met with ‘silly responses’ by agents and sellers when there is no evidence provided to justify your figures.
Bear in mind that the agent WILL know full well if the price is: -
1) Sensible.
2) High because of a deluded seller.
3) A knock down price due to an urgent sale being needed.
But will the agent tell you how they feel but many will give a clue. But firstly you need to establish what the house sold for last time. You need to go on the ‘Prices Sold’ web sites of which there are many such as Rightmove but sometimes you may need to look at more than one as no site is 100% up to date. Others include mouseprice.com, Zoopla.co.uk, propertypriceadvice.co.uk. A site useful for seeing price drops in an area is propertysnake.co.uk. The Land Registry is likely to be more comprehensive but will cost £4 per search.
http://www.rightmove.co.uk/
http://www.mouseprice.com/
http://www.zoopla.co.uk/
http://www.propertypriceadvice.co.uk/home/
http://propertysnake.co.uk/
http://www.landregistry.gov.uk/wps/portal/Property_Search
In addition, to the above stage, you are advised to look at price history of homes on the market by using the Firefox Browser with the Property Bee ‘add’ in which works with Rightmove. You will need to register as a user, with Property Bee, to look at all the price history, of all homes on the site, from the moment they went on sale through all the changes including pricing and when marked, or unmarked, as ‘Under Offer’.
http://www.mozilla-europe.org/en/firefox/
http://www.property-bee.com/
Then since the last sale have there been any improvements, or extensions that could have an affect on today’s value. Any of this type of work can add from zero (like decorating in garish colours) to the full amount spent (good well built extension or garage) on the value.
Now go on the ‘House Price Calculator’ web sites such as: -
http://www.nationwide.co.uk/hpi/calculator.asp
http://www.hbosplc.com/common/includes/housepricecalculator_lbg.asp
Some look at Zoopla and Mouseprice.com but some of the figures are all over the place and also bear in mind if you are negotiating with an agent they would laugh at you if you use comparison from these types of sites. So the Nationwide and HBOS calculators are the most respected.
By now you should have a good ideas of the price and to fine tune it you need to go on the main property web sites - rightmove.co.uk, teamprop.co.uk, findaproperty.com, globrix.com, primelocation.com. to look at comparables. But make sure the comparables are realistic with regard to size, condition, area, etc.
http://www.rightmove.co.uk/
http://www.teamprop.co.uk/index.aspx
http://www.globrix.com/
http://www.findaproperty.com/
http://www.primelocation.com/
So now you should be getting a more detailed picture of the value.
Next is to make the offer which means you need to put your case across as being a serious buyer with by covering the following points: -
1) That you have a MIP/AIP - if you haven’t get on the case.
2) If you have a bigger deposit than the minimum that will make you be seen as a better buyer.
3) Explain in some detail about any chain that you are in and is being formed. But it must be complete otherwise the agents would not consider offers.
4) Say that you have a solicitor appointed, who is waiting your instruction, once you make a decision to buy somewhere.
5) If you don’t intend having more than a basic valuation tell the agents as they will like that although you must make sure that is the right decision. You can always change your mind once the sale has been agreed! Agents do NOT like the repercussions after Homebuyer Reports & Structural Surveys
6) Say you are able to complete within the time frame to suit the seller.
So the agents should be attentive as they will now know you are being deadly serious and then make the offer explaining thoroughly the homework you have carried out but do confirm by email to the agent.
Bear in mind some of my other thoughts from experience: -
1) When making really silly offers even if you agree at a sensible/acceptable price you could be seen as unreliable and someone who may pull out if you find a better bargain elsewhere. So the seller may feel they are better off finding a new buyer - one who hasn't felt they were paying too much.
2) Do NOT form any emotional attachment to the seller or the agent.
3) Do not waffle when making the offer thus NOT giving away your hand.
4) Always go in low. Experience shows me those that start low end up paying less than those who try and make a fairer offer.
5) So go in low and if you do a deal great - but if not you must have the courage to walk away. There will always be another home where the seller may be more desperate that you will get there, with a bargain, but have patience.
6) Remember the agent will try and charm you or bully you so keep very very focussed.
Shout if I have mised anything?
A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.
0
Comments
-
That's really useful, thank you,
It's shocking when you see the results though!0 -
katrina_suzanne wrote: »That's really useful, thank you,
It's shocking when you see the results though!
Do you mean a reliaty check
A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
When I saw the heading of the thread, I thought you'd forgotten you'd been an EA for 40 yrs!! Content reaffirmed my faith in your memory.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
-
lincroft1710 wrote: »When I saw the heading of the thread, I thought you'd forgotten you'd been an EA for 40 yrs!! Content reaffirmed my faith in your memory.
Why because I am so helpful:cool:A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
thanks chickmug (and also for your advice on my other thread).
here's a question for you if you have time: we've been told our flat will sell super fast as and when we put it on the market (and I do believe this is true). BUT there is very little around in the area we're looking. SO, we don't want to put our flat on the market until we've found somewhere we're interested in - because we don't want to end up homeless too quickly. BUT of course that makes us less attractive buyers. Seems like a catch 22.
What is the best solution? should we put the flat on the market and just make sure we agree a far off completion date with anyone who wants to buy it?? but then that may put off buyers...0 -
Thank you that really helps us as panicked 1st time buyers. Can anyone tell me what sold house price databases go back to 1997, as the house we are interested in was last sold then?
Thanks E0 -
here's a question for you if you have time: we've been told our flat will sell super fast as and when we put it on the market (and I do believe this is true).
Sorry to say this but I have heard this time and time agin from the agent, to an intending buyer, but more often than not it is B/S but there are exceptions.
BUT there is very little around in the area we're looking. SO, we don't want to put our flat on the market until we've found somewhere we're interested in - because we don't want to end up homeless too quickly. BUT of course that makes us less attractive buyers. Seems like a catch 22.
What is the best solution? should we put the flat on the market and just make sure we agree a far off completion date with anyone who wants to buy it?? but then that may put off buyers...
Sometimes the seller, you want to buy from, will wait BUT this is very very rare compared with years ago.
Sometimes sellers put it in the hands of fate, go on the market and then take the risk of buying. But then when they can't find anyhwere some take it off the market. Causes upset all round.
So the only way is to sell, rent then buy.
I am in the middle of this scenario but there is only two of us and we are happy to move out to suit the buyers - when we get one. Then, because we are moving to South Devon, it could well be a holiday let until we take a good look round and buy.A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
Excellent post Chickmug.
One more thing I would be curious to know. When viewing properties how much above your budget should you look? Only up to budget, maybe 10% above or treat each property individually as you would when putting an offer in?0 -
Thank you that really helps us as panicked 1st time buyers. Can anyone tell me what sold house price databases go back to 1997, as the house we are interested in was last sold then?
Thanks E
It can vary from site to site but is there a similar house that has sold since that you can find?A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
Similar houses seem to have sold for around 80-99k in 1999/2000 but I would have liked to know for this house in particular (partly pure nosiness!)0
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