Estate agent valaution

richie_greenuk

Hi

Just a quick question, how much less than the market price do estate agents generally value homes which are on homechange schemes with new builders? Reason I ask is we have agreed a price but have had it valued by another agent and the prices vary greatly.

zappahey

richie_greenuk wrote: »

Hi

Just a quick question, how much less than the market price do estate agents generally value homes which are on homechange schemes with new builders? Reason I ask is we have agreed a price but have had it valued by another agent and the prices vary greatly.

I'm not sure there is a general rule as such. The estate agent's valuation is designed to get you on their books and will vary depending upon what they think you want to hear.

f you want an independent, impartial valuation you would probably need to go to a surveyor but even then, it's only an educated guess.

MissMotivation

Do you mean Part Exchange Valuations?

If so, then when an EA is asked to carry out a P/Ex valuation on behalf of the builder they are working on behalf of the builder and not the owner of the property.

The builder will generall ask the EA for three figures

Recommended Asking Price for a sale within 4-6 weeks
A price to sell within 2-4weeks
Forced Sale Figure

The EA has to make sure there are lots of comparable evidence for all three figures and will generally err on the side of caution.

There is no set figure at which they will "under value"

richie_greenuk

Thanks MissMotivation, I understand they do ask for three agents however our builder has only asked for one which is slightly concerning.

MissMotivation

richie_greenuk wrote: »

Thanks MissMotivation, I understand they do ask for three agents however our builder has only asked for one which is slightly concerning.

I would be worried about this too. Which builder is it? I would say the majority of builders use at least 2 different agents valuations

richie_greenuk

It's Persimmon.

MissMotivation

I would be asking them why they have only asked for one valuation as they usually do more

richie_greenuk

Update all,

I have just had a call from the builder advising they value the property at £99k but they will offer us £105k on the homemove! There are houses in the estate for £115k with the lowest at £111k, and I feel they are trying to pull a fast one. The house we are looking at it perfect and affordable.
We need at least £103.5k to pay off our mortgage but then need another 5% for the deposit (as they are paying 5%) so need to sell for around the £110k mark.
What shall we do - walk away and see what they do?

Treadmill

5%-10% less than market value is the norm, but the market is falling so fast that in the time it takes to go through you'll probably be at full market value, houses are not selling so you can put them on the market at whatever price you want but it will probably just sit unsold.

I Part Exed my house with persimmon 3 months ago and they are still trying to sell it, It will go for less than the gave me part ex.

Treadmill

richie_greenuk wrote: »

Update all,

I have just had a call from the builder advising they value the property at £99k but they will offer us £105k on the homemove! There are houses in the estate for £115k with the lowest at £111k, and I feel they are trying to pull a fast one. The house we are looking at it perfect and affordable.
We need at least £103.5k to pay off our mortgage but then need another 5% for the deposit (as they are paying 5%) so need to sell for around the £110k mark.
What shall we do - walk away and see what they do?

There may well be house on at £115K and £111K, but are they selling ? The market dictates the price, not the amount needed by the vendor. Ask them to up the part ex valuation, tell them the deal is a non starter unless you get £110K, they can only say no. But I'd be suprised if the 5K difference will be a deal breaker

richie_greenuk

Well we have just walked away....I cant afford to loose that sort of money as anyone cant.