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True Value OF YOUR PROPERTY!!!!
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TEDDYRUKSPIN
Posts: 1,528 Forumite
As a financial advisor having my hands nearly in everything, I am more and more fed up with customers over valuating their properties.
Example,
(Q) How much is your property worth?
(A) I believe it is worth £200k as so-so estate agents valued it? Or next door is on the market at £200k but in a worse state than mine.
Estate agents over valuate a property around 10% more than your sellable value. So if you have had you house on the market more than 3 months, you should revalue it again. You must remember, estate agents are after your money. They take an average of 1% of the sale value. 1.5% is usually the average!
Now.... estate agents will obviously make it sound great but at the current climate this will not be correct. House prices are changing and dropping as fast as they should be. It is expected that house prices will be dropping a further 15% and this is why many lenders now have a strict rule of 75% LTV.
SOLUTION:
All house prices are roughly at the 2006 prices. Next year they will be expected to worth 2005 prices.
Can all of you start looking at something like www.houseprices.co.uk
This will show all the houses sold in your postcode! Look at the house price at 2006. Like for like.
Other option is to use the Nationwide tracker of house prices as guess price. This is a guideline too.
WRONG:
At this current moment of time, adding a new kitchen, bathroom, anything along the lines of this, DOES NOT add value to a house!! This is a warning. They just make it sellable!
Reason for this is that they wear and tear over time and hence depreciation!!
Only things that add extra useable area to the property add value! Hence, a new bedroom, EXTENSION!.
Guide: A conservatory on average adds 3% to 6% to a house.
Hopefully this should help alot of you whilst picking new mortgage rates! Save time and stop chasing a market which is moving to fast! Act wisely!
Example,
(Q) How much is your property worth?
(A) I believe it is worth £200k as so-so estate agents valued it? Or next door is on the market at £200k but in a worse state than mine.
Estate agents over valuate a property around 10% more than your sellable value. So if you have had you house on the market more than 3 months, you should revalue it again. You must remember, estate agents are after your money. They take an average of 1% of the sale value. 1.5% is usually the average!
Now.... estate agents will obviously make it sound great but at the current climate this will not be correct. House prices are changing and dropping as fast as they should be. It is expected that house prices will be dropping a further 15% and this is why many lenders now have a strict rule of 75% LTV.
SOLUTION:
All house prices are roughly at the 2006 prices. Next year they will be expected to worth 2005 prices.
Can all of you start looking at something like www.houseprices.co.uk
This will show all the houses sold in your postcode! Look at the house price at 2006. Like for like.
Other option is to use the Nationwide tracker of house prices as guess price. This is a guideline too.
WRONG:
At this current moment of time, adding a new kitchen, bathroom, anything along the lines of this, DOES NOT add value to a house!! This is a warning. They just make it sellable!
Reason for this is that they wear and tear over time and hence depreciation!!
Only things that add extra useable area to the property add value! Hence, a new bedroom, EXTENSION!.
Guide: A conservatory on average adds 3% to 6% to a house.
Hopefully this should help alot of you whilst picking new mortgage rates! Save time and stop chasing a market which is moving to fast! Act wisely!
Motto: 'If you don't ask, you don't get!!'
Remember to say thank you to people who help you out!
Also, thank you to people who help me out.
Remember to say thank you to people who help you out!
Also, thank you to people who help me out.
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Comments
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House up the road from me was bought at £197,995 4/3/2005. It is currently up for sale at £164,950. There is no way anyone would be buying it at that price and definately not the 2005 price paid for it. It is a new build so I guess that makes a difference.0
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well i had a problem with my valuation when getting a mortgage i put my value at 320 which was based on hometrack valuation/estate agent and 3 properties being sold in the same area between 300 to 320.i wasnted 260k i went to hsbc for 90%ltv thinking it shud !!! to 300 which is what i bought at it 2006..HSBC VALUERS valued at 240k!! which is disgraceful....i send them like to like comapriosn and in june they wer sold at 300 exacyly same house..so even if house prices have !!! down and mine is a detached ..detached houses have not !!! down by 20% in 4 months!!! and they siad june is not gud enuff for like to like compariosion..so now i found them 3 more houses whohc wer sold in november and october i have to state this are new houses..and they wer sold for 315k.300k and 290k..all about 5% smaller than us in sq foot area..and they stil not agreeing!!! they still sayin its worth 240!! while estatr agents n hometrack sayin abt 300 to 310!!0
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TEDDYRUKSPIN wrote: »As a financial advisor having my hands nearly in everything, I am more and more fed up with customers over valuating (1) their properties.
Example,
(Q) How much is your property worth?
(A) I believe it is worth £200k as so-so estate agents valued it? Or next door is on the market at £200k but in a worse state than mine.
Estate agents over valuate (1) a property around 10% more than your sellable value. So if you have had you house on the market more than 3 months, you should revalue it again (5). You must remember, estate agents are after your money. They take an average of 1% of the sale value. 1.5% is usually the average! (2)
Now.... estate agents will obviously make it sound great but at the current climate this will not be correct. House prices are changing and dropping as fast as they should be. It is expected that house prices will be dropping a further 15% and this is why many lenders now have a strict rule of 75% LTV.
SOLUTION:
All house prices are roughly at the 2006 prices. Next year they will be expected to worth 2005 prices.
Can all of you start looking at something like www.houseprices.co.uk
This will show all the houses sold in your postcode! Look at the house price at 2006. Like for like.
Other option is to use the Nationwide tracker of house prices as guess price. This is a guideline too.
WRONG:
At this current moment of time, adding a new kitchen, bathroom, anything along the lines of this, DOES NOT add value to a house!! This is a warning. They just make it sellable! (3)
Reason for this is that they wear and tear over time and hence depreciation!!
Only things that add extra useable area to the property add value! Hence, a new bedroom, EXTENSION!.
Guide: A conservatory on average adds 3% to 6% to a house. (4)
Hopefully this should help alot of you whilst picking new mortgage rates! Save time and stop chasing a market which is moving to fast! Act wisely!
Are you really a financial adviser? That is scary.
1. Valuate is not a word.
2. An average of 1% is not the same as an average of 1.5%.
3. Making a house sellable must add value (assuming that it was previously unsellable).
4. A conservatory costing £10K cannot add more than 5% to a house worth £200K. One costing £3K would add much less to that same house. Some conservatories reduce the house price. They are disgusting additions to most houses IMHO.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Gorgeous_George wrote: »Are you really a financial adviser? That is scary.
1. Valuate is not a word.
2. An average of 1% is not the same as an average of 1.5%.
3. Making a house sellable must add value (assuming that it was previously unsellable).
Is sellable a word, I thought it was saleable. But I could be wrong.This is an open forum, anyone can post and I just did !0 -
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Gorgeous_George wrote: »I like sellable.
GG
And unsellable?This is an open forum, anyone can post and I just did !0 -
i had clients in yesterday ,justcoming out of a 2 year deal. they bought for 165 and thought it would be worth about the same as they were going for 230 at the peak. i checked on propertynews.com and the house straight over the road from them is for sale at 124.0
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well i had a problem with my valuation when getting a mortgage i put my value at 320 which was based on hometrack valuation/estate agent and 3 properties being sold in the same area between 300 to 320.i wasnted 260k i went to hsbc for 90%ltv thinking it shud !!! to 300 which is what i bought at it 2006..HSBC VALUERS valued at 240k!! which is disgraceful....i send them like to like comapriosn and in june they wer sold at 300 exacyly same house..so even if house prices have !!! down and mine is a detached ..detached houses have not !!! down by 20% in 4 months!!! and they siad june is not gud enuff for like to like compariosion..so now i found them 3 more houses whohc wer sold in november and october i have to state this are new houses..and they wer sold for 315k.300k and 290k..all about 5% smaller than us in sq foot area..and they stil not agreeing!!! they still sayin its worth 240!! while estatr agents n hometrack sayin abt 300 to 310!!
Recent houses sold new will have had loads of incentives
deposits,
mortgage payments
fees
etc,
easy add up to 20% of what goes on the sale price.
If you think you place is worth £300+ try and sell it.0 -
well i had a problem with my valuation when getting a mortgage i put my value at 320 which was based on hometrack valuation/estate agent and 3 properties being sold in the same area between 300 to 320.i wasnted 260k i went to hsbc for 90%ltv thinking it shud !!! to 300 which is what i bought at it 2006..HSBC VALUERS valued at 240k!! which is disgraceful....i send them like to like comapriosn and in june they wer sold at 300 exacyly same house..so even if house prices have !!! down and mine is a detached ..detached houses have not !!! down by 20% in 4 months!!! and they siad june is not gud enuff for like to like compariosion..so now i found them 3 more houses whohc wer sold in november and october i have to state this are new houses..and they wer sold for 315k.300k and 290k..all about 5% smaller than us in sq foot area..and they stil not agreeing!!! they still sayin its worth 240!! while estatr agents n hometrack sayin abt 300 to 310!!
until people realise their house isnt worth what they think we will not be able to move on.0 -
I bought my house for £36k, as far as I'm concerned that's what it is still worth, although I have put up a shed costing £70, so that's £36,0700
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