EA Valuations - opinion appreciated

virgo149

We've just 3 estate agents round to value my late father in laws house as we unfortunately need to sell. It's in need of modernisation - i.e. new bath, kitchen, windows and decorating throughout.

The first wants to market at 184,995. They've just sold (STC) an identical one around the corner (no work needing) for 170K. I bit the bullet and went and spoke to the seller who had various reasons for taking a low offer (was on at 199,995) - she doesn't want to miss out on another property in the village (deceased estate, needs work). They dropped their asking price, hence she could accept 170. The agent was naughty and did tell us what it had gone for.

The second said to market around 190,000. When asked if she knew what the other went for, she said she had checked and it had gone for 189,995! Wonder what she was up to?

The final one, after staying for almost 2 hours (!), recommends marketing at 199,950 or even offers over this amount. He's a RICS surveyor as well as an EA and has no idea of what the one around the corner went for.

Now we know that by accepting low offers, the two sellers in the village are potentially harming our sale. Which way should we go on this? We've got a rough idea of bottom line for us and no particular hurry to accept a low offer. We know we may get a ridiculous offer in the process but just don't know what to do now.

Any advice?

spuds_2

I think it depends how much of a bargain the one round the corner was at £170k. If it was a really good deal, then someone may still be willing to pay more than that for yours. I think you have to price it at under their orginal asking price, ie. less than £199k, because that will be the benchmark asking price for a house in fair condition. It will be a couple of months before the sold price of the other one appears on web sites.

I think you will get some daft offers - people think an estate sale means desperate to sell. If you are willing to accept £170k, you could put it on at £185k say, which would generate interest I'm sure. Also, it sounds like you live in a small village - if houses don't come up for sale very often then there will be some interest anyway.

MissMotivation

How have the other two sellers 'harmed' your sale? Their properties have sold for what they are worth.....if they had been worth more they would have sold for more.

It still amazes me that in this market there are still Valuers over-valuing

I would work on what similar properties had sold for and not what the agents suggested.

I mean.....it's not exactly rocket science!

puddy

to be honest, if its in need of modernisation and the other one sold at 170, then you should hope for 150ish. i honestly dont understand why people do expect so much for estate sales. i am in the frustrating position at the moment of looking for properties, having a buyer myself and i cannot believe the levels people are expecting for their properties at the moment (or their relatives estates).
im sure i would be considered like the sellers you are talking about as i accepted a low price because i want to sell. if i hadnt have accepted a low price, i would not have sold in this market, thats the nature of it. if you want to sell it, price it realistically.

poppysarah

Being honest about the state of the market is something EA seem to struggle with.

If you put it on at 180 you might wait months before you realise you need to drop it.

Put it on at 165k and hope for a quick sale.

Doozergirl

Well Sarah Beeny would say go with an average of the valuations but...

If the first EA genuinely knew what the house around the corner went for then
I would be inclined to trust their valuation much more because this is an immediate and correct comparison. If you can afford to wait a little while then stick it on at 184,995, listen to the feedback and review the price every few weeks. If you don't get any viewings, that counts as negative feedback too - the price is too high to make people want to view.

The second valuation will be based on house around corner, thinking that it's sold but this one isn't in as good condition.

The third valuation is unrealistic. Indentical marketing price to a better condition property that has just sold - people will notice that it's overpriced.

It makes sense that the house needs to be marketed at less than the better condition but indentical one and considering the price it went for you be realistically hope for viewings and can also keep your fingers crossed for a 170,000 offer from someone who wouldn't be so bold to have offered that on the other house. No one else yet knows what it went for. When that data gets published, you have to be prepared to take a lower offer.

Good Luck.

virgo149

Thanks all for your replies and opinions - definately have given us plenty to think over.

Feeling slightly peeved at the negative state of things at the moment - it's bad enough having to cope with our recent loss without having to put up with the state of the housing market as well.

I think there is a good chance, as we are in no hurry (well until figures are published) that we'll probably go with the agent who sold the house around the corner - it's just agreeing a realistic figure that is the issue - discussions need to happen between my husband and sister in law and I think they might have differing opinions on that one. It's easier for me to be realistic but with a lot of family history, no one wants to see their old family home be sold for a song.

Thanks again all - even for the more negative comments - they aren't particularly nice but I guess have to be considered.

Doozergirl

You have to remember that if you believe house prices will rise again (which you must do if you are loath to let it go at a low price), having that money in any property will see you recoup what you've lost - it doesn't have to be in the same house. eg. If prices fall another 10% and rise 20% in five years (I'm making this up!) then your share, if it's in property, will do the same as that entire house sitting there.

If you use it against your mortgage, every pound is worth something like three pounds over the term of a mortgage. It will make an immediate impact similar to the income from renting but without any hassle plus the value of your house moves in the same way that this house you have inherited would. There's no benefit to keeping the house that you can't find elsewhere.

Even if I were mortgage free I'd honestly rather buy myself a bigger house than be a landlord.