Estate agent logic

Max_Headroom_3

I was pointed toward an article in The Sun about Sandbanks today.

http://www.thesun.co.uk/sol/homepage/news/article2179462.ece

And included this gem from an estate agent:

But local estate agent Tom Doyle reckons £2million has been wiped off the value of Redknapp’s spread, previously worth £10million. And it would still not attract any buyers.

Well if it would'nt attract buyers at that then how is it worth £8 million, idiot?

Any property is worth the maximum it'll sell for. If in fact it won't sell for a certain figure then it clearly is not worth that figure is it?? :rolleyes:

Gotta love estate agent "valuations".

ad9898_3

Agreed, where on earth do they get 10 million from ?, what was it errrrr think of a number ?

If it was worth that someone would have bought it, they didn't. Frickin spivs.

Cannon_Fodder

Your thread's title is a contradiction in terms.

napoleon

Max_Headroom wrote: »

I was pointed toward an article in The Sun about Sandbanks today.

http://www.thesun.co.uk/sol/homepage/news/article2179462.ece

And included this gem from an estate agent:



Well if it would'nt attract buyers at that then how is it worth £8 million, idiot?

Any property is worth the maximum it'll sell for. If in fact it won't sell for a certain figure then it clearly is not worth that figure is it?? :rolleyes:

Gotta love estate agent "valuations".

Estate Agents - not the cleverest bunnies in the forest that's for sure.

themanbearpig

You don't need any qualification to be an estate agent. Most havn't got any scientific basis for their valuations, the whole profession is a joke. Estate agents valuations shouldn't and don't hold any worth. They just believe they are smart because they have made lots of money during the boom years.
In most sectors where valuations are involved, the analysts have many titles after their names, and can handle the complex mathematics models needed. I've studied some horrible mathematical models for valuation of assets in my econometrics module, and I can't see any estate agents being using anything near the same level of logic.

Max_Headroom_3

To be fair, what sort of scientific "model" would you like them to use?

At the end of the day prices are set by what members of the public are willing (and able) to pay. Not much science goes into that decision so how can science work prices out?

mbga9pgf

Even if there was, Estate Agents wouldnt be able to use them. I am surprised they can figure out the controls on rightmove to be honest. Thick as mince. Go on a couple of wideboy sales courses then they think they are made.

ciano125

A very simple "scientific" model would be to calculate (measure) the square footage of a property and then find sales of comparable properties and see how much they sold for per sq ft. This is the only real way of comparing like for like and is basically the method used for commercial property. And yes, I have the relevant letters after my name!

mbga9pgf

To be honest, the price of property has very little to do with what an estate agent values it at.

They will only achieve sales where the lender report values the property appropriately; in the boom years, we repeatedly saw properties attaining silly values. The reality TODAY is that the banks are setting values, not the estate agents.

And long may this situation remain.

besonders1

I suppose it depends on if you don't mind having the house up for sale for the next 10-15 years until the next boom! I bet most estate agents still over-value homes today based on 2007/8 peak prices because they are too embarrassed to admit the true selling price. I have seen them refer to these prices as a selling factor on their leaflets (no 77 sold for £XXk Jan 2007) they must think that some buyers were born yesterday.

dopester

I could be wrong but I doubt the crash worries Harry Redknapp that much even with a multi-million house which he may still have a big mortgage on. Does anyone know when he bought that place? Also he could tap his son for a few quid.

Caprice however... fully caught out in the herd. Arms stretch out wide, each slightly angled out to the side, head to the side, and run towards anything for sale, saying "property"... "it only goes up in value."

http://www.dailymail.co.uk/property/article-1134087/Fall-house-s-Caprice-The-model-reveals-property-assets-slumped-hundreds-thousands-pounds.html