Estate agent logic

lynzpower

Classic Dopester Classic.

'I have always done well with property and I used to put a lot of emphasis on it as a good way to invest but now I am not so sure. I thought it was simple - if ever you can't sell just hold on and let, but that's not true any more. Now there are so many others in the same boat as me with property on the rental market, I just don't know what to do.

:wall:

if only she had read moneysaving expert :rotfl:

Max_Headroom_3

ciano125 wrote: »

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!

I think there's a bit more to it than that!

Does it have a garage? A view? The end of the road by the main road? Bus stop outside? How good is the layout? What's the state of the decor? New kitchen? New bathroom? What's the garden like? What state of repair is the roof in? Is it north or south facing? Etc etc etc etc.

Houses are far too personal and varied to simply measure the floor space and multiply by a number.

Darth_Marty

mbga9pgf wrote: »

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.

See the flaw in that statement is rather a large one.

The banks valuers ask the estate agents for their opinions/valuations and 99% of the time go on what they have been told by the e.a's, this is an everyday occurence.
So with respect your statement is complete bol locks.

StevieJ

Darth_Marty wrote: »

See the flaw in that statement is rather a large one.

The banks valuers ask the estate agents for their opinions/valuations and 99% of the time go on what they have been told by the e.a's, this is an everyday occurence.
So with respect your statement is complete bol locks.

So you are saying that the banks are effectively using the EA's valuation So the banks are not suggesting to their valuers that a cautious valuation may be the wise thing to do?

Darth_Marty

ha ha im sure there are cases in which the valuers have gone against the e.a's but im 100% sure that the e.a's values are what they normally use. "im bill from barclays, just after some comparables on 22 high st" "we sold 23 high st for 100k but in todays market its only worth 95k" "yes, I was thinking between 94500-95500 myself, thanks"

Thats usually how these things go.

purch

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?

Redknapp has lived in that area for decades, since before he managed Bournemouth anyway. Dunno about the particlular property, but I would hazard a guess that it'll be mortgage free.

StevieJ

Darth_Marty wrote: »

ha ha im sure there are cases in which the valuers have gone against the e.a's but im 100% sure that the e.a's values are what they normally use. "im bill from barclays, just after some comparables on 22 high st" "we sold 23 high st for 100k but in todays market its only worth 95k" "yes, I was thinking between 94500-95500 myself, thanks"

Thats usually how these things go.

They may have done in the past, but a falling market, I don't think so.

Darth_Marty

Im not suggesting that they do, im telling you they do.

lostinrates

Darth_Marty wrote: »

Im not suggesting that they do, im telling you they do.

I'm famililiar with this being the normal method, but the reports on boards such as this of mortgagees dropping lending figures post valuation survey suggest this is not whats happening ATM. My guess would be they won't stop calling EA for comparables but that they will be factoring in the percentage drops too..either at the surveyors end or possibly more likely the bank/mortgagees end . Preparing valuations can never be an exact science...can it?

Darth_Marty

Thats probably right, cant argue with that.

As for it being an exact science someone earlier suggested that house prices should be determined by a set amount per square foot.........

Thats a great idea isnt it?!