Estate agent valuations and software versus Land Registry

Cornopean

What price information can estate agents see on their computers?

A quick background summary as I'm new to posting, but have been keenly following this forum for some months. We're FTBs, have owned before, have a 25% deposit and mortgage agreement in principle for a sensible multiple of our incomes.

We know what we're looking for in terms of streets, and all the houses are very similar in terms of size. I've carefully studied the Land Registry details and compiled a list of similar houses to what we want with recent sale prices, all of which were within our budget. While chatting to local estate agents, I have been given an idea of the prices accepted on two houses currently SSTC, although not precise prices as the agents say this would be illegal (is this so?). These were also within budget.

And so one house came up for sale, at roughly the 2007 value, which round these parts is about 20% overpriced. Within a couple of weeks it dropped by 5%, so we waited a couple more weeks, looked round and made an initial offer of just under the typical selling price. Not surprisingly this was rejected. But here's where things get curious.

The estate agent asked me why I'd made such a low offer, and I was able to quote the recent sales figures from the Land Registry and rough sold prices for the SSTC properties as indication that it wasn't so far off (my initial offer was less than £10k off the most one has sold for this year). At this point the estate agent declared he had software that showed him the under offer prices and real sold prices in that area, and these were far in excess of what I was saying, effectively implying that I was lying. He also stated that he was working in the best interests of the seller and would not be recommending they accepted a revised offer from me, without my having made a revised offer although I initially indicated that I might before he asked me why the offer was so low. The estate agent is not immediately local and specialises in more expensive property elsewhere. No other offers have been received on the property.

So - does software exist that shows estate agents prices of sold property, either SSTC or after contracts have been signed? He stated the former. And presumably there is no way Land Registry figures can be inaccurate? And how accurate is the valuation of any such software? There are more expensive houses (but also cheaper ones) on surrounding streets if the software is imprecise.

Thoughts, advice etc. most welcome - I'm most unhappy at an estate agent implying I'm a liar!

Al

ciano125

They use rightmove, although they can see properties that have since been removed and what they have sold for, although to be fair, the information you have found out yourself is pretty much what they have. The only difference as far as I can see it is that they can sometimes view old particulars so you can judge the state of decorative repair a property is in.

Don't believe a word that they say though, he is working against you don't forget and is trying to get as much money as possible out of you. From what you've said, you sound very clued up and (in my opinion) are capable of valuing the property as well as anyone. Stick to your guns, offer what you think it's worth and then tell them you're going to leave it, and make sure you do. They might well come back to you, despite what the bogwhoppit/estate agent might tell you.

Cornopean

Thanks ciano125. I have no intention of offering more than what I think it's worth - I'm happy to wait for something else, and it's only reasonable fixed rate mortgages that are tempting me to buy now and not next year or thereafter. I am tempted to inform the vendor of how unpleasant their EA is though and how he discouraged me from making a higher offer...

ciano125

I would do that if I were you. I'd put your original offer in again direct to the sellers and tell them what their agent said and that because of their conduct you'd be looking elsewhere. See where that gets you!!

Hair_Bear

Cornopean wrote: »

So - does software exist that shows estate agents prices of sold property, either SSTC or after contracts have been signed? He stated the former. And presumably there is no way Land Registry figures can be inaccurate? And how accurate is the valuation of any such software? There are more expensive houses (but also cheaper ones) on surrounding streets if the software is imprecise.


Al

They get taught to lie at Estate agent school.

chickmug

Hair_Bear wrote: »

They get taught to lie at Estate agent school.

Another new poster with great sarcastic one liners.

So what job do you do that would appear to make you so honest?

Chinkle

OP you've obviously done your homework. The EA thought he could pull the wool over your eyes being a FTB, when you started quoting the Land Registery stats to him he had to try something to claw back an advantage over you. The only extra knowledge he has is how desperate the seller is to sell.

Now the seller may have rejected your offer because they mistakenly believe they can get more for their house, but only time will tell.

Stick to your guns, but play the game, next time don't quote stats to the EA as they don't like to feel belittled (it takes away any power they think they have). Simply make your offer and say it's as much as you can afford. If you don't budge a sensible seller will come round.

googler

Chinkle wrote: »

OP you've obviously done your homework. The EA thought he could pull the wool over your eyes being a FTB, when you started quoting the Land Registery stats to him he had to try something to claw back an advantage over you. The only extra knowledge he has is how desperate the seller is to sell.

How do you know the EAs aren't sharing all the sales data amongst themselves immediately, rather than getting it from Land Registry? If they were, wouldn't they be 2 mths ahead of the OP, assuming there' d been a number of sales in those 2 mths....?

chickmug

googler wrote: »

How do you know the EAs aren't sharing all the sales data amongst themselves immediately, rather than getting it from Land Registry? If they were, wouldn't they be 2 mths ahead of the OP, assuming there' d been a number of sales in those 2 mths....?

True some do but many don't even trust each other so don't talk to each other apart from the insincerities of Good Morning, How are You, etc

princeofpounds

The bit about advising against revised offers is very, very, very odd.

It would imply one of two things - the EA is upset with you personally and being unprofessional, or that they want to discourage offers on the place for a mate to buy it cheap. Whilst the second does occur, it's not that frequent, so the simpler former explanation is most likely.

Why they have taken offence I don't know!

Estate agents don't have access to any 'magic' data, most of it is public record in the land registry and available from all sorts of places. They do have a slight advantage in that the land registry is lagged by about 6m, but other indices are public and should get you close enough to reality, at least close enough not to be out of the ballpark.

There is no great skill in EA valuations - I knew a kid at university who was employed as a 'valuer' in the summer holidays.

Frankly you are probably 90% as well-informed as the EA and the difference is simply a matter of opinion and the weight placed in a couple of very recent transactions, assuming your maths is correct.

If you have another offer, I advise to submit it in writing to the EA as they have to pass it on by law. I also advise contacting the vendor direct to request a meeting if it is turned down, just to get the obstruction out of hte way

chickmug

princeofpounds wrote: »

or that they want to discourage offers on the place for a mate to buy it cheap.

Can you tell us of even one case which you know where this has happened.