Widely varying valuations - great opportunity or crazy EA?

pie81

Hi all

This is my first Moneysaving post so please be nice!!

We're looking to sell our London flat, never sold a property before. Had 5 EAs round and have had 2 valuations at about 420k, two about 485k and one WAY out of the ball park at 575k :eek:.

Now, we both think 575k is crazy. Similar properties have never got much above 500k even at the peak. We expected more like 460k.

BUT obviously it is tempting to go with the 575k asking price, at least as a punt to see if we could get that much. we are in no hurry to sell. the EA who gave that valuation is offering no tie in and will consider a tiered selling fee (they would get a much lower % if it doesn't hit above 550k). so they are putting their money where their mouth is. They are a reputable agent specialising in high end properties - not Foxtons. maybe they have some rich and foolish buyers...?

The risk is, though, that if we put it on for this amount and we're right that it's way too high, we could end up with the property sitting on the market for a while going stale and having to make a big reduction in a few weeks - which will look bad to buyers.

What would you do??

thanks!

JPS29

pie81 wrote: »

Hi all



Now, we both think 575k is crazy. Similar properties have never got much above 500k even at the peak. We expected more like 460k. Be realistic, this agent just wants to secure your business and no doubt will sit with them for ages before your reduce due to not wanting the hassle of changing EA

we are in no hurry to sell. This contradicts your next statement??

we could end up with the property sitting on the market for a while going stale and having to make a big reduction in a few weeks -


thanks!

My comments in red, HTH

pie81

Thanks v much.

We're not in a hurry to sell, but we don't want the property to sit on the market for ages nonetheless, because I think that gives a bad impression to buyers (suggests something wrong with it). Or am I wrong on this?

Yes, I did wonder whether the huge valuation might just be to secure the business and then they'd recommend a big drop a while down the line. The usual Foxtons trick (though as I say this isn't Foxtons).

But as they have no tie in period and their fee reduces heavily if the price drops - doesn't that mean there is no real advantage to them in valuing high? As if they don't get the price they are promising, we will simply walk and go to another agent. Even if we were lazy and stuck with them at the lower price, we would pay v little commission (due to tiered fee arrangemnt).

or am I just being hopeful??

Emmzi

is it worth £150 to you to get a valuation from a surveyor?

JPS29

They may only get a "little" fee from your sale but if 5 vendors adopt the same way of thinking these DO add up to a few large fees.

You know the valuation is OTT so you know it will sit around for ages before you end up reducing it (a certainty)

IMHO be sensible. If you dont want it up for ages dont overvalue it, if you do when you eventually drop to a realistic price, people may still be put off.

HTH

brit1234

Check on the land registry figure for your street. Prices are selling for about 2003-2004 prices. I would be wary about higher than as it may put off portential buyers.

pie81

InTheBrownStuff wrote: »

They may only get a "little" fee from your sale but if 5 vendors adopt the same way of thinking these DO add up to a few large fees.

You know the valuation is OTT so you know it will sit around for ages before you end up reducing it (a certainty)

IMHO be sensible. If you dont want it up for ages dont overvalue it, if you do when you eventually drop to a realistic price, people may still be put off.

HTH

yeah, I think you're right. *Sigh* it would be nice to believe we could get that much but I do think that is unlikely.

don't suppose anyone can think of a way we could market it with this EA for £575k (just in case they can manage it) but avoid negative effect on property image if we have to reduce it later??

robin_banks

Does it have any unusual features making it hard to value?.

pie81

brit1234 wrote: »

Check on the land registry figure for your street. Prices are selling for about 2003-2004 prices. I would be wary about higher than as it may put off portential buyers.

Not in my area (highbury N5) they're not. All my valuations (and recent sale prices for comparable properties) are way higher than 2003-4 prices. Even the lowest are at 2006 levels.

my highest valuation is way above peak (i.e. mid 2007) level. that's partly why I think it's mad!!

pie81

robin_banks wrote: »

Does it have any unusual features making it hard to value?.

nope - there are about 20 similar buildings on my street, many of which have very similar flats inside them, so the EAs will definitely have seen similar properties before.

On the other hand there has been very little on the market in my area recently which may account for the wide variation.

pie81

Emmzi wrote: »

is it worth £150 to you to get a valuation from a surveyor?

that's an interesting thought. are surveyors valuations more reliable than EA valuations? I had thought they mainly just went with what the mortgage co wanted them to say ... ??