Wildly different valuations

garbadine

We've had 2 EAs round today to give us a valuation on our house, and had two wildly different valuations! The first got us very excited by saying they'd put it on at £172,000, and the second then told us he'd put it on at £155,000

I had made the mistake over the phone of telling the second agent what we thought the house might be worth (£150k), so am not sure if this would have affected how he valued the house. But then the first agent could have been giving us a high figure to get our business.....

We are getting another couple of valuations, so hopefully this may clear it up a bit. However, any insight into the workings of an estate agent's mind in the meantime would be very welcome!!

BTman

The one who valued it at the higherprice was more desperate for your business...

Jorgan_2

Some agents tell you what they think you want to hear, others will tell you the truth. Did any of them use any comparables of recent sales to justify their valuation?

ginger_nuts

I know one EA that under values just to get people bidding against each other .

Whits

We've just sold our house for £112,500 (including my 7'x7' shed:mad: ).

The only comparison property is 2 doors away and sold for £99,500.

The only differences are that ours has a conservatory and is recently decorated - new kitchen and bathroom. And my shed of course:D

We got 3 agents to value it and got numbers between £100k and £125k.

We took the middle one at £115k as we were advised by my OH's sister (estate agency manager). When we put it on the market with our crappy stairway and landing, people said it needed too much work. We decorated it for the cost of £85 and a bacon butty for my mate (carpet fitter) and sold it to FTB's.

Now, if only we can find something we want to buy:rolleyes:

garbadine

Thanks for all your help.

BTMan - that was my initial thought!

Jorgan - the agent who gave the high valuation did show us some comparables. She showed us one house (amongst about 7 she showed) that was most similar to ours, but with an extension, which was on for about £3k more than she suggested for ours - however, I assume it's not sold as yet (she pointed out she can't show us details of houses that are completed), so there's no guarantee that it'll go for that price...

I'm just concerned that as I'd given a ball-park figure of what we thought the house may be worth (£150k) to the second agent, he only went slightly above that figure as he knows it'll be an easy sale if the price is low. I'm not going to mention what we think the house is worth to any other agents anyway!

We've got another agent round tomorrow, so hopefully that'll clarify things a little (or perhaps confuse us even more!)

Whits - it's comforting to know that other people have had similiarly assorted valuations!

Thanks again for all your help anyway.

RHemmings

The problem you have with wildly different valuations is that at least one of the valuations is way off. And that means that one of the agents is either dishonest and/or incompetent. Do you really want such a person acting as your agent?

BargainJunky

Some agents overprice just to get your business - usually best to go with one in the middle or get the overpriced one to price it lower.

Sold a flat in December - valued at £125,000 initially sold for asking price until buyer changed his mind (wife didnt want to invest), valued again at £140,000 by another agent (not a hope at getting this) didnt sell so put on with third agent and got £132,000 which was more than it was worth.

garbadine

Thanks RHemmings and BargainJunky - I obviously don't want someone who's dishonest and/or incompetent as my agent, but it's tricky to distinguish whose valuations are the most accurate!

Just had EA no.3 round - he said that the price we put it on at depended on what tactics we wanted to use: either put it on at a higher price, and expect to accept an offer slightly lower than that; or put it on at a competitive price, get loads of people through the door and a few putting offers in, then play them off against each other - so could conceivably drive the price over the asking price.

He thought £176k would be absolute top-end, which would risk not as much interest, and that £158k would be bottom end, which would result in lots of viewings. He thought £165k would be an achievable price - so pretty much in the middle of the other 2. I'm inclined now to think that the 2nd agent was undervaluing to get a quick sale (and also he knew we were expecting around £150k before we saw these agents).

So... am now fairly confused! I'm thinking that perhaps we should put the house on at £169k and see how the interest is, on the basis that we're not in a desparate hurry to sell, so could always wait a couple of weeks and drop the price if necessary.

Raggie

Garbadine.. may I ask . .how much do you want for it?

Irespective of what EA's say you will have a figure that you need to acheive.... to do whatever with the funds that you are planning..

if you wish to "cash out".. then go high and wait..

If you need to move then go low.. and get the bidding going..

Ultimatley though I am sure there is a figure you want.. and a figure that a buyer will pay..

when these two match = happines..

so I would market at that figure + 5%

garbadine

I think we'd be reasonably happy with £160k - obviously anything above that is a bonus!