Selling flat in Edinburgh-confused!

pokey128

Hi all
We are hoping to put our flat on the Market in the next few weeks and so have been having 3 estate agents round to value it and discuss strategies etc but they have left me very confused!
2 of the agents gave a very high (IMHO) valuations and the other gave much lower that I thought (the values came in at 260k, 210k and 250k so quite a difference). 2 things confused me though, the 2 higher value agents suggested that if the Hip came in lower that their estimations then the surveyor could be persuaded to increase his valuation, surely that is unfair to buyers and puts the hips as totally worthless for buyers and secondly, all 3 agents suggested a different marketing strategy with one saying put offers over, the other fixed price and the 3rd offers in the region off - can anyone tell me what the benefits/drawbacks of each?

Thanks

myhouse_2

Buyers expect fixed price and then expect to negotiate down on that (in the current market). Offers over is unlikely to be looked on positively by buyers in today's market. OIRO is a valid strategy that in a buyers' market means you expect to sell for less. It also has the benefit of showing that you are negotiable in price, so if you're not negotiable, it's not right for you.
As for the value of the house - agents make this up based on recent sales prices and their strategy for getting you on their books (nice and high so you start to see £££s in your eyes, or nice and low because they want to genuinely sell the property). I'm tempted to say take a price in the middle, but it really depends on the house and the market. Consider both the higher and lower options, how realistic the high prices are and how willing you are for the house to sit on the market a long time.

bris

Depends where in Edinburgh you are, some areas are still commanding a premium as it is not quite as bad as other parts of the country. Not every area is a buyers market so going offers over may be the best advice. Some EA put a low OO price to actract interest.
This homebuyers report is a bad move by the Scottish government because of the very reason you said about EA's getting it valued higher, this is so you can the offer it for sale at a lower value than the report to make it look like the buyer is getting it under value, the very reason a lot of lenders insist on their own report.
The EA that valued it a £210k may be nearer the mark so perhaps go with them and put it at OO £210k, the flat will soon find its value on the open market.

CloudCuckooLand

http://news.scotsman.com/scotland/Edinburgh-sees-house-prices-rise.6748199.jp might be of interest...


"The average price for properties in the city centre was down 11 per cent to £216,908, while the figure for a four-bedroom detached house in the suburbs rose 11.2 per cent to £409,455."

"We had been expecting prices to be pretty much flat over the course of 2010. In fact, they rose during the first six months and then the last six to nine months they have been starting to come back down a bit."

googler

pokey128 wrote: »

We are hoping to put our flat on the Market in the next few weeks and so have been having 3 estate agents round to value it and discuss strategies etc but they have left me very confused!

What was different about their strategies? Not just about their different asking prices, but their marketing strategies?

pokey128 wrote: »

2 of the agents gave a very high (IMHO) valuations and the other gave much lower that I thought (the values came in at 260k, 210k and 250k so quite a difference). 2 things confused me though, the 2 higher value agents suggested that if the Hip came in lower that their estimations then the surveyor could be persuaded to increase his valuation, surely that is unfair to buyers and puts the hips as totally worthless for buyers and secondly, all 3 agents suggested a different marketing strategy with one saying put offers over, the other fixed price and the 3rd offers in the region off - can anyone tell me what the benefits/drawbacks of each?

With a valuation in the HOME REPORT, not a HIP, buyers will only be able to borrow up to that valuation, since the HR will be provided to their lender and the valuation will form the basis for their lending. Unless you're lucky enough to entice a buyer with ready cash to boost their deposit, the HR valuation will effectively be your ceiling price. Given this situation, an Offers Over price is pointless, since any serious buyer will merely look at the HR valuation and offer at that level or below (unless you have a special, unique flat that generates extraordinary demand). Fixed Price at, or Offers in Region of the Home Report valuation has to be the way to go.

If these agents and the surveyor are colluding such that the surveyor is being led by the agents, rather than forming his own judgement, that undermines the whole point of the surveyor providing the valuation. Maybe you should find some more agents to talk to.

There's no point in marketing it at £260k, all that will get is offers below £250k..... look at sold prices on Zoopla and OurProperty to figure out your own valuation. What else is for sale in your street and area? How does it compare to yours?

pokey128

Thanks everyone for the advice!it's a really hard one cause whilst I'm by no means an expert in property prices I have been keeping an eye out for things and reckon we could get 225/230 for our flat wwas thinking of marketing at around that level but because 2 have now said higher than this I just don't know what to do.
It's hard to know what other houses round here are like cause there are so many different types even in one street. Ours is nothing spectacular but all the rooms are really good sizes and it's as central as you can get.

Aargh!

HAMISH_MCTAVISH

pokey128 wrote: »

Ours is nothing spectacular but all the rooms are really good sizes and it's as central as you can get.

Get the home report valuation, that's the first step.

You can't list it for sale anyway until that's done.

So you're putting the cart before the horse.

Get the valuation, then you'll know the price point to market it at.

Mazzawa

Get a Home Report Valuation organised by a good Estate Agent (they tend to use J & E Shephards at the west end). This costs around £100 and will give you the market value, and when you take out a full HR they will deduct the £100 from the cost. We went with Boyds at the West End and they have been fantastic - just look at their schedules to see the quality of their work. We spoke to some others before we went with them and they seemed rather dodgy, adverts littered with spelling errors etc. Not good!!!

As the above post says, Home Report Valuation is the first step through a good EA, then you can decide what to do - we found that the estimates from the EAs we asked were wildly off the HR value, which I think because they are no longer setting the price for properties they have lost touch with the real market values. Or they overestimate to draw you in.

Good luck!