Valuation less than asking price?

brit1234

ukcarper wrote: »

I don't think that information is readily available.

According to zoopla the average drop is 7.2% http://www.easier.com/89178-house-asking-prices-discounted.html

Zoopla is renowned for having the most unrealistic house prices of all the indexs.

Infact any person can change the value of any house in any street. You could rig the whole street down £100k if you had the time.

ukcarper

brit1234 wrote: »

Zoopla is renowned for having the most unrealistic house prices of all the indexs.

Infact any person can change the value of any house in any street. You could rig the whole street down £100k if you had the time.

May be so but can you offer any better figures.

Caveat_Mortgagor

For clarity....................

The Rightmove index is the average price of new listings for that month, it takes no account of subsequent price drops; after the first month, a house has no further impact on the rightmove index. As such it is not specifically an avarage of properties for sale, but gives an indication of the optimism felt by new sellers only!

The 30% differential is the average gap between initial asking price of optimistic sellers and final completion price after 1 or two price reductions and then an offer below the ultimate asking price.

But be careful with stats, as someone pointed out, there is a trick of numbers that skews this, its the same trick that gives the implication of rising prices in a falling market.

Imagine 3 houses sell in May: House 1 for £1m, House 2 for £400k and house 3 for £100k.

The average price of those 3 is £500k.

In the next month, 3 identical houses are for sale, but only the most expensive 2 sell. However they sell for 10% less than the previous month.

Hey presto, despite falling prices, the average price has increased from £500k to £630k despite a 10% drop for each house sold!!

This impact accounts for much of the reason that average national prices have fallen so little since 2008. The fact is that the more expensive houses in the S.E have been less impacted and the weighting of volumes selling each month has skewed towards more expensive property.

My advice is do your own research. Land registry has a great tool to allow you to track prices in your area. Your own area is much more relevant to you than national figures.

FWIW, the figures for discount from final asking price generally floats around depending on whether its a buyers or sellers market. In a buyers market, the average discount from asking price is 12%, in a sellers market this can be as little as 7%.

GDB2222

brit1234 wrote: »

average property asking price is now £238,874 (Rightmove May figures)

average property selling price is now £163,083
(Landregistry, May figures)

Accepting your figures, it only proves that at the moment lots more of the cheaper properties are selling than the more expensive ones.

casper_g

brit1234 wrote: »

Zoopla is renowned for having the most unrealistic house prices of all the indexs.

Infact any person can change the value of any house in any street. You could rig the whole street down £100k if you had the time.

Zoopla's automated guesses at house "valuations" are indeed well known for being a bit "silly" sometimes. But that doesn't mean this statistic is unreliable. The asking prices on their for sale ads are what they are, and the sold prices come from the Land Registry. I assume this is the info they are comparing.