Home report valuations - reliable??

The_JinJ

After looking at some home report valuations and researching previously paid prices it seems that the valuations are on the high side.

I'm looking at a property on the market for offers over £225k (Scotland) - home report valuation is £245k - agents suggests seller is looking for full amount.
Current owner bought it for £247k in 2008.

Using http://www.propertypriceadvice.co.uk/ as an example I entered all the relevant details and it came back with the following:
Average Valuation: £215,000.00
Upper Valuation: £245,000.00
Lower Valuation: £180,000.00
I would think the average valuation is more realistic with properties selling but selling slowly. Fits with other properties sold in same street.

So it seems that the top valuation in the home report is making the seller expect top whack and offers over isn't helping.

Are the high home report valuations causing sellers to expect too high a price (even trying to recoup the price they paid in different times) and resulting in properties staying on the market too long?

For the record I offered £227750 and it was flat refused....

cassidy0111

The_JinJ wrote: »

After looking at some home report valuations and researching previously paid prices it seems that the valuations are on the high side.

I'm looking at a property on the market for offers over £225k (Scotland) - home report valuation is £245k - agents suggests seller is looking for full amount.
Current owner bought it for £247k in 2008.

Using http://www.propertypriceadvice.co.uk/ as an example I entered all the relevant details and it came back with the following:
Average Valuation: £215,000.00
Upper Valuation: £245,000.00
Lower Valuation: £180,000.00
I would think the average valuation is more realistic with properties selling but selling slowly. Fits with other properties sold in same street.

So it seems that the top valuation in the home report is making the seller expect top whack and offers over isn't helping.

Are the high home report valuations causing sellers to expect too high a price (even trying to recoup the price they paid in different times) and resulting in properties staying on the market too long?

For the record I offered £227750 and it was flat refused....

Rightmove and GSPC etc are full of properties at a discount to their Home Report price. However it is hard to tell without specifics. Gut instinct.... do not pay top whack in this market unless you are very sure.

G_M

The_JinJ wrote: »

After looking at some home report valuations and researching previously paid prices it seems that the valuations are on the high side.

I'm looking at a property on the market for offers over £225k (Scotland) - home report valuation is £245k - agents suggests seller is looking for full amount.
Current owner bought it for £247k in 2008.

Using http://www.propertypriceadvice.co.uk/ as an example I entered all the relevant details and it came back with the following:
Average Valuation: £215,000.00
Upper Valuation: £245,000.00
Lower Valuation: £180,000.00
I would think the average valuation is more realistic with properties selling but selling slowly. Fits with other properties sold in same street.

So it seems that the top valuation in the home report is making the seller expect top whack and offers over isn't helping.

Are the high home report valuations causing sellers to expect too high a price (even trying to recoup the price they paid in different times) and resulting in properties staying on the market too long?

For the record I offered £227750 and it was flat refused....

Meaningless! If all the houses in the street except two are 4 bed detached, the average valuation will reflect that and be close to the upper valuation. The two that are 2 be semis will both be at the lower valuation.

You can't just expect a property to be worth the average, without analysing the property and those it's being compared with.

Additionally, you need to look at sold prices. AND bear in mind that the valuation process is a mixture of science, maths, surveying, and art! There's subjectivity in there.

As for what the previous owners paid for it - that is totally irrelevant! Market values change, they may have 'done it up' since then, they may have been willing to pay over the odds cos they loved it. They may have got a bargain as the sellers were leaving the country in 1 more week and were desperate...............

googler

If it's been on the market for more than 12 weeks, then if an offer gets accepted, the buyer's lender will typically call for a refresh of the HR valuation, and it's likely to drop.

Unless you can put more into the deposit than the minimum required by your lender, the valuation in the HR will form a ceiling on what you can borrow.

All talk of average prices is meaningless.

They want £245k. You offered £227.75k which wasn't accepted. Unless there's a positive indication that someone else is interested in offering, you now negotiate. If you're willing to pay more, you offer more - your solicitor may do this verbally rather than sending a written offer every time - by degrees until either they accept or you reach your limit.

They should be glad you're offering over their asking price, because there's many folk out there who have had to accept less than their Offers Over price.....

My gut reaction tells me that if they bought in 2008 for £247k, they're
looking at less than £240k today. I'd guess you could find a middle ground around £235k or so.....