Advice please... any recourse?

jeannieb3

Two months ago we put our late Mum's bungalow on the market after getting three valuations.

160,000, 165,0000, & 175,0000
We chose the second one. We had a viewer a fortnight ago who offered 150,000. They had it valued last week at 130,000. Obviously they came back with a revised offer of 140,000.

The valuation was done by the estate agents who had valued it at 175,000 just two months ago!!! A whopping 45,000 less!! At the time he valued it for us he said that with 20,000 spent on it it would make a very nice property, & they were very keen on getting a For Sale board on the main road of the village, as they had not any other properties there.

To say we are disappointed is an understatement. How on earth can this happen, or is it a regular occurrence with "spurned" estate agents?
My sisters have been to the two estate agents this morning & now we are waiting to hear from them, especially the Valuer. But what can be done? We do not want to lose the sale & have it on the market over the winter. The prospective buyer was really enthusiastic until now.

Any advice please?

TrickyDicky101

So has the valuation been performed for mortgage purposes (eg by a qualified surveyor) or have your prospective buyers just asked this other random EA to value the property? If the latter tell your buyers to jog on. They weren't serious in the first place!

jeannieb3

Not for Mortgage purposes. Believe me they were interested!

TrickyDicky101

But not enough to arrange a survey or apply for a mortgage? They weren't serious!

G_M

Nothing you can do. Just keep marketing the property. If these buyers want it, they'll come back. If not, someone else will.

Unless, of course, the property really is over-priced.

princeofpounds

Explain to your buyers that the EA that advised them had a conflict of interest. That they valued at 175k to try to win your business, and then at 130k for the buyers, possibly realistically, possibly to spite you for not working with them.

Say to your buyers that if they liked the property they perhaps should seek alternative opinion on the valuation, simply given what you have just told them, before they give up on the property.

Then get on with your life.

Do it verbally, you don't want a paper trail.

Also note it is very possible that the true value is nearer the 130/40 level than 175; EAs are notorious for ramping prices to win business.

poppysarah

jeannieb3 wrote: »

Two months ago we put our late Mum's bungalow on the market after getting three valuations.

160,000, 165,0000, & 175,0000
We chose the second one. We had a viewer a fortnight ago who offered 150,000. They had it valued last week at 130,000. Obviously they came back with a revised offer of 140,000.
?

They're willing to pay 10k over estimate?

Snap their hands off.

You could wait for more offers but if it's the bargain you think it is why haven't you had more offers?

jeannieb3

TrickyDicky the interested buyers did not need a mortgage., & we agree Poppysarah that they are being more than generous offering above the written valuation they have received. We have no axe to grind with them. However we are truly disgusted by the unprofessional behaviour of the other estate agent. It beggars belief. Whatever the outcome, is there a professional body where we can register a strongly worded complaint, or are they a law unto themselves? They have scupppered a perfectly reasonable offer from a very enthusiastic prospective buyer.

wackorash84

jeannieb3 wrote: »

Two months ago we put our late Mum's bungalow on the market after getting three valuations.

160,000, 165,0000, & 175,0000
We chose the second one. We had a viewer a fortnight ago who offered 150,000. They had it valued last week at 130,000. Obviously they came back with a revised offer of 140,000.

The valuation was done by the estate agents who had valued it at 175,000 just two months ago!!! A whopping 45,000 less!! At the time he valued it for us he said that with 20,000 spent on it it would make a very nice property, & they were very keen on getting a For Sale board on the main road of the village, as they had not any other properties there.

To say we are disappointed is an understatement. How on earth can this happen, or is it a regular occurrence with "spurned" estate agents?
My sisters have been to the two estate agents this morning & now we are waiting to hear from them, especially the Valuer. But what can be done? We do not want to lose the sale & have it on the market over the winter. The prospective buyer was really enthusiastic until now.

Any advice please?

Estate agents are not very good valuers. We've seen 30 properties in the past month and I'm shocked at some of the asking prices. For example:-

We saw 2 properties just one street from the other. Both valued at £200k. The big difference between them two is that one of them had a new boiler, a £15k worth of extension done, modern kitchen and a period fireplace. I'm shocked how can they both be the same asking price.

Anyway, in conclusion, it's the mortgage valuation that a buyer would have to do that you need to trust not an estate agent's valuation.

KateLiana27

The buyers may be very nice people, but they are fools.

No one in their right mind who is BUYING a property would ask the opinion of an estate agent. Particularly a competitor who would presumably want to put buyers off a sale with any other agent.

By all means alert them to the (blindingly obvious) conflict of interest and invite them to seek a qualified independent opinion. Though I'm not sure I'd want to do business with people so utterly stupid.

It may be worth your while paying for such an independent opinion too. EAs do inflate prices to some extent.

DannyboyMidlands

Estate agents over-value in order to win instructions. It's a tactic that worked well during the boom and many know no other way of doing things. However in a falling market it leads to unsold houses and annoyed vendors.