realistic selling price?

pinkshoes

Lots of people offer less because everyone tells them to offer 20% less, not because they've actually done their homework.

Mine was on at £200k, lots of first offers starting at £190k, and sold at £205k.

Clearly a first offer is going to be low, as it would be madness to offer your top price!! It just depends on how much a person wants a place, vs how urgently they need to move, vs their budget!

A friend who has sold many properties found that those that offer low and don't up their offer much are usually at the top of their budget already, and are generally the ones who end up messing her about due to mortgage issues, or quibbling over tiny things coming up on surveys.

split_second

when they got this offer they said it wasnt realistic and have gone on holiday, given the agent the mobile number and a spare key with me going back every day too. they have a viewing while away too

Beckyy

Most people will try and come in lower, you just need to judge whether you can afford to decline the offer and wait for a better one.

Do you have a rightmove link for the property so that we can give you a better idea of what we would be willing to pay for it?

split_second

there is a rightmove link but for the sake of my anonimity (what is left of it with 2500 posts and having been on an mse meet) i would rather not post it on the main forum.

HAMISH_MCTAVISH

townendwig wrote: »

Hi geoff, I don't recognise the 16% figure... do you know which sold prices index is this taken from?

Using nationwide sold prices vs rightmove initial asking prices for March data 163,327 vs 236,939 = 31% reduction!

which would suggest a figure of £115,000 is a fair price :eek:

cheers
Wig

OK, let's clear this up.

One of the biggest myths on the various house price discussion boards is that there is a large 20% to 30% "gap" between average asking prices as measured by Rightmove, and average selling prices, as they mistakenly think Halifax/Nationwide measure an average of actual sold prices.

Whereas the reality is that this is absolute nonsense, and the indices are just measuring totally different things.

Rightmove is a simple average of the asking price of all properties listed. It's usually in the 200K plus range.

Halifax and Nationwide are measuring something entirely different.

They don't measure average sold prices at all, but rather they derive an average price of the "typical 3 bedroom house" via a hedonic regression methodology. Which is usually in the 160K range these days.

The gap between the two is irrelevant. It's the gap between apples and oranges.

There is only one index which lists the gap between average asking price and average selling price.... Hometrack.

Which currently shows that gap is 8% on average.

HAMISH_MCTAVISH

go_cat wrote: »

What are the Sold prices nearby that is what you should base your decision on not selling prices

Indeed.

Forget the indices. Compare recent actual sold prices of comparable houses. Doesn't have to be the same street. Anything reasonably close by will give a good picture.

brit1234

Average Asking Price = £240k
Average Selling Price = £160k

There have been lots of reports why estate agents over value, principally to get more business and haggle the price down latter. Now even estate agents are openly admitting the over value.

Four in ten agents say one-third of their homes are over-priced
http://www.estateagenttoday.co.uk/news_features/Four-in-ten-agents-say-one-third-of-their-homes-is-over-priced

Hamish is right on one thing though and that is to check the sold prices, asking prices at the moment are meaningless.

girl_withno_name

brit1234 wrote: »

Average Asking Price = £240k
Average Selling Price = £160k

I think the main point for the OP here though is that these are averages and won't necessarily represent the situation for this particular property...

justjohn

You have to value based on Area,Sold prices, market availibility in the area and market movement.

NOT estate agent wishfull thinking/hope, Seller expectation (these 2 are irrelivent)

And as for averages , we are just about to complete on a rics valuation property of £179,000 marketed at £179,000 for £114,000

So go figure.

brit1234

girl_withno_name wrote: »

I think the main point for the OP here though is that these are averages and won't necessarily represent the situation for this particular property...

However it does represent that estate agents are overvaluing to get business and then haggle them down latter once the contract is signed. This practice is widespread and anyone buying should ignore asking prices and look at sold prices only.