Estate Agent under valued property? HELP!!

airhostess

Please please help! I put flat on the market with a local agent. It has had loads of work done, new kitchen, new bathroom, is immaculate etc, & comparing it to what is already available in the town, I guessed it would be valued at £134,995 or in the region of. Estate agent came round, uhmmed and ahhed, said how lovely it was then shocked me by saying he thought I should put it on for £120,000, as anything over £125k would attract 1% stamp duty. I suggested that I wouldn't mind paying the stamp duty on behalf of my purchaser if I could acheive a higher asking price, which he dismissed.

I was taken aback but took his professional opinion on board and we settled on £124,995. I made it clear that I was not in a hurry to sell and would hold out for the asking price. Anyway, the day after the property goes on the market, I did a viewing and the girl loved the property and immediately puts in an offer of £123,00 which I rejected. The agents seemed angry and pressurised me to accept. I said I wouldn't, and that I didn't have much faith in their valuations. I said that I would like to market the property myself as I didn't have much faith in their valuations, etc, and they said fine, go ahead.

Anyway, today they call me saying that the girl will most likely up her offer to the full asking price. I'm a bit worried by this, as I really feel that I could have acheived more, but was put off by the agent. If she does come back with the full asking price, can I really say no? The agents would be furious, but can I get them to market my property for more? I do feel dreadful for the poor girl, but I feel the agents just want to make a quick buck and they aren't in the least interested in getting the best price for my property whatsoever. What can I do?? I'd really like a chance to market the property my way as I'm certain I can get £134,995 for it, especially if I offer to pay the stamp duty as an incentive. Please help, I'm scared to answer my phone!!

Richard_Webster

Did you only get ONE estate agent round to give you a price? Always worth getting a few round and asking things like whether the SDLT threshold will make a difference - see what they say.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients

Melissa177

You were wrong to be pressurised by your EA. I am very sympathetic.

I think offering to pay SD is a great idea if you want to put it on the market above 125K. Good marketing technique.

I have no idea with what the house is worth, but if you're unhappy with the EA, ask them to stop marketing it at present. It is your right to withdraw it from the market. Check out your contract with the EA, perhaps ask another couple of EAs with local knowledge to value it. If you're not in a hurry to sell, maybe switch EAs if your contract lets you?

lush_walrus

What makes you think you can get more? My guess is you have either seen other properties in the area similiar to yours for that price or had other EAs value it higer, if either is the case and yours truely is in top condition, then ask the EAs to put it up for more. You can ask an EA to market a property at any price you wish, their valuation is just that, their estimate. If you feel you can get more, then just tell them that you want to try it for a while at x price.

I am not saying it's the case with you at all, but you would be surprised at how many people think that their property is worth top money and anything they buy is worth peanuts, it's just human nature.

Melissa177

One other watch-out is that location determines the selling price, not the interior.

I looked around a flat before Christmas in the most horrible 60s housing block. Some of the windows at the flats were cracked, and the stairwell smelt, but the flat I went to see was done up to the nines. It looked great inside.

However, it was worth very little more than the one next door in my eyes, and in an EA's eyes, because it was still in a horrible 60s block.

This is an extreme example, I know, but you can't make a house more than it is necessarily by adding a top-spec interior.

cattie

The other thing to remember is just because you may have seen a similar property marketed at a higher price than the ea valued yours, it doesn't mean it achieved that price.

I noticed a house up for sale in my road at at least £25000 more than all the similar houses that have recently sold in this road. It finally has a sold board up now, but I'm willing to bet good money that it didn't achieve the very ambitious price they were hoping for.

mrsc_4

As the others above said if you haven't already get a couple more EA's in, you can always withdraw your property from the market. Also you can (within reason and using the valuations you have) put your property on the market for what ever proce you think.

The EA we sold with valued our flat at 7k under what it went on the market at which was £114,500 but said he'd be happy if we achived 110K (well course he would it would be more comission for him) 110K was the minimum we'd accept and that is finally what we sold if for as well.

airhostess

Thank you so so much for your replies. All very valid points. I only had the one EA look around, v stupid I know, but lesson learnt.
I got a rough idea of prices by looking on Rightmove sold prices and also what was available on Rightmove at the current time, so I did look at selling prices actually acheived as well as asking prices. A new block of flats built recently in exactly the same style as my block (which is 17 yrs old) are selling for £150,000, even though the interiors are smaller (though they have got the novelty of being brand new). My apartment block is lovely, great management company that employs a regular gardener, cleaner & window cleaner to make it look great (I'm a director of the management company so I keep them on their toes with regard to the upkeep) so it really isn't a case of fab interior, gastly building as Melissa 117 mentioned - (I know exactly what you mean, I viewed such properties when buying and felt so sorry for the owners.)

Going to check the contract now, and get them to either market it for £13,995 with me paying the stamp duty, and if they don't like it, get them to take it off the market. Will read through the small print now, it's not easy though as there are SO many dreadful spelling mistakes I can hardly make sense of it at all... I feel so daft!!! And what do I say to them with regards to the potential buyer? I feel it's so unfair to her to be mucked around like this. The agents can hardly tell her that the property she's interested in has jumped up £10k can they??

davebelushi

airhostess wrote: »

market it for £13,995 with me paying the stamp duty

deal, i'll buy it for that

Rick62

I would check actual sold prices on sites such as nethouseprices.com or houseprices.co.uk and get 2 more agents round straight away. If you then think that £125k is too low then just go back to the first EA and say 'based on actual sold prices and other professional advice you undervalued the property', and have them explain clearly to the potential buyer (or much better do it directly yourself if you can).

I can't believe that stamp duty at only the 1% level would make any real difference, it makes a difference at £250k when it jumps from £2500 to £7500.

Melissa177

When you're a cash strapped FTB, every penny counts!!

Some people have scraped enough together to only put down a 5K deposit, so 1.25K can make a big difference.


Good luck Airhostess.