Offers under overs over

54druids

My house valuation on my home report was £345k(Scotland). The estate agent suggested we put it on at offer over £320k. We live in a street that has always sold well. The last 3 properties to sell sold for 13k over valuation and 1 went 5k under the valuation and another 1k under valuation. We had concerns on essentially what we thought was putting it on for 20k cheaper as we suspected that people would just come and offer under the offers over price however the estate agent persuaded us otherwise. 8 months down the line we have had 9 viewings and 5 offers and with the exception of 1, all the others where as we predicted, coming in and 30k plus under the valuation price, the viewers had the funding but weren't prepared to go higher. The estate agent suggests we go to fixed price of £327 and that fixed price means fixed price but to me that is mad as people will just come in at the same levels again or maybe worse. However we are stuck now as if we put it on at fixed prices anything over £325 then Zoopla will make it look like we have put the price up. Any suggestions?

yoyoegg

Accept that the Home Report value was optimistic?

TBH, in the current market peeps would be delighted with 5 offers. The market is telling you what the true value is...

more_money_for_me

You've had plenty of viewings, and people have put offers in. What those people have agreed on though is that non of the 5 thought it was worth your original asking price. I am assuming they have bought other places as they haven't come back to up their offers. You may well get someone who falls in love with the house and simply has to have it at any cost, but the last 5 haven't. I wonder if what you are hoping for is realistic?

richardw

How many have sold for more than £315k?

It's not long to Easter, can you wait a bit?

myhouse_2

The house I bought recently was on the market for nearly two years and I bought it for 20% under the home report valuation. I felt the valuation was absurd. You should compare to recent (not years ago) sales data and respect the fact that the market is not what it used to be. As a buyer I had little faith in the home report valuations - they seemed consistently too high.

54druids

There are 3 houses in the street sold recently, 1 of which went for £325 and they are all much smaller than mine. The other problem I think its that because of sites like Zoopla every one thinks they are an estate agent (hands up I am guilty too) but what is not taken into consideration is the changes you make to the house or the fact that there are different size houses in an estate setting. We must have made around 50k worth of alterations to the house since we moved in 3 years ago and we bought it at 322.500 so to settle for an offer under the offers over prices would I think be unrealistic. I am not expecting to achieve 345 and we accepted an offer of 330 at Christmas but they pulled out at the last minute. I know 2 of the other people who put in offers have now bought houses around 350k, so the money was there they just didn't think my house was worth paying out for. The estate agent keeps saying there is nothing wrong with my house and that there is a shortage of committed buyers!! However there must be something stopping people buying or seeing the value of my house, either that or it is the negotiating skills of the estate agent.

yoyoegg

there must be something stopping people buying or seeing the value of my house

Post the link here and peeps will offer feedback.

richardw

People aren't really that objective.

StrawberryTwist

54druids wrote: »

The other problem I think its that because of sites like Zoopla every one thinks they are an estate agent (hands up I am guilty too) but what is not taken into consideration is the changes you make to the house or the fact that there are different size houses in an estate setting.

I am a FTB and I often come across sellers wanting a price for their house because of work they may have done on it. A new kitchen, wooden floors or a new bathroom maybe when in reality for me personally this doesn't mean anything price wise as far as I am concerned. I may still want to come in and change the kitchen, bathroom and flooring etc to my taste, even if your new kitchen set you back a bomb. I look past all of the bling and 'prettys' and instead try to value what the house is worth given the current market in that area.

This is just my opinion and I may be doing it all wrong lol I just wanted to give you the point of view of someone who is very new to this and just started looking.

We saw a lovely house but the vendors wanted over 15K more then any house had sold EVER in that area because they had put decking in the garden and its 'fabulous' in the summer. I can't stand decking! I have dogs! So I am not going to foot the bill for their previous fabulous summers as well as foot the bill for getting it all ripped out

Good luck with everything! I don't think we will ever move when we finally buy, seeing what the poor sellers go through fills me with dread at the thought!

googler

Unfortunately, the general public sees the asking price as something to be negotiated against, not the HR valuation.

With the vast majority of houses for sale pitched at or around the HR valuation, you're in a minority putting yours on at Offers Over. With an HR valuation of £345k, I'd be inclined to have put it on at £340 - 345k, either at Fixed Price, or Offers in Region of.

Even at Offers Over pricing, as you've found out to your cost, houses still sell for below the asking price ... even if you put it on at Fixed Price, buyers will negotiate against that fixed price. If they see something in the press saying 'houses are selling for 5% below their asking prices, they'll offer you the fixed price less 5% or more ...

Welcome to the world of Market Forces.

54druids

Thanks for all your comments. Googler yours is a name I remember from selling my last house so nice to speak to you again. Unfortunately we listened to the estate agent re the marketing technique but now we have no where to go with the price except stick with what we have and keep our fingers crossed and hope that the press report a rise in house prices. Yoyoegg I don't think I allowed to post a link am I?