Do estate agents value at what they think you want?

sarah_elton

BrixMorta wrote: »

Unfortunately people are very sensitive when it comes to the value of their biggest asset. If you (the EA) give a well researched opinion, based on good comparable evidence and this figure is below their expectations, then you may as well close your clipboard and leave the moment the expression on their face changes. The negative vibe in the air will swallow you up. Nothing you do from there on in will salvage things for you. On the whole people need their ego’s massaged and EA’s are therefore guilty of playing the system in order to stand a better chance of winning the instruction. It’s a sad indictment, but that’s life.

My brother is an EA and refuses to take houses when the vendor insists on a ridiculous price. He had a woman who'd done up her 3-bed house, and insisted it was worth over £350k, despite the fact that 3-beds in the street were selling for around £250k and 4-beds for £280-290k. He told her as much in no uncertain terms, and she got so wound up she cried when he said there was no point continuing the meeting.

On the other hand, every time a house sells within a day he gets s**t from vendors who claim he must have under-valued it. :rotfl:

avondale

I decided to have our house valued in south croydon recently. One estate agent valued ours at 230 thousand, the next at 260, but stated because of the rise in stamp duty 245 would be the better option. I thought about this and this amused me some what as the 1st ea had obviously done no research as our immediate neighbours whose place is smaller went for 237 in sept 06. So with the so called housing boom i couldnt work out the 1st valuation. Now my thoughts are the property is only worth as much as somebody is willing to pay for it as a previous poster has stated.
My friend who lives not far away has his place up for sale and not wanting to sound !!!!!y but the valuation of it is ridiculousy overpriced and when looking at similar type properties it's never going to sell. Now surely EA's have a professional duty of care as in terms of valuing property, as somebody has already stated it seems they are more interested in getting you on the books by agreeing to a price with the seller which they the EA must know they are never going to get. With interest rates currently climbing surely the buyer will want more for there money.

wecanhelpu

Remember, agents require no qualifications or particular skills. They are in no better position to "value" a property than you or I.

Their valuations are based on little more than what similar houses on a road/street/area have recently sold for.

In a fast moving, rising market they take this figure and add on a bit more.

In a fast moving, rising market surveyors/valuers working for a bank do the same.

Fast moving, rising markets are only possible because of banks lending ever larger amounts of money.

Slow moving, falling markets happen when banks start to tighten up on their lending criteria.

When this happens, all that is needed is one forced sale at a lower price and every house in the street/road/area is now only worth the lower amount.

Would you pay, say, 200k for a semi when the identical one next door sold for 160k a month earlier?

ginger_nuts

if there are 6 apartments up for sale in the same complex buyers will be scared .
Assuming they are all asking £145,000 and your bf doesnt want to drop the price ,perhaps he could offer to pay the 1% stamp duty .

TANZA_2

That's a great idea especially as the mortgage rate has just gone up and I'm sure everything will be hard to sell now except for London and commuter areas. I don't know if it's just that everything is slow or just flats. We are in a village and flats are quite unusual and this one would only appeal probably to young people as there is no lift.

Doozergirl

Stamp Duty would be £1450. With only three viewings so far, you're ulikely to have them queueing with an offer like that

ginger_nuts

Doozergirl wrote: »

Stamp Duty would be £1450. With only three viewings so far, you're ulikely to have them queueing with an offer like that

true ,but if there are 6 flats up for sale and 1 is offering to pay the stamp duty I would think it may sell first .

Running_Horse

Our (excellent) estate agent suggested a price band that matched our expectations, based on what other houses had sold for. We went for the middle valuation because we wanted a good price, but also a quick sale. Ultimately you employ them to follow your instructions.