Glasgow: does home report valuation set the max you would ever get for your home?

ellie27

Surveyor out this morning to carry out the home report.

I had my solicitor arrange the surveyor to come.

My solicitor had asked me last week if we know any sold prices etc and I told him my neighbour, exact house, sold for x and his home report valuation was y.

Today, I asked the surveyor his valuation and he mentioned the same y (did he just say that same value y as its the value I told my solicitor?)

Anyway its not a bad value but its the least I would hope to actually sell for! Our house has a bigger garden and the garden is not overlooked like my neighbours. He sold in February this year and I read house prices in Glasgow have rose by 5% in last 3 months (according to GSPC)

Does that y valuation set the max I could get? I was thinking of marketing at 'offers over y' (ok £1 under the y value!)

Would anyone ever pay more than the home report valuation? I dont mean loads more I simply mean for example £2k over! perhaps there are a few notes of interest/offers/ etc

In February my neighbour accepted first offer of 2K under the home report valuation, 6 days after home going on market. He had a deposit down and moved out within 4 weeks.

Thanks for looking!

googler

Your buyer's lender will lend to the agreed selling price, or the HR valuation, whichever is lower.

If you get a buyer who has extra cash in hand, who can put this extra cash into the deal in order to provide more than the deposit required by the lender, you might be able to get over the HR valuation.

Buyers who can only scrape together the deposit required by their lender won't be able to offer more.

The extent of the demand for your property may be an influence, subject to the above.

beecher2

If you go go closing date, then maybe - I think we got £1,666 over valuation which was a bit random.

are you going with an EA? Normally they'd give you advice on what to market it at. We put ours at offers over a figure with was 5% less than valuation, as advised by EA who knew the local market (not Glasgow I should add)

ellie27

We are going with an online EA based in Glasgow, ScotHouseMove.

They are coming out tomorrow to take pics are get the ad sorted for marketing.

My neighbour sold in Feb, he advertised at Fixed Price which was £1 below home report valuation. He sold for 2K below the home report valuation, sold within 8 days accepted first offer.

5% below would be too low to advertise for us, our valuation is only £160,000. 3 identical houses have sold in last 6 months all at £156-£158k.

davidmcn

Depends on the market for your area/type of property, in popular areas some can go for 10-15% above the HR value.

googler

ellie27 wrote: »

5% below would be too low to advertise for us, our valuation is only £160,000. 3 identical houses have sold in last 6 months all at £156-£158k.

Is there any convincing reason why yours should sell for more than they did?

ellie27

googler wrote: »

Is there any convincing reason why yours should sell for more than they did?

If they were all for sale at the same time, ours would sell for more/sell first as it has bigger garden and is not overlooked at the back. Of course its only mine up for sale so the we will get simply what someone is willing to pay for it. Other ones that sold had small garden, overlooked by an old building out the back. Also 2 that sold, did accept first offer as they had deposits down already for a new purchase. They were early Feb, I heard today that house prices rose approx 5% in last 3 months.

So, I am hoping for the £158,000 minimum.

googler

ellie27 wrote: »

I heard today that house prices rose approx 5% in last 3 months.

In which area(s)? It's perfectly possible to have an average rise of 5% over (say) Glasgow City or Strathclyde generally, with prices in your area not going up..... if half the houses go up by 10%, the other half stay static, that's a 5% rise - on average.

BigAunty

Are you aware that if it doesn't sell and the Home Report lapses, the surveyor may then mark down the valuation on the new HR on the grounds that it failed to sell at that valuation and was therefore optimistically priced? I don't know if this requries the vendor to have pulled it off the market and then returned a period later or if it applies to the first rolling refresh that a lender may demand to support a mortgage application.

It wasn't a practice that I was previously aware of but an estate agent informed me about this recently and a friend confirmed that after failing to sell her flat in Paisley over the past year or two, each new HR lopped the valuation.

EDIT - by the way, some buyers see the 'offers over' price and believe it operates like an asking price, offers in the region of, minimum that the seller is prepared to accept and won't even look at the home report valuation. You may find sellers will make an offer on or fractionally over the 'offers over' sum, treating it like it's fixed price, and this may not necessarily be anywhere near the valuation which they regard as a fantasy figure.

ellie27

googler wrote: »

In which area(s)? It's perfectly possible to have an average rise of 5% over (say) Glasgow City or Strathclyde generally, with prices in your area not going up..... if half the houses go up by 10%, the other half stay static, that's a 5% rise - on average.

Yes, I am a maths teacher I know how averages work! :beer:

Thanks for all your advice/comments you have been very helpful!

ellie27

BigAunty wrote: »

Are you aware that if it doesn't sell and the Home Report lapses, the surveyor may then mark down the valuation on the new HR on the grounds that it failed to sell at that valuation and was therefore optimistically priced? .

Didnt know about that! I would be hoping to sell in the first 12 weeks, infact I am hoping to come on here within 2 weeks saying I have sold! Other half is not so optimistic about anything!!