Do estate agents over-value?

Hutch100uk

I've been renting my house for a year and a half now and now looking to buy. The landord wants to sell my house and I have enquired about buying it.

She has been reluctant as had problems with a previous tenant who wanted to buy it but she eventually agreed to have it valued. Its hard to compare against similar houses in the area as none have sold or been on the market in the last couple of years.

Anyway she got 2 agents to value it and they have valued it at about £10k over what I think its worth. It does need some work doing and definitely would need new windows (which will cost).

I tried making an offer but she is having none of it. I do wonder how accurate agents are with their valuations.

Clutterfree

When we put our house on the market we had 2 estate agents come round. Both gave their valuations but told us they'd put it on at £10k over valuation so there was room to negotiate.
We accepted an offer at £10k under the asking price so they were spot on.

Mr.Generous

agents will do what they think the client wants, if you have no idea they will value slightly lower and stress that this will get a quick sale. If they get the vibe you think its worth say £200k and they think £180 they will chat about local market and similar property sales and offer an opinion on a value rather than just say it and upset you.

From the agents point of view they want the property on the books, once that's done they can just let it sit there then suggest you drop the price if no interest.

The agents frequently have told us what kind of price they believe the vendor will accept when we look at houses, you would think their job was to represent them and get the best price, in reality they want a sale far more than they want you to hold out for a couple of £1000.

So my belief is the agents will have said what they think the vendor wants to hear - within reason. A property is worth what a buyer is prepared to pay, there isn't really a correct answer to whats it worth anyway.

Beckyy

Get your own valuations for comparison?

Are her letting agents taking a % of purchase price for introducing you?

Davesnave

It's not a science, it's an opinion, and many agents will slightly over-value with the intention of flattering the owner to get their business.

Your landlady hasn't tested the market yet. If it were me, and I trusted my own judgement, I'd let her do so. Then, in a month or so, I'd make the same offer again, subject to a time limit.

Hutch100uk

Thanks for the replies. The house was valued at £209,495 but the agents had said they expect it to reach anything from £200k to £210k. I don't think its worth any more than £200k (with the research I;ve done, and knowing what needs doing to the house). I offered her £198k stressing she wouldn't have agent fees and would have our rental income through to sale.

It would appear she expects a fair bit more than that!

Hutch100uk

Beckyy wrote: »

Get your own valuations for comparison?

Are her letting agents taking a % of purchase price for introducing you?

I don't think that would matter - she has clearly been hooked in by the thought of £210k so if I get it valued at less, I doubt she will changer her mind.

What do you mean about 'introducing me'?

walwyn1978

My experience of selling was that some agents were keen to go high, but then quick to suggest a price drop if no offers were forthcoming.

If they've told her its worth 210k and she's bought into it, you may struggle.

eddddy

Hutch100uk wrote: »

What do you mean about 'introducing me'?

Did you find the house (for renting) through a letting agent, or was it advertised direct by the LL?

If you found it via a letting agent, the LL will almost certainly have to pay the letting agent a fee if you now buy the house.

Hutch100uk

eddddy wrote: »

Did you find the house (for renting) through a letting agent, or was it advertised direct by the LL?

If you found it via a letting agent, the LL will almost certainly have to pay the letting agent a fee if you now buy the house.

Yes we used a letting agent to rent the house. I imagine the LL will be using the same agent to sell.

I didn't know that. You would have thought that was another reason to accept my offer before selling through an agent. She probably doesn't know that.

Cakeguts

Hutch100uk wrote: »

Thanks for the replies. The house was valued at £209,495 but the agents had said they expect it to reach anything from £200k to £210k. I don't think its worth any more than £200k (with the research I;ve done, and knowing what needs doing to the house). I offered her £198k stressing she wouldn't have agent fees and would have our rental income through to sale.

It would appear she expects a fair bit more than that!

She will have agents fees. It is usually in the contract to let that if you sell the house to the tenant you have to pay the letting agent for the sale. So she won't be saving any agents fees by selling to you.

If you buy this house you will know what you are buying because you have lived there so no nasty surprises. This might make it worth a bit more to you?