House Valuation

MrsGizzard

Our house (that we are selling), has just come 10K short in its valuation (£295K). It’s in central Grantham, Lincolnshire. It’s a lovely, large Victorian Terrace, and extremely well located. There’s a real lack of decent houses for sale. So ours sold for full asking price (£305K). But it was reduced by us from the estate agents valuation of £315K, before it was marketed, (I felt he over-estimated). The online guy recommended £325K!!!

Is this the new normal? Over-valuations are 30K shy of the mark for online EAs and 20K for local EAs? The reason I ask is that I know my local town and property market pretty well, and everything is horrendously overpriced.

We can’t get any traction to explain why our offers on houses are conservative. Just grumpy sellers mystified as to why their houses are languishing on the market, whose sales keep falling through, in our price bracket. Their attitude is that they don’t have to shift on price because our valuation is less. Our buyers were chain free renters who had sold their house. It should be a gift. But no one cares about chain free buyers and no one wants to budge on price.

Anyway, would you just give up and not bother selling on this market until some realism has reestablished itself? I don’t mind moving down in price too much, but only if I can still find an equivalent, (with fewer floors) house for a realistic price. People don’t move to Grantham for pricey houses. And clearly lenders don’t lend money on overpriced properties.

What to do? They were the first people to look at it. They offered full price to take it off the market straight away. If they’re not prepared/can’t afford to pay more, and we can’t find anywhere we like, is there any point to selling it at all, least if all for 20K below the valuation?

Crashy_Time

Is it 10k or 20k below the valuation?

Asl77c

If you think their price is going to be down valued at mortgage valuation why dont you just offer it and then go with it, if you are that certain of your knowledge of your local property market then surely theirs will also be down valued. Or it could just be that theirs won't be and yours is because your house is just overvalued before. Just because your property has been down valued doesn't mean theirs in turn will be by your mortgage valuation. One house is always different to the next. Equally these houses 'languishing' on the market may just be people who will move as soon as the right price comes in, and until then they will sit tight. They too could feel they have knowledge of the area and feel you are trying to take them for a ride with your conservative offers.

kinger101

You're posting various figures, but agents generally overvalue. And online agents have poor local knowledge so overvalue more-so.

The bank's valuation would have been based the sold prices of similar properties in the same area......you can find the same sold prices on RM or the land registry.

If a house has been on the market for months without a reduction in asking price, you're wasting your time viewing it. You've just got to find people motivated to sell. Look at new instructions, and ask why they are moving when you view.

Gwendo40

Welcome to a property market that's largely made up of greedy, stubborn, deluded vendors with unrealistic, kite flying asking prices.

Hence why over half the houses brought to market subsequently get withdrawn after failing to achieve a successful sale.

MrsGizzard

Thanks guys. !!!10084;!!!65039;

MrsGizzard

Sorry it was £20K total below valuation, but we took off £10K to make it competitive, and detract from the fact that the hens ripped up the garden.

Crashy_Time

http://www.rics.org/uk/news/news-insight/press-releases/further-fall-in-housing-stock-as-demand-also-falls-for-eleventh-month/