Getting flat valued this weekend - what to expect

MiseryChastain

Hi all,

Happy new year.

I am getting my flat valued by an estate agent this weekend. It is purely out of nosiness / curiosity more than anything. However, I don’t know what to expect and have a few questions. Background is that I bought about 1.5 years ago, it was a new build off plan, zone 2 in London. Really, I just want to know whether I was truly shafted with the new build premium.

1. What will they do at the valuation? Will they take into consideration local amenities and parks, access to tubes and train stations etc?
2. Will I get a ball park figure on the day?
3. Can I manipulate the figure they give by eg not creating a desperate to sell vibe? My narrative is that I am looking to sell towards the end of 2019 when I may be relocating.
4. What is the likelihood of a shocker valuation (ie one which is well below the original purchase price)? What I really care about is that, whilst I know there was a premium on my flat, it could be marketed for at least what I paid for it.
5. Could the following have helped improve the value since I purchased the flat - (1) I painted and decorated the place; (2) they have just opened a Sainsbury’s local underneath the building.

Sorry for all the questions and I imagine most people think it is a bit neurotic to go getting speculative valuations after only a year and a half living somewhere but I think this is the only way I am going to be able to tell whether the premium I paid was significant. Surely it can’t have been too steep if the lender carried out its own valuation at the point of sale and agreed to lend?

Thanks

MC

theartfullodger

You will meet a salesman who wants to sign you up to sell your place with them as sole agent.


You know the old remark about how to tell if they are lying?

davidmcn

MiseryChastain wrote: »

they have just opened a Sainsbury’s local underneath the building.

Mortgage lenders tend not to like commercial properties in the same building, so this is more likely to devalue the property (though may be neutral if there has always been an intention for something similar to be there).

Cakeguts

It can be marketed for any figure you like but if buyers can find something equally good that is cheaper yours will not sell.

Herbalus

I really don't see the point of this exercise. 1.5 years is not a huge amount of time, and you are facing a huge number of variables that may or may not change the price of a flat.

You are essentially getting a sales agent round who will pitch their services to sell and give you a price they would try and sell it for. You worry about the premium when you bought - are you going to worry if the sales agent is an optimistic, or a pessimist, or worried about Brexit, or has a target from their boss to sign up houses, or wants to give you a high valuation so you'll choose the?

You are worried about having paid a premium - in reality does it actually matter if you find out?

Some will give you a price on the day, but you can get 3 estate agents round who will give you prices 10% apart, and it's unlikely that your flat has changed more than 10% in 18 months.

If you want a proper valuation get a RICS surveyor round. But you will have to pay for that one.

lookstraightahead

An estate agent is a sales person whose intention is to get you on their books in order to sell the property so that they can make some money. If they value it too highly, they will probably win your custom (as sellers like to see the £££) but it won't sell, if they value it 'too low' (or more realistically) the seller is put out !

The market fluctuates - you have no way of knowing, nor does anyone else - what house prices are going to do. It's no one else's fault what you bought the flat for.

I would just relax and enjoy your home for the foreseeable - I think house prices will be all over the place for a while.

jonboy321

An estate agent is not going to give you a decent valuation. They will overvalue it with the hopes of signing you and then when it hasn't sold in 4 weeks tell you to cut the price (of course then you'll be in an 18 week contract, and have already negotiated the commission).
Better idea to go onto Zoopla or Rightmove and see what else has sold locally/ in your building.

AdrianC

MiseryChastain wrote: »

Really, I just want to know whether I was truly shafted with the new build premium.

Impossible to say. You're comparing the new-build-price two years ago with the non-new-build value now. The market has changed. Is any change down to "being shafted with the premium", or the market changing?

1. What will they do at the valuation? Will they take into consideration local amenities and parks, access to tubes and train stations etc?

They'll come, they'll look around, and they'll take a view on the property itself, as well as the location. Just like any buyer will when deciding whether to buy...

2. Will I get a ball park figure on the day?

Maybe, maybe not. If not, then soon.

3. Can I manipulate the figure they give by eg not creating a desperate to sell vibe? My narrative is that I am looking to sell towards the end of 2019 when I may be relocating.

Then a valuation now is pointless, except to "interview" agents.

4. What is the likelihood of a shocker valuation (ie one which is well below the original purchase price)? What I really care about is that, whilst I know there was a premium on my flat, it could be marketed for at least what I paid for it.

The only effect, assuming you aren't planning on selling, is that it might make remortgaging harder.

5. Could the following have helped improve the value since I purchased the flat - (1) I painted and decorated the place; (2) they have just opened a Sainsbury’s local underneath the building.

They might, they might not.

but I think this is the only way I am going to be able to tell whether the premium I paid was significant.

No, the only way to tell would have been to compare the new-build price with a non-new-build equivalent at the time. Then you're comparing like-with-like. Now, you're taking at least as much a view of the market changes as a whole.

NaughtiusMaximus

jonboy321 wrote: »

An estate agent is not going to give you a decent valuation. They will overvalue it with the hopes of signing you and then when it hasn't sold in 4 weeks tell you to cut the price (of course then you'll be in an 18 week contract, and have already negotiated the commission).
Better idea to go onto Zoopla or Rightmove and see what else has sold locally/ in your building.

Definitely worth doing this, also if you do decide to sell, get quotes & valuations from at least 3 EAs who have previously sold properties of a similar type in your area.

need_an_answer

I just think you are wasting your time and the agents time...sorry.

So even if it is given an indicative value by an agent and you did indeed pay an inflated premium for a new build,whats going to change?
I doubt you will be going back to the developer for a refund of the difference....


and if its valued at substantially more than you paid for it then I assume that they will have reeled you in and your flat will be on the market for sale before the month is out.


Property tends to be a slow burner that you don't always make the money back on quickly...


Why not just look what comparable sales there have been in the area to satisfy your curiosity,thats probably how an agent will quantify its value especially if its reasonably generic and similar to others in the complex.

Crashy_Time

need_an_answer wrote: »

I just think you are wasting your time and the agents time...sorry.

So even if it is given an indicative value by an agent and you did indeed pay an inflated premium for a new build,whats going to change?
I doubt you will be going back to the developer for a refund of the difference....


and if its valued at substantially more than you paid for it then I assume that they will have reeled you in and your flat will be on the market for sale before the month is out.


Property tends to be a slow burner that you don't always make the money back on quickly...


Why not just look what comparable sales there have been in the area to satisfy your curiosity,thats probably how an agent will quantify its value especially if its reasonably generic and similar to others in the complex.

When did that change in sentiment happen then?