Wildly different valuations

Stoodles

We knew our home would be difficult to value, but I didn't expect so big a range. Three agents have looked at it. One said he'd need to think, and after week hasn't come back to us. The other two have suggested £410k and £675k. Both who gave values are local independent estate agents with several offices.


Do I keep getting more valuations until a concensus emerges? How many agents do people usually see?

Skiddaw1

Good grief! That is a huge variation! When our last house was valued (three EAs) the valuations were all within the same ball-park.



Is there anything significant about your house that could be causing the issue?

G_M

If the property is in some way unique/unusual, and/or there are no other similar properties in the area that have sold recently, then it can be hard to value.

Without a sensible comparison, valuations are just the best professional guess of the valuer.

Get yourself 2 more then see if a consensus starts emerging.

Stoodles

Another one came out this afternoon, and refused to commit himself until he has discussed it with colleagues. Agents have used words like stunning, welcoming, stylish and unique, but talk is cheap. All that really matters to me is pricing it so we can get the one person who will fall in love to look.


I think the aspect that makes it hard to value is a two bedroom stone built annexe. I can't find anything similar to compare it with locally.

googler

Ask a local surveyor or three.

When it comes time for someone to buy, then most likely one of your local surveyors will provide the valuation for their lender, and that will determine how much they can borrow, and hence how much they are able to offer.

Davesnave

The more unusual and unique the property, the harder it is to decide what it might be worth to someone, rather than what the market says about similar sized houses and plots. The fact that two agents have hesitated before committing to a figure suggests you have a one-off that could attract a premium price if the right person views.

That said, 15 years ago I obtained 5 valuations on a small, up-together, but common kind of property and the range was from £130k to £148k. I got the £148k but I had to wait 10 months for it. I had the impression that the lowest valuation came from an agent whose priority was shifting houses quickly, rather than dwelling on their finer details. The others gave upper and lower figures based on whether I wanted a 'normal' or a quick sale.

I would certainly obtain 5 opinions, which, in the final analysis, is all they are. Factor in how easy a sale you want, bearing in mind that 30% of sales founder and lenders will also put a value on the place.

lookstraightahead

The house eventually will be valued more properly by the lender, so you need to bear this in mind. You are proof that agents just have their own opinion, which is why I get cross when they get sellers hopes up with their outrageous suggestions. Could you get a surveyor in?

AdrianC

EVERYWHERE can be valued with comparables. You just need to look a bit wider and think a bit harder.

It's in another, nearby, village or town? No problem, how do most prices there compare?
It's bigger? More characterful? No problem, how much of a premium would Joe Buyer place on those?

Think like a buyer. If they're looking at your place, what else are they likely to be looking at...?

Stoodles

I've looked at surveyors, but I'm not sure what type of survey I'd ask for. As it is an old property, there might be some sense anyway in having our own survey done before selling, so we know what might be thrown up.



Another agent has now suggested a range from £425 to £475k. I've had a look at the other properties on the high valuing agent's website, and I can't see where he is getting the £675 from. We aren't anything like as good as properties they are marketing at that price. Shame!

Crashy_Time

G_M wrote: »

If the property is in some way unique/unusual, and/or there are no other similar properties in the area that have sold recently, then it can be hard to value.

Without a sensible comparison, valuations are just the best professional guess of the valuer.

Get yourself 2 more then see if a consensus starts emerging.

Somebody was wildly out on this one a few years ago.
https://www.rightmove.co.uk/property-for-sale/property-34637855.html

You need PropertyLog to see the kite slowly drift nearer the ground though.