Property downvalued by 35-40K

chrisw

GDB2222 said:

bobster2 said:

Estate agent valuations are usually the price they think you should market the property for - e.g. asking price.

Properties sell on average for 3-5% below asking price. So a £475k estate agent valuation for marketing - could mean expect to complete the sale at £450k (5% below asking). Not that far from their valuations.

Exactly right. The estate agents need to get the property on their books in order to have any chance of selling it and earning commission.  So, the figures you have been told by the estate agents reflect your own thoughts. Plus, sellers are more likely to choose an agent that is optimistic about getting a high price. 

And then suggesting lowering the price when there have been no realistic viewings.

GDB2222

chrisw said:

GDB2222 said:

bobster2 said:

Estate agent valuations are usually the price they think you should market the property for - e.g. asking price.

Properties sell on average for 3-5% below asking price. So a £475k estate agent valuation for marketing - could mean expect to complete the sale at £450k (5% below asking). Not that far from their valuations.

Exactly right. The estate agents need to get the property on their books in order to have any chance of selling it and earning commission.  So, the figures you have been told by the estate agents reflect your own thoughts. Plus, sellers are more likely to choose an agent that is optimistic about getting a high price. 

And then suggesting lowering the price when there have been no realistic viewings.

Indeed. That’s the next step. The estate agent will be advising the seller in this case to accept a lower figure. 

ReadySteadyPop

Zerforax said:

Did they just do a desktop valuation or did someone actually come out to see the property?

Won`t make a lot of difference unless the property is very unique.

gm786

Thanks all for your comments. We had agreed a fixed fee with the estate agent for our sale so quoting a higher price is not in his favour. They seem genuine but also the market isn't great with too many properties for sale in our area 
Our buyer has ghosted us, they have basically not responded since the valuation so we have put the property back on the market. It will sell one day hopefully. 
Our estate agent told the buyer to try another lender but they seem to not want to do anything so we have left them at that
Cannot go any lower than what we agreed so we will need to stick to this until the market improves 

MeteredOut

gm786 said:

Thanks all for your comments. We had agreed a fixed fee with the estate agent for our sale so quoting a higher price is not in his favour. They seem genuine but also the market isn't great with too many properties for sale in our area 
Our buyer has ghosted us, they have basically not responded since the valuation so we have put the property back on the market. It will sell one day hopefully. 
Our estate agent told the buyer to try another lender but they seem to not want to do anything so we have left them at that
Cannot go any lower than what we agreed so we will need to stick to this until the market improves 

Remember that, all else being equal, waiting for the local market to get to the point where your house reaches the valuation you want also means the house you're will eventually buy will likely have increased by the same percentage. And unless you are downsizing, that means you're paying a bigger difference.

BikingBud

gm786 said:

Thanks all for your comments. We had agreed a fixed fee with the estate agent for our sale so quoting a higher price is not in his favour. They seem genuine but also the market isn't great with too many properties for sale in our area 
Our buyer has ghosted us, they have basically not responded since the valuation so we have put the property back on the market. It will sell one day hopefully. 
Our estate agent told the buyer to try another lender but they seem to not want to do anything so we have left them at that
Cannot go any lower than what we agreed so we will need to stick to this until the market improves 

Reading back form the top, you're expecting to go from your current new build to new new build and you recognise the premium that new builds attract and that are too many properties for sale in your area, yet continue to pursue this route where you will have lost the premium you paid on the house you are selling, (no longer new) and paying premium on the house you want to buy (shiny and new).

I can only assume you have locked into a contract for the new new build. Are you? What's the timeline? What's the potential loss? Do you really have time to wait for the market to improve?

Seems your decisions are squeezing you both ends.

There may be some aspect or constraint that you are not sharing but sorry reading this it becomes more obvious why housing markets in the UK are crazy.

ReadySteadyPop

BikingBud said:

gm786 said:

Thanks all for your comments. We had agreed a fixed fee with the estate agent for our sale so quoting a higher price is not in his favour. They seem genuine but also the market isn't great with too many properties for sale in our area 
Our buyer has ghosted us, they have basically not responded since the valuation so we have put the property back on the market. It will sell one day hopefully. 
Our estate agent told the buyer to try another lender but they seem to not want to do anything so we have left them at that
Cannot go any lower than what we agreed so we will need to stick to this until the market improves 

Reading back form the top, you're expecting to go from your current new build to new new build and you recognise the premium that new builds attract and that are too many properties for sale in your area, yet continue to pursue this route where you will have lost the premium you paid on the house you are selling, (no longer new) and paying premium on the house you want to buy (shiny and new).

I can only assume you have locked into a contract for the new new build. Are you? What's the timeline? What's the potential loss? Do you really have time to wait for the market to improve?

Seems your decisions are squeezing you both ends.

There may be some aspect or constraint that you are not sharing but sorry reading this it becomes more obvious why housing markets in the UK are crazy.

New builds were sold on the hype of "Hurry, massive demand!", but if there are now too many properties for sale in the area that is the reason banks are dropping the amounts they will let people borrow.

MeteredOut

ReadySteadyPop said:

BikingBud said:

gm786 said:

Thanks all for your comments. We had agreed a fixed fee with the estate agent for our sale so quoting a higher price is not in his favour. They seem genuine but also the market isn't great with too many properties for sale in our area 
Our buyer has ghosted us, they have basically not responded since the valuation so we have put the property back on the market. It will sell one day hopefully. 
Our estate agent told the buyer to try another lender but they seem to not want to do anything so we have left them at that
Cannot go any lower than what we agreed so we will need to stick to this until the market improves 

Reading back form the top, you're expecting to go from your current new build to new new build and you recognise the premium that new builds attract and that are too many properties for sale in your area, yet continue to pursue this route where you will have lost the premium you paid on the house you are selling, (no longer new) and paying premium on the house you want to buy (shiny and new).

I can only assume you have locked into a contract for the new new build. Are you? What's the timeline? What's the potential loss? Do you really have time to wait for the market to improve?

Seems your decisions are squeezing you both ends.

There may be some aspect or constraint that you are not sharing but sorry reading this it becomes more obvious why housing markets in the UK are crazy.

New builds were sold on the hype of "Hurry, massive demand!", but if there are now too many properties for sale in the area that is the reason banks are dropping the amounts they will let people borrow.

Which area are you referring to? Specifically the OPs?

ReadySteadyPop

MeteredOut said:

ReadySteadyPop said:

BikingBud said:

gm786 said:

Thanks all for your comments. We had agreed a fixed fee with the estate agent for our sale so quoting a higher price is not in his favour. They seem genuine but also the market isn't great with too many properties for sale in our area 
Our buyer has ghosted us, they have basically not responded since the valuation so we have put the property back on the market. It will sell one day hopefully. 
Our estate agent told the buyer to try another lender but they seem to not want to do anything so we have left them at that
Cannot go any lower than what we agreed so we will need to stick to this until the market improves 

Reading back form the top, you're expecting to go from your current new build to new new build and you recognise the premium that new builds attract and that are too many properties for sale in your area, yet continue to pursue this route where you will have lost the premium you paid on the house you are selling, (no longer new) and paying premium on the house you want to buy (shiny and new).

I can only assume you have locked into a contract for the new new build. Are you? What's the timeline? What's the potential loss? Do you really have time to wait for the market to improve?

Seems your decisions are squeezing you both ends.

There may be some aspect or constraint that you are not sharing but sorry reading this it becomes more obvious why housing markets in the UK are crazy.

New builds were sold on the hype of "Hurry, massive demand!", but if there are now too many properties for sale in the area that is the reason banks are dropping the amounts they will let people borrow.

Which area are you referring to? Specifically the OPs?

The OP said that their area had too many properties for sale, recent media items seem to say that the number of properties listed for sale has jumped recently, if properties are not selling the banks don`t get to lend.

ReadySteadyPop

gm786 said:

Thanks all for your comments. We had agreed a fixed fee with the estate agent for our sale so quoting a higher price is not in his favour. They seem genuine but also the market isn't great with too many properties for sale in our area 
Our buyer has ghosted us, they have basically not responded since the valuation so we have put the property back on the market. It will sell one day hopefully. 
Our estate agent told the buyer to try another lender but they seem to not want to do anything so we have left them at that
Cannot go any lower than what we agreed so we will need to stick to this until the market improves 

Wouldn`t another lender just give a similar valuation?