"The Right Price"

Happy_saver_4

meanmachine wrote:

All I can tell you is that I'm not prepared to pay anywhere close to the asking price. Why should I?

.

Because that might be what's it's worth !!!! :rotfl: :rotfl:

I've just bought ( a month ago) some more building land and gave the owners more than what they asked. There was nobody else involved for me to compete against and no EA etc. The price they were asking was well below market value and I was not prepared to steal it from them. Nobody would like to see their parents or son's or daughter's taken advantage of due to their ignorance.

So I always judge the property value's worth to me and pay accordingly.

Sorry, but judging a properties value as being a percentage of the asking price is not for me. Nor, for the Building Societies and Banks for whom I valued properties.

But - everyone to their own - I'm only giving my opinion based on a 'tad' of experience

Cristy

Wow, what a palaver this house selling business is... Much easier as a 1st time buyer

Thanks once again, Happy_Saver and meanmachine, for your points. I'm with you, meanmachine, on not offering the asking price, at least at first. But this is because I think that a lot of properties around here are grossly overpriced and I've fallen for it once already 3 years ago :rolleyes:

Happy_Saver, how do you decide that a property is priced correctly? That would be my ultimate purpose, to price fairly and realistically, but how do I then avoid what meanmachine was saying he would do, i.e. take my fair price and slash a large chunk off of it just because he would not pay asking price and would automatically assume that the house is worth a great deal less than advertised? (hope I am making sense here)

I guess the difficulty of it is pricing fairly to get the punters through the door, but also making it understood that just because you priced fairly and to sell reasonably quickly, you're not desperate!

I will be watching with interest what happens in the coming months, to be perfectly honest I would not be bothered if prices came down further and I ended up selling at £175k, because I am buying in the same area.

socks_uk

Happy_saver wrote:

• Priced too high - buyers don't view
• Priced a bit too high - buyers look but make no offer. Something is putting them off ; needs sorting. A price reduction will sometimes sort this but it could for instance be more economical to redecorate etc. House doctor !
• Priced correctly - people look and try offers etc.
• Priced too low - sold to first buyer within hours of being put on market. Or the EA is doing his job exceptionally well or selling to his mate/nominee; perhaps

But how do you know what is the correct price? Initially I had 3 EAs value our 3 bed terrace the first valued at £79.995, the second £69,995, the third £74,995. I was so amazed at £10,000 difference that I ended up with 7 different EA giving me a valuation at various amounts between these figures.
We put it up for sale at £74,995 3 months ago with not much intrest and now it's £72,500.

Jill

meanmachine_2

As you say, a price is what a buyer is prepared to pay. And as I point out, and as the national stats point out *on average* people are paying 94% of asking price.

I'm just trying to give you the mindset of a FTBer who can't draw on years of easy profits, sorry "equity", but actually has to draw on real hard cash.

To the OP, I'd say it really is a guessing game, and EAs aren't referring to some authoritative secondhand guide book. They're making informed guesses...

Happy_saver_4

Cristy wrote:

Happy_Saver, how do you decide that a property is priced correctly?

That would be my ultimate purpose, to price fairly and realistically, but how do I then avoid what meanmachine was saying he would do, i.e. take my fair price and slash a large chunk off of it just because he would not pay asking price and would automatically assume that the house is worth a great deal less than advertised? (hope I am making sense here)

I guess the difficulty of it is pricing fairly to get the punters through the door, but also making it understood that just because you priced fairly and to sell reasonably quickly, you're not desperate!

I will be watching with interest what happens in the coming months, to be perfectly honest I would not be bothered if prices came down further and I ended up selling at £175k, because I am buying in the same area.

To try and get the property priced correctly:-

Monitor the asking prices in the EA's adverts in the local press. Then ask differing EA's, who appear to sell similar properties to yours, to visit and you give their 'free valuation' .

Do not, and I repeat do not tell the EA any price when he says " what are you thinking of asking?" just tell him you 'd like his opinion on it's value.

Try and find out if the agent has sold any props like yours recently in the area. Ask him on what is he basing his valuation? Some agents, unfortunately, will give you a high valuation to obtain your instructions, knowing you'll probably have to reduce the price later to sell it. If you do not know the EA's in your area, or nobody can advise, visit a few EA's as a potential purchaser and ask for a similar property to the one you are selling. You'll probably be amazed at the ineptitude of some EA's and their staff. You will realise definitely who not to instruct.

Purchasers buy a property because it offers them the 'best comparative' value whilst matching their needs. Let's say one down the road will drop his price from £195,000 to take an offer of £180,000. But, if your property offers this purchaser a better comparative value at £182,000- they will buy yours !!! The fact that you were offering the property for sale at £185,000 makes only the difference of getting more viewers. ie more people will view at 185k than 195k

I still do not understand why if your property is priced correctly MM believes it will only sell at under market value

As you say, watch similar properties over the next few months and I suggest you visit some EA's as a buyer.