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We had our house valued before Christmas. The agent based it on similar properties in the same village and what they had sold for in the last year. Actually nothing quite like this had sold in the year but he found the closest he could and added thousands on for the extra bits our house has. He suggested a lower price for if we wanted a quick sale, and a max price for if we wanted to just give it a go. We went with a middle price, had loads of interest and a little bidding battle put the price almost up to the max he had suggested. I was impressed with his knowledge of the local market and what our extras would add in terms of value.
The owners are probably trying to recoup their purchase costs, stamp duty and maybe build in a bit extra to allow a discount. As suggested above why not offer the amount paid in 2011 + £1.
In Scotland we are lucky that an independent valuation has to be done prior to sale: mind you I saw one house, owners not too satisfied with the first value so 6 weeks later instructed another that pushed the value up by £35,000. Of course nothing had happened to reflect the increase but the estate agent was delighted! (still hasn't sold)
thanks, I just find it so hard to believe that every other large purchase; car, electricals, jewellery depreciates but everyone still thinks property increases despite our current climate. I really think £80,000 return on an investment 18 months ago is phenomenal!
they look on Rightmove and Zoopla and guess. BUT A house is only worth what another person can get together the cash to pay for it - which is currently around 15-20% less than almost all advertised prices.
Sometimes the agent suggests a high price to flatter the vendor and win the business, intending to suggest a drop in x months time and blame on 'market conditions'.
Sometimes the vendor approaches the agent with am unrealistic price, won't listen to reason and the agent either lists at that price our loses the business - with the hope they'll listen to reason later.
We had a similar one last year. I asked the agent in private, made clear I knew the 2011 sold price and what they'd done to it. He shrugged and said "some people take a while to believe what you're telling them"
How does an estate agent value a property? What do they base it on? I only ask as we have seen a lovely house for sale ( if we won the lottery) but have checked the previous sold price and seen that it is currently on market for £80,000 more than it was sold for in April 2011. No extension, re decorating that I can see on details so I genuinely wondered how estate agents arrive at the prices they do. Please can someone, perhaps someone in the business, explain how it is done?? thanks