Probably done to death but question on valuations.....(8 Posts)
We are hoping to put our house on the market next week and have had three valuations from local EAs. We bought the house 3 years ago and it's been valued at between 2.7% more and 11.1% more than we paid. We did buy when the market was quite flat and got a fairly decent discount of the asking price and there is not much coming on the market now so some similar houses have sold quickly. However, my head is saying the 2.7% increase is probably the most accurate. Is there a chance that the EAs know something I don't or are they just trying to win the business. The one with the highest valuation also has the highest fees.....
Also is now a ridiculous time to put a house on the market? I was thinking of going with the EA who has said they can get the higher price until Christmas and if it doesn't move take it off for a few weeks and potentially put it on with someone else at a lower price (though I know this will be spotted by regular RightMove addicts like myself). Am feeling stressed by the whole process and not even started so any advice appreciated.
We just sold our flat and I'd ask the following questions:
Does it matter to you how quickly you sell? If not, no harm in trying a higher price.
What did the estate agent who gave the 2.7% valuation say about the higher one? Will they market it at the higher price?
Why not ask the ea with the higher price to only charge a higher percentage fee if they get a higher price, and match the lower price with a lower fee? That's what we did.
We got the lower valuation first. They did say that would be for a quick sale and quoted somewhere in the middle if we were able to hold out for a while. The higher fee is a flat fee (£2.5K + VAT) which comes out as more than the 1% + VAT being quoted by the others in our price range. I did ask if it was negotiable and they said no - I didn't push it though. Going to have to just take the plunge with one of them. I do want to price it reasonably but any extra money would really help us.
You can tell the estate agent what price to market at, so there's nothing to stop you using a cheaper agent and marketing at one of the higher prices. Especially if in your mind you're willing to take offers on it (or tell the agent that for the right buyer you would come down to the "quick sale" valuation so they show it to people looking at that level too).
The only danger with that is if the dufference takes you either side of a right move search value, or tax point.
Sunset, do you have to sell now?
If you do, then carry on.
If not, then wait until the Spring. You will find that there are fewer buyers right now in the run-up to Christmas.
Also, remember that YOU choose what price to ask for your place. You, not your EA.
Thanks. I think we may put it on at the higher end and see what happens have a rethink at Christmas. It would be good to get some feedback on the house anyway. If we go with an EA who thinks it's worth less will they be less motivated to try and sell if for more?
We don't have to move but we are thinking of having a 2nd child next year and would like to move before that happens (partly so we can get a mortgage while we just have one dependant). We could live where we are even with a 2nd child though as we have 3 bedrooms but as it's a link attached house we have more upstairs space than downstairs.
Check comparables on there.
Just on the fees point, you might want to bear in mind that the agent with the fixed fee will have no real interest in getting you the best possible price for your house because they will be paid the same regardless. It's in their interest to give you a high valuation in the hope of getting your business because it doesn't matter to them how much (or little) you sell for. The others have a vested interest in getting you the best selling price possible as it impacts directly on their fees. I would always stay well away from fixed price agents on that basis personally.
From experience I'd also say that it's far better to price on the lower side and get lots of interest (potentially meaning more than one offer) than to overprice and find that people are put off. Ultimately your house should find its price either way but it's very frustrating if the only feedback you give is that the house is overpriced yet people aren't willing to make an offer.
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