If you've just put your house on the market, has your agent advised overpricing the house to avoid 'covid' low offers?

[CatAndHisKit]

I wonder if this is a thing as in the area where I'm looking, three houses came onto the market in the last week or so, all 20% above the top sold price in that street (within last two years).
I'm about to view and want to offer - but if I offer in line with top sold prices, iiiit looks bad on paper i.e. 15% off asking price. But then why should anyone offer a lot more (nothing spectacular about the fittings in all three).
I wonder if the agents advise to overprice but with low offers in mind so actually vendors would accept realistic prices, and I shouldn't feel about my low offers?

[CatAndHisKit]

(feel bad...)

[mumsy27]

I think you are overthinking it OP!

[Giganticshark]

House prices have gone up in 2 years. My street has. From 180 to 200k.

It happens.
Don't feel bad about a low offer.

[longtimecomin]

It's a hot market right now, the owners probably realise this and asked to agents to try a top price. Offer what you would pay and no more. Don't worry about offending anyone.

[NotSuchASmugMarriedNow1]

hi v by r

[GETTINGLIKEMYMOTHER]

Unless you’re crystal clear about ‘realistic’ pricing, many estate agents routinely over-value anyway.
For that reason, even before the virus, offering 5-10% below asking was pretty usual. Exceptions of course for boom eras when sealed bids ruled the day, or particularly sought-after areas (e.g.close to outstanding state schools) or anything very special.

[TSR1]

@CatAndHisKit

I wonder if this is a thing as in the area where I'm looking, three houses came onto the market in the last week or so, all 20% above the top sold price in that street (within last two years).
I'm about to view and want to offer - but if I offer in line with top sold prices, iiiit looks bad on paper i.e. 15% off asking price. But then why should anyone offer a lot more (nothing spectacular about the fittings in all three).
I wonder if the agents advise to overprice but with low offers in mind so actually vendors would accept realistic prices, and I shouldn't feel about my low offers?

You shouldn't feel bad offering a low price anyway. They don't have to accept it but it's better to get low offers than no offers

[Charleyhorses]

Dunno but we bought 3 years ago. Neighbours opposite just put identical house on for about 8 percent over what we paid.

[GrumpyHoonMain]

Just make the offer you want to make. It’s up to the vendor whether they want to accept. I couldn’t take much of a hit on my property sale - but the person we’re buying from offered us a 15k reduction if we could move fast which we took them up on.

[ThroughThickAndThin01]

Agents generally don’t overprice, they want properties sold as quickly as possible. It’s a numbers game, a few extra £‘S on commission per property is neither here nor there, it’s volume that matters.

Don’t overthink it. Offer what you are prepared to pay and are happy with. It’s then up to the vendor to accept or reject, at least they have a choice.

[Snowflayke]

I have wondering if this is going on. I've been looking and noticed advertised prices going up. Not in general, I mean the same house was advised for a price 3 months ago, when I check the listing again it has been updated to a higher price. Good luck to them I suppose but it seems strange.

[yellowymellowy]

I've noticed a couple of houses which have been on the market for some time have suddenly gone up in price. One in particular has been on the market for 9 months and is now 10% higher and is advertised as a price reduction on RM! Equally, I have seen a couple of reductions on properties listed for a few months. I think some sellers/ agents are undoubtedly trying to take full advantage of the cut in stamp duty and the increase in demand it is causing.

[CatAndHisKit]

Gigantic I meant within 2yrs, so sin same terrace last year a few sold for over 20% less, but this house has a small extension (but as a result smaller courtyard garden), it's not end of terrace either.

Thanks all, that's encouraging, I want to try 18-15% off as that's still 15-20K more than sold ones, I even worry that that's too much as the whole street reached its ceiling I think, not uch increase in prices over the last 8yrs. It's not a forever house so would be selling again, and don't want to lose when I sell.

ThroughThick yes generally I agree it's the rule, but this is a large town and they don't have a big volume to sell anyway, so possibly trying to sell the few better houses in this price range that they have. I dont feel there is much competition/rush of buyers so far - one of these had only me viewing in 5 days it came on.

[jimmyjammy001]

Well people have saved on stamp duty and sellers know this now so can add the stamp duty onto the cost of the house as buyers now have more money to pay, unfortunately stamp duty was cut so that people would go and spend that in the economy on new bathrooms/kitchens/sofas e.t.c but it has had the opposite effect by looking through news storys, more profit for home owners

[LazyFace]

3 houses in our area have dropped their prices after the announcement.
(IMO they were all overpriced with teeny gardens.)

[Bells3032]

Three houses in my area which have been on thr market for months even before covid have put their prices up over the last couple of weeks by £50k plus

Thing is everything flew off the market a few weeks ago and it's all slower down now

[itbemay1]

We've recently had our house valued, the agent suggested we would get £425-450k so said to put on at offers over £425. A house similar sold down our road about 9 months ago for £380 so we're not sure but are being led by the agent.

[MartinJD1976]

@itbemay1

We've recently had our house valued, the agent suggested we would get £425-450k so said to put on at offers over £425. A house similar sold down our road about 9 months ago for £380 so we're not sure but are being led by the agent.

I would ask yourself how much you need for your house in order to get enough for your onward purchase and just ignore the high valuation - the EA is trying to win your instruction. I would be going with offers over 380 if I where you - hopefully you'll get a quick sale and may end up going to best and final offers if there's enough interest.

[MartinJD1976]

If a house has been on the market for ages with multiple reductions, I don't think "bargain" . I think what's wrong with it, and why are the vendors being greedy.

[GrumpyHoonMain]

@itbemay1

We've recently had our house valued, the agent suggested we would get £425-450k so said to put on at offers over £425. A house similar sold down our road about 9 months ago for £380 so we're not sure but are being led by the agent.

No 2 houses are the same. We sold ours for a specific price that took into account that it needed work and is probably smaller than other houses in the area. A house further down is not in as desireable area as ours (a murder happened very close by and it isn’t in the outstanding school catchment) and so despite being in better nick went for around 80k less.

My Estate Agent says prospective local buyers who are clued up also try to do Sarah’s Law and Crime checks on properties before they buy. So if a house is on the market it’s not always because it’s overvalued - sometimes prospective buyers have found another issue that’s put them off.