Selling our house. Accuracy of agents valuation?

[Pabboo]

We are selling our house - it’s our first home and we purchased from new 6y ago. So we haven’t much experience of this!

We’ve had two agents value - one has looked around and the other hasn’t and based his on his online searches. But the other also seems to have ultimately based his valuation solely on searches of properties selling in the area too, despite having looked around.

Both are valuing at the very lowest end that Zoopla values it at. We think it’s worth about 10% more than their valuation. We worry if we put it on for too low, people will expect to be able to put in offers and the price may be driven down. But obvs too high a price will put people off altogether.

Neither seem to be much interested in the age of the property or the current market. They compare it with either much older properties in the area, or ones from the new build estate but which sold in 2019. The houses on this estate seldom come on the market.

How accurate are these estate agent valuations likely to be?
Would we be making a mistake putting it on for that 10% more despite what they say?

1. I would expect an agent to come and view in person to value. 2) I always get 3 valuations. 3) Make sure you're using decent local agents that know the current market. However, Zoopla values are useless and are often very incorrect, so never use that as a guide. Many agents will happily let you put it on higher if you wish, but you need to consider that it'll probably take longer to sell, and if it's not worth that and you don't get interest you'll probably just end up lowering the price anyway.

Zoopla valuations are usually way off and too high ime. Estate Agents are not surveyors and pretty much guess at valuations - they do know when mortgage lenders value houses at the agreed sale price though if they are progressing sales.

Get at least three valuations as some EAs value high to flatter you and get your business. If you ask them what they think the house is likely to sell for you may well get a different answer from the valuation.

I agree with ignoring Zoopla as it's a very generalised valuation. Get some good EAs round to the house and quiz them a bit about how they work and what they think. We have had different experiences with this over our many recent moves. You can put your house on the market for whatever you want, and depending on your local area it might be worth putting it high and see how it goes. The problem is how quickly you want to move - if you want to sell quickly and move quickly then ask the EA what they think will sell the house and see what you think of that. It's natural they base their valuations on what houses like yours are selling for, but you need to feel that they 'get' your house and like it!

Also, as a side issue, I would only go for an EA who returns your call or email quickly and who sounds friendly and personable over the phone as that is encouraging to buyers when they ring up. Another thing, look at what their photos are like for other houses they are selling as some are rubbish. For preference you want a good professional photographer to do it plus a video or 360 tour. Good luck!

A house is worth what it will sell for. If you put it on for too low a price you’ll get multiple offers and that will push price up. So it evens out.

So nothing has sold recently in your area? You can do a search yourself on rightmove for example, and look at what's on the market now.
There are limits to what a house will sell for on any given street, no mater how nice it is inside. An agent worth their salt should know the market inside out, not only what has sold recently, but what other houses are being marketed at, how long they take to sell, whether the market is cooling or steady etc. They should show you recent comps to back up their valuation. I certainly would not engage an agent who didn't come out to view your house in person.
What are you basing your own valuation on? There are things that cost money but do not increase value. A swanky shower or lighting or sound system does not add to the bottom line. Adding square footage usually does increases value.
I think you need to get more agents around.

It's usually the size of the house rather than age that affects price , so the value of older properties is directly relevant

Roughy speaking any area has a £ per square foot that properties will go for. That will be the basis of both valuations

Stunning finish or issues will affect the price, although mostly only down

Discount the one that didn’t visit and ask two more to look so you’ve had 3 that have been round.

Get 3 valuations. My friend just got two and there was a 50k differential between them so she's going for a third. The market seems very buoyant in many areas. The best properties are selling in just a few days around here so you might consider going towards the upper end of valuations if that's the situation in your area. Definitely don't go with someone who can't be bothered to do an on site valuation.
Had ours valued just before first lockdown and was pleasantly surprised but our estimate was fairly close as we had been watching the market. Due to the pandemic we decided not to proceed.

They're not valuations really - they're market assessments.

I would get another EA to "value" it and ask those that have already done so to explain their thinking.

I would advise against going to high. You won't sell it for more, it will just be on the market for longer. Search 3 bed semi detached houses (or whatever yours is) within half mile of your postcode.
If 2 agents have given a similar valuation it's probably correct. Why do you think it's worth the price you suggested?

They base their assessment on other properties in the area because those are the houses you will be in competition with, and they should be able to show you some 'recently sold' and how the likely sale price of yours will compare.

They should certainly come and look round - ask them who they think the target market is, is there a strong market, have they got buyers looking for that type of house, etc.

The problem with marketing too high is that then if you have to reduce, or it looks as if your house has been on the market for ages, people think there is something wrong with it, or else that they can make a low offer.

Zoopla is completely inaccurate, so ignore that for a start.

Get another valuation and ask them to look round. They're free and you can have as many as you want.

Estate agents usually value slightly higher as they're on commission.

The issue is when mortgage companies send out for a valuation, which is usually a lot more accurate, and it dosnt match the estate agents valuation.

New build lose value at first as they're not shiny and new anymore. Have a look at your local area and on sold prices on right move, there you can see what they're actually selling for.

It’s the opposite, low price tends to drive a bidding war as it gets folks through the door and once they are emotionally invested they get caught up.

Secondly going to high basically guarantees no viewings or offers.

If anything agents tend to value high. It’s in their interest to get th area price up. It’s very rare for them to go low, and to agree on it.

Depends how quickly you want to sell. If you’re happy to test the waters, put it on for what you want. If you haven’t had any viewings or offers within a few weeks you’ll know it’s priced too high.

For what it’s worth, I had 3 estate agents value mine from £290 to £315. We put it on at £315 and it sold before it even went to market.

The price does need to be realistic but you are right that people always offer under.

We listed our house at 315, and got offers close to 300. Accepted one and then the buyer pulled out. To get into a different rightmove band/more viewers and get back into our chain quickly, we relisted at 300 - well, our offers started coming in 15k under that... I kind of wish we'd held out for longer - not necessarily at 315 but in looking for closer to 300, but we were in a rush and ended up taking 13k under :(

I think you need to adjust your expectations a bit of what makes your house worth more or less. It being 6 years old won't increase its value compared to older properties - for many it would put them off as they don't like that style of new build property/tend to have smaller rooms/thinner walls/more overlooked/poor parking etc etc
Just because that makes it worth more to you doesn't mean that it's actually worth more.

As all PP have said, ignore zoopla, look at what is actually on the market nearby - what is sold stc and what is hanging around/having to drop price, and get more estate agents round.

You can list it at whatever price you like. Why do you think it’s worth more?

If it was me I'd weigh up - how long do you want to wait for it to sell, have you found another you want to buy, what you've seen around you, for example do houses sell instantly when they come on the market as it's a desirable area/ school catchment, will the extra 2,000 transform your life or will selling it in a week transform your life, do you need someone who has already sold their property, a cash buyer, or can you wait it out in a chain.
I think I would lean to putting it on a bit high then lower it if no interest. EA in my experience want the cash in their pocket so encourage selling fast. But weigh everything up.
There will be competition between buyers if it is a desirable area but quite often the competition is outweighed by one of them being a cash buyer.

EA in my experience want the cash in their pocket so encourage selling fast

My experience is the opposite. They over value to get the business and then when you don’t sell in a few weeks get you to drop it. When two agents independently give the same Lower valuation I think it’s a clear sign it’s not worth what the op thinks it is. The condition of the property is also important. Often folks can’t see what’s wrong, inside and out.

Op. You can try higher, plenty do, you may be lucky and both agents got it wrong, or you may need to drop in a few weeks. It’s your call totally.

As others have said how much and how fast do you want to move is the key. We made a mistake of putting ours on too low. EA said to go on low when we would have never accepted an offer at that level. That was a really shit strategy and I felt so so guilty for misleading buyers who came around and thought they could get it at asking or 10% below. The thing was that we were perfectly happy in the house, just testing waters. Still here and thank god as nothing has come up that we would have then bought.

An experienced agent (not a 21 year old). should have visited and taken the condition of the property into account.

I’d always ask 3 who are active in the area, not including any who are notorious for overvaluing, e.g. Foxtons. And I’d discount any who sent a 21 year old.

If similar have sold recently in the area, actual sold (not asking) prices are the best guide IMO, especially if you’ve been keeping an eye on the market and having a good old nose at the online listings, so you have a good idea of what condition they were in.

Personally I’d always trust my own research at least as much as what an agent may tell me.

@GETTINGLIKEMYMOTHER

An experienced agent (not a 21 year old). should have visited and taken the condition of the property into account.

I’d always ask 3 who are active in the area, not including any who are notorious for overvaluing, e.g. Foxtons. And I’d discount any who sent a 21 year old.

If similar have sold recently in the area, actual sold (not asking) prices are the best guide IMO, especially if you’ve been keeping an eye on the market and having a good old nose at the online listings, so you have a good idea of what condition they were in.

Personally I’d always trust my own research at least as much as what an agent may tell me.

I’m sorry, I don’t understand your repeated references to a 21 year old. Did the op say they sent a 21 year old? I can’t see where she’s referred to the age of the agent?

My experience is that agents undervalue because it is in their interests to sell the house as quickly and easily as possible. But that’s quite easy to judge if there is a lot of comparable property nearby. If your house is unique or there isn’t much else on the market it makes valuing tricky. I think it’s better to go high and reduce than to worry you’ve sold a house for less than it’s worth.

I think GLMM is envisioning Stef Let's Flats, Bluntness.

My MIL recently put her house on the market with an EA who had valued the house 12 months earlier for probate purposes (my FIL had died and she needed to value his estate).

Prices had gone up quite a bit in that 12 months. We were on holiday when she put it on the market and I was horrified when I found what it was listed for. She had three viewers and an asking price offer before we even got home from holiday.

The point is, the EA was operating on a fixed fee basis. They’d get the same payment regardless of what the house sold for.

After a rather uncomfortable conversation, DH persuaded her that she was being exploited and we insisted that the house was marketed higher. She was scared of upsetting the EA and wouldn’t speak to them herself.

The house fetched an additional 40k and sold the same week.

My advice (from lots of experience) would be to check which EAs locally tend to under and over value. It’s easy for me to spot this locally, for example, I know one markets itself as ‘top end’ but always over values.

Get three valuations from three types of EA, over, mid, low valuing. Go with the middle one, add 5k and then ask them to market on a % fee basis.

The last time I sold a house was 12 years ago, it was valued at 315 but I disagreed. I put it on with an online EA at 335k and we got 330k.