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SE12 and huge range of price estimates from EAs

11 replies

Creepycrawler · 27/04/2023 19:34

House is in SE12. OK condition but needs updating and some work although it's livable with.
It's a 3 bed terraced in private close with garden and garage. Nothing spectacular.

3 EAs have given prices from 425K to 525K. Another couple coming next week.

How can they be so different?

Has anyone sold in the area recently and how is the market here?

OP posts:
KievLoverTwo · 28/04/2023 12:47

I met a vendor recently who had five EAs in, and although he wasn't selling for as much as you, the range they gave him was similarly disturbing.

Eventually, he settled on a range that was closest to what three told him, averaged out.

The SE12 market:

If I put a price range of 400-550k for SE12 in Rightmove, also click the 'sold' button, it brings up 65 properties (with no other criteria, they could be caravans for all I know). Of those, from my Chrome add-on, I can see that 21/65 of those properties have reduced their asking prices.

I've been seeing quite a lot of really overpriced houses this year, albeit not in London, so either EAs are vastly overpricing them or homeowners are so desperate to get top money for their house because of the unexpectedly higher mortgage rates; possibly a combination of the both. I've definitely read articles from a few months ago saying homeowners are instructing EAs to put houses on for too much money (difficult to know who believe, it could've been an EA writing that!).

You can certainly look on the Land Registry for houses that have sold in the last year, look those houses up to see how similar they are to yours, pull up the Zoopla advert for the house, and look to see what Zoopla thinks that sold house is currently worth. It's a lot of work and it's not guaranteed to be accurate; Zoopla is notorious for not being accurate, but if there are enough of them and they are all showing a similar-ish current value, maybe that will help. Personally, what I would do is:

  1. Call 425 and 525 EA and say 'I really like your firm but before I appoint you, can you tell me why you have valued my home at £100k more/less than another agent who visited?' and see if you can get the truth out of them. Probably what you'll find is:

a) 425k will give you a quick, immediate sale, from an agent who's very familiar with the market and wants their commission quickly

b) 525k is them telling you what they think you will want to hear; in a month or two's time, they'll call you, blame the slowness of the market and suggest 'maybe we should reduce it by 25k to see if that gets more people through the door?'

That's a known strategy so they have lots of houses on their books, they don't really care if they don't sell at that price point; as long as they have lots on their books, more people will come to them, and the commission evens out across numbers, instead of the amounts the homes sold from. I would also

c) Get a 4th and 5th agent in. Much easier to get a reasonable average when you have five numbers to work with.

d) The Chrome add-on that tells me how much houses have been reduced to and by how much is called Property Log. It's free for 1 month.

Also, I used to live right next to Lee train station. Hi hi!

Good luck.

KievLoverTwo · 28/04/2023 12:53

This is from 2020 when house prices went mad, it's also written by an EA, so make of it what you will. It does sort of make sense though.

https://www.hunters.com/about-us/news/asking-too-much-why-are-agents-overpricing-homes

Twiglets1 · 28/04/2023 13:14

Creepycrawler · 27/04/2023 19:34

House is in SE12. OK condition but needs updating and some work although it's livable with.
It's a 3 bed terraced in private close with garden and garage. Nothing spectacular.

3 EAs have given prices from 425K to 525K. Another couple coming next week.

How can they be so different?

Has anyone sold in the area recently and how is the market here?

If I got 5 quotes, I wouldn’t go with the cheapest one or the most expensive one. Pick one in the middle and also be mindful of the price bands on Righmove. There is one, for example, that lists houses up to 500k. I wouldn’t go above that - the next band is up to 550k.

Twiglets1 · 28/04/2023 13:16

Also, do plenty of your own research. Look on Rightmove at all the houses in your area on at about 500k - do they seem better or worse than yours or about the same?

XVGN · 28/04/2023 13:24

Use this site to see local registered sold prices

https://houseprices.io/?q=SE12

And remember that prices are down since then, so you need to make a choice about whether you want to escape the exit now or get caught in the upcoming crush.

Search results | houseprices.io

https://houseprices.io/?q=SE12

Creepycrawler · 28/04/2023 15:50

Thanks for the advice everyone. Will wait for the next ones and see what they say. I think somewhere in between would be reasonable or possibly around 460K maybe?
I did look the other day and there is pretty much nothing under 450K in the area for 3 beds. Last one sold in close a year or so ago at about 475k.

OP posts:
Creepycrawler · 28/04/2023 15:51

Definately need to sell now.

OP posts:
KievLoverTwo · 28/04/2023 18:22

Creepycrawler · 28/04/2023 15:51

Definately need to sell now.

Take advice from several EA's, but if that is the case, maybe you need to add 5% on top of what you are prepared to take and have the advert marked 'priced to sell.' I always read into this phrase as being as realistically close to it's actual value as I am likely to see.

XVGN · 29/04/2023 08:34

KievLoverTwo · 28/04/2023 18:22

Take advice from several EA's, but if that is the case, maybe you need to add 5% on top of what you are prepared to take and have the advert marked 'priced to sell.' I always read into this phrase as being as realistically close to it's actual value as I am likely to see.

I always read that and laugh.

Namechanger355 · 29/04/2023 11:12

We sold in se12 a few years ago - a 2 bed in a very nice road

it was on for more than £500

We needed to reduce price once but still sold for more than £500

so I’m very surprised by your 425k quote - seems far too low

i would go with middle of the road - 480 or so at least

Creepycrawler · 29/04/2023 12:18

Namechanger355 · 29/04/2023 11:12

We sold in se12 a few years ago - a 2 bed in a very nice road

it was on for more than £500

We needed to reduce price once but still sold for more than £500

so I’m very surprised by your 425k quote - seems far too low

i would go with middle of the road - 480 or so at least

Thank you. It does seem low but as someone mentioned above maybe someone wants a quick sale. 😉
I wonder also if said EA has investor friends.

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