Selling property

[shininglight16]

I'm in the process of selling my flat to a buyer who's an investor and is trying her level best to knock the price down even further. We're midway conveyancing and she's been playing pressure tactics to knock off another £10k.

Asking price was £300k, we got down to £290k and said that is it, no more negotiation. They agreed at £290k but since the valuation has come to £275k they want us to come down to that or £280k max. We would be losing money and are not ready to sell at that price since we bought for £260k and spent roughly £25k in doing it up (got burnt by the builder).

Now the thing is, a comparable has gone for £285k just opposite our block of flats and does not come with a private garage or a 900+ lease. We thought of putting our property up with the same agent who sold the flat in the opposite building and he came for a valuation today. He mentioned that someone from Connell's surveyors had called him last month and asked for the sold price of that price. It doesn't appear on the land registry yet since it was recently sold and I believe it takes about 6 months for the price to be updated.

Despite having that information, the surveyor from Connell's has undervalued our property which has additional features/benefits. Can we contest this? The buyer hasn't shared her valuation report. She's only been bargaining and using excuses such as 'I won't be living for 900 years', 'I don't need a private garage ' and other nonsense.

She's switched stories, changed solicitors, mortgage companies and wasted a lot of our time.

I just want to know what would be a sensible thing to do and tactical as well going forward, to contest that look a variable with lesser features, smaller size has gone for 285k recently and you're asking me to sell mine for 280k. Should I ask her to show me the valuation report, speak to Connell's directly and make an appeal? I don't know what's the best way to do this and for us to stand firm and complete this at £290k.

We don't have a like for like comparable to compare with in the history of sold prices within the last 6 months.

We need to close this and get on with our next purchase asap.

Many thanks in advance!

Find another buyer.

This really is a valuable lesson in why it's always best to use a reputable estate agent in the first place. Accepting that all estate agents just want a sale and have their own somewhat underhand tactics along the way.

They would have been able to demonstrate other local similar properties that have recently sold and at what price point. (This is important for surveyors and home buyers/valuation reports etc.)

They also are crucial in keeping the sale on track. Their benefit is just as valuable in terms of actually seeing the sale through to completion point, not just getting interested parties through the door in the first place through marketing.

I agree 100% it's a very valuable lesson. We won't be repeating the same mistake ever again.

Just bear in mind most lenders use the same valuers. It's usually either Countrywide, Connells or Colleys. Which means the valuations might be about the same for the next buyer.
Mortgage valuations done this way are usually on the low side, because they are protecting the asset. Unlike an Estate agent valuation which is all about getting as much for you, and their commission.
Not saying you were wrong to ditch her, as it sounds like it all broke down. But be prepared whoever buys it might come into the same issue re the valuation.

I understand lender's valuation is usually lower. When we bought the flat, the valuation came at £255k and asking price was £268k, so £13k lower. We agreed at £260k which seemed alright. Now the thing is we didn't market our property at £290k we were told by three different agents that was the going rate and when the survey came at £260k (the first one) with no justification we felt we were being cheated. There was zero justification as to why the valuation was £30k low. In fact, the report says no cladding, no structural issues, no major works needed, therefore, how did they arrive at that valuation? It all seems dubious and we won't sell at a loss.

The way we see it, maybe something good will come out of this.

I think you need to look at sold flat prices to see how many of them are selling for less than they were bought for. You will be surprised how many are currently selling at a loss. I am talking about outer M25 flats in the South East. I think you need to be more accepting of the value of your flat. It’s only worth what someone will pay for it. Hope you get it all sorted.

Valuations can be a bit random it is not an exact science. Especially true if there is nothing to compare to of a similar type.

Lets say somethings actual value was 275K, it wouldn't be outrageous for valuations to be +/- 5% of this, ie 13K, ranging all the way from 262K to 288K.

EAs always tend to put high valuations on to start off with to get the instruction, then beat you down to lower the price after it doesn't sell.

The only way to really find out is to test the market. Put it on and see what happens. But that of course takes time.

There is no guarantee a flat is going to go up in value over time. Many round my way are selling for less than their purchase price at the moment.

Yeah we did, so an agent sold a comparable flat last month for 285k. Which is why we were ok coming down to 285k, even though our flat has a garage and 900+ year lease, whilst that one didn't. It's smaller, narrower and not that great from inside. We've seen the flats in that building. We thought our pricing was ok at £290k taking all that into account and considering that's what three different agents told us before we put it on the market.

There was an online agent called Yopa, they valued our property at 350k and we just laughed. We knew it wasn't worth that.

What I'm upset about really is taking it off the market but the EA wasn't doing anything, we weren't getting viewings after a while and their staff seemed so inexperienced. One of the staff used to be an Amazon delivery driver and fair enough I'm all for allowing people to gain experience but if they can't sell, what good are they to me. The guy was clueless most of the time, we had three different people showing the flat around in the initial months and most of the time they were a bit lost, looking for the customer's number, not following up that great, etc.

We should have gone with another agent after we pulled out with this one.

So apparently these are the things agents have told me:

1. If you're not selling within the first 8 weeks, then you need to rethink.
2. First few weeks there should be 5-10 viewings taking place. Ideal would be 10 or more.
3. Pricing should be neither too high nor too low. Study comparables in the area and see what's the common price for your kind of property.
4. Don't get trapped in long term contracts. I found agents now who are willing to do rolling contracts. My first agent had tied us up to a 16 weeks contract. Then we pulled out.
5. FTB will be more emotionally invested whilst investors will try to bargain as much as they can.
6. I haven't been able to figure out how to market the price, whether a guide price is better or offers in excess of a certain price.

My other grief is the private buyer that came to us and how she kept spinning stories, thinking we're young, desperate and naive. We're not from the UK and they probably tried to used that to their advantage too. The woman gave me a lot of anxiety, I am glad it's over with her.

So you are going to rent it out for the sake of £5-£10k?

Is that £285k one in the land registry? If not, then how do you know that flat doesn't have a similar 'professional buyer' who will seek to drop the price at the last minute.

There quite easily be another person that saw your original listing and claiming their flat was worth £290k too because your advert said SSTC for £290k next to it. But as you have found out, SSTC is meaningless.

Of course it's a relief that the saga is over with her, I dunno if you realise that tenants can easily dick you around too, the difference is it's much harder to cut ties with them, someone could not pay and it'll take a year to get your property back.