Agent has reduced initial valuation

[LavenderLxx]

We had several estate agents value my late mother’s house. They ranged from £725,000 to £825,000 with the majority being around £750,000 - £785,000.

We decided to go with the estate agent who valued it at £825,000 - this was the highest valuation, they also had the lowest fees and we liked him the most.

I met with him today to confirm the paperwork and he has said that on reflection he thinks the house is worth £800,000 but we can still put it on the market for more if we like.

Not sure what to do? There is no onwards chain and we’re not under any time pressure to sell quickly; but obviously don’t want it to just sit there if it’s priced too high. Any thoughts?

I think it's probably going to sit around a while at either £8 or £8,25. Not too much difference and it's not as if someone won't make you an offer when it's on for the higher amount.

Agents tend to flatter the valuation to win your business. One at £725 is probably closest, but only time will tell. Fact that agent you chose is trying to reduce already is a bit of a red flag lol.

Fingers crossed for you but even the £725k valuation might be a bit optimistic at the moment. Values are not what they were even a few months ago. I think there is no harm in trying the 800k as it only takes one buyer for whom the house ticks enough boxes - but be prepared to have to make a significant adjustment if that doesn't pan out. 🤞

In my experience it’s the agent who suggests the lowest or middle asking price who is most realistic. I’d start at 785.

Is this the valuation you used for probate?

The valuation is as at the date of death. Clearly the market can change since then. Agents tend to value quite high to win the work if you sell. I got a proper RICS valuation for probate as I didn't want to have to overpay IHT and then reclaim it later if it sold for less.

Definitely wouldn’t go for 825 if even he is now saying 800. Ultimately it will sell for what someone is prepared to pay for it. Is it expensive for the area or quite an average house? What condition is it in?

That is why you have more than one valuation so you can see where the average is. You know yourself that majority were in the region of £750/785k. So the £800k is still overpriced. If you want to use the agent because you like him fair enough but clearly he isn't a very good one as he has overvalued the property simply in an attempt to win your business. Wouldn't you rather just use one that was better at their job bearing in mind they have a job to do for you?

House prices are collapsing - rightmove just released figures saying it’s the worst drop since 2008. So it’s not surprising that agents are reducing their estimates down. Close friends have just had to knock a third off their price - five different agents all told them to use the original price 6 months ago but the house is just not shifting. Even after knocking a third off they’ve only had one viewing.

Honestly be prepared to get a lot less than your were hoping for.

I’m sorry for your loss. 💐

I would take a long hard look at this estate agent and decide whether they are your favourites whatever the house eventually sells for.

Look at what they currently have on the market. Look at photos; what is written in the adverts; look at how long they have been on the market and at whether and when their price has been reduced.

Ask about houses they have recently sold at around the same price point - what was the original price? How long was it on the market for?

What services do they offer? Are all viewings accompanied? Who does the viewings and can you meet them? Do they have a dedicated ‘sales progressor’ (or similar) whose job is only to keep chains moving and help you to nudge everything along? (We had one of these in our last sale and they were worth their weight in gold).

What is their local reputation?

It does sound to me as if you were quite swayed by the original highest valuation. Take the valuations out of the picture and weigh up the estate agents against each other - will you still feel that you chose the right one if the house eventually sells for £725k or less?

I mean it’s quite clearly an inflated valuation given every other agent put it significantly lower.

I wouldn’t trust someone who cynically values higher (or if not cynical then clearly not aware of realistic local values. This is the type of agent who will tell you he has a buyer who has ‘sold their property’ when the buyer simply has an offer. His lower commission rate is also fishy.

You will probably get more viewings at a lower starting price which will increase the chances of someone liking it and putting in an offer, but it will only sell for what someone wants to pay for it.

Estate agents want a house to sell so they get their commission, not have it sitting around waiting for a price that is never going to appear.

When selecting an agent for our last sake, we automatically struck out the outlier highest valuation (and the outlier lowest) and selected the one from the ‘bunched middle of the pack’ who, as far as we could establish, offered the best service.

Not sure where you are in the country but where we are properties at that price (pricier end of the family home market) tend to sit around many have been on for more than a year as the people who would normally buy them (families with teens moving to a larger house) can't afford the interest rates.

I would go with just below 800k if I were you and have a price clear you would accept. Remember that the longer the property is empty the more maintenance there is to do. Some probate properties have sat on the market for years round here because the families are holding out for that top price. I can't see a significant rise in the market any time soon.

We have an agent round here who routinely overvalues to get the business, and the client ends up having to drop the price, and/or simply not selling. Even £800 is over the other valuations. You will waste time while the house sits there with little interest, then end up dropping at least once.

Personally I would be telling him I want the house priced around the middling valuations.

Agree

There was a TV show last week investigating Estate Agents.

The focused on two firms in particular, Purple Bricks and Connells. Both firms value high and promise low fees in order to secure business.

They immediately start driving the asking price down as they knew in the first place it would never sell for that amount.

You are definitely better off selling through an agent who is local, knows the market and charges a fair (not bargain basement) price for a good job.

Holding out for the highest price possible might mean you find yourself with a house to look after through the winter months, heating and maintenance costs racking up. The market looks to be on the way down rather than up. I would sell for a fair price now as in a year's time the house might be worth less than your bottom valuation.

It must be a difficult time for you following the loss of your mum. 💐

So the agents went with a high valuation to hook you and are already backing away from that. I would run a mile. You don’t want to be tied to an agent for what’s probably a minimum of 12 weeks who seems to be looking to sell to the “one born every minute crowd”. 0% of £825,000 is still 0 - a higher percentage but at a more realistic price is better than not selling. Council tax, energy costs, empty property insurance etc etc not to mention the general ball ache of being responsible for an empty property are all things to carefully weigh up. Getting it sold, even if not holding out for the very highest price is in my opinion the best strategy.

I'm not keen on EA, I don't trust them.

He's gone high in his valuation to get the instruction and is now reducing his pricing.

If the variance in pricing is £100,000.00 - someone's got it very wrong, and in the current climate it's probably the EA you've gone with.

What condition is it in? Locally to me EA tend to market high regardless of the condition, many are probate sales which are clean and livable, but are stuck in 1980 and need a fortune spent to bring them into 2025 (rewire, replumb, kitchen, replaster etc). Property that is modern and priced well sells, old overpriced properties sit there for months and years.

If it needs work doing, it needs to be reflected in the price and post COVID trades aren't cheap.

Was that a valuation for probate, market value, I would have gone with one in the middle

Valuing high and then lowering is a common estate agent tactic to get your business.

This is worth watching if you want to learn more about the way they work…

https://www.bbc.co.uk/iplayer/episode/m002fygs/panorama-undercover-estate-agent

This is worth watching if you want to learn more about the way they work…

Just to add, one of the case studies is a bereaved family being ripped off for thousands when selling their late father’s home.

Probate valuations are generally slightly lower (there is a formula) than the possible market value as they have to be the price a willing buyer would have paid on the date of death.

So valuers allow for the fact the pool of willing buyers on that date would likely be small and allow for haggling etc. in the calculation.

Did you sign the paperwork? Or do you have a genuine chance to reconsider your choice?

I see endless, endless houses that are clearly probate, in need of a total refurb, and yet priced the same as a ‘done’ modernised house.

I think people sometimes forget just because their parents kept it in ok condition, because they think the bathroom / kitchen is fine… doesn’t mean the market will.

And a refurb is expensive - easily could be six figures.

It's well known that agents overvalue to win the work.