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’ve had friends trying to buy around that price mark in Hampshire (Surrey end) they kept missing out despite offers over!

I would be looking at sold for prices, what else on the market between £750-£800k and you could try going on at £795k to see if there is any interest.

I’d drop it , as they probably put it on the market at an inflated price to get the contract. Dodgy of them, though.

OP, I have recently been looking for a home in an expensive part of the country - nice villages with good links to London. Without question, the majority of houses coming on the market are overpriced. Places are hanging around for months and months, and then being reduced by 25k (on an, eg, 800k home). Those houses competitively priced, fly off the market within a week. I keep hearing people locally talking about a slow market - it’s not slow if priced correctly.

Echo what others have said, especially about RM bands. Go with one of the lower valuations and get your agent to work hard to get viewers in the door and a couple bidding against each other.

It's so difficult when you're selling with a family member, especially one who is holding out for the top and perhaps unrealistic price.

We had the same when selling a family member's home. One family member wanted to hold out. Interestingly he was the one with least knowledge and experience of buying and selling houses. He shouted loudest so we did what he asked, the house languished on the market for ages. Two deals fell through when the valuation didn't match the asking price.

We ended up selling at auction and got a fair amount less but my goodness it was worth it for the relief.

I think that homes which go on the market at a realistic price can go within days, but homes which are overpriced can end up selling for less than the realistic priced. Selling with a sibling or relative adds a whole layer of complexity. Was the probate valuation a Red Book valuation? If so, you may get circa 800K or more.

This is really area dependent. Prices are still rising where I live.

There was a programme on BBC recently pointing out an estate agent who deliberately inflated valuations to get the business and then advised them to reduce it shortly afterwards

Agents do overvalue and at the moment I know several houses around that price point sitting and being reduced (east of England, I believe true in most areas)

but, when we last sold we went with the highest valuation after an honest conversation with them about how we felt they had overvalued - they were confident and sold it on the first day for the full asking (and then again when the first buyers withdrew on the first day with a bidding war so above asking price) - they just had exactly the right buyers on their books

so if you trust them then try them - but if you don't it might be better going elsewhere.

@LavenderLxx in your OP you said you warmed to this particular agent. If you still feel that way then I'd go with him and take his advice on asking price.

Also agree with beware that CGT may be due on the difference between the probate value and the selling value, if it sells for more than the probate valuation.

You don't really want an empty property hanging around if you can help it - there's plenty to keep on top of in terms of maintenance (house and gardens), keeping it secure, safe from frost damage, insured etc. Costs mount up.

If you are not in any rush to sell you could agree to market at 825 as your brother suggests, but get agreement from him that if anyone comes up with an offer of say 775k or above you will take it ? That way he gets the chance to discover if it really is worth that and you get the chance to reduce it if no one turns up willing to pay the price.

You could also agree to market at 825k for say 2 months and if it isn't sold then reduce.

A compromise.

But it all depends how quickly you want to sell and whether or not the market in your area is falling currently.

800k sounds more realistic based on the other valuations so I would agree to list it at 800k. You may still find you have to reduce it to sell but as you’re not in a hurry, you could try it at this above average valuation.