Are estate agents overvaluing homes in Wales and elsewhere?

[2longinthetooth]

When are estate agents going to get real. Seriously here in Wales their valuations are crazy. Can people be that deluded that they think they will achieve 350k for a semi in the valleys. These are not exceptional properties neither. I mean wth.
Ive been following the market for 1yr and this summer I can count on 1 hand the properties that have actually sold. Surely estate agents have to get a grip at some point because surely they are starting to lose a lot of money. People are not even reducing. Its gone full stalemate. I think they are hoping its their summer slump and September will improve but ive doubts. Properties have been sitting on the market for well over a yr, some are reaching their 2yr mark. Who are these people who sit for that long. Obviously not serious house movers.
How is it in the rest of the country.

I agree it’s unfair to blame buyers because what we don’t have here like in European countries is security if renting privately.

Also it isn’t just mortgage rates that have gone up, everything has, and frozen tax bands make a real
difference to disposable income.

You have choices. We have just sold. There is a comparable house to ours. It has been on for 450k for over a yr. Looking at our recent sold prices our homes command 395k. Our estate agent said to start at 450k and we refused, I want to sell not sit on the market for over a yr. We started at 425k we had a few viewings but zero offers. We reduced to 410k zero views or offers, dropped it to 400k sold full asking. The 450k property still on the market year and half later.
What we are seeing is initial valuation then monthly reductions until sold. Buyers will not blindly pay the estate agents valuations when they have sold price info. Unless the property is ultra modern or to a high spec these properties fly off. The average sale wont.
Our conveyancing has been slow so its given us nearly 3months of viewing onward properties, as buyers we are finding houses are 50k over recent sold prices. We often get daily fb reels from estate agents and the comments from people who live in the area are not holding back. Many say overpriced. We are now going into a airbnb.
Prices are mental we went to see a detached bungalow, its on our estate. 325k asking. Its a probate sale but needs about 50k of work. Electrics are from the ark. Privacy issues in the garden. These bungalows are small and even top spec ones only go for 340k. Hence this property has been on for over a yr. They havent reduced and its complete stalemate.

I think people dont mind paying up to 5k over sold prices but anything more can jog on unless its stunning.
Those who are reducing are serious sellers like us, those on the market over a yr are delusional.

This is what happened with my 87 year old father in law two years ago - house valued at £600k - he accepted an offer at £540k within 2 weeks because he was a realist and wanted it done and dusted , it was dated but had a lot of land - purchased a 3 bed bungalow in Frome ( so 200 mile move ) they wanted £440 k, he paid £404k - was an inheritance situation , needed bits of work but nothing major at all -

his views was he was prepared to be flexible , so will buy somewhere they can be flexible - he wanted a £120k difference for a bit to bank, moving costs and any small bits that needed doing .

I know! I feel so sorry for the house as it deserves better. I'm actually hoping it'll still be for sale when we've finished renovating ours as I'd still buy it. DH says he'd only be interested if we could get it for 100k less as it's going to take so much £££ to put everything right using the correct materials, reinstate the chimney etc.

Yes, but as they likely bought some time ago they only have their own greed to blame, or were they trying to "get what they paid" or something?

Over valuing, particularly for leashold, has been a newsworthy problem for a little while. I think it won't be long until the housing market as a whole is reported in similar articles. Hold on to your buyers if your lucky enough to have one....

https://news.sky.com/story/money-live-consumer-personal-finance-tips-sky-news-latest-13040934

I feel the same way. If you choose to buy a historic house with so many stories to tell, you have a responsibility to maintain it and respect the history, in my opinion. If you don't like history, there are plenty of brand new houses available.

I'm in North Yorkshire and the market is very slow here too. We have our eye on a house that we're really keen on, it has most of what we're looking for. However we haven't even booked a viewing as the initial asking price was absurd.

It's been on the market for a month and has already been reduced twice, and we will only book a viewing if it comes down further to a more realistic level.

We are fortunate to have a sizeable deposit from savings and inheritance so will only need a relatively small mortgage. Even so, we're absolutely not prepared to overpay in the current climate.

We are in the same boat although cash buyers, we have seen 1 or 2 houses we like but prices need to be realistic. On 1 estate a done up detached house sold for 295k we missed it as ours had not sold. The very next week a semi went on for 299k 🤯. This home looks like a probate sale, no where in comparison to the detached home. Tired and dated. As you can imagine its not gone under offer.

I think people are factoring stamp duty which is extortionate. Plus ongoing bills. Council tax is becoming another mortgage. Currently our council tax is the same cost as our mortgage. Utilities, food etc are not cheap. People are looking at the whole picture. we've moved loads and not once did we even factor gas/electricity, food or council tax because they were easily payable. Not so in 2026.

Yes I think this is definitely a factor. Near me there are a glut of lovely spacious immaculate four bed detached 10 year old houses which aren't selling despite being reduced to very reasonable prices.

I believe this is due to them being in a high council tax band, and then on top of that, having estate management charges. It's certainly the reason we won't consider them, despite the houses themselves being exactly what we'd like. The council tax plus estate charge is such a hefty ongoing monthly bill, both of which will rise year after year.

Interesting, houses almost good value but charges making them unsellable, what a mess.

It really is. The problem with these estate charges is they are pretty much unregulated, many of the management companies have a terrible reputation (the likes of First Port), and there is no cap on how much the charge can go up each year.

We did previously view one of these properties, and were given sight of the previous year's accounts showing how the management company had worked out the charge. This clearly showed that over half of the money collected from homeowners on the estate was going on profits and spurious corporate fees. It's an absolute rip off.

Part of a wider picture of the "financialisation of everything", have a read of "Treasure Islands" by Nicholas Shaxson to see how the Little People are seen as cattle to be farmed by Big Corp and wealthy individuals.

1000% same for us, there are stunning homes available at our price point but over a band d. We are not touching them with a barge pole. We are in our 50,s and for us this is hopefully our last home. We will not be able to pay extortionate council tax like we are today on pensions. Sad really but we want holidays, priorities shifted.

Yes, that’s a good point. CT & utilities are only going to keep going up. Plus today’s younger generations don’t have the same pension schemes so will likely have to be more prudent in retirement. Also more general demands on money, I was able to go to uni & a p/t job gave me extra money, when my dc go I will have to pay a large monthly sum to sub them.

A lot of people are waking up to the fact that "Debt for Education" is just a massive con and not worth it, your job prospects are not really enhanced unless you go to Cambridge and get a First class degree realistically?

The point about council tax hits home. It's quite urgent that we get some certainty about how property taxes are going to be reshaped for the next few decades.

I've just spotted a great apartment, and the fact that the CT is only band C is a real selling point. The house we're selling is only fractionally more expensive, but it's Band F. Between CT and SDLT, it's a huge brake on the market. No wonder we're all at sixes and sevens wondering what the sensible thing to do might be. And no wonder so many people are sticking.

Yep, maybe the bankers will argue that a burst property bubble is more damaging ( for them) than cheaper CT for us, and put pressure on to get a solution? The real brake on the market though is more expensive mortgage debt, that stops everything dead in it"s tracks.

The thing to do of course if you are a buyer is to deduct for the stamp duty, council tax and service charges when you make offers, that would level things out a bit.

I think a lot of buyers are doing this sort of maths and then deciding not to bother offering at all, hence all the comments like 'if it was just the price, people would offer lower'. Actually, they probably would not bother at all if the offer was 20/25/30% below the asking price because they would v possibly offend the seller and have only the tiniest chance of being successful. Of course, some houses are selling straight away still but others are sticking for years and I think these sellers just don't understand that the maths does not add up!

We are in this predicament. Our CT is an F and we currently pay 312 a month, were does it end. We are in an expensive council tax area, plus in wales the gov have it in their manifesto to change CT. They are proposing anything over a band d will be hit with a levy. It remains to be see if this ever comes to fruition but we are not blindly waiting about to test the theory. Not sure if this is a way of pushing older people out of bigger properties or a tin foil theory. Either way people are factoring all costs, this move is the hardest 1 ever trying to future proof ourselves from rising costs.

That's not working because people want full asking, there are not many who will reduce. We offered 300k on a 305k house. They were not having any of it. Estate agent said nope 305k they want. Looking at sold prices top price was 295k for comparable home. We left the offer on the table and walked away. Some homes are on top price with at least 50k work to do on them. Market is crazy. This is def the hardest move we have ever made.

I don't know what the answer is but council tax is a mess IMHO. There is no consistency in some of the banding. There are 4 bed newer builds here which are quite compact (as many new builds are) which are Band E for council tax, yet you can buy a more expensive, older and bigger property which is Band D or even C.

@2longinthetooth ”Some homes are on top price with at least 50k work to do on them. Market is crazy.”

The amount of houses I see that need a new drive, kitchen and bathroom, flooring, radiators, rewire, all facias and guttering, internal doors etc, is staggering.
It’s not £50k, usually closer to £100k.