In message , Mike Mitchell
writes
How can a valuation from one estate agent differ from another's by
£35K? I've got another agent coming tomorrow, so I'll get a third
opinion, but that is an enormous difference, don't you agree?

Noteworthy 1: The agent with the much higher valuation sold a house a
couple of streets away within about a week for the asking price, which
itself was at least £10K more than the cheaper agent has valued my
property at. That house was an end terrace by the way, whereas mine is
a semi. That house was on the main road; mine is in a very quiet side
road.

Noteworthy 2: The agent with the much lower quote on my property sold
a house also a few streets away in 24 hours last weekend (Saturday).
However, this agent had also recommended a (low) valuation, the owner
said, no, that's too low and added eight grand to the figure, then
sold for the increased asking price in 24 hours. And I know they're
not telling porkies, because I know the people involved.

What should I do? Try for a couple of weeks at the highest valuation,
then think again? That person who sold their house for eight grand
more than the agent had suggested reckons they could have upped the
price even more and got it.

MM

Mike,

"Valuation" is not a precise science. If you think about it, we are
trying to forecast the short term future, as well as the sellers
patience in terms of time to sell.

In a rising market, (and, for example, I have seen 3 bed terraces rise
from £110,000 to £140,000 between November and now), it is a matter of
judgement as to how much to suggest as an initial asking price. I always
tend to suggest a price based on values "now", and a price based on
possible values in a few months time. This gives the vendor a wide band
in which to set a price with us, and it should eventually depend on how
much they need to sell immediately, or how relaxed they can afford to be
in terms of time.

Many agents work on the principle that if they give the highest
"valuation", they are most likely to get the business, so they suggest a
figure which is higher than the highest sensible figure, (see above),
and keep their fingers crossed that one of a few things happen:

1) the market rises to accommodate the price before the vendor gets fed
up and goes to another agent.

2) the vendor accepts a lower offer than the asking price, if one is
made.

3) over a period of time, the vendor agrees to reduce the asking price,
and the market rises, to a point where asking price meets the market.

4) The vendor gets fed up and withdraws the property from the market
completely - i.e. doesnt sell.

Some agents work on the principle that people want to sell now, and only
suggest a price at which the property will definitely sell.

All of the scenarios which fall at the extremes, or between, the
possible asking prices, leave the general public and the media quite
free to spin the situation so as to give agents a positive or negative
press, (usually the latter).

e.g. it sold too quickly, so they must have priced it cheap.

it took ages to sell - they dont know what they are doing

all they do is put a board up, a picture in the window, and sit back and
wait for the money to roll in.

or

It sold really quickly - they were great.

The asking price seemed quite high, but it sold in 6 months, (or a year,
or whatever), for £20,000 more than the other agents suggested - the
easiest £20,000 I've ever made!.

etc..

It is therefore quite easy to see where the variations arise. My own
system tries to ensure that we work in partnership with a seller.



--
Richard Faulkner
Faulkner & Faulkner
Tel: 0161 881 6087 Fax: 0161 861 7636 web: www.estate.demon.co.uk