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SarahBell

Insane Valuation

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A neighbour has a valuation of 135k off an EA. (It's in writing he told me!!)

The previous peak on the street was 128k back in 2007. One's just sold for 75 (albeit in dire need of double flazing as opposed to this bloke's 25 year old double glazing)

Where do they get their valuations from?

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A neighbour has a valuation of 135k off an EA. (It's in writing he told me!!)

The previous peak on the street was 128k back in 2007. One's just sold for 75 (albeit in dire need of double flazing as opposed to this bloke's 25 year old double glazing)

Where do they get their valuations from?

Seller: "You're the third EA to come round. Like I've told the others, I won't accept less than £135k for it and so won't instruct an EA for less than that. Number 5 sold year before last for £128k so it must have gone up since then".

EA: "I value this house at £135k".

Edited by mikthe20

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A neighbour has a valuation of 135k off an EA. (It's in writing he told me!!)

The previous peak on the street was 128k back in 2007. One's just sold for 75 (albeit in dire need of double flazing as opposed to this bloke's 25 year old double glazing)

Where do they get their valuations from?

Old quote from earlier this year but I assume the reasons are the same?

Rightmove Index: Raised Asking Price Doing More Harm than Good

The latest release of Rightmove's house price index shows asking prices on UK property rose 0.9% this month compared to last month.

The report admits that agent's are being forced to up initial advertising prices to win new instructions, amid the fierce competition for the few quality properties that are currently being put onto the market.

That makes the asking price rise, for me, more like bad news than good news. I understand that agent's are trying to survive in a difficult market, but we need to firm out the price drops that we have had, before we can ascertain if they are enough to bring the market to bottom, and accelerate any further drop that may be necessary

In short, by humouring unrealistic vendors over asking prices, agents may be doing nothing more than prolonging their own misery.

The report also said that lack of mortgage availability is hindering market recovery as sellers who have dealt with the market reality and drastically dropped their asking price are faced with buyers unable to obtain finance. Rightmove commercial director Miles Shipside said:

"Some sellers are still pricing wishfully high, though it is encouraging that elements of the market have adapted relatively quickly to find a new price floor at a discount of around 25% from peak. "

"Until banks get their own houses in order, the active minority of sellers and agents who have drastically adjusted pricing will remain frustrated by the limited functioning of the financial services sector."

So, after its initial optimism the Rightmove index enforces the realisation that the UK property market recovery hinges on two things: vendor realism and mortgage availability. The latter more than likely hinged on a recovery to the wider UK economy, which in my opinion is also necessary to increase buyer numbers sufficiently to bring vendor realism

What I just don't understand is why nobody explains to sellers that anyone needing a mortgage is not going get a valuation much above 25% down from peak, making chains impossible to complete

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Part of his reasoning for his excellently high valuation was "his land"... I'd draw a plan if I could be bothered but he'd not got huge acres and I'm not sure he'd get planning permission for an extension (which is the normal reason people want a bigger garden area) cos of the way it sits in the road. (And the woman opposite him always gets her own way with the council)

It's not a huge garden at all. The house hasn't been done up for a long time so the people wanting shiny new kitchens and bathrooms will be disappointed.

I'm still pretty gobsmacked about the valuation...

:)

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Part of his reasoning for his excellently high valuation was "his land"... I'd draw a plan if I could be bothered but he'd not got huge acres and I'm not sure he'd get planning permission for an extension (which is the normal reason people want a bigger garden area) cos of the way it sits in the road. (And the woman opposite him always gets her own way with the council)

It's not a huge garden at all. The house hasn't been done up for a long time so the people wanting shiny new kitchens and bathrooms will be disappointed.

I'm still pretty gobsmacked about the valuation...

:)

Perhaps not as gobsmacked as he will be when he starts getting offers! RM's latest HPI said EA's were telling sellers to accept lower cash offers rather than wait for someone who needs a mortgage, so even if they got an offer anywhere near asking it might never complete.

Edited by Sybil13

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I offered him 90. Think he was a bit put out by that.

;-)

That's mean Sarah, & you know it.

Yes it's Oldham, but surely you could have added a couple of zeros to that offer?

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That's mean Sarah, & you know it.

Yes it's Oldham, but surely you could have added a couple of zeros to that offer?

LOL 90p would be about right. I know who his neighbour at the side is.

I can't wait for his sale board to go up.

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