Jump to content
House Price Crash Forum
jethrotull

Eas Are Undervaluing

Recommended Posts

Close friends wanted to sell their 3 bed house house in Fleet, so called round 3 EAs.

  1. The first EA said £430k
  2. The second EA said £425k
  3. The third EA said £450k, but list at £530k :blink:

I would have listed at no more than £425k as EAs often over-value. My friends decided to list at the full £530k. This is more than £100k over the peak price for their road.

On the first weekend they had two offers at the full asking price. :rolleyes: This morning they had other viewers prepared to offer over the asking price.

So far every one of the viewers is renting locally after selling in the past couple of years. They all say there is just nothing for sale and they need to get some security for the sake of the children / pets / decor.

To my mind this says:

  1. We're in a thin market, with few buyers and sellers, making prices volatile
  2. Renting is nasty for people needing security
  3. Prices are still going up in places
  4. Valuations are a guess in this market
  5. People can't STR or stay in small houses when they have children - they'll have grown up before this crashes

Share this post


Link to post
Share on other sites

Looks like your friends have mugged some twit off nicely!

Glad I don't live in fleet, it's obviously lagging behind the rest of the country.

Share this post


Link to post
Share on other sites

The proof of the pudding will be the money in the bank. Until then - they're just offers.

Yes - let's see what happens when the mortgage lenders make their valuation...

Share this post


Link to post
Share on other sites

Close friends wanted to sell their 3 bed house house in Fleet, so called round 3 EAs.

  1. The first EA said £430k
  2. The second EA said £425k
  3. The third EA said £450k, but list at £530k  :blink:

I would have listed at no more than £425k as EAs often over-value. My friends decided to list at the full £530k. This is more than £100k over the peak price for their road.

I'll raise what I think you friend can achieve to £47 million - do you think he'll give me the instruction?

I do sometimes wonder at what point hope and rationality achieve balance.

Share this post


Link to post
Share on other sites

Yes - let's see what happens when the mortgage lenders make their valuation...

If the offers are from STR people with 40% plus deposit I think I know what will happen ;)

The madness will only end when the pool of loonies runs out. Maybe around 2035 or so.

Share this post


Link to post
Share on other sites

If the offers are from STR people with 40% plus deposit I think I know what will happen ;)

The madness will only end when the pool of loonies runs out. Maybe around 2035 or so.

One of the offers was STR who has 100% cash in his bank account and is ready to move immediately. Contracts being drawn up now.

Share this post


Link to post
Share on other sites

Valuations are just one person's opinion, be they a surveyor or an estate agent. these people are just human beings and are not infallible and like us all have personal preferences and dislikes. Frankly, when I am selling properties I expect theer to be a wide range of prices which is why you should always get at least 3 valuations.

Anyone can get lucky with a single buyer prepared to offer over the odds, but the true test is if there are more than one which in this case there obviously was, indicating that the property is worth this money to a buyer at this point which is all any seller needs. Since I was in the property business I have constantly heard cries of " far too much money" when a property is sold. In reality however, who cares ? If you do not wish to buy a property at a given price and someone else does, surely that is fine . It is just about personal choice. What I do NOT understand is why so many people on this forum get so agitated by the fact that a property has sold at a price above that which they would pay for it. If you do not want to buy it at that price and someone else does don't worry about it just buy something else.

Share this post


Link to post
Share on other sites

Valuations are just one person's opinion, be they a surveyor or an estate agent. these people are just human beings and are not infallible and like us all have personal preferences and dislikes. Frankly, when I am selling properties I expect theer to be a wide range of prices which is why you should always get at least 3 valuations.

Anyone can get lucky with a single buyer prepared to offer over the odds, but the true test is if there are more than one which in this case there obviously was, indicating that the property is worth this money to a buyer at this point which is all any seller needs. Since I was in the property business I have constantly heard cries of " far too much money" when a property is sold. In reality however, who cares ? If you do not wish to buy a property at a given price and someone else does, surely that is fine . It is just about personal choice. What I do NOT understand is why so many people on this forum get so agitated by the fact that a property has sold at a price above that which they would pay for it. If you do not want to buy it at that price and someone else does don't worry about it just buy something else.

I'm sorry, there is far too much common sense in that post. You are clearly in the wrong place. ;)

Share this post


Link to post
Share on other sites

Valuations are just one person's opinion, be they a surveyor or an estate agent. these people are just human beings and are not infallible and like us all have personal preferences and dislikes. Frankly, when I am selling properties I expect theer to be a wide range of prices which is why you should always get at least 3 valuations.

Anyone can get lucky with a single buyer prepared to offer over the odds, but the true test is if there are more than one which in this case there obviously was, indicating that the property is worth this money to a buyer at this point which is all any seller needs. Since I was in the property business I have constantly heard cries of " far too much money" when a property is sold. In reality however, who cares ? If you do not wish to buy a property at a given price and someone else does, surely that is fine . It is just about personal choice. What I do NOT understand is why so many people on this forum get so agitated by the fact that a property has sold at a price above that which they would pay for it. If you do not want to buy it at that price and someone else does don't worry about it just buy something else.

+1... Also if Fleet Hampshire? it may be on the wrong side of Fleet next to the new MEGA depot (24/7 operation) that is about to built up at the end of the best /longest/most un-used runway in the SE!

Anyone buying in that area wants to make very very sure they aren't in for a nasty shock when/if the new flight proposals are approved.... With a MEGA distribution depot placed at the end of the runway I'd expect freight flights to go crazy once depot is built!

Share this post


Link to post
Share on other sites

In reality however, who cares ?

Well, I do

A small number of idiots overpaying gives false confidence to the people who won't drop asking prices, or take an offer, and that costs anyone looking to buy a house.

<spelling edit>

Edited by Mal Volio

Share this post


Link to post
Share on other sites

Close friends wanted to sell their 3 bed house house in Fleet, so called round 3 EAs.

  1. The first EA said £430k

  2. The second EA said £425k

  3. The third EA said £450k, but list at £530k :blink:

I would have listed at no more than £425k as EAs often over-value. My friends decided to list at the full £530k. This is more than £100k over the peak price for their road.

Fleet Hampshire? Yes properties for sale are thin on the ground and (some) are going for 10-15% more than in 2009 but still, even £425k seems high to me.

4 beds close to good schools are going for £350-400k, so a 3-bed on at £530 needs something special! Backing onto the canal? Lots of land? Outside Fleet a bit? Older character property? Even so they're going to have to get very lucky,.

OK I'm not watching the market with an eagle eye but I've never seen a 3-bed on at £530k. Which agent? (I want to ensure I never go near them.)

Share this post


Link to post
Share on other sites

[*]The third EA said £450k, but list at £530k :blink:

On the first weekend they had two offers at the full asking price. :rolleyes: This morning they had other viewers prepared to offer over the asking price.

So far every one of the viewers is renting locally after selling in the past couple of years.

To my mind this says:

...

Sorry, but to my mind this says your friend isn't giving you the full story. What you have said sounds like bolloks.

Share this post


Link to post
Share on other sites

Sorry, but to my mind this says your friend isn't giving you the full story. What you have said sounds like bolloks.

"Moo" sounds like bullocks.

Think about it a bit - if something entirely boring and normal happened nobody would bother posting an anecdote. It needs to be something unusual to be worthy of an anecdote. If you are going to disbelieve everything unusual on the basis it is unusual then it is pointless reading anecdotes of the unusual. You reveal nothing other than yourself.

You offer no evidence or argument for your post, just an insult.

You offer two contradictory explanations - the first that I have a partial story, the second that what I wrote was untrue.

Depart! Go to a forum for the unthinking, cynical and rude.

Share this post


Link to post
Share on other sites

Good on the sellers.

I think it shows two things:

(1) Even in a slow market, certain types of properties will be in demand.

(2) Essentially, all the estate agents undervalued the home. Which just goes to show that their supposed expertise and local knowledge is no more valuable than someone with half a brain looking at Rightmove and Land Registry figures.

Share this post


Link to post
Share on other sites

Depart! Go to a forum for the unthinking, cynical and rude.

Sorry. I'm just amazed by this line "So far every one of the viewers is renting locally after selling in the past couple of years. They all say...they need to get some security for the sake of the children / pets / decor.", as, having sold to rent myself in the past couple of years, I can't imagine now paying above the asking price and I never divulge that much personal information to the vendor. To find several people all identical is a big co-incidence. But I have no reason to doubt you, and it is an anecdotal forum, and stranger things have happened, so I apologise for being rude.

Share this post


Link to post
Share on other sites

Sorry. I'm just amazed by this line "So far every one of the viewers is renting locally after selling in the past couple of years. They all say...they need to get some security for the sake of the children / pets / decor.", as, having sold to rent myself in the past couple of years, I can't imagine now paying above the asking price and I never divulge that much personal information to the vendor. To find several people all identical is a big co-incidence. But I have no reason to doubt you, and it is an anecdotal forum, and stranger things have happened, so I apologise for being rude.

My comment is in support of the OP from the perspective of saying: it doesn't sound that off the wall based on my own recent experience. I think I noted elsewhere on this forum that I found myself in the middle of a bidding war / scrum just 3 months ago, with a property that had come onto the market in dorset: there were five bidders; everyone was stated to be cash buyers; the winning bidder completed the purchase within 3 weeks; I was one of the bidders and I had no reason to doubt the EAs; I was told that the "rest" were mainly city bankers with bonuses to spend. The house was a gem - whether in a recession or not, when a house like that comes along, you just go for it. The depressing thought is when the next decent one comes along, the other 3 will be back again ....

Share this post


Link to post
Share on other sites

If you do not wish to buy a property at a given price and someone else does, surely that is fine . It is just about personal choice. What I do NOT understand is why so many people on this forum get so agitated by the fact that a property has sold at a price above that which they would pay for it. If you do not want to buy it at that price and someone else does don't worry about it just buy something else.

Unfortunately most of the time the reason the property goes for such a high sum is not because the buyer wanted it more or had more money to spend etc, it's because they don't know what they are doing. In most cases the winning bidder is the one who understands the least about what they are undertaking, they are making a finanicial commitment based on believing that property only ever goes up, or that they will stay in work and have consistent pay rises etc etc.

They 'win' the property only to become a bankruptcy statistic further down the road. It is mostly dumb people winning these bidding wars, and it is to the detriment of all of us... The sensible are not given the opportunity to own a home and the financially illiterate and/or irresponsible take on a burden they cannot shoulder for which we ALL pay. It is this that agitates us.

Share this post


Link to post
Share on other sites

Unfortunately most of the time the reason the property goes for such a high sum is not because the buyer wanted it more or had more money to spend etc, it's because they don't know what they are doing. In most cases the winning bidder is the one who understands the least about what they are undertaking, they are making a finanicial commitment based on believing that property only ever goes up, or that they will stay in work and have consistent pay rises etc etc.

They 'win' the property only to become a bankruptcy statistic further down the road. It is mostly dumb people winning these bidding wars, and it is to the detriment of all of us... The sensible are not given the opportunity to own a home and the financially illiterate and/or irresponsible take on a burden they cannot shoulder for which we ALL pay. It is this that agitates us.

Why are you suggesting that this buyer (who appears to have at least £540,000 cash if I understood the thread) is financially illiterate?

Share this post


Link to post
Share on other sites

Why are you suggesting that this buyer (who appears to have at least £540,000 cash if I understood the thread) is financially illiterate?

Lottery winner..?

;)

Share this post


Link to post
Share on other sites

Why are you suggesting that this buyer (who appears to have at least £540,000 cash if I understood the thread) is financially illiterate?

I said in 'most' cases. having 540k in cash is not usual and a case like that isn't setting the market price.

As an aside, buying at the top of a massive housing bubble is not finanically smart, but maybe they don't care if they lose some money.

Share this post


Link to post
Share on other sites

My comment is in support of the OP from the perspective of saying: it doesn't sound that off the wall based on my own recent experience. I think I noted elsewhere on this forum that I found myself in the middle of a bidding war / scrum just 3 months ago, with a property that had come onto the market in dorset: there were five bidders; everyone was stated to be cash buyers; the winning bidder completed the purchase within 3 weeks; I was one of the bidders and I had no reason to doubt the EAs; I was told that the "rest" were mainly city bankers with bonuses to spend. The house was a gem - whether in a recession or not, when a house like that comes along, you just go for it. The depressing thought is when the next decent one comes along, the other 3 will be back again ....

That is the key thing - a house that's particularly special will always command a premium.

When prices were at their lowest Mr B and I went to an auction for a property that had a GP of £300K.

The house itself wasn't remotely beautiful and it needed a good deal of tarting up but the location was fantastic, spectacular sea views plus big garden and parking - and yet only a few yards via private steps to beach and harbour, in a small seaside town where choice is limited at the best of times.

We weren't really surprised when it went for something like £535K.

Share this post


Link to post
Share on other sites

"Moo" sounds like bullocks.

Think about it a bit - if something entirely boring and normal happened nobody would bother posting an anecdote. It needs to be something unusual to be worthy of an anecdote. If you are going to disbelieve everything unusual on the basis it is unusual then it is pointless reading anecdotes of the unusual. You reveal nothing other than yourself.

You offer no evidence or argument for your post, just an insult.

You offer two contradictory explanations - the first that I have a partial story, the second that what I wrote was untrue.

Depart! Go to a forum for the unthinking, cynical and rude.

Even friends will lie to you about money - it's all about keeping up with the Joneses. He didn't say you were being untruthful, but that your friend might be.

I talked to a 'mate' who said he owned his house outright. Now he's in a bedsit after the repo...

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 260 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.