Appraisals, Price Changes and a Little Trick
9 Jun 2017
More and more when we attend a property valuation, whether this is for lettings or for sales then then vendor or landlord has already got a figure in their head that they wish to achieve. They have usually been on Rightmove to look for similar properties, or used Zoopla’s random number generator (property valuation tool) (more on this one later).
Now at this stage, there are number of situations for any estate agent. If the agent goes into an apartment and already knows the price a vendor is looking for then they have got their fingers crossed that they actually think that the vendors figure is a bit low.
This way the agent can say truthfully, that they can get more than what the vendor is expecting. The vendor is surprised in a good way, and hopefully instructs in the sale.
Or another more difficult outcome may be that the owner thinks that the property is worth more than what the agent actually thinks.
This time the agent has to tread a bit more carefully, will the vendor be upset or insulted if you tell them you think it is worth less ? After all, which person will instruct the agent if they have just upset, or insulted them ? Do they lie and get the instruction ? Or tell the truth and maybe lose the instruction to another agent who is prepared to lie ?
The third outcome is usually the most common. This is where the owner of the property knows the figure that their property is worth and they have it pretty much spot on. This is the most common situation but also the most dangerous for the vendor or the landlord. Why is it dangerous ? This is when an agent has a choice, do they exceed your expectations by lying to you. Or do they tell you the truth and stick with what you expected ?
Then the vendor or the landlord has the option – to instruct the person who has exceeded their expectations or the person who has simply agreed with them. Unfortunately this tends to lead to a situation where the agent who gives the highest valuation gets the instruction, most people are tempted by the chance to get more money, it’s natural.
So why is this important ?
Which ? magazine have recently done a survey in regard to asking prices on properties to achieved prices. The results of this where quite surprising in that they deduced if you overpriced your property to begin with, then you generally achieved less for your property, by quite a considerable amount, when it eventually sells, rather than if it was correctly priced. This is due to the extra exposure achieved at the initial marketing stage, when correctly priced.
So if you are quite sure about the value of your property, which most people are, then don’t be led into temptation by an over enthusiastic price as it may actually lead to you getting less in the end and taking longer to get there.
Most vendors and landlords once they have instructed an agent will not change, after all it seems a hassle to change agents, new photographs will be needed, new details, and possible some charges for this. Some cheeky online agencies will actually have already achieved their fee as they charge you before they even sell it ! But remember that the only way to get back up the listings on Rightmove is to either be off the market for 12 weeks, change the price by more than 5% or the best way, move agents ( the first ones got the price wrong, why should they benefit from their mistake ).
And I promised you a little trick, claim your own house or apartment on Zoopla or other sites property valuation tools, if it allows you to add details then be sure to let it know you have spent ££££££’s renovating it, tell it that you think it is worth a lot more.
Most of the time by doing this you can increase the online valuation of your home by a considerable amount ! This way, if an agent checks on this before coming around you will know it when they over value it by xxxxx amount. And more importantly if someone looking to buy your house has a look online to ask a website the projected value, it may also give them the higher value.
And the lesson to be learnt from all this is to go with a knowledgeable local agent with a lot of experience in valuing and selling properties in the area. If you do a bit of online research then don’t be swayed by the number of new instructions, or even the number of sales achieved by an agency.
The number one most important factor, that is generally overlooked are price changes, pay most attention to the agencies that are doing most price changes, they are the ones coming to look at properties and getting the price wrong the most number of times.
Look at the ones who are selling properties with no price changes, they are getting it correct.
Oh and remember the little online valuation trick I told you, remember it works both ways so when you are looking for a place to buy or rent ! Which does actually make them a bit pointless, other than to capture your data.
Best thing to do is to invite a knowledgeable local agent to visit like Suttons City Living in Manchester City Centre to have an informal chat about your property and what you wish to achieve from it .
0161 832 9922
Sales and Lettings Manager
Suttons City Living