house value

[anyroads]

peteroldracer said..

"and how many sellers have declared the true price they got?"

Bang on, you are right.

They would be embarrassed to tell how little they got !

anyroads

[carrowcrin]

with your comments, no surprise at the cave house.

What an ignorant comment. There's nothing wrong with caves houses. Cool in the summer without the need for air-con, ecological, spacious (at least mine is) and low-cost.

pete,

my comment was not directed at people who live in cave houses just one.
i'm sure your house is great and ticks all the boxes, i have a basement next to the rocks and i know where your coming from.

regards

[anyroads]

carrowcrin said...


"pete,

i know where your coming from" ( surely it should be you're)

The cave house ?

Anyway, now that Royal Mail shares have gone over £5, and katy is sitting on a profit of over £350, perhaps she could make you an offer ?

anyroads

[pete_l]

Anyway, now that Royal Mail shares have gone over £5, and katy is sitting on a profit of over £350, perhaps she could make you an offer ?

anyroads

Well, I'm easily bought - but the house isn't for sale (possibly the only one in the whole of Spain that isn't )

[anyroads]

Not you pete..!

I meant your "friend".

anyroads

[Mowser]

When we asked a few estate agents a few years ago, the prices were all over the place. There was a difference of €100,000 between the lowest and the highest guesstimate. They really don't have a clue right now.

[barry]

I see the Daily Mail set have joined in!

[scampicat]

Our buyer's bank valued our house when he applied for a mortgage. It was slightly more than our asking price. The asking price was worked out (by us) by looking at what other houses had sold for in our village and then applying pluses and minuses (in other words our house had no garden (minus) but did have a roof terrace (plus). It had no garage (minus) but was accessible by car (plus). We came up with a figure which as I say was slightly less than the buyer's bank valued it at.

I will add however that we still accepted an offer way below the asking price because that is what the buyer was prepared to pay.

[pete_l]

When we asked a few estate agents a few years ago, the prices were all over the place. There was a difference of €100,000 between the lowest and the highest guesstimate. They really don't have a clue right now.

But estate agents aren't in the business of valuing people's houses.

Their job is to get you to give them the right to sell it and earn a commission. Hence they are salespeople first and foremost - selling to you the prospect that they can find a buyer and that you'll get a good price. The number they tell you comes about by assessing you (and to a lesser extent: the property) and then dangling a number that they hope you will accept.
Once they have you "on the books" then they will tell potential customers "yes, it says X amount, but I'm sure the seller will come down"

Even in the UK, which (thanks to rightmove and the land registry website - that contains actual, sold prices for every house in your region) has a more-or-less efficient maket, the agents are still in the business of selling themselves to the client - not selling the client's house. That step comes later.

[Mowser]

But estate agents aren't in the business of valuing people's houses.

That's why I said the prices are all over the place. They have no idea. As you say, they dangle a price and hope you'll bite.

[pete_l]

But estate agents aren't in the business of valuing people's houses.

That's why I said the prices are all over the place. They have no idea. As you say, they dangle a price and hope you'll bite.

Yes, exactly right.
But the prices they gave you weren't the price that they thought the house would sell at (which was the price you wanted from them). The prices they told you were the prices they thought you would accept and give them the job of selling. That was why they were all so different - not because they all thought the house was worth different amounts, but because they all thought differently about what to tell you, in order to get your business.

Ultimately they don't care what the value of the house is and have little or no interest in what the number turns out to be. What they want is the nod from you to sell it (for whatever price they can persuade the buyer to part with and whatever price they can convince you is "good") and then to get their commission. The conflict is that we, as sellers, want to know that we're not selling too cheaply (and that there wouldn't have been someone along, the very next day who'd offer more). The agents don't care about that - all they want is one single person to say "gimme!"

Interesting statistic: estate agents get a higher price if the house they are selling is one they own.

[peteroldracer]

I have always contended that the problem with estate agents both here and in the UK is that there is little incentive for them to really try to get the best price for their sellers. If they are on, say, 5% commission, and selling a house at 200,000 (GBP or €) that gives them 5000 for their trouble, Another 5000 on the price, which could make a fair difference to the seller, only gets them another 250, so they just do not bother.
I did try to get an agent in the UK to go for a stepped percentage - 2.5% on the first 100,000, 5% on the next 10,000, and 7.5% on anything above that - he would not even think about it! he should have worked like I did for a while as a salesman on commission only - that concentrates the mind wonderfully!

[markwilding]

he should have worked like I did for a while as a salesman on commission only - that concentrates the mind

But isn't that why they are such liars and so devious?

[anyroads]

markwilding said...

"But isn't that why they are such liars and so devious?"

Right on !

That is why I am glad I spent most of my life in the banking business !!!

anyroads

[carrowcrin]

My understanding was that auctioneers were also the people who put an approximate value on a property for sale, i suppose it is called a guide price, it may be that the term estate agent is something different...
Thanks for all your help though i still have not a clue, normal enough for me.....

[anyroads]

House prices seem to be going in opposite directions in the UK / Spain at the moment.

Could be an average increase of 30% over the next 6 years in the UK, and unfortunately the exact opposite in Spain.

You read it here first !

anyroads

[Mowser]

Huzzah! I've a house there.

[barry]

But Dave, this is only the opinion of a banker.

[Mowser]

Blast. I have a house there.

[gus-lopez]

& it is artificial , created by the new"help for first time buyers " nonsense.
What is going to happen as soon as any government says that it is ending ?
Same as the late 80's, early 90's, when the double mortgage relief was abolished......... The roof will fall in yet again.
It's ok if you realise this & buy to resell for a profit , keeping tabs on the situation , but for people desperate to get on the ladder & wanting a home, it will all end in tears.