Real Estate evaluations.

[Tropo-Bob]

I took up an offer to have my house valued (no obligation) by a real-estate agent. The valuer checked it out and asked me how much I thought it was worth. I gave a figure, which he agreed with.

For the last month, I have been thinking I was well informed and knew what my house was worth. However, now I am thinking that I may have suckered in the sense that if I gave a low figure, well then he could have a quick sale, and if too high, well he would have me as a customer anyway, and let market realities slowly dawn of me to drop the price.

To be honest, I am nothing thinking of selling and probably would spring the $500 or so for an independent valuation before selling.

However, has anyone out there acted as result of a no-obligation evaluation, and how did it work out in practice?

[PCH]

Hey Bob,

The only real test of its value is to look up what similar homes have sold for recently in your area, since your pride n joy is only ever worth what someone will pay at any time.

For me, I wouldn't pay for a valuation. Instead I prefer to trust my own common sense and do the simple research needed.

Hope that helps.

[xelasnave]

Paying for a valuation may not get you any better.

I owned a real estate office.

Often "valuers" would ring and ask about sales in the area and make their valuations based very much on calls to real estate agents...without ever seeing one home in the area...

An agent who asks you what do you think I would not trust.

If you want to get an idea you need to follow the market.
Look at what is for sale, what sells, what does not...

Find out actual sale price that similar homes sell for and do not assume the price advertised is the fianal sale price.

I had many cases where when doing a market appraisel where the potential vendor would quote their friends house selling at its asking price and yet the home had sold considerably less and in many cases the sellers say they "got their price" so folk assume it was the asking price.

Many agent work on the basis of getting the agency agreement signed and then, having cut you off from all others, work on you to have you drop the price..this working on price is usually the main aspect of sales meetings... WE advertized it an no one called..its priced too high...Mr and Mrs X saw your home and they thought it was about $30 k too expensive...so lets try it at $30k less... Hi no calls lets drop it another $10 k... ask anyone who has sold about the calls the get to reduce the price...they may not tell you of course but it happens..it is part of the game.

My approach was... I will list at your price but please remember my estimate and know that if priced incorrectly you risk the listing going stale and then dropping the price is the only way it sells...seel when its fresh if it sits withdraw and we will have another go in a month or two..

I sold well.

Often prices are way way too high.

I would often give a market estimate and lose the listing to another agent who would list it at a much higher price... well when it sold it sold where I said...and the agent taking it at a high price knows where it will sell and that in time he will get the owner to drop the price to meet the market.

Someone giving an estimate should be able to say... I have sold similar houses in your area at between such and such a price and at the moment there are so many homes being offerred and then to be able to compare each one with your home ..is it better or worse is it likely to sell for more or less.

Best thing is to ask..How long have you been selling around here and how many homes, and which ones have you sold in the last 12 months.

Welcome folk who are specific and be wary of folk who somehow change the subject... ask a question get and judge the answer.

Also ask an agent for his testamonials...anyone worth their salt is proud of letters from happy clients and often include such in a presentation...

I have seen agents take their clients for large sums by being in a rush to sell...some times price is not the issue and you have to wait for a specific buyer however many agents figure that drop the price drop the price and you get a buyer ..well you will ..a cheap price makes something saleable.

Be careful.


alex

[Tropo-Bob]

Thanks for your replies.
Alex, that was a very interesting insight into Real Estate practices.

[Wavytone]

Only ye of weak minds would be so hasty.

The snag is:

a) what are you going to buy afterwards, and
b) is the transaction worth the stamp duty (and the other costs) ?

I had a parent who swapped properties faster than babies change nappies - and I mean literally annually. She didn't understand the consequences of stamp duty, and made herself poor in the process, until I could put a stop to it by getting control of her affairs.

I'd agree there is some sense in trading down to something smaller when the market is at or near peak (as it is now). But to trade up... you should have done that in 2011.

There are eternal optimists, used-car salesmen, politicians and real-estate agents. In that order.