I'm confused about house prices.

[whitevanman88]

Well. My Grandparents bought a house in 2001. It's a 2 bedroom semi detached bungalow. It cost just shy of £70,000 and needed a fair bit of work.

Since they've had the house they have :
[*]The drive leveled and tarmacked
[*]The rear garden landscaped and re-done to suit low maintenance (looks lovely though)
[*]The House re-wired
[*]Re decorated throughout (although it is quite fussy)
[*]New Bathrooom
[*]New Kitchen
[*]Quite a bit of roofing work
[*]Cavity wall & loft insulation
[*]New combi central heating (complete system)

It is in a fairly desirable location, but not overly.

We've just had it valued by a few estate agents as my Grandmother is moving to Scarborough, and the average valuation was over £200k.... This was after the agents telling us that the market is ste at the moment, and we shouldn't expect as much as we would have got last year. We honestly thought it would be valued around the £130k mark.

Shocking.

[pdV6]

whitevanman88 said:

the agents telling us that ... we shouldn't expect as much as we would have got last year.

And...?

Can't see what the problem is myself.

Edited by pdV6 on Wednesday 20th May 13:10

[Muzzer]

Not really confusing.

I bought a flat for £56k in 2000, it peaked at a value of £160k, it's now about £125k.

If I sold it, it's still over 100% of what I paid for it.

Just because the market's tough doesn't mean we're back to turn of the millenium prices..

[whitevanman88]

I understand both your points. But we never really considered the house to ever be worth more than £150k tops even at peak prices. Even my uncle (who is a conveyancing solicitor) is suitably shocked!

[JR]

You haven't had any offers yet so steady on...

[Dave_ST220]

A value and offer/sale price. Massive difference.

[pdV6]

whitevanman88 said:

I understand both your points. But we never really considered the house to ever be worth more than £150k tops even at peak prices. Even my uncle (who is a conveyancing solicitor) is suitably shocked!

Ah.

In that case, a bit of your own research is in order. Have a look at agents in the local area and get a feel for what people are advertising similar stuff at. Then look at one of the online services that lets you see what property actually sold for and draw your ow conclusions.

[pejay]

Stick your postcode in one of these and compare to other recent sale prices in your road/area:

http://www.nethouseprices.com/

http://www.zoopla.co.uk

[JustinP1]

whitevanman88 said:

I understand both your points. But we never really considered the house to ever be worth more than £150k tops even at peak prices. Even my uncle (who is a conveyancing solicitor) is suitably shocked!

Shocked, but pleased!?

Signed up with them already, or at least seriously considered it?

Exactly. Compare two estate agents:

1) Comes round, tells you about other properties in the area, little things you could do to tidy up the house for sale and gives you a realistic figure of £140k and agrees to put it up for £150k.

2) Comes round, tells you you are sat on a goldmine and tells you it is worth £200k.

Who gets the business? Mr Realistic or Mr Positive exuding bravado?

This is the old Foxton's trick. Get you signed up, with unrealistic promises, and when offers don't come in they drop and drop the price until they do and still get the majority of their commission.

[scotal]

pejay said:

Stick your postcode in one of these and compare to other recent sale prices in your road/area:

http://www.nethouseprices.com/

http://www.zoopla.co.uk

Be wary of Zoopla.... its not that accurate for a lot of locations. I think their pricing model is a bit simple.

[scotal]

JustinP1 said:

whitevanman88 said:

I understand both your points. But we never really considered the house to ever be worth more than £150k tops even at peak prices. Even my uncle (who is a conveyancing solicitor) is suitably shocked!

Shocked, but pleased!?

Signed up with them already, or at least seriously considered it?

Exactly. Compare two estate agents:

1) Comes round, tells you about other properties in the area, little things you could do to tidy up the house for sale and gives you a realistic figure of £140k and agrees to put it up for £150k.

2) Comes round, tells you you are sat on a goldmine and tells you it is worth £200k.

Who gets the business? Mr Realistic or Mr Positive exuding bravado?

This is the old Foxton's trick. Get you signed up, with unrealistic promises, and when offers don't come in they drop and drop the price until they do and still get the majority of their commission.

TBF it was an average val of 200k+, so I'm assuming he's taken your 1 & 2, as well as 3. Criminally undervalue the old dear's house to get a quick sale or flog to a mate into account as well.

Reemmber its a bungalow, and cash rich old people like bungalows.

[whitevanman88]

nethouse prices shows one of her neighbours house being sold for £190k in feburary.

We got 4 valuations, only one of which was under 200k. They also showed up similar houses on their books that they had sold of in excess of that.

Yes we are pleased, and in no way in need of a quick sale. So we shall see!

We have also asked for ideas to tidy the house up, non of the agents really offered any useful advice on that - it's got a neutral interior (although tastefull) and is perfectly liveable in.

Edited by whitevanman88 on Wednesday 20th May 15:32

[Hobo]

Dave_ST220 said:

A value and offer/sale price. Massive difference.

Depends on the seller.

Not quite as simply as you're statement.

[scotal]

whitevanman88 said:

We have also asked for ideas to tidy the house

Put the clutter away.
Keep the place tidy.
Keep the place clean.
Keep the garden under control.
If she's got a garage, make sure its tidy.

Remember 90% of buyers can't see past the decor to actually look at the building they are buying.