Estate agent's valuation?

Kipperhell

I was recently made executor of a will and have to get a valuation on the property. For one reason or another a family member decided to get valuations done themselves. I have not spoken to the EAs myself but I have been told they valued the property at 220k-250k and an EA said there was one around the corner for just under 200k.

So I checked on-line and could not find any under 200k and the closest I cold find was at 220k which had 1 less bedroom. All the 3 beds were over 300k in the area.

Now I am sure the family member is not pulling any kind of scam but I can easily see her being too talkative and being mislead. Apparently one EA said it will take 10 years before the property is worth what it is now.

Any idea what the EAs are actually doing they seem to be suggesting at least a quarter less than advertised prices?

I know I am going to have to do it myself anyway but I do suspect taking advantage of an old lady. She has a habit of believing somebody if they talk nicely to her and have a tie on.

geem

Kipperhell wrote: »

I was recently made executor of a will and have to get a valuation on the property. For one reason or another a family member decided to get valuations done themselves. I have not spoken to the EAs myself but I have been told they valued the property at 220k-250k and an EA said there was one around the corner for just under 200k.

So I checked on-line and could not find any under 200k and the closest I cold find was at 220k which had 1 less bedroom. All the 3 beds were over 300k in the area.

Now I am sure the family member is not pulling any kind of scam but I can easily see her being too talkative and being mislead. Apparently one EA said it will take 10 years before the property is worth what it is now.

Any idea what the EAs are actually doing they seem to be suggesting at least a quarter less than advertised prices?

I know I am going to have to do it myself anyway but I do suspect taking advantage of an old lady. She has a habit of believing somebody if they talk nicely to her and have a tie on.

This is a thorny one and I recommend expert advice. The higher the valuation on the house the more inheritance tax there is to pay. Some people have found themselves liable for inheritance tax on a house they are unable to sell at the valuation price. So for some the lower the valuation the better.

Swings and roundabouts though. e. EA's could be telling the truth, people are advertising their houses at prices higher than what they know they will get. So advertised prices are not necessarily an efficient guide to current market value.
Best of luck with it.

The_Conductor

The suggestion that a sale price if you wanted to sell the property is roughly 25% lower than their valuation price- would appear to be reasonably accurate. Most of the major estate agents would be reasonably happy with this.

Kipperhell

smccarrick wrote: »

The suggestion that a sale price if you wanted to sell the property is roughly 25% lower than their valuation price- would appear to be reasonably accurate. Most of the major estate agents would be reasonably happy with this.

The EAs are saying put it on at 30% less than current asking prices as the asking price! They are actually valuing the property at that price but knowing the person I suspect she got the detail wrong.

Plus the rent it is getting at the moment is €1200 a month

20goto10

You have to remember the EA is only interested in his commission and any commission is better than no commission at the moment. I'd imagine this will be seen as quick, easy money to them. If you want a fast sale then you're going to have to give a serious discount, if not then stand your ground and drop in increments until you hit a price that generates significant interest.

Victor

In any market, some commodities are sold at slightly higher than average price and some slightly lower. This is most obvious when the market is rising or falling steeply (current situation) or when there is a low volume of sales.

The only time you can reliably get close to average price is when there is good volume and no sharp rise or falls.