So the great unanswered Question arises. How much is your house worth?
Allow me to illustrate with a common Scenario:
I bought it for £250,000 three years ago. Prices have risen by 20% in the intervening period therefore £250k + 20% is £300k. Cushty (as Delboy would say!).
Your old neighbour Ian, had sold his about 6 months ago and managed to get £300k for his, so that figures. And Ian’s didn’t have such a big garden as yours
You have three Agents who come round and Value it. One Says £290k, another £285k and the last says that it could sell for £300k. So easy then, we’ll go with the Agent who says £300k
After a flurry of Activity, cleaning and Tidying, a week Later we put it on the Market for £300k and wait for the floodgates to open………
First up Mr and Mrs Harrison turn up say they like it but they have others to look at, so will be in touch if they are interested.
Next to view is Terry and his friend Roger who claim to be professional sharers. They both like the Master Bedroom but the other two Bedrooms are a bit Small and they’re not really keen on Gardening.
3rd to visit is Katherine and her two children. The Kids love it and tear round the house creating merry hell, but you bite your lip as this looks it could be the one. Katherine really likes the House and leaves making all the right noises!
Folllowing Day agent phones to ask how it went. You say that you thought it went ok and that Katherine seemed very interested.
Agent follows up appointments and Confirms that Katherine did like the House but for £300k she had seen something more suitable on the other side of Town. The Agent suggests that dropping the Price might sway her, but you say No as the House is worth it. OK never mind
A few days pass and the Agent arranges for Mr & Mrs Godley to call. They are in a hurry as they have a lot to look at and are in and out in Five Minutes. WOW, was it worth it?
Then didn’t even notice the feature Fireplace, and never even looked in the Utility Room!
Next to arrive is Mr Sugden. A very Tall, but quite quiet and unassuming man. He is quite the reverse of Mr & Mrs Godley and takes nearly an hour to view.
He wanted to know everything about the property, when it was built and by whom, what the neighbours were like, even how acidic the soil was for his rhododendrons! He was hard work.
Following Day agent calls and you explain that Mr & Mrs Godley didn’t seem interested and Mr Sugden was a nightmare and that you would appreciate if they didn’t send anymore like him around!
A couple of Weeks pass and nothing. So you phone the Agent to find out what’s happening. they explain that because of the school holidays, buyer inquiries tend to slow down and that once the Easter Break is over Inquiries should begin to rise again. Fair enough you think….
Easter passes and week later you phone the agent again. They say that the market has slowed and that it might be appropriate to drop the Price by £10k, and that should increase the level of enquiries……
Hang on a minute my house is worth £300k, now the Agent is telling you its not. I should drop it by £10k?
Are they for real? House prices have gone up 20% and Ian sold his for £300k and he has a smaller Garden. Who do I Complain to ? Bloody Estate Agents!
Okay so might seem a bit silly, but it does happen.
The reality is nobody truly knows what a house is worth.
Your house is worth something to you, but that does not necessarily mean its has the same value to someone else. But as you are selling who’s opinion Matters most, yours or the buyers? Its called Market Forces and you can only react to it. Sure there are some things you can do to get an idea, but thats all it will ever be, ‘An Idea’. Even RICS Valuers with their ‘Red Book’ of Standards will still refer to Estate Agents occasionally to get a ‘Market Value’.
Agents will visit and are expected to know exactly whats its worth. Many will have a good idea based on their experience, but will probably over value in order to get the Instruction. This is especially true if they know you are asking other agents to Value. Once instructed, they will ask you to drop the price by 2.5% after 2-3 weeks if interest is low and again after that if necessary.
A house is only worth what someone is prepared to offer for it at any given moment. And if that figure is the Same as yours then Bingo! You’ve possibly got a Sale. 6 months later you might get £310k. Conversely you may be offered £290K! Nobody truly knows.
Its all a question of being on the market at the right time, with the correct offering for your target market!
The Market will decide!