Three different valuations on apt - why?

wheeler

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Hi,

I am looking to sell my apartment and asked three different estate agents to view and give me quotes on selling.

Agent 1: 355,000
Agent 2: Wouldn't even consider taking it on unless I would be willing to put it up at 270,000 to sell at 250,000
Agent 3: 400,000 - 420,000

Can anyone explain the difference? I know that no-one can put a true market value on your house but I wouldn't have expected this kind of discrepancy.
 
Look at apartments that are similar to yours for sale in the local area. Examine their asking prices (or average of them) and that will tell you which agent is right.

Let's say that the average price is roughly what agent 1 said. You'll find it hard to sell as you'll have competition from similar properties at the same price.

If you go with the price that agent 2 says, you'll get a quick sale (ignoring other influencing factors).

If you go with the price of agent 3, you'll never sell in the present period.
 
My guess is that number two has recently sold similar properties in the area, number one probably has a similar unsold property on his books, number three is smoking crack.
 
Very strange discrepency in the valuations, difference from 270 to 355 is 85K and difference from 355 to 420 is 65K. Difference from lowest to hightest is 250 to 420 = 170.

On a lighter note my guess is agent 2 will make a quick sale at 250 and flip it to agent 1 for 355. It would want to be a lovely large apartment in a good location for it to be worth 420. Agent may have decided she cannot sell it and doesn't want it on her books. What year did you buy it, for how much and what is it's location and you may be able to find a truer valuation on here. At the end of the day it's only worth what a buyer is willing to pay.
 
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Its extremely difficult for valuers these days. Some may over state your property value (to get the business) some may undervalue (to reduce your expectations).

I know KBC now dont take one valuers report but 2 or 3 of them when giving out mortgages.

My advice would be to do some research yourself. Goto Myhome, daft and some individual estate agents websites and get an average asking price.

No harm in phoning one or two estate agents up and asking if there have been any offers on the properties (fake interest to get talking to them). This will give you an idea of interest in that area.

Remember its all about supply and demand (as much as area).

Good Luck . .
 
Hi,

Agent 1: 355,000
Agent 2: Wouldn't even consider taking it on unless I would be willing to put it up at 270,000 to sell at 250,000
Agent 3: 400,000 - 420,000

Agent 1 will come back to you in 3-4 months and recommend you drop it to 299, by which time the market will have moved even lower. He probably has a truckload of unsold property which is going to chase the market all the way to the bottom, while his vendors lose an absolute fortune because he's cushioning them from reality.
Agent 2 is providing a realistic valuation and will actually sell your property in a reasonable timescale.
Agent 3 is still dreaming of a far off mystical fairy land, otherwise known as Ireland in 2006. He probably sold a few off the plans in 2006 for that kind of money and hasn't sold anything for 18 months. He believes the slump in property values is merely a temporary phenomenon caused by doom mongers, international factors and Lehman Brothers.
 
Thanks everyone. I will keep you posted on how things go and what the reality is.
 
Took option 1.

3 weeks later I called to get a status updated and was told that realistically I would not sell it at that price and that < 300,000 would be more likely to sell it.

So - 'ROBIN BANKS' - you were dead right.

Seems to have been a way to get the business and then be realistic about the valuation.
 
Norfbank and the Big D were also correct. It would be interesting now to know what Agent 2 would value you it at.

Thanks for getting back to us with the update.
 
Being negative about estate agents (but I did work with one for a while) they will say nearly anything to get the account & then badger the seller to drop the price - 20,000 or so difference in the selling price makes very little difference to their commission (unless of course you have agreed a fixed fee for selling - which I would personally do if using an agent). I would put an add on one of the direct sales websites & have a go myself at - pricing at an average price & taking into consideration what price you feel you need to achieve depending on your own financial situation. Best of luck & keep us posted.
 
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