Buyers are taking little notice of the house price valuation given in Home Reports – the Scottish version of HIPs.
Only 16% of properties sold in the first three months of this year achieved their Home Reports valuation, says the Edinburgh Solicitors Property Centre.
On average, homes have gone for 6% less than the valuation figure.
It says the average price in Edinburgh during the first quarter of this year was £195,221 – 5.9% less than last year.
The ESPC says that sellers are showing a greater willingness to accept ‘slightly lower’ offers, which has led to a 12% rise in sales.
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Comments
Pbro Agent: with regard to RR you say "...because you said so and you're never wrong." Mon ami - sometimes we disagree. In this instance, however, we are two peas in one pod. Take a look at the most recent rantings from his woeful blog:
"These are not just BIG ideas in the way certain party political notions have recently been expressed. These are ideas, developed by analysing the current situation in great detail, using years of experience gained whilst actually working in estate agency and in the allied areas of the property profession. These ideas are more than loose proposals. They are crafted by a qualified estates professional and therefore should have weight and be given due consideration, both by Government and by those in the estate agency profession."
SO - Mr RR, please tell us all. You worked in Residential Estate Agency for HOW LONG? Doing WHAT?
How many actual market appraisals did you carry out during this illustrious career you believe you had?
What was your instructions to appraisals ratio?
What about prercentage of instructions to completions? What average percentage of initial asking price did you register on completion?
Stuff the "allied areas" you fluff up your history with - just talk coalface. HOW SUCCESSFUL WERE YOU AS AN ESTATE AGENT??
Oh - and I think it is necessary to point out that those in Government and Estate Agency HAVE given your proposals "due consideration" - as have the RICS and NFoPP by your own admission. You just don't, won't or can't accept that UNANIMOUSLY and UNIVERSALLY, they reject them as being MDT.
Spot the common denominator, methinks...
@RR Are you taking the p***?
So first you say that estate agents aren't good enough because we compete against each other and over value and now you say that RICS chartered surveyors aren't good enough either and need to go back to valuer school.
Perhaps you Mr Hendry should go and value every new listing in the country - then we could tell buyers what to pay as we would know what the correct price is because you said so and you're never wrong.
Problem solved, no more falling house prices, no more HPCers and no more market competition. I don't know why I didn't think of it sooner.
Yeah I agree with him. Which sort of makes him wrong as well.
wardy - looks like you've got yourself a fan, mate! ;o)
The great Wardy has spoken, everyone else is wrong so shut up.
wardy - I'm right there with you in A&E mate! ;o)
RR - you are a prima facie hopeless case! How the H£LL can you state "Actually what I conclude form this is that the valuers concerned are not quite close enough to current market price. They need to improve.", when these valuers are the "professionals" that you want ALL Estate Agents to work to the same rules and practices as, are they not? They 'value' the properties using the comparable methodology YOU state as "the key to improve the house selling process".
You are a class act to follow, Sir. I don't know of a better comedian on the circuit...
Stop it RR, I'm running out of ribs to crack.
What I conclude from this is that is it is impossible to know a true finite price for a property until it has been marketed (properly) and contracts have exchanged. If you had sold any properties you would know this........but you haven’t.....so you don’t.
@ PbroAgent on 2012-04-30 13:04:27
Actually what I conclude form this is that the valuers concerned are not quite close enough to current market price. They need to improve. I'm glad it's been reported here.
Monday, post when you have clue what you are talking about and from a position of at least a little real knowledge not a book or what your mum explains to you.
The only way for the Home Report to be 'right' in your eyes, then, is if the market stays totally flat whilst the house is on the market.
In a falling market, the surveyor is bound to be too high. In a rising market, too low.
Monday aftyey, I am not entering a debate on true value, that has been done to death! Dont forget all these repoprt are normally wrong, its much worse than that, if it were really 6% is there even a story, no of course not. It is mkore like 15 to 20 in many instances. Just ask anyone in the business do surveyors get that close to a selling price!!!!m No on your nellie!
Richard, how do you determine 'true value' ? When the house sells?
That's easy, as it gives you the benefit of of hindsight. So a surveyor says the house is valued at £125k when first marketed, and 4 months later it sells at £120k.
Are you REALLY saying the lender should sue the surveyor on the basis of the £5k difference, saying £120k is the true value, and the surveyor overvalued it at £125k?
Is the surveyor supposed to possess second sight?
These are done by Surveyors not agents. If the lender relied on them, then sued the surveyors when wrong, 85% of the time, they would very quickly get in line with true values.
And where is RR when you need him - a staunch proponant of "valuing" a house prior to marketing, rather than just offering a market appraisal? This seems to dent his arguement somewhat.
Over valuing? Surely not.