Question about property prices .. what's your views?

Question

With todays revelations that the government and local authorities are intending to kick start the property market .. If I had my home valued now, am I obliged to put my home on the market for the estimated price or could I top that figure knowing the amount of local interest in my home? Would it be wise to go to auction or go for a conventional straight sale?

Answer 1

If you do go to auction, I'd put a reserve price on it, I think house prices went up too much over the last 5 yrs, it couldn't have lasted at the rate it was going!

They have buyer's premium, and seller's premium,

Auctions I've attended have between 10/14% of price, but that was on furniure, I have bought houses at auction, but it was about 10yrs ago, can't remember the price fee's,

I've never sold houses at them.

If you contact a auction house they will tell you, just google it.

Answer 2

I think house prices were far too overinflated due to speculators and investors.

The bottom has fallen out and I don't think government help will do anything.

Down they go, down they shall continue.

Answer 3

It depends on how desperate you are to sell, and how you think property prices are going to move.

Irrespective of these factors, the valuation you get from an estate agent is going to be one at which they reckon they can easily sell the property. The agent's interest is not the same as yours: you want to get the maximum price, whereas the agent wants to make a quick and easy sale so they can get their commission quickly. A little less commission won't make much difference to them, so they tend to price low.

If you're not desperate to sell, you should negotiate a combination of a high asking price and a low fee. This will make you unpopular with the agent, but estate agents are currently going through a bad patch. ;-)

Bear in mind that you may have to drop your asking price in line with the falling market.

Answer 4

Auction is the result of foreclosure action. If you want to sell your house set a price you want to sell and advertise or ask an estate agent to do so. If there is a buyer its to you to decide if you want to reduce the price in order to sell it quickly.

Answer 5

I think the news about the stamp duty break will have little, if any, effect on the housing market.

I am potentially a first-time buyer and here's why it doesn't matter to me:

- It only applies to properties valued at under £175,000.  I live in London, so clearly I'm not going to be buying a property under that price anyway (since there aren't any) and therefore the break doesn't affect me

- Even for people who would be looking at buying a cheaper property, bear in mind that stamp duty only costs a couple of thousands of pounds.  If house prices keep dropping at the rate that they're going, I could buy next year and save tens of thousands, not just a couple of thousands

Now, I can't imagine that I'm the only one thinking this way so why would it make a difference to the market?

As you've said, the person valuing your house is the expert and they will be able to advise.  But I very much doubt that you should list it at more than he suggests - if it's overpriced I really doubt that there will be any interest at all.  Remember too that the price that you list it at is in no way what you actually need to accept when an offer is made - the two figures can be hugely different.

In terms of selling by auction versus selling conventionally, my view is that if you're desperate for a quick sale then mortgages are the way to go, but if you're looking for a higher price then it's not.  Of course you always have a reserve price as you've said.  But a lot of people are put off by auctions so may immediately turn away some buyers - remember that buyers have to get surveys, valuations, etc done in advance as if they "win" at auction then they are legally bound to buy, and this can be expensive.  In some countries it's not a problem as auctions are the norm, but in the UK where they're not it's really not the way forwards unless you are absolutely desperate to get a quick sale.