Sue Pertwee-Tyr
Accuphase all the way down
I presume this is to stop people evading CGT on the sale of a second home, by declaring it the primary home shortly before selling it.
Estate agent fees
- Thread starter Ponty
- Start date
dan m
pfm Member
Not in England or Wales AFAIK. In today’s rapidly changing markets (some areas up 20% in a year) I wonder if a surveyor will have the knowledge necessary to give an accurate valuation (especially when paid for by the seller).
TheDecameron
Unicorns fart glitter.
You mean like umpteen MPs?
Darren L
Egalitarian
A good surveyor will be up to date on valuation and repair costs though I was talking to a Quantity Surveyor recently, the prices he's giving for builders currently has a 3 day window as materials prices are going up and up.
Bob McC
Living the life of Riley
That’s why the tax rule was changed.
To stop just that.
dan m
pfm Member
But you wouldn’t employ one before putting in an offer would you? So what’s the strategy? Make an offer based on the seller’s asking price and your own research via the land registry, see if it’s accepted and then get the property surveyed and only then negotiate a final price?
Darren L
Egalitarian
No, you wouldn't employ a surveyor until you have a sale agreed.
Yes, you make an offer based on the vendors advertised price, generally either advertised as 'offers around' or sometimes 'offers over'.
If your offer is accepted then you have a 'Sale Agreed', normally subject to Survey and mortgage.
Once you have the Survey then if there is any remedial repair work required you can try to negotiate a final price, though some vendors will not accept that there is any repairs required.
dan m
pfm Member
Thanks. The issue however is not remedial repair work but if the Quantity Surveyor (if that’s the buyer’s source of a professional valuation) says you are paying over the value of the home. Is it common to back out if the surveyor’s valuation is less than the offer?
Again, it seems to me the whole system relies on the real estate agent not working 100% in the seller’s best interest - setting a price that gets them paid as soon as possible. “Offers around” seems just a bit random - hoping the market has enough interested buyers that the property goes for the market rate.
Again, it seems to me the whole system relies on the real estate agent not working 100% in the seller’s best interest - setting a price that gets them paid as soon as possible. “Offers around” seems just a bit random - hoping the market has enough interested buyers that the property goes for the market rate.
Darren L
Egalitarian
It would not be normal to employ a QS for a house Survey, they generally work for or with building firms to price work.
A Buildings Survey does not give the value of the property but just the price of remedial repairs required.
I would think the estate agent generally sets the advertised 'price' ( they have for us when we've sold houses)and really should know their market area pricing. As they are paid a percentage of the selling price it would be in their best interests to get the seller as high a price as possible, however no agent will want a property on their books too long as this inevitably will cost the agent more and really doesn't look to good, perspective buyers will wonder why.
Darth Vader
From the Dark Side
In a way it is but usually because the property has some unique and interesting features and is not one of those mass produced lookalikes. The agent will look at what similar properties have sold for and add value for certain features such as a sea view, how near to a beach and railway station and similar features in the countryside. A prospective buyer makes an offer but then someone else comes along and makes a higher offer and so on. This is because the added features are worth the money to the buyer.
I've just been through this with my own apartment yes with sea views, a railway station branch line 3 mins walk and the beach where the G7 crowd were photographed is a 5 min walk away. Oh we didn't accept the top offer but thats for our own reasons as the seller.
Cheers,
DV
dan m
pfm Member
Yep, that's what I was hinting at above. You have to trust the estate agent, who, let's be fair don't have the best reputations. It just seems odd that for the biggest purchase of one's life it's up to the individual to have to decide if the estate agent is having a laugh and it's not typical to seek out independent advice before making an offer. We typically don't do that for other large investments such as where to invest in the stock market - unless you have a lot of time to do your research you are best going to an independent advisor / fiduciary (i.e. someone operating solely in your best interest financially). Instead you get the following advice:
https://hoa.org.uk › advice › guides-for-homeowners › i-am-buying › making-an-offer-and-haggling-over-the-price
A good rule of thumb though is to offer 5% to 10% lower than the asking price. Don't forget that sellers often take this into account and deliberately put their house on the market for more than they expect or would accept.
In the end, a "fair" price is what the market will bear.
Darren L
Egalitarian
I don't think that would work in the current market climate, at least not here anyway(N.I) a good house in good condition in a desirable area is making maybe 20% + over the initial starting price.
We recently viewed a house, it started at £260K, inside one day it had been bid up to £295K the last time I spoke to the agent it had went up to £314K, I pulled out at that stage, it was a further week or ten days before a Sale Agreed banner was posted on the pic on the website, I've no doubt it went higher again.
Whilst it's a great time to sell it can be a difficult time to buy, a young couple I know in a similar situation to ourselves are having difficulty buying a house, they have a good budget but are getting outbid.
I was speaking to a mate recently who lives in the South East (England) , he reckoned that lots of people have had an early inheritance due to Covid, that combined with a lack of holidays and general spending opportunities (shopping) has resulted in a boom in the renovation, building and housing markets.
Mike Reed
pfm Member
A good point, Darren, and quite valid too, wherever you live.
Tumeni Notes
pfm Member
... which is also setting a price which gets the owner's home sold as soon as possible. At the price appropriate for the market. I would suggest that's what most owners are looking for, certainly in the Scottish market.
Who would want to have their house on the market for six months, when they could sell in two weeks?
Mike Reed
pfm Member
Especially when it's not their principal private residence. Those 100% council taxes and standing charges really mount up. I could write a book about both but it wouldn't be printable.