Not getting the price you want.

Hi all, just had 4 valuations done on a property. 1 came back at high 4’s to low 5’s 1 at 535-555 another at 550-575 and the final one at 550-600.

I am a little worried about the variance. If we got between either of the two higher estimates we would sell. The place is currently tenanted with great long term tenants. And costs little to hold but the cash can be used for new opportunities.

Anyway just wondering people’s thoughts on agent conditioning I.e giving me a high number then trying to break me down as the weeks go on. Don’t want to go through a long sales process, upset the tenant and then not get what we want out of it.

What are the costs involved if we don’t sell?

Any other thoughts etc would be appreciated.

 

Are they paid valuations by a registered valuer or a guess/marketing tool by an agent?

If the latter, the highest appraisals are telling you what you want to hear. Have they provided the justification for those prices? Have they all used the same/similar properties when arriving at their estimate? How recent are their sales? (one month in the current market could be a 2-3% difference).

 

Just agent valuations however I got a bank valuation at 580 in October. Not had all the paperwork through yet. As they only went through today, just spoke on the phone.

But yeah I am with you on them only telling me what I want to hear. So trying to get as much detail together of what could happen if we don’t get what we want from it as I am not in a financial position where I have to sell.

 

Get 4 paid valuations by a registered valuer.
I am keen to see how close they are to each other.

 

Just to be clear you had 4 appraisals done, not valuations. REAs are Sales agents not Valuers.

Have you asked the agents how they 'appraised' the properties?
Did they provide you comparable sales? Did they sell the properties?
Did you discuss the costs with the agents?
How did you select the agents?
How did you think each of the agents performed?
What do you believe the property is worth?

 

Ask each agent to justify how they arrived at the valuation figure, and also to supply details of the previous sales they used to arrive at the valuation. They should have done this when presenting their estimation to you.

Then compare your property with other similar properties available for sale and the prices being asked.
Marg

 

Agent appraisals are often a best case. Part of their selling skill is then driving down your expectation when a lower offer arrives. Or driving up a unwilling buyer. If they will go higher. In a dull market they may not.

...You got 4 agent appraisals and didnt ask ?? I think you missed the most important parts of seeking a sale and an agent to do that. They will tell you stuff for free.

 

I am meeting with a couple tomorrow. When I posted this yesterday they had just been through the property, it is currently tenanted so I wasn’t there. I had a short phone conversation with each of them. Hence why I am asking people here what I should be looking out for and asking. I understand that the agents telling me the highest number are buttering me up to gain business. Again just looking for advice from more experienced members.

Tomorrow when I meet them I expect to be given a run down if comparable sales etc.

What would you say is the most important questions I should ask them?

Thanks.

 

Auction it ...

 

I rarely bother with valuations when selling. My #1 source of analysis is comparables, apples with apples as much as possible . Also taking into account where you (roughly) currently sit in the state cycle . That will give you the best indication of what range yours will sell for .

 

I think they should be doing the selling to why you should select them, if they can't sell to you - how are they going to get maximum price.