Has the value of my house gone up?
Property price in the past 10 years has gone up significantly. Fact. Will it continue to go up again over the next 10 years? I strongly think so! The south East and London I think will see the largest continued growth as we see property prices soar. So, have you been asking yourself the question, has my house price gone up?
Supply and demand works very simply we currently have record low levels of stock yet people still need to move. Therefore prices are being reflected by this on the rise! Back in 2007, agents had too many properties, and they just werenâ€™t selling. Now, they donâ€™t have enough to satisfy demand from buyers. However, the property price increase isnâ€™t only factored by this supply and demand factor. What else is driving the prices up? Estate Agents!
A lovely couple contacted me recently for advice after being on the market with a corporate agent for 3months and no luck. Letâ€™s call them Mr & Mrs Smith. They were trying to sell their house in Beckenham. Prior to selecting the agent they went with originally they had 3 valuations from 3 different local Estate Agents.
Estate Agent one had valued it at Â£600,000, which was about the price they had themselves been thinking. So far, so good!
Estate Agent two turned up, and asked them which other agents had been round. Wanting to be honest, they told him. He then valued their house at Â£625,000, which they were quite pleased about. If they could get that little bit extra for their house, they could afford something nicer than they had been looking at. Things were getting better!
Estate Agent three turned up, and again asked which other agents had been round, and again, in the spirit of transparency, they told them. They then gave them a valuation of Â£650,000. Even better maybe they could stretch a little further again and really get their dream home.
What should they do?
Well I went through lots of figures with them: what was currently on the market, what areas where selling and where properties were sticking, what had sold in the past 6 months and spotting local trends. We also discussed realistically their timeline.
They did feel let down by the other agents as effectively they felt they had taken a knock on their price of Â£50k but once we had gone the figures they concluded that their initial valuation had been fair and reasonable and a price where the house would sell.
Did they sell?
Absolutely. They had around half a dozen viewers and accepted a full price offer within 3 weeks! Could they have achieved more? Perhaps, perhaps not! Some vendors are on the market for monthâ€™s even years and these clients wanted to sell sooner rather than later. This was the right thing for them.
Our obsession with the value of our house will never go away, especially in this digital age where data is available to all. But we do all owe a duty of care not to over inflate this already buoyant market with over inflated prices just to get a property to market. Some MAY sell at a higher price but we must still remember that when the surveyor is valuing for mortgages they will need some comparables in the immediate and local area. They may down value your property if they have nothing to compare with!
At the end of the day you, the vendor, have the choice to decide what you want to go onto the market at. We, the agent, can advise and present our case for the price we feel is realistic. Whether you take advice will dictate how long you are on the market for and whether you actually sell your property. Here at The Address Beckenham we will present you with the facts, assist you with the staging of your property and help you achieve the best possible price in a realistic time frame.