Price house put on market v´s market value

whatcanido29

Hi Guys,

Ive been in the process of selling a property I co-own with a sibling to them. The original plan was to get three valuation and go on the average. They contacted me and said theyd a valuation done from an agent and asked if I agreed to the price and showed me previous ads two other properties in the estate which sold for less than the stated price had.

I immediately agreed. When time came to sign the documents of sale I asked for all documents for the valuations. It was then I realised that only the one valuation was carried out. And they didnt even have a written valuation done for it.

I called the agent and enquired. He told me that he would put it on the market for a 20% higher price than my sibling had told me, but that the price they said was acceptable and fair. I was surprised by this and told him to send me a document saying that the price was fair and reasonable and that then I would go on with the sale.

The sale process dragged on, sortig out tax etc etc. It was in the back of my mind how he´d said he´d put it on the market for 20% higher. I asked about this to my sibling and they asserted that the price they´d told me was the value the agent had said. And I said that he´d told me this was an acceptable price and that he´d put it on the market for 20% more.

For the past week I have been arguing with my sibling about this and talking to my solicitor about getting another valuaton to be done. We are already two month past the date for when the transfer of sale was supposed to have been made, and Im absolutely skint as want to use the money for travelling and have quit my job in december.

I contacted the agent who gave the valuation to my sibling again asking for the valuation that he´d said at 20% higher. He then told me this wasn´t the valuation, that the original price my sibling said was. But that he´d put it on the market for 20% more to see how it would do. And to set the bidding. I´m still a little confused about this as he never mentioned the first time that it was the market value price that my sibling had said but a fair price.

So my question is, whats the difference between market value and the price for which the property is on sale, and how much can it deviate? 20% seems like a lot. My sibling is friends with the family of the agent, slight paranoia I know, but maybe my sibling has since spoken to him and had an influence! It just seems strange how he didnt mention the term market value before, which as what I was looking for as opposed to a ¨fair¨market price!

Any opinions would be much appreciated!

Thanks,

J

seamus

There is an AMV - which is the Advised Minimum Value that the auctioneer/valuer expects the property to fetch on the open market.

There is nothing stopping any vendor from putting the property on the market 20%, 50% or even 100% higher than this. The asking price is what you tell potential buyers, the AMV is what you give to the vendor.

There's nothing in fact stopping a vendor from putting a house on the market below the AMV, though auctioneers are supposed to strongly advise against it.

There are no laws guiding this, everything that the auctioneer has said sounds standard - the AMV he gave your brother was one figure, but he would put it on the market 20% higher than that to try and make more money on it.

whatcanido29

Thanks Seamus! Your advice helps!

To add more doubts to the secario however I have just realised that the estate agent is the uncle of my sisters best friend, who was the head bridesmaid at her wedding! This naturally gives dent to the credibility!

Cheers again!

J

dori_dormer

You should just call 2 or 3 estate agents and they'll come round to do an evaluation before the end of the week. Then take the average and go back to your sister with it. You really should have been part of the valuation process from the beginning. You should never trust these types of things with the person who is going to gain from the situation.

When we sold our place the estate agent wrote in the contract the minimum price he promised it would sell for.

whatcanido29

Hi Dori,

Yea you´re right. It´s just I had trusted my sister to get three valuations like she had said. If it were me I would have been very thorough and made sure, if she were to buy, had absolutely now doubts at all.

My sister has said that she isn´t raising her offer, and I am desperate for the money at this stage, so dragging on the process isn´t an option!

Thanks,

J

AfterHrsProp

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handlemaster

cant beat property to divide a family. You dont have to sell

dori_dormer

To be honest I'd get the evaluations done anyway! You don't necessarily have to up the price you decided on, but you'd know if you sister was royally scamming you,

You might be surprised also by what the state agents say! (Good orbad)

whatcanido29

Hey Hanldemaster,

thats for sure! lol

Hi Dori dormer,

Yea, Im actually getting one done tomorrow at midday. Lets see!

Thanks,

J