Differing prices

[P]

Looking at a few immobilier websites over the weekend and once again discovered some alarming differences in prices.

One property (which had previously caught our eye but subsequent enquiries meant it was not for us) was nearly 40,000 euros on another site - the higher price being 237,600 - so this is not a million euro property where the difference can be explained by differing commission.

There was also a number of other properties with large differences.

A while back we went to see a property with an agent - priced at 259,000. It as indicated that the seller would take a lot less. After some pushing we were told he would probably take 200,000. However, the property was not for us. Whilst looking at sites subsequently, one had the same property (with no difference to what was included) for 198,500. A couple of weeks later we went back to the oiginal agent to look at some other properties and gave the agent a printout of the other agents details with the lower price. 'I'll talk to the boss about this'. However, they kept it advertised at the higher price.

This to me says do some research - look at other agents and see if, when they have a property that interests, whether it is at the same price.

In addition, on many occasions we have had agents say 'this property is overpriced' or 'the vendor will take less'.

I know Will has said in another thread that he has ofered full price on two occassions because the properties were the right price. However, it would seem to me that some of the agents and vendors are trying it on.

Paul

[Jc]

So what's new?;I've seen the same house advertized in two agents in the UK at different prices-in fact,I bought it from the cheaper one.

[fulcrum]

In France it is very hard to work out how prices are arrived at. Be it cars, houses or even items at the bricolage shops. I think the rule is. Think of a price and double it and see who is interested.

[Will]

I don't know why people get so worked up about this - as has been mentioned so many times before there are numerous quite legitimate reasons why different prices may be shown, apart from the obvious one of agents taking the p***.

Valuing houses is far from being an exact science, even more so in France than in Britain, as French properties are far more individual and records of what similar houses have sold for are not easily and publicly accessible.

If you think it's too much, then it's quite simple - make a lower offer. If your offer is rejected than there are plenty of other houses around. It's a buyer's market at present.

[tj]

[quote user="fulcrum"]In France it is very hard to work out how prices are arrived at. Be it cars, houses or even items at the bricolage shops. I think the rule is. Think of a price and double it and see who is interested.


[/quote]

In the UK estate agents generally arrive at a price based on comparison, comparing like for like, here it seems to be somewhat of a lottery, but you should bear in mind there is a market designed for the exploitation of british house hunters.

When we were looking for renovation projects, one house was 38000 at one agent and 80000 at another, at the end of the day a house is only worth what someone is prepared to pay for it.

Before we looked at our house I asked the agent how much of the price was their fee, they said it was not a problem since it was included, I said I knew that but wanted to know how much. They did tell us, but what annoyed me, was when we had finished negotiating the price, and were there to sign the compromis, we noticed they had increased their fee. For us its not a problem since we are pleased with the deal, however the agent has basically stolen or misappropriated funds that should have rightfully been the sellers.

My advice, do not assume anything, do not assume they are being honest with you, check and double check, do your homework and be prepared so you can deal with the agent to your satisfaction not theirs, don't stand for any nonsense, don't be pushed, your the one paying their wages, make them earn it!

[Moorejw]

Often the problem with over-priced houses arises because the owner states what price they want and the agency then adds their fees. Owners can be reluctant to listen to the agent's view on the value. The agent then has the choice to market the property at the price that the owner wants, or to walk away. If an agent is sure that a house will not sell or attract any interest at the inflated price then there is little point wasting time (and money) marketing it. Unfortunately, some agencies have targets for their agents to reach on the number of properties that they bring in and therefore they will continue to mandate an over-priced property.

[P]

[quote user="Moorejw"]Often the problem with over-priced houses arises because the owner states what price they want and the agency then adds their fees. Owners can be reluctant to listen to the agent's view on the value. The agent then has the choice to market the property at the price that the owner wants, or to walk away. If an agent is sure that a house will not sell or attract any interest at the inflated price then there is little point wasting time (and money) marketing it. Unfortunately, some agencies have targets for their agents to reach on the number of properties that they bring in and therefore they will continue to mandate an over-priced property.[/quote]

But this does not explain where one agent has the property at one price and another has it at a price that differs greatly - i.e. 40,000 or 60,000 euros. The seller will be expecting less from one than the other if it sells at its asking price.

Or perhaps it is down to target market for the agencies - i.e. French or British buyers.

Paul

[Cat]

One of the problems is the initial valuation, some agents will always over-estimate the value of a house, whilst some will come up with a more realistic value.

One of the reasons for overvaluing a property is that the vendor will, naturally, want to get the highest possible price for his or her house.  I know for a fact that some people are loathe to offer their house for sale through certain agencies, as they do not like (or believe) the "lower" valuation on their house given by these agents.

Often though, the agent will advertise the house at the highest achievable price, but will already know the lowest offer that a vendor is willing to accept, just as in the UK.  It is always just possible that some mad, rich  foreigner will be willing to cough up the initial, inflated asking price.

It is quite common, if an agent knows that a vendor is willing to budge on a price, to make a lower offer that also includes the notaires fees.

That's why it pays to shop around, and also to always ask (whoops, sorry for the split infinitive) the agent if there is any room for manouvre on the price.

 

 

[Ejc]

We saw this quite alot when we were looking and what was interesting was that although the house was the same in some of these cases - the aount of land / environs being offered with it varied - so it pays to double check exactly what's being included with the lower price......

[Coco]

[quote user="Cat 46"]

Often though, the agent will advertise the house at the highest achievable price, but will already know the lowest offer that a vendor is willing to accept, just as in the UK.  It is always just possible that some mad, rich  foreigner will be willing to cough up the initial, inflated asking price.

[/quote]

Quite true and yes it certainly does happen in the UK.  We had our house on with an agent in the UK about 8 years ago now for £134,000.  If he had achieved full asking price for us we were due to pay him about £3K, consequently we would get £131K but he felt (wrongly as we all know now - he just wanted a quick sale) that the market was slowing and that we would only sell if we dropped the price to under £130,000.  We decided to abandon the agent and advertise ourselves on what at the time was one of the new websites for individuals to advertise their properties.  I left it at £134K but OH and I had decided that if we got any interest we would accept £128K as rock bottom.  Within 24 hours we had an enquiry from a young couple moving out from London (equate to rich foreigner in Cathy's quote [;-)]) who took one look at the house and offered us the full asking price on the spot.  So ultimately we were £3K better off than we would have been with the agents initial price, and to think that he had wanted us to drop to £129500, meaning we would have got about £127K - £7K difference!!  "Rich foreigners" then sold it three years later for £250K!!!!  What do agents know?[Www]

[Jupiter]

St Amour

...your UK agent was wanting approx 2.25% - as they say, you pay peanuts and you get monkeys. Come to France, pay four times as much, get even more monkeys. Conclusion is that in the internet age you don't need an agent to sell your house.