Property valuation increases
Apr 27th 2022, 3:48 pm
#1
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Property valuation increases
My parents-in-law property was valued in April 2020 and again around August 2021. The valuation increased by almost double!
I previously expressed an interest in buying it in November 2020 a family member suggested conditions.... a share of profits if we sold despite no financial input. I backed out!
The suggestion for the increased value came from a family member's husband. Estate agent bumped it up a little more.
The property remains unsold and no enquiries for 8 months!
I think it's over valued because I'd been told the structure of the property isn't good, by same family member and roof could collapse any time. It's still standing! Add to this I was discouraged to buy a much bigger property. I thought it was perfect.
I'm not suggesting I do not like our current property but do occasionally think of parents-in-law and this other property.
Does it make sense for the value of a property to double between April 2020 and August 2021? I did mention to my wife and sister-in-law several times I thought the original valuation was too low. No one listened to me, next thing it's doubled by family members husband suggestion.
I previously expressed an interest in buying it in November 2020 a family member suggested conditions.... a share of profits if we sold despite no financial input. I backed out!
The suggestion for the increased value came from a family member's husband. Estate agent bumped it up a little more.
The property remains unsold and no enquiries for 8 months!
I think it's over valued because I'd been told the structure of the property isn't good, by same family member and roof could collapse any time. It's still standing! Add to this I was discouraged to buy a much bigger property. I thought it was perfect.
I'm not suggesting I do not like our current property but do occasionally think of parents-in-law and this other property.
Does it make sense for the value of a property to double between April 2020 and August 2021? I did mention to my wife and sister-in-law several times I thought the original valuation was too low. No one listened to me, next thing it's doubled by family members husband suggestion.
Apr 27th 2022, 5:20 pm
#2
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Re: Property valuation increases
Well, as your post seems to say, the valuation depends on who is doing it, and any interest they may (or may not) have. We reciently had a property valued as part of a deceased estate. When we were contacted by the valuer, he told us the value and asked what we thought, and then suggested increasing it by 25%, which would help whoever inherits it, should they choose to sell immediately and sell it for more than his recient valuation. Which was very accommodating!
Apr 27th 2022, 6:01 pm
#3
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Re: Property valuation increases
Well, as your post seems to say, the valuation depends on who is doing it, and any interest they may (or may not) have. We reciently had a property valued as part of a deceased estate. When we were contacted by the valuer, he told us the value and asked what we thought, and then suggested increasing it by 25%, which would help whoever inherits it, should they choose to sell immediately and sell it for more than his recient valuation. Which was very accommodating!
Add to this when we were struggling to find a property I thought why not build a cabin or buy a English shepherds hut but family member said they would be included in mother-in-law estate when she died. I thought bull shit. I could hire a crane to move the cabin or tow the English shepherds hut off the property. Obviously I'd have needed somewhere to park either but I do know some locals who'd help out.
I do understand about adding 25% but a 100% increase in value, then 25% on top, that's ridiculous. I had wondered if the family member and husband decided to hike the price because I had expressed an interest to buy it and they realised had I made an offer it would not include any profit from future sale.
As to the state of the house it's not fit to be rented out unless major maintenance is carried out!
I'm actually still interested but focussed on our current house so will bide my time ....
Apr 27th 2022, 6:21 pm
#4
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Re: Property valuation increases
I should add we are busy with a building project at our current house so my wife doesn't have time to maintain mother-in-law property. She's mentioned to family member she doesn't have the time to maintain the garden so suggested getting someone in to maintain the garden but it's been met with a response 'I do not want to pay anyone'! Okay , we are retired but we have two dogs and are busy with a building project. We are 63 and 62, family member is 54!
Apr 28th 2022, 3:12 am
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Re: Property valuation increases
Property prices have gone up in the past couple of years but just because the trend is headed up that does not mean a seller will get their asking price. There is a property near me that was listed at 16 million for at least 3 years and did not sell at that price so the sellers raised the price to 19 million last year and it remains sold. It is a decent looking property but I do not think it is worth more that 12-14 million because of its location and the amount of road traffic on that street. It is an estate house also. I think with all the turmoil in the global economy presently now is not a good time to purchase anything unless a buyer has cash. Your wifes family members greed will cause a major delay in selling the property and may even cause the estate to lose value if it remains unsold for several years.
Apr 28th 2022, 7:18 am
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Re: Property valuation increases
Property prices have gone up in the past couple of years but just because the trend is headed up that does not mean a seller will get their asking price. There is a property near me that was listed at 16 million for at least 3 years and did not sell at that price so the sellers raised the price to 19 million last year and it remains sold. It is a decent looking property but I do not think it is worth more that 12-14 million because of its location and the amount of road traffic on that street. It is an estate house also. I think with all the turmoil in the global economy presently now is not a good time to purchase anything unless a buyer has cash. Your wifes family members greed will cause a major delay in selling the property and may even cause the estate to lose value if it remains unsold for several years.
Apr 28th 2022, 7:32 am
#7
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Re: Property valuation increases
Property prices have gone up in the past couple of years but just because the trend is headed up that does not mean a seller will get their asking price. There is a property near me that was listed at 16 million for at least 3 years and did not sell at that price so the sellers raised the price to 19 million last year and it remains sold. It is a decent looking property but I do not think it is worth more that 12-14 million because of its location and the amount of road traffic on that street. It is an estate house also. I think with all the turmoil in the global economy presently now is not a good time to purchase anything unless a buyer has cash. Your wifes family members greed will cause a major delay in selling the property and may even cause the estate to lose value if it remains unsold for several years.
Apr 28th 2022, 7:45 am
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Re: Property valuation increases
Apr 28th 2022, 8:02 am
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Re: Property valuation increases
Apr 28th 2022, 9:14 am
#11
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Re: Property valuation increases
I agree the property, will lose value the longer it's on the market, especially if no maintenanceis carried out. I have seen other bigger properties for less. It is in a good location halfway up a hill with total plot size of 2,160m2, includes orchard 1,000m2, but is only one bedroom if you count the other toom as a lounge. Living space is 70m2. There is potential to extend it but there are some complex issues to overcome. Better for it to be demolished and new house built, hence, I don't agree with the sale value on Ingatlan.
Valuing property is difficult and the only real way is to look at recent sales and what was achieved. A trusted estate agent could help here. Pricing propertys well over the market value and them remaining on the market for years is a known problem here especially with inherited property where there is no need to sell any time soon.
Property values have gone silly here in the past couple of years (houses and land) and it is difficult to guess when (if) the market will over heat generating a collapse. The family housing grants given by the government have been IMO a major driver in this. But if essential maintenance is not done the property will become more and more difficult to sell against the local competition. One way around the problem perhaps is for you to agree with the relative that maintenance is needed and that you fund this and the cost is put against the house and you are paid back from sale proceeds (A written agreement with bank interest on monies so 'invested' would be needed). You would have to agree what is done before the work is carried out and good records kept but 2ft. high grass will only generate a low offer and e.g. missing tiles that cause ceiling damage will significantly lower the value. Utilities should be paid rather than disconnected because the cost of reconnection will affect the price and the enthusiasm of prospective purchasers.
Apr 28th 2022, 2:37 pm
#12
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Re: Property valuation increases
It is not often that demolish and rebuild is the best option. If the house is structurally reasonable it will be (much) cheaper to repair. If a new roof is needed then this gives the opportunity for an attic conversion at not too much additional cost. Depending upon the site layout and local planning regs as to minimum plot size it may be possible to divide the plot into 2 1000 m2 plots, one with the house and one as a building plot. This could increase the overall value. Talk to an estate agent you trust.
Valuing property is difficult and the only real way is to look at recent sales and what was achieved. A trusted estate agent could help here. Pricing propertys well over the market value and them remaining on the market for years is a known problem here especially with inherited property where there is no need to sell any time soon.
Property values have gone silly here in the past couple of years (houses and land) and it is difficult to guess when (if) the market will over heat generating a collapse. The family housing grants given by the government have been IMO a major driver in this. But if essential maintenance is not done the property will become more and more difficult to sell against the local competition. One way around the problem perhaps is for you to agree with the relative that maintenance is needed and that you fund this and the cost is put against the house and you are paid back from sale proceeds (A written agreement with bank interest on monies so 'invested' would be needed). You would have to agree what is done before the work is carried out and good records kept but 2ft. high grass will only generate a low offer and e.g. missing tiles that cause ceiling damage will significantly lower the value. Utilities should be paid rather than disconnected because the cost of reconnection will affect the price and the enthusiasm of prospective purchasers.
Valuing property is difficult and the only real way is to look at recent sales and what was achieved. A trusted estate agent could help here. Pricing propertys well over the market value and them remaining on the market for years is a known problem here especially with inherited property where there is no need to sell any time soon.
Property values have gone silly here in the past couple of years (houses and land) and it is difficult to guess when (if) the market will over heat generating a collapse. The family housing grants given by the government have been IMO a major driver in this. But if essential maintenance is not done the property will become more and more difficult to sell against the local competition. One way around the problem perhaps is for you to agree with the relative that maintenance is needed and that you fund this and the cost is put against the house and you are paid back from sale proceeds (A written agreement with bank interest on monies so 'invested' would be needed). You would have to agree what is done before the work is carried out and good records kept but 2ft. high grass will only generate a low offer and e.g. missing tiles that cause ceiling damage will significantly lower the value. Utilities should be paid rather than disconnected because the cost of reconnection will affect the price and the enthusiasm of prospective purchasers.
The tiles seemed okay last time I was there plus my friend and I went up there more than a year ago to fix. I was the one holding the ladder.
Sister-in-law did mention the plot could be divided into 4 plots but no discussion with my wife. I actually think it won't happen because we were originally told if we bought the property we could only extend up to the fence where the orchard starts. I think the orchard is maybe 1,400 m2, plot for house and garden 800 m2.
I think my wife and I are getting quite fed up with progress for MIL house sale, maintenance, etc. We moved to our new house July 2021, November 2021 had new windows installed, April 2022 new terrace being built, in September 2022 hoping for new CH system to be installed. We are both profoundly deaf and made all enquiries and dealings without help from any family members.
Apr 28th 2022, 2:56 pm
#13
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Re: Property valuation increases
The only thing I can do is advise my wife to speak to her sister. My wife has been dependent on me for financial support for two years but has finally got her private pension sorted! I'm at a loss to understand why it's so difficult to get someone to cut the grass. It's not that expensive here and the property value has doubled so any monies spent whichever sister pays can claim it back from the sale proceeds. I've already loaned three solar powered security lights and a fake TV gadget that comes on at dusk and switches off after 4, 7 hours or at dawn.
The tiles seemed okay last time I was there plus my friend and I went up there more than a year ago to fix. I was the one holding the ladder.
Sister-in-law did mention the plot could be divided into 4 plots but no discussion with my wife. I actually think it won't happen because we were originally told if we bought the property we could only extend up to the fence where the orchard starts. I think the orchard is maybe 1,400 m2, plot for house and garden 800 m2.
I think my wife and I are getting quite fed up with progress for MIL house sale, maintenance, etc. We moved to our new house July 2021, November 2021 had new windows installed, April 2022 new terrace being built, in September 2022 hoping for new CH system to be installed. We are both profoundly deaf and made all enquiries and dealings without help from any family members.
The tiles seemed okay last time I was there plus my friend and I went up there more than a year ago to fix. I was the one holding the ladder.
Sister-in-law did mention the plot could be divided into 4 plots but no discussion with my wife. I actually think it won't happen because we were originally told if we bought the property we could only extend up to the fence where the orchard starts. I think the orchard is maybe 1,400 m2, plot for house and garden 800 m2.
I think my wife and I are getting quite fed up with progress for MIL house sale, maintenance, etc. We moved to our new house July 2021, November 2021 had new windows installed, April 2022 new terrace being built, in September 2022 hoping for new CH system to be installed. We are both profoundly deaf and made all enquiries and dealings without help from any family members.
Apr 28th 2022, 5:16 pm
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Re: Property valuation increases
Surprise, surprise.... my wife has fixed something up to go to MIL property on Sunday and her sister will be there to clear the garden of walnuts or whatever before a guy SIL has booked comes to cut the grass! I've told my wife both herself and sister need check condition of the house and one of the walnut trees because I'd been monitoring one of the branches and it's already slightly extending beyond the boundary. It's quite thick too! SIL husband is not working at the moment so he should be able to organise a few things but won't happen.
I must say my Hungarian wife has been absolutely fantastic. I've always known she's a very clever woman because when we went on holiday she always beat me at English scrabble 90% of the time! I gotta say .... if I drop dead before her .... she won't need my support as much as when we were in England! I can die happy! Not that I'm planning to drop dead tomorrow!
I must say my Hungarian wife has been absolutely fantastic. I've always known she's a very clever woman because when we went on holiday she always beat me at English scrabble 90% of the time! I gotta say .... if I drop dead before her .... she won't need my support as much as when we were in England! I can die happy! Not that I'm planning to drop dead tomorrow!
