Valuations of Dordogne Property

I heard my partner Paul having a telephone conversation with some clients the other day that was fairly representative of the problem that often arises when people come to sell their Dordogne property. Unlike some Dordogne estate agents, who give an instant valuation – sometimes over the phone without actually going to see the property – we go and have a look as if we were taking it on, then go away and think about it. Paul then has the lucky task of ringing the clients and telling them our view.

On this particular day he gave the figure, then paused. I couldn’t hear what was happening the other end, but I heard him say: “From your reaction you’re obviously not happy about that”. So I knew where we were at. The client thought we had grossly underestimated.

Valuing houses is not an exact science – particularly not in the case of Dordogne property, where no two are the same. The first basis is a comparison with any similar property that has recently sold. In a market as slow as the present one has been over the past twelve months that may be difficult. The second basis is a comparison with other houses on our books – particularly those where there has been a degree of purchaser interest and some feedback on price.

None of this is possible for a private individual. This is why the agent is asked for a valuation. Estate agents act according to their best lights, but are not infallible. Sometimes we get it wrong. But on the whole our record on valuing is pretty good.

However, the reaction I heard the other day is not unusual. For people selling, their house is probably their most important asset. It is something they treasure, something they have worked on over the years, and are probably now selling with reluctance. Like us all, they think of it more in terms of the value to them than the value on the open market.

What then happens is that they need time for the reality check. We usually recommend that they get another agent in for a comparative quote, so that they can at least have two opinions.

If the reality check hasn’t worked, and they still think we have underestimated, they are likely to come back and ask that we put it on our books at the figure they want. Sometimes they say “We can’t afford to sell for less than this”. This usually happens where they have seen another property that they want to buy.

This puts us in a difficult position. Sometimes we refuse to take it on at the price the vendor names, since we believe it’s a waste of everyone’s time. Although this is probably the right thing to do, it will also mean that we forfeit the vendor’s goodwill and will not have a chance to come in later when – as almost invariably happens – the price has to be reduced to the level we have advised. We also know that other Dordogne estate agents will be keen to take on the property at any price, and then work on the vendor afterwards.

The alternative course we are moving towards is to take the house on for a stipulated period of – say – six months, at the price the vendor wants, and then to review the situation at the end of that period in the light of any purchaser reaction we have had. If there have been no enquiries at all it may well be that the price is too high. The disadvantage of doing things this way is that you are going round the houses to reach the ultimate goal of a sale.

So the advice is: listen to the agent; get another valuation if you think appropriate; review your plans in the light of the valuations received; then put it on at the price recommended or put off the sale altogether if you don’t think it will net you the amount you need.

Antony Mair

MCM Dordogne Property

http://www.riberacproperty.com