Full Market Value
We generally consider that the “full market value” of the property is the price you’d achieve in a traditional estate agent sale lasting around 6 months.
Full market value is not the asking price
When you see a property on Rightmove or in an estate agent's window its asking price is usually higher than its realistic market value.
The price houses eventually sell for (often many months after first being advertised), are normally thousands less than their asking price.
Why are asking prices usually higher than sale prices?
1. Agents often over-value properties
Estate agents often inflate the valuations they give you when you’re considering selling your home with them. This is because most home sellers will usually go with the agent who tells them they can get the highest price – regardless of whether it’s based on anything factual or not. The agent knows that by setting a higher expectation than their competition does, they're more likely to win your business. This is common throughout the industry, so most properties tend to have asking prices quite a bit higher than their value.
2. People expect to "negotiate down"
Second, people generally expect to “negotiate down” from their asking price. So by starting at a higher figure, they anticipate ending up with a better price after negotiations have concluded. Of course, this doesn’t always work, and it may put people off coming to look at the property at all, but it's common across the housing market in the UK.
We base our offer on the Full Market Value
Our job at Yes Homebuyers is to establish what your property is really worth – what its full market value is.
This is the price that you might generally expect to achieve after marketing your property with an agent for around 6 months on the open market. The offer we make is at a discount to this “full market value” figure.
Benefits of a sale to Yes Homebuyers
Buying from you at a discount means we can guarantee you a certain, stress-free sale, get it done to fit your timeframes, and guarantee you expert support throughout. (Remember, you'll make significant savings that help offset the lower price. Many of these costs are often overlooked when selling).
There are 3 main steps:
- First we gather information from you about your home.
- Next we complete thorough online research using sophisticated valuation tools.
- Finally, we instruct two local estate agents to visit your home and give their feedback.
Once we have all the feedback we can make our offer. This usually all takes place within as little as a couple of days.
Once we've gathered all this information we spend time assessing it to establish our valuation. We can then determine our offer.