Colchester Main Road, Alresford, CO7 8DJ
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Market Appraisal
for
Mrs Jill Ellis
by
Florent Lambert
Market Appraisal
for
Mrs Jill Ellis
by
Florent Lambert

Jim-A-Ric, Bounstead Road, Colchester, CO2 0DE

VALUATION DATE 18 September 2018
BEDROOMS 4
BATHROOMS 2
RECEPTIONS 2
map

LOCATION

The location in general is a very nice rural place, close to Abberton and the lovely layer. The specific location for this house is far less desirable with a tiny odd looking house to the right from which it was maybe originally attached to? a muddy entrance and commercial units nearby. From the aerial view, you can also see a garage to the back of the property.

OVERVIEW

This my price analysis for Jim-a-ric, a 4 bedroom detached in Blackheath CO2 0DE

COMPARABLE PROPERTIES

Please click on each image below to view individual comparables

50 Blackheath, Colchester, Essex CO2 0AB

sold in Feb 2018, a similar size property with a garage and a much nicer location not far from "Jim-a-ric"

£405,000 Detailed Property Particulars

19 Rowhedge Road, Colchester, Essex CO2 8EW

Sold in February 2018, similar size. Arguably not as nice, similar location.

£390,000 Detailed Property Particulars

Cedar Holme, Mersea Road, Blackheath, Colchester, Essex CO2 0BU

Very large plot, large living space...odd looking?

£395,000 Detailed Property Particulars

89 High Road, Layer De La Haye, Colchester, Essex CO2 0DT

Sold in April 2018. Lovely modern living space, smaller but a finished product

£445,000 Detailed Property Particulars

Plum Lodge, Berechurch Road, Colchester, Essex CO2 7PZ

Sold Aug 2017. Arguably £450k in 2018 prices, lovely quirky property of similar size. nicer location

£440,000 Detailed Property Particulars

BESPOKE PRICING

Lower Price

£ 410,000

Estimated Market Price

£ 425,000

Target Price

£ 430,000

BESPOKE MARKETING PLAN

I have spent 30 years in the City crafting my own pricing models and trading as a market maker, I believe that the correct price will sell the house and the most exquisite marketing will achieve a bit more, the best presentation in the world will not over compensate for an overpriced property.
When a property spends too much time on the market, the longer it takes to sell, the harder it takes to sell. Price reduction does not boost efficiently the demand for that property because, by that time, the audience has almost disappeared.
As a result of overpricing, properties don't sell, agents never expected to sell them in the first place and never spent much money on the correct marketing. This is a minefield for the buyers but an opportunity to negotiate a big discount when a property does not sell.

Let's start with my valuation philosophy! I follow an approach that I call "triangulation", meaning that I use as many pricing methods as possible to pinpoint a price range:
- typical comparative method with looking at similar properties SOLD in the area
- Price per sq.ft...in the area, this would help me comparing similar spec properties but of course it is not reliable on its own for our semi-rural areas.
- Historical price analysis I know that, on average prices have up 48% since 2011 or 9% since 2015 or multiplied by 4 since 1998...I will use the trend to calculate the 2018 prices of comparable properties sold at various times. 
- Price distribution. I calculate the exact number of 4 bedroom detached sold over 12 months in the CO7 postcode for example, i get a distribution curve and I can extrapolate how far a property is from the average and how likely the price will trigger a "superior" interest. I also call it an "audience distribution" 
- Price reality. The price is what is agreed between a buyer and a seller! The main factor why a house does not sell is the price. The main factor why a house does not sell better is the whole marketing strategy. 
- Marketing price, a price is there to entice and not detract!  This strategy is more efficient and less damaging than "starting high and see how it goes".

Now for the property in focus, "Jim-a-Ric", Bounstead Road, Blackheath.
A/ Historical price variation:  Bought in June 2004 for £215,000 as a semi-detached 4 bedroom but past pictures do show that it already was detached? very strange...Pictures were better back in 2004 with Chewton Rose but one can see that nothing has been done to the house since. Purely on price variation alone for the South-East data of the office of national statistic, it would point to a 2018 Valuation of £363,578 if it was still a semi-detached property. Arguably it would point to between £406,000 and £436,000 as a detached 4 bedroom from the point of view of historical trend in this area which has gone up more than the average for the Sout-East / East region.
B/ Comparative method but only using properties recently completed in the area and not properties on sale. It is a judgement call and based on my own opinion, I would compare this property in value as between £400,000 and £440,000
C/ Price per sq.ft My current guide for this location and for a detached 4 bed in need of improvement ( not the final product) is between £160/£180 per living sq.ft. In this case the property is 2057 sq.ft so It would point to a basic value of  £329k-£370k plus about 50k max for a detached double garage...This would give a total value of between £379k and £420k
D/ Price distribution ( to be fine-tuned, more for the sellers)
E/ Price reality. This property was first marketed at £525,000 on June 5th by Express Estate Agency, dropped to £515,000 on June 29th, £500,000 on August 1st and £490,000 on Sep 5th. God knows where it started with Beresford, the second agent,  but now at £475,000. This kind of desperate price action will point to a minimum 20% discount from original starting price. This is the cost of poor pricing and poor marketing. From this price action, I would value the house at £425,000 - £437,500
F/ I have a secret pricing weapon...my wife! I did not show her my data and just all the pictures of the house and the streetview...her valuation...£425,000
G/ Zoopla values it at £394,000! Zoopla is getting better and better on valuations although they tend to undervalue as their software provider also use the same pricing formulas for the lenders

Overall the decoration looks very dated, I don't like the look of the properties around and this business of semi-detached converted is of concern for the future saleability of the house. Money would need to be spent. On the positive side, it is a lovely general location with a lovely wood area nearby and of course the water reservoir. It is also not far from civilisation. In conclusion, I am getting a very good "triangulation" between £394,000 and £440,000. I would estimate the property to be between £415,000 and £430,000 maximum. If you were interested in buying this property, I would use a £400,000 offer. I bet they would bite your hand at £450k

FREQUENTLY ASKED QUESTIONS

Please click on the questions to see the answers

  • 1 I want to use you but another agent has quoted me a cheaper fee. What shall I do?
    You may find a cheaper default fee elsewhere, the average fee in the Colchester area is just short of 1% and some agents will quote 0.7% or maybe even less. The average agent in the CO postcode will only achieve a sale just short of 95% of the initial asking price. The excellency of our bespoke and the correct pricing is more likely to make achieve over 100% of the asking price and in a shorter amount of time. So what really counts is not so much the actual fee level but the net amount of money you will have at the end of the whole process. Our fee structure is also designed to charge you a lot less than the other agents if we fail to reach the price promised. Therefore we focus on delivering the absolute best net result for you and not just for us.
  • 2 I want to sell but I was expecting a higher valuation. What are the options?
    Valuations are subjective, they're not an exact science, and so it is natural that opinions will differ. However when valuing, our job is to give you an evidence-based estimate of the valuation range, we will illustrate the "comparative" method used and we will also explain our own "quantitative" method of using Square footage and historical trend pricing. As a former very successful financial options trader and having developed my own pricing tools, my job is to pinpoint an exact price range and a set of probabilities attached to your final choice of using one price level rather than another one. My own analysis of the Colchester property market and general researches do show that estate agents tend to overprice properties on average just over 5% in the whole CO postcodes as opposed to around 3% nationally. Giving you an over inflated opinion of a price is totally counter productive, it wastes the optimum marketing efficiency of the first 3 weeks on the market and damages the probability of achieving the right price in the correct time spectrum. In my projection, a 3% over pricing might well cost you a 5% swing to trigger a sale and add 70 days on the market to achieve it. The wrong initial advice could therefore cost you between 2 and 5 %. Be very mindful and critical of any price estimate given to you by estate agents in general and never forget that you are the boss, it is down to you to choose the marketing price and the best agent to achieve it. We are very happy to discuss and explain our calculations beyond this appraisal, we do not have to agree, besides...the customer is always right!
  • 3 Should I choose sole agent or multi?
    Most vendors prefer sole-agency because it keeps things simple - for buyers and sellers. You'll also pay a lower fee for a sole-agency agreement. Some vendors feel that multi-agency gives them a better chance of finding a buyer quickly because more agents will be working to sell the property, but others worry that agents may be focused on beating their rivals to the sale, rather than negotiating the best possible price and ensuring that buyers are in a strong position to proceed quickly. We only work as sole agent because we know that in the current Rightmove environment, having more than one agent is negatively affecting the saleability of the property. It is better having the right agent than two average agents. We also feel that our bespoke marketing is superior to any other agents you may choose, we do not want to craft the best marketing package for another agent to claim the end benefit.
  • 4 Are there any other marketing costs?
    Usually all marketing expenses are included in the commission but it’s worth getting in touch to confirm this.
  • 5 Who will conduct viewings on my property and when will they occur?
    We will conduct all viewings during our open hours. We are also flexible to adjust to your needs or the potential buyer's needs. We will conduct viewings outside working hours if it is convenient to you. We don't plan to conduct viewings on a Sunday and if we have to and if we can deliver it, we will. We only introduce you a potential buyer after the second viewing. Research and experience show that a viewer is more likely to relax while in contact with a respectful agent than with a vendor. It allows us to give you immediate feedback upon the viewing and it also gives us vital informations that could be useful if and when the time comes to advise you on dealing with offers. typically we will take charge of your home at least 30 minutes before each viewings and welcome you back once all viewings have finished. You can then receive immediate and fresh feedback directly from us.
  • 6 How will you market my property?
    With everything we have to offer! We do not rush the preparation for your marketing, it has to be perfectly crafted to portray your house in the most exquisite way possible and it has to generate the right feelings for the prospective buyers. Once the whole marketing package is ready, we typically launch on a Wednesday morning with Rightmove and using Featured listing for a mininum of two weeks, we also give a premium listing to most of our listings. Combined with our gorgeous Twilight pictures, this gives the listings the highest daily average Rightmove views. No other agents come close to our average daily figures. We will also give a full page page advertising on Essex life for our selected properties above £500,000. We run Facebook campaigns to raise the awareness of your property coming on the market. We also run a leaflet campaign to advertise your property among potential buyers in your area. We email details of your property to our growing list of potential buyers according to their search criteria.
  • 7 Do I have to have a for sale board?
    No. But they don’t half help! They’re ‘on site’ advertising 24 hours a day, 7 days a week and we know many of our sales are encouraged by their presence. Besides our board is your sale board and it is designed just for your house. It sells your house and not ourselves. It is still a very important tool for most locations.
  • 8 How can I prepare my property for sale?
    The house should be as finished and as presentable as possible. If some little DIY jobs need to be finished or a fresh lick of neutral colour paint could be used to freshen up some rooms, it is best to do them before you start the marketing. it is also very important to clean and de-clutter. You want to make your property look as best as it can and for someone to be able to imagine his or her own family and belongings in the space. First impressions are so important. We offer a full assessment and will give you the right advice according to your needs.
  • 9 Can you find us a buyer very quickly?
    Depending on your property, the price, the location and the season we will give you an assessment based on our own specially calculated statistics using Rightmove. On average a property in the whole Colchester area will take about 152 days to sell (subject to contract). Again this number is likely to vary depending on many factors, this is an average and factually some agents tend to overprice, under market and take longer to sell.

    Our level of marketing is already factually showing us that we attract a far higher level of exposure for the properties in our care.

    Rightmove research shows that their “featured” property listing attract over 100% increase in Rightmove viewings figures. Our “Home Domus” total marketing package is currently outputting well over 200% increase in the same Rightmove viewing figures and placing us number one since we launched our very first property on May 9th, 2018 for all prices and all CO postcodes.

    We cannot promise to find you a buyer quickly but we can promise to do a lot better than your local average statistics. If we do not, we will slash our selling fee to 0.6%!

    Our positive strategy is to find a buyer in 80 days: 21 days before going to Rightmove and 59 days to find a buyer!
  • 10 I am in a rush, can you market it immediately?
    First of all we need to organise an EPC and follow the strict guidelines about identity checks.

    Secondly, we won’t be able to provide our highest quality marketing immediately.

    We strongly advise anyone to give us the time to prepare to succeed. Failing to prepare is preparing to fail…

    But if you insist, we know lots of agents who will be prepared to take pictures with a mobile phone or compact camera while you sign their 20 weeks contracts with a 4 weeks notice period...

NEXT STEPS

Length Of Agreement: 12 weeks

Plan Of Action: https://www.homedomus360.com/buying/

If you would like Home Domus 360 to market your property, simply click the proceed button below and we will contact you to make the necessary arrangements.