Estate agency substantially undervaluing a house

Why didn't you just ask the estate agent and/or your solicitor why the valuation was so low?

A probate valuation has nothing to do with selling price. No one would put a house on the market at the probate price. if you wanted to sell the property you should go out quite separately and get some estate agents to put a selling price on the property.

Do also remember that even though all the houses look alike when built,. after a few years, some will have been extended, others done up to a high standard, others will be neglected and tatty. This can easily account for a very wide difference in value in two ostensibly similar houses.

Probate is entirely different from selling and has all kinds of legal requirements around it.

But, as I have sias, just ask those professionals involved. You are entitled to an explanation and if there isn't one change them. Get another solicitor or estate agent.

This a huge difference in price, surely if it was a quick sale it wouldn't be that much less. Always get at least two Agents to give a valuation.

Many years ago my late FIL discovered his house had been undervalued when he heard that the chap buying it had been boasting in his local that he'd given the estate agent a back
hander to undervalue a property and was getting a bargain. He put the price up!

The Probate value of a house or any other property can be by “valuation” it does NOT have to be sold, it does have to be a realistic valuation and the district valuer will check the figures.

In many cases a family member will remain in the property, in that case the beneficiaries have to agree how the other bequests are made. The solicitor handling probate will know what is acceptable in that area and there is no point in over valuing it and paying more tax.

Typically a probate value will be 20% below asking price because selling expenses have to be paid, some houses cost a lot to market or even get auctioned.

Have heard of something similar where friends or relatives of the estate agent ‘surprisingly’ went on to buy the house when it went on the market.

I think it's been priced low to sell it fast. It may not be dodgy as such but probably unfair.

We had something similar happen when the joint executor was a bank. We challenged the valuation. The bank were surprised we were bothered about it as the estate was going to be split multiple ways. It seems they had only got one valuation and were just pushing everything through fast on a "conveyor belt" as no one really cared it seemed.

It was years ago though - and I'm no longer 100% sure of the exact details - but if we hadn't insisted on more valuations it would definitely have gone for maybe 20% or 25% less than it's real value at the time.

Hithere. It's in immaculate condition.

And I think you have every right to be suspicious…

It's not my house. It is the identical style of house next door which was owned by my neighbour who has died. All the houses in the road are very similar. Two have sold in the last year for almost the same price. My neighbour's house has been valued at 200K less than those sale prices at a time when sales are supposed to be booming. This is a sought after road in a very popular location. Similar houses in the general area are selling like hot cakes at those higher prices. I am suspicious.

"The house did sell for less than ones in area. Site was good but condition wasn't. This was reflected in the price."

That was my thought - how is the condition of the house compared to the other ones?

Have you tried other Agents in your area. If I was worried it was undervalued I would have a second valuation done with a different firm. It does not cost anything for a valuation.

That's helpful Muse, thank you, especially the paragraph about the Probate Office questioning in the value of the house.

In our case, we were two of many beneficiaries. I worked with the executor (solicitor) as I lived close to the house. Three valuations were sought and we went with the lowest commission rate. Valuations did differ slightly.

Yes - Probate is only granted when the house is sold. Yes - The executor (solicitor) did have to state what value it was on the market for when applying for probate.

The house did sell for less than ones in area. Site was good but condition wasn't. This was reflected in the price.

Probate will question the value of a house. It is expected to be current value. The solicitor had to prove she had more than one valuation. She said that probate office have been known to send in their own valuers if something is undervalued.

Not quite answered all your questions, but hope it helps.