Has my estate agent over valued my property?

News at Newton Fallowell | 28/07/2019


Selling your home and buying your next home is a process that you probably aren’t going to do that often, so getting it right is crucial!  If you are keen on selling your home, it makes sense to get expert advice and guidance. However, it seems as though some estate agents don’t always act in the best interest of their clients.  We’ve been out to lots of valuations over the last few months where customers have been set false expectations of the value of their home.  Estate agents have given inflated asking prices, in order to win the listing, sometimes as much as 20% more!

If a vendor receives three estimates, it is human nature to choose the agent who says they can help you achieve the highest selling price for your house.  The agent will probably provide reasons as to why they can help you sell your home for a higher price than other agents, but this may be a line to win your business.



 

So, what does this mean for homeowners?

A seller could end up being tied into a contract for 16-20 weeks.  We tend to see that most homeowners who choose an agent based on an over inflated value will be locked into a sole agency agreement of 16-20 weeks. This gives the agent plenty of time to tell you that your home is overpriced, with the assurance that you cannot instruct another agent in this time.  That agent will then ask you to keep reducing your price.  Weeks and weeks can go by without any interest in your property, with your home becoming stagnant in the market.  The first 2 – 3 weeks of being for sale are the most important as this is when the most interest will be shown by potential buyers. 

To give you a clearer idea of what’s happening in the market with regards to price reductions, we’ve had a look at some local stats released by Rightmove.  This data has been collated from 1/1/19 – 28/7/19 and we’ve found some local agents are reducing as much as 42.9% of there stock, which means nearly half of what they list is overpriced! 

Whichever agent you chose to sell with, please take the time to go onto Rightmove, have a look at their stock, how long it’s been on the market for and the amount of price reductions they have before signing a contract.  And don’t forget, you are entitled to a 14 day cooling off period, so if you have your doubts after signing, or it just doesn’t feel right you can chose to give notice. 

If you are planning on selling or need some advice, please get in touch on 01733 511225 or email us at werrington@newtonfallowell.co.uk to discuss how we can help.