Property over valuations
In recent years, there has been a sad trend in estate agents giving homebuyers an unrealistic market valuation of their properties. Some estimates list £74,000 as the over valuation amount on properties. But why do they do this? What’s in it for them?
Estate agents’ property valuations are informal opinions of how much your home is worth. When asked “how much is my home worth?”, some estate agents will give you an inflated or deflated market value for their own financial gain. Russell Quirk of eMoov said:
“Unfortunately, it’s a common place practice in the high-street sector. The agent is driven by a percentage fee so they will overprice a property to try their luck, win the business and increase their profit margins”.
Then, within weeks, the estate agent will be in touch advising the seller to lower the asking price.
Surprisingly, this is entirely legal, as an ‘opinion’ means there is no law to legally require the facts of this opinion to be accurate or even true. People looking to sell their homes often are greatly swayed by two points when choosing which estate agents to go with:
- Who gives the highest property valuation
- Which charges the lowest fee
Over 2,000 sellers in England and Wales showed that 56% of people would follow the estate agent’s advice on setting an asking price for their property, according to ThisIsMoney.
36% of sellers said they would list their property at a higher asking price than that suggested by their estate agent, whilst 4% would be content to list their home at a lower asking price than advised.
41% of sellers in London would be happy to set an asking price higher than the one suggested by their estate agent.
In London, 31% of people asked said that the most important factor when selling their home was getting the highest asking price.
Selling your home
A property with an overvalued price is unlikely to sell, and more likely to sit on the market for a long period. The sellers, increasingly anxious to sell, will become more and more inclined to lower the asking price. Whilst you’re still under contract, eventually your property will sell and your estate agent will receive a nice tidy commission on the back of this.
More often than not, you’ll have to sell your home for a lot less than if you’d had your property valued correctly in the beginning. Buyers can sense when a seller is having difficulty, and waste no time in bartering on the price. And with the seller being towards the desperate end of the spectrum, they often accept.
So, how can you avoid this happening to you?
We at Peach Properties ensure we do everything we can to help you sell your home at the right, current market price, free of over valuation. As well as making sure the process is smooth and as stress-free as we can, we’ll also get your property the greatest of exposure to prospective buyers.
For us, this means taking care of everything from the ‘For Sale’ signage outside the property, and displays screens featuring your home at our offices through to showcasing it on property search websites such as Zoopla.co.uk, Rightmove.co.uk, PrimeLocation.com.
In relation to your property’s evaluation, we base our figures solely on our deep understanding of the East London property market, giving you a fair and realistic estimate on your home’s sale price.
Research the market
Firstly, you need to clarify how much your property is worth. Try looking at properties like yours in your area that have sold recently to gain an insight into the market value. A handy tool for this is from Sold House Price Information from the Land Registry and the Registers of Scotland.
Compare your findings from this with research here on Rightmove.co.uk. By looking at this information, you’ll get a good outlook of the market in your area, and from this, you’ll be able to set some realistic expectations on the current value of your property.
Choosing your estate agent
Now you’re more clued into what some estate agents are up to, you’ll have a clear advantage in selecting an agent for selling your property. Look for an estate agent who’ll manage the buying and selling process on your behalf, giving you a smoother transaction, better peace of mind and a great price.
Speak to a Peach Properties agent to see how we can help you get the best, fair valuation on your property today.
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