Estate Agents overvaluing properties

18th February 2021

Homeowners are being fooled into paying higher agency fees by instructing estate agents that overvalue their home to gain the instruction.

As a homeowner myself, I know how tempting an over inflated value could be, and even more so if in no great hurry. Maybe you would be a fool not to test the market…

Many homeowners will invite two to three estate agents out to their home in the initial stages. Depending on which type of agency you invite, the values could differ by as much as £20,000 on Sittingbourne’s average house price of £237,000.

How could this be?

The latest stats released by Rightmove.co.uk show that an agent who is well known for overvaluing in town has a price reduction rate of 41.25% in the year to date. A leading local independent agent comes a close second at 30.4%. So what does this mean for homeowners?

Higher agency fees and a long sole agency agreement!

We tend to see that most homeowners who choose an agent based on an over inflated value will generally pay a higher sales fee and have 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.

Overvaluing to gain an instruction is the oldest trick in the book, yet anyone can sell an under priced home! The key is to instruct the estate agent who you feel will work well for you, with the opportunity to set a higher sales price if you want to test the market.

Need some advice on this subject? Why not call me for a chat.

Jon Hawkesford