Should an Estate Agent market a house they know is not worth the asking price?

Estate_Agent

We've all seen houses on the market where we think 'surely it's not worth that'. In my few short weeks as an EA I have noticed that more often than not it is the vendor insisting we put it on 'as that's what it's worth'. I'm not suggesting either that there aren't EA's who don't give a higher valuation in order to secure an instruction.

But should we do it? I have two almost identical properties a street apart from each other. One is on for £20 000 more. Guess which one we have viewings and offers on? But the vendor of the higher priced property insists it is worth the money.

The problem is, buyers see the higher priced property in the press or property portals and call to enquire about it. We then have an extra name on our database who invariably goes to look at the cheaper property and prefers it. But we can also talk to the buyer about all the other properties we have that may fit them. So it is benefitting our other vendors, but not the initial vendor.

Thoughts?

brit1234

Estate_Agent wrote: »

We've all seen houses on the market where we think 'surely it's not worth that'. In my few short weeks as an EA I have noticed that more often than not it is the vendor insisting we put it on 'as that's what it's worth'. I'm not suggesting either that there aren't EA's who don't give a higher valuation in order to secure an instruction.

But should we do it? I have two almost identical properties a street apart from each other. One is on for £20 000 more. Guess which one we have viewings and offers on? But the vendor of the higher priced property insists it is worth the money.

The problem is, buyers see the higher priced property in the press or property portals and call to enquire about it. We then have an extra name on our database who invariably goes to look at the cheaper property and prefers it. But we can also talk to the buyer about all the other properties we have that may fit them. So it is benefitting our other vendors, but not the initial vendor.

Thoughts?

I think they will realise shortly as the house price crash back to normal values has resumed. However you run a company based on sales, your not going to make any commision when the property is priced at a higher price compaired to like for like homes. Try to get them to lower the price if not send them to another agency,

princessamy86

We will do it...to a certain extent. My manager has said to people before that he won't list the property at the price they think it's worth, as it's simply not going to sell. I've found the people who insist their property is "worth more", are also the people ringing up and kicking off because they've had no viewings. The problem with listing them at silly prices is also that the vendor then has the expectation of achieving more for the property, when in reality it's not going to happen.

In our area, there are 2 agents who are renowned for over valuing to get the business, but their conversion rate to sales is shocking! It's not really up to me to choose, but I would rather have 5 vendors who were motivated to sell and will price sensibly, than 20 overpriced ones who won't listen to a word you say.

Estate_Agent

brit1234 wrote: »

I think they will realise shortly as the house price crash back to normal values has resumed. However you run a company based on sales, your not going to make any commision when the property is priced at a higher price compaired to like for like homes. Try to get them to lower the price if not send them to another agency,

I realise I'm not going to make commission on this property and we have had the conversation with the vendor about price.

However, it was the vendors who set the sale price at the beginning, not us. We do not agree it is worth what they feel it is. This is not the only property on our books that we believe is over valued. The difficulty is, these properties help to make the phone ring, increase our numbers of buyers and by default help people whose houses are more sensibly priced by matching these with our buyers.

I can't help but feel though that by not selling these houses - because none of them are worth the asking price - it is adding fuel to the argument that EA's can't be bothered to sell houses.

LandyAndy

Say to them "Your house won't sell at the price you are asking but we are happy to keep marketing it because it is helping us sell loads of other sensibly priced houses.";)

Voyager2002

You are the seller's agent, so it is your job to market at the price they set. You are also employed to give advice, so when they ask why it is taking so long to shift, that is when you tell them.

Estate_Agent

Sorry, the point is not 'what do I do in regards to this property'?, because we all know it is overvalued and we will never sell it. The conversations have been had with the vendor.

It is more a case of should we take these properties on in the first place?

mbga9pgf

Tell them you are a business, that their home is not going to sell at current value and to reduce overheads, either they need to get realistic or find another estate agent. It could be the wakeup call they need, or at least you get a timeqaster off your books.

LandyAndy

Voyager2002 wrote: »

You are the seller's agent, so it is your job to market at the price they set. You are also employed to give advice, so when they ask why it is taking so long to shift, that is when you tell them.

Not necessarily. No business is going to take on work that they know will be unprofitable. Why would an EA spend money on marketing a property they felt they had no prospect of selling?

Unless, as here possibly, it is generating leads for other properties.

DVardysShadow

Estate_Agent wrote: »

... Thoughts?

As buyer, I would say it is entirely your choice as to whether to take them on. I can see why you would.

As seller, if I am pricing sensibly, it helps me.

In your shoes, I would probably take them on, on a sliding scale, and I would be making the point to sellers that I will be applying effort on the parts of my portfolio which I think most likely to sell, but happy to have theirs on and see how the market responds over 4-6 weeks. After that, if the response was not encouraging, then I would work with the vendors to the extent that they worked to make their property more attractive by price adjustment or otherwise.

If they are offended by that, I would think that they are unlikely to be flexible - so if they are offended and go away, so be it.

Estate_Agent

Would it give us a bad reputation if we refuse to take the property on at the vendors price?