Estate agents inflating valuations?

beefturnmail

I am a first-time seller, thinking of selling my house (Outer SE London) and have had valuations from a few agents. All gave a figure some 30% higher than what I paid in Nov 2010, and 20% higher than what I thought (based on what a similar property sold for in Oct 2013.)

Obviously I was initially pleased, but this must be sheer fantasy surely? I knew estate agents probably inflate valuations to gain business but really by this much? Or is the market really this crazy?

Secondly, one agent claimed they are selling most properties 'before they even get online'. Again I was dubious on this - any recent sellers know roughly how long it typically takes properties to appear on rightmove etc, once it gets on an EA's books?

googler

Popular opinion seems to suggest that London and Aberdeen are leading the way in price recovery, so ....

Jenniefour

30% higher than late 2010 - sounds possible to me. I'm in Ealing/Hanwell borders, bought in May 2011 and increase since has well exceeded 30% and nearer 40%. Most houses are under offer before they get on Rightmove because the agents have lists of people wanting to buy.

EA's don't have to inflate prices - supply and demand does that. And lots of places going well above asking prices.

A few days at most to get listings on Rightmove. Often day after photo's done and got vendors approval.

G_M

beefturnmail wrote: »

Secondly, one agent claimed they are selling most properties 'before they even get online'. Again I was dubious on this - any recent sellers know roughly how long it typically takes properties to appear on rightmove etc, once it gets on an EA's books?

The way to test this is to request a (very) short tie-in period. Say 4 - 6 weeks.

If the agent is so confidant the property will sell 'before they even get online' then he won't need any longer than that to earn his commisssion will he?

And if he turns out to be telling porkies & has not got you a buyer in 4 weeks, you can move to another agent........

bouicca21

I'm in se London looking to buy, 30% over 2010 ought to be unbelievable but unfortunately it isn't.

brit1234

Yes estate agents are over inflating prices all over London but at the moment people are paying those silly prices just like 2007. However if you sell now you may get that inflated prices before it goes wrong.

rob404uk

Don't know South East London, but North East London probably done 40-50% in that time

katejo

rob404uk wrote: »

Don't know South East London, but North East London probably done 40-50% in that time

Am also in N E London. Until a year ago no house in my terrace had sold for more than the 250 k barrier. Then 1 house with a loft conversion got just over 400 k in October last year and now other properties near me are asking similar prices even without a loft. I am not selling but think I could ask about 350k (no loft).

cloo

I'm selling in ne London and all agents gave same big price and assured immediate sale on open day. I had it on Saturday got only 5 viewers and no offers yet. I think price s have got too much for intended buyers now frankly.

princeofpounds

Obviously I was initially pleased, but this must be sheer fantasy surely?

If multiple estate agents are giving similar valuations, it is unlikely to be sheer fantasy, maybe part fantasy.

I knew estate agents probably inflate valuations to gain business but really by this much? Or is the market really this crazy?

Yes they do. And in boom times, they can be quite enthusiastic about it. But more like 10% than 20%. They need to strike a balance between enticing an instruction and ending up with a seller with deluded expectations who will stall an actual transaction. So they aim to be in a range where they can talk you down a bit if required.

(Of course price is the last thing that should drive a choice of EA, but most people stupidly put it first.)

Now in central London I would have said 30% is quite possible. But where you are in outer london it sounds high to me. So your gut feel of up 20% may not be too far off the mark.

Secondly, one agent claimed they are selling most properties 'before they even get online'.

This sort of thing is generally all chat. And yes, as the others point out, it's a useful lever to negotiate a short exclusive period.

You should focus on things like their marketing plan, their online and offline visibility, the experience a buyer gets from them (maybe even go as far as mystery shopping), terms and condtions etc. Houses often sell themselves, you need to tap into the right pool of buyer 'liquidity'.

Dan-Dan

Does the estate agency industry drive banks to value higher? (when it comes to the crunch half way through the transaction)