Estate agent's valuations and vendors expectations

glasgowdan

We're house hunting and still can't believe the way some estate agents value houses then sit on them for a year or more. This does happen regularly with certain companies and it's frustrating as a buyer and must be frustrating for the sellers (who probably don't know any better as most of them haven't been in the housing market for a few decades!).

There's a house we'd buy if it was realistically priced, but the seller is sitting saying they won't accept a penny less than the home report value. There was a house sold round the corner a few months ago for £50k less than this and it is undoubtedly a much better and more valuable house/garden. And that was with a closing date and competition amongst buyers.

I am just putting this up as I simply can't understand the mentality behind an agent happy to sit on properties for such a long time without 'banking' the cash they could be making from the client! Maybe someone has some insight?

Surrey_EA

Whilst on some occasions it is the fault of the EA giving unrealistically high price expectations to the seller, it is also equally possible that the vendor has formed unrealistically high expectations themselves, and the agent knows full well the price is too high.

An agent may take a property on at a price they believe to be too high in the hope that they may get lucky, or that they will be able to lower the expectations of the seller.

An EA can't sell a property that isn't on their books in the first place.

glasgowdan

Yes, but I'm talking about those companies that systematically overprice properties. There is one that markets a lot of properties in my area. As a seller I'd never use them in a month of Sundays. They seem to acquire clients with promises of high prices, then happily keep them on the books for long periods of time. Eventually they'll sell, though I'm not sure how often they get their asking price. But they often sit there for a heck of a long time.

alchemist.1

There are some mentalists out there who are embarrassed into making ridiculous offers based on asking prices.

marksoton

glasgowdan wrote: »

Yes, but I'm talking about those companies that systematically overprice properties. There is one that markets a lot of properties in my area. As a seller I'd never use them in a month of Sundays. They seem to acquire clients with promises of high prices, then happily keep them on the books for long periods of time. Eventually they'll sell, though I'm not sure how often they get their asking price. But they often sit there for a heck of a long time.

I get your point but ultimately the selling price is the vendors decision. They and they alone set it.

Cakeguts

It is because the sellers are not in a hurry to move. You can weed these people out right at the beginning of looking by working out if the house is overpriced. The people who genuinely want to sell get their price realistic to start with. There appear to always be a lot of people who don't understand that a house is only worth what someone will pay for it not what the seller wants. I know of an estate agent just like the one you describe and it always surprises me when they actually manage to sell something. Maybe they only sell the properties that have been on their books for a really long time and have eventually reached the price that the seller wants?

ReadingTim

The vendor and the vendor alone sets the price, but greed and vanity are powerful forces to be reckoned with when suggesting a price. Flatter them with a high price, hook them with a quick sale, lock 'em in with a long contract, then sting them with a price drop after 6-9 months of inactivity, whilst your fee is based on the old, higher price.

That said, one can bang on "the market" setting the price all you like, but 'the market' doesn't buy properties, individuals do. So regardless of what 'the market' says, if you want to buy my house, you pay my price. Or at least a price we can both agree on. If you don't agree, someone else might, and it only takes one person...

Finally, most of the work EAs have to do is up front - drafting the ad, taking photos, drawing up floorplans and uploading to the web. Once that's done, there's very little else - customers come to you as much as you go to them, so sit back and wait. Palm off the viewings onto the vendor and the EA isn't even wasting their own time. What's not to like, therefore what's the harm of having some 'old' properties languishing on your books?

googler

glasgowdan wrote: »

Eventually they'll sell, though I'm not sure how often they get their asking price.

Look at the sold prices on Zoopla. You can do this in the second month following the sale date.

Leo2020

To add to this, it's not just a case of vendor sets price and buyer agrees. If a mortgage is involved (which in most cases it is) then the mortgage lender decides what it is worth. At this point the buyer can stump up the difference if it is valued less, which I would guess in many cases they don't have the cash to, or agree a lower price with the vendor. If not then the sale falls through.

mrsmazza

My mother in law is the perfect example, every time she talks about selling her house, she overprices it by 100k.
You can't tell her to check on line, as she doesn't own a computer !!