We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
Estate Agent: extremely high valuation + low fee, what's in it for them?

DragonQ
Posts: 2,198 Forumite


We recently had a bunch of valuations done and one EA said our house was worth 30% more than the 2nd highest valuation. I have read up that one should be weary of EAs that give you ridiculously high valuations because they sucker you in and hit you with high fees. However, this EA's fees were lower than any other EA we spoke to. Their contract has some crazy clauses in it, e.g. we always have to pay their fee if we sell within 6 months of the contract ending. However, they've indicated they will amend the contract if we aren't happy with it.
I feel like going with them is a bad idea because of these red flags but I am wondering what's their game here?
0
Comments
-
What they do is they get you to sign with them as they have the highest valuation. This works a lot as people obviously want the most they can get.
Then a few weeks in they tell you it's too high and then tell you to reduce it.
That's what is in it for them by valuing it high. They get your business and you are tied in for a certain amount of time.4 -
Are they new trying to grab market share ? Local able to compete against nationals ? What's their fee ?0
-
They are a national franchised EA. Fee was under 1% inc VAT.
0 -
They are keen to do business and hope that the higher valuation means you'll go with them... they ultimately get their X% if it sells for their valuation or 40% less.
In some areas at the moment its really hard to judge pricing and as such listed prices are all over the shop, our last rental was put on the market (that triggered us to move) and the estate agents valuation ranged from £550k to £700k with the later saying it was priced to get offers and could easily go above. Landlord went with the highest and after 15 months or so sold it for £520k... which amused us a little as we offered £550k for it before it was listed so avoiding agency fees and he didnt even bother responding to the offer.1 -
DragonQ said:They are a national franchised EA. Fee was under 1% inc VAT.
I would not expect the high price they quoted if you went with them, but if they have the lower fee and you are happy with their service, then no bother if they match the other valuations.
As a buyer - some agents are inflexible and crap to deal with. If people cant get viewings past 5pm or weekends, then that would put me off.1 -
DragonQ said:
e.g. we always have to pay their fee if we sell within 6 months of the contract ending.
Are you sure you've read that correctly? (It seems a bit unlikely.)
The standard condition (which is mandatory in the Property Ombudsman code of practice) is that you have to pay their fee if you sell to somebody that EA introduced during their contract period within 6 months of the contract ending (or 2 years if no other EA is involved).
1 -
Sandtree said:They are keen to do business and hope that the higher valuation means you'll go with them... they ultimately get their X% if it sells for their valuation or 40% less.
In some areas at the moment its really hard to judge pricing and as such listed prices are all over the shop, our last rental was put on the market (that triggered us to move) and the estate agents valuation ranged from £550k to £700k with the later saying it was priced to get offers and could easily go above. Landlord went with the highest and after 15 months or so sold it for £520k... which amused us a little as we offered £550k for it before it was listed so avoiding agency fees and he didnt even bother responding to the offer.
We offered on a house and it was refused and 15 months later my neighbour bought it for 5k less than we offered.1 -
eddddy said:DragonQ said:
e.g. we always have to pay their fee if we sell within 6 months of the contract ending.
Are you sure you've read that correctly? (It seems a bit unlikely.)
The standard condition (which is mandatory in the Property Ombudsman code of practice) is that you have to pay their fee if you sell to somebody that EA introduced during their contract period within 6 months of the contract ending (or 2 years if no other EA is involved).Snookie12cat said:DragonQ said:They are a national franchised EA. Fee was under 1% inc VAT.
I would not expect the high price they quoted if you went with them, but if they have the lower fee and you are happy with their service, then no bother if they match the other valuations.
As a buyer - some agents are inflexible and crap to deal with. If people cant get viewings past 5pm or weekends, then that would put me off.That's a good point about the viewing times, I will ask the other EAs about that. I know the one with the high valuation will do weekend viewings and isn't keen on evening viewings due to it being dark.We are not in a hurry to move, partially because it is tough for us to find houses we like and may not find one for some time, so I don't really want to put it on the market then drop the price within a few weeks. That'd give the impression we are desperate for a sale.1 -
eddddy said:DragonQ said:
e.g. we always have to pay their fee if we sell within 6 months of the contract ending.
Are you sure you've read that correctly? (It seems a bit unlikely.)
The standard condition (which is mandatory in the Property Ombudsman code of practice) is that you have to pay their fee if you sell to somebody that EA introduced during their contract period within 6 months of the contract ending (or 2 years if no other EA is involved).
OK - if you're certain.
In that case - don't touch them with a bargepole. That's a completely illogical clause.
It means you instruct them and they can do absolutely nothing. Then when you terminate their contract, they sit back and wait for another EA to make a sale and they claim their fee - in return for doing absolutely nothing.
(But I really think you should phone them, to make sure you've understood that clause correctly.)
0 -
My selling experience was brutal because the EA exaggerated the sale price of my house, I ended up selling it for less than half of their 'estimate'.
Do your own research on similar houses in your area and see what they actually sold for.£216 saved 24 October 20141
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350K Banking & Borrowing
- 252.7K Reduce Debt & Boost Income
- 453.1K Spending & Discounts
- 243K Work, Benefits & Business
- 619.9K Mortgages, Homes & Bills
- 176.5K Life & Family
- 256K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- Read-Only Boards