Agent overpricing

Snookie12cat

Has anyone else noticed, certain agents in their area who overprice everything they list? It's kind of hilarious that they keep doing it and actually makes me not want to view anything they put up as I know it will be overpriced. 

I watch Rightmove a lot and one agent in my area lists every house they take on (and they list a lot), at crazy prices, at least £20k more than they are worth and what other agents are selling similar houses for. Then after a few weeks every property comes down in price.

eddddy

A strategy that some agents use is to tell sellers that they can achieve the high price... then persuade the seller to sign a contract with a long tie-in period... then the agent has plenty of time to pressurise the seller into reducing their price.

RelievedSheff

We have one agent here who does exactly the same only they are over pricing by £30-40k. They then reduce £10k a month when they get no interest. 

No idea why they do it. 

The house opposite ours is currently for sale with them. £340k they are asking for a house they bought 2.5 years ago as a new build for £235k. A brand new one sold recently for £290k. No way is it going to sell for that asking price.

Other agents price sensibly and they are usually SSTC with in a week or two. 

ic

RelievedSheff said:

Other agents price sensibly and they are usually SSTC with in a week or two. 

Just to counter that.  I sold a year ago, I entered the process thinking from my own research that my house would be worth £210K. 

The first two agents told me they "price realistically for a quick sale", for a fixed fee, and suggested the value was £210K.  The third charged a percentage fee, and suggested £240K ("you can only reduce the asking price, not put it up"). 

The last also charged a percentage fee, but struggled to offer a clear valuation given my house was on a street with a real mix of houses (size, age, terrace/semi/detached,....), and was in excellent condition.  I shared the valuations I'd been given, and they suggested a compromise - list at £230K, but at the top of the listing add "guide price £230K to £240K".  I had offers immediately at £230K, and sold a week later for £240K after I got the agents to push on the buyers on the guide price.

I see it that the agents that list for a fixed price have nothing to gain by over-valuing, and everything to gain through a quick sale on an undervaluation.  The vendor needs to do their homework - had I gone with the cheaper agents and their lower valuations I might have saved £900 or so on the agent's fees, but would have lost £30,000 on the sale...

propertyhunter

The issue with going too high presents itself when you want a quick sale. I had an EA quote 50k more than the others. I knew the market well enough to know they were just wanting me to sign on the dotted line. I just went with the EA who I knew would get me to completion, rather than just get me sold STC.

In London, Foxtons is well known to be an EA that overprices homes routinely.

robatwork

As I've said very often - do your own research.

A couple of years ago I had 3 agents around who all - in my mind having researched very thoroughly - undervalued. Not only did I insist on marketing at my estimate, I also followed the chosen agent round as he took pictures telling him what to take. Then I grammar checked his listing and changed the picture order.

I realise I sound like a high-maintenance client but in reality I was helping him do his job, and I had an offer 1% below asking (and way in excess of his valuation) 3 days after the RM listing went up. It sold for 0.5% less than asking. 

ssparks2003

Perhaps those agents can afford to price these houses higher than other agents. I know when we were trying to sell our kast house, the local agent was advertising it and we kept cutting the price but no offers.

Finally at the the end of the fixed term, we changed agents who convinced us to put it up for 50k more than we started with the original agent. Sold within 1 week to the first viewer.

If the agent is getting their clients the sales they want then they are doing it right.

RelievedSheff

ssparks2003 said:

Perhaps those agents can afford to price these houses higher than other agents. I know when we were trying to sell our kast house, the local agent was advertising it and we kept cutting the price but no offers.

Finally at the the end of the fixed term, we changed agents who convinced us to put it up for 50k more than we started with the original agent. Sold within 1 week to the first viewer.

If the agent is getting their clients the sales they want then they are doing it right.

They are not getting the prices here though. They are continually dropping them. Of the four houses they have for sale on this estate non are under offer. 

The more sensibly priced agents have all of theirs (6) under offer.

theoretica

It might be a perfectly valid market niche for agents - to specialise in selling the houses of owners who have an inflated idea of the value of their homes and need to see they don't get high offers before they will accept a lower one.

googler

Is the seller looking for the agent to get a higher price for their home, or a lower one .....?

canaldumidi

Seller contacts 3 agents who all seem roughly comparable in terms of their local presence, use of websites and customer service.

They all suggest different market value/selling prices. Will the seller sign up with the one suggesting the lowest price.....?