Agent overpricing

Snookie12cat

googler said:

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

I would imagine the seller wants to sell it? Overinflating the price isn't going to do that.

benson1980

ic said:

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...

I completely agree with this- and that the only ideal solution is to do your own valuation. We got the agents with five star gushing reviews about how quickly they sold peoples houses, round for valuation. They undervalued by 35 grand. I challenged it but they insisted they were right (and proved wrong a few weeks later)- they didn’t bother with their research and simply presented some random listings of houses that bore no resemblance, that they sold quickly.

One new local agent who is cleaning up and again getting rave reviews, boasts that they are achieving 105% of listing price. All this tells me is that they are undervaluing. There is an element of sales technique but the bottom line is if people like the house and the price, they’ll offer what they think it’s worth. The actual agent is a small part of that equation.

[Deleted User]

Snookie12cat said:

googler said:

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

I would imagine the seller wants to sell it? Overinflating the price isn't going to do that.

Well you've had your answer. People who have went with the higher valuation and got the sale.

benson1980

[Deleted User] said:

Snookie12cat said:

googler said:

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

I would imagine the seller wants to sell it? Overinflating the price isn't going to do that.

Well you've had your answer. People who have went with the higher valuation and got the sale.

Indeed- there is one local agent however who does just over price everything and as a result they don’t sell. As with all things, it’s trying to find the middle ground but be equally wary of highly rated agents who go for the quick sale strategy.

Markneath

There used to be 2 around here doing it but a lot are at it lately, not much is selling at the moment though, I viewed a house just after xmas and have countless missed calls off the agent.
I always laugh at the online agencies, express is one, you have a 250 k house and its on for 400 k. 

peterhjohnson

Snookie12cat said:

Has anyone else noticed, certain agents in their area who overprice everything they list? 

Actually, No! Most local agents have most properties at sensible prices. They also have a small number of over-priced places that stick on the market for months. I assume this minority are mainly because of deluded sellers.

peterhjohnson

ic said:

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. 

Not sure that the situation is that different for an agent on (say) 1%. If they squeeze an extra £10k out of a buyer, that's only £100 extra 

RelievedSheff

peterhjohnson said:

Snookie12cat said:

Has anyone else noticed, certain agents in their area who overprice everything they list? 

Actually, No! Most local agents have most properties at sensible prices. They also have a small number of over-priced places that stick on the market for months. I assume this minority are mainly because of deluded sellers.

I'm not so sure about that.

Our local over valuer put a 2 bed semi on the market yesterday. The house a few doors up exactly the same is under offer at £155k. Over valuer has put this one up for £200k. 

It can't all be the sellers dictating prices. 

We really can't figure out what they are up to. They are not going to sell any of the properties here for the prices they are asking. Its ridiculous. 

jimbog

RelievedSheff said:

peterhjohnson said:

Snookie12cat said:

Has anyone else noticed, certain agents in their area who overprice everything they list? 

Actually, No! Most local agents have most properties at sensible prices. They also have a small number of over-priced places that stick on the market for months. I assume this minority are mainly because of deluded sellers.

I
We really can't figure out what they are up to. They are not going to sell any of the properties here for the prices they are asking. Its ridiculous. 

Many times over the years I said the same  only to find that they were sold in a few weeks at more or less the asking price

Snookie12cat

RelievedSheff said:

peterhjohnson said:

Snookie12cat said:

Has anyone else noticed, certain agents in their area who overprice everything they list? 

Actually, No! Most local agents have most properties at sensible prices. They also have a small number of over-priced places that stick on the market for months. I assume this minority are mainly because of deluded sellers.

I'm not so sure about that.

Our local over valuer put a 2 bed semi on the market yesterday. The house a few doors up exactly the same is under offer at £155k. Over valuer has put this one up for £200k. 

It can't all be the sellers dictating prices. 

We really can't figure out what they are up to. They are not going to sell any of the properties here for the prices they are asking. Its ridiculous. 

The agent I am taking about listed one yesterday for £250k, 3 bed terrace. Every other terrace which is in the same location and size is being listed at £190k. 
No terrace has ever sold in this area upwards of £200k...

Also listed a 2 bed semi in a not so great area for £220k... It has no garden. I doubt they will even get viewings. 2 beds are easily under £190 around here unless they are in a fantastic area.

You can get 3 bed semis with parking cheaper than £230k around here.