Estate Agents Middlesbrough
Sell My House Quickly Middlesbrough found an interesting article about how Estate Agents over-value property to win instructions from you.
Full article by Zoopla
Valuing properties aggressively to gain instructions is a well-known tactic used by many estate agents and is a hotly debated topic within the industry. Many agents believe that if they aim high with a property price estimate they will both win the instruction and hopefully gain a higher price for the vendor without impacting how long it takes to sell. What divides many estate agents is whether this tactic really works.
One thing is agreed among agents; it can be a risky tactic; a quick trawl through Twitter will reveal frustrated vendors who have realised that the original valuation they accepted for was too high. Vendors dislike having to drop their price to gain a sale because they feel it is potential money ‘lost’ even if, in reality, the property is merely finding its real market value.
On the other hand, it is widely accepted that pitching a property at the upper limits of its market value to a prospective vendor works. Most homeowners, faced with three valuations, will pick the agent offering the highest one. Other factors come into play, of course, including an agent’s personality and the agency’s reputation, as well as their ability to demonstrate local sales success.
But does taking valuations to the upper limit to gain an instruction actually work for a vendor in the long run?
Zoopla’s listings data suggests that over-valuing a property can increase the average time to sell a house by between one and 38 days across all regions of the UK. Looking at the figures for each city, the greatest impact of over-valuing can be seen in London.
Last year fairly priced homes in the capital took 19 days on average sell compared to 71 days for homes that had been over-valued – approximately three times longer. This pattern is repeated in many other cities including Birmingham, Nottingham, Bristol, Manchester, Liverpool, Leeds, Sheffield, Leicester and Norwich.
Over-valuing can also affect final sales price. In four key regions, listing at a more realistic asking price achieved a higher sale price than a property that had been substantially over-valued. These regions were the North East, North West, Yorkshire/the Humber and Wales where, for example, fairly priced homes sold for £20,000 more than over-valued ones.
Difference between listing and sold price by region
|Region||Listing price||Sold price||Average sold price|
|Yorkshire and the Humber||£155,000||£145,000||£149,000|
To ensure you are valuing homes based on accurate data you could contact Sell My House Quickly Middlesbrough for a free property valuation report. If your Estate Agent in Middlesbrough has let you down on a sale, call us today on 07495 367039 or click here and fill out the form.