Estate Agents Overvalue?
Has Your Estate Agent Overvalued Your Property and Now You Need to Sell Fast?
Is it true that estate agents overvalue houses just to ‘get them on the books?’ Take a scenario, you invite several estate agents in to look around your property and after a cursory look they will all no doubt ask you ‘what do you want for it’ or ‘what do you think it’s worth?’
(Great! They are the ones supposed to be telling you, no the other way round!)
This is to find out what your expectations are, which will help them work out the type of fee they offer, as if your expectations are high and there is no short term chance of selling it, then they will try and secure money up front and a smaller back end commission when the property has been sold, and then at least they’ve been paid part of their fees.
If your expectations are low, then they know that they can sell house quick and therefore they can go for a bigger fee on completion.
Another trick is that estate agents they will also try and find out which other agents are bidding for your business and what price they think that they can achieve for your property.
ALL estate agents know that the higher the sale price they tell you that they can achieve for your house, the more likelihood that they will secure your business (as long as it’s reasonable).
Then once they have your property on the books the trick is to gradually drive down the price of your property until it reaches a level at which someone is prepared to buy it. Indeed it is well known that some of the larger estate agents recruit staff specifically for this purpose, when what they should be doing is to price the house correctly in the first place!
The bottom line is that the longer you can wait to achieve a sale of your home, then the more you are likely to sell it for, it’s not exactly rocket science and neither is valuing a property. Just take a look at what houses are selling for similar to yours and you will get the idea.