Sellers are being warned against automatically choosing the estate agent offering the highest valuation, with 95% of agents reporting that they see competitors providing what they believe are unrealistic prices to win instructions.
Research commissioned by GetAgent finds 67% of agents believe the practice has become more common during the past 12 months, while 28% think levels are broadly unchanged.
Almost nine in 10 agents – 89% – report losing at least one potential instruction during the past year because a competitor gave the seller a higher valuation than they believed the property could realistically achieve.
Agents also acknowledge sellers are contributing to the problem, with 33% identifying homeowners favouring the highest valuation as the biggest factor encouraging the practice.
COMPETING FOR INSTRUCTIONS
Greater competition between agents is cited by 28%, followed by pressure to grow market share at 22% and internal listing targets at 11%.
Some 89% of agents believe sellers place too much importance on the highest valuation when choosing an agency, while 95% think initially overvaluing a home can ultimately damage the seller’s chances of achieving the best outcome.
Instead, a third say sellers should prioritise the percentage of asking price an agent typically achieves.
Another 28% point to an agent’s track record of selling comparable properties locally, while 22% believe average time to sell should be the key consideration.
‘HARD EVIDENCE’
Colby Short (main picture, inset), Co-founder and CEO of GetAgent, says: “There’s a difficult dynamic at play here. Sellers understandably want to achieve the highest possible price for their home and, when they’re presented with several valuations, it’s naturally tempting to choose the agent promising the biggest number.
“But winning an instruction on an inflated valuation isn’t the same as delivering a successful sale. Good agents know that their reputation is built on what they actually achieve for their clients, not the number they put forward at the valuation stage.”
He adds: “That’s why it’s becoming increasingly important for agents to demonstrate their value with hard evidence.”
