Homeowners might be tricked into paying higher rates of commission because of expensive agents misleading on them their properties’s values.
The estate agencies most often overvaluing properties (saying they’re more vital than they actually are to be able to win business) will also be the ones that charge the highest rates of commission, according to an investigation by the Times.
The research claims that homeowners who use estate agents which have overvalued their properties wind up reducing their prices – but nonetheless pay higher fees than they might have with other firms.
Below, Which? requires a closer consider the research and explains how to pick the very best estate agent and appearance the real value of your property.
Property sellers pay the price for overvalutions
The Times’ analysis of Zoopla data discovered that homeowners who list their home with any of the 10 auctions that overvalue probably the most would pay on average double the rate of commission charged by the 10 agents that overvalued minimal.
It also discovered that the biggest estate agents were probably to overvalue sellers’ properties.
The selling price on the third of properties was reduced by an average of lb23,400 (6.9%), based on the Times.
The findings reiterate a study through which? in 2022 that found estate agents that overpriced properties cost sellers lb4.3 billion, as the initial selling price of 1 in five properties bought from Britain between September 2022 and 2022 had been reduced by at least 5%.
Overvalued properties can also take longer to sell, as potential buyers may be put off by the asking price or might miss seeing the home altogether if they filter their online search by price.
How to work out your property’s value
It’s well known that a key part from the home-selling process is to ask auctions to value your home – but it’s wise to treat the figures you’re quoted having a pinch of salt.
That’s because some less scrupulous agencies may overvalue your home inside a bid to persuade you to sell with them.
It’s always worth asking a minimum of three auctions to give you a valuation, but you should also do your own research. The key thing to check is how much similar local properties are in fact selling for, which you'll do using the Land Registry website.
There’s little point asking for substantially more than your home is worth. Buyers is going to be doing their very own homework on house prices in your area and, even if someone makes a high offer, the sale could fall through if their mortgage lender thinks the home may be worth less.
Choosing the best estate agent
The valuation process provides you with a chance to grill each estate agent on how many properties like yours they’ve sold recently, and what prices they achieved. You can also ask regarding their fees and terms and potentially haggle on both.
You’ll must have your wits in regards to you because the estate agent that provides the greatest valuation for the property or offers the lowest fees may not necessarily be the best choice for you.
If there are numerous potential agents you could use, it’s worth asking local friends and family if they'd like to recommend anyone.
You could also use our estate agent comparison tool to see local firms’ average selling times and percentage of asking price achieved. This tool operates together with GetAgent, and clicking for results will take you to the comparison website.
Alternatively, you could look at online auctions, which tend to charge lower fees but offer a slightly different service from a traditional high-street estate agent.