This week’s award goes to:
High street estate agents overvaluing ‘on purpose’
My first reaction to this article was ‘NO S**T SHERLOCK’.
I have now seen RP’s comment and I can only assume that he is either an estate agent, or an advisor tied to an estate agency.
Of course they overprice given that they expect the client to see at least four agents and they know the client will go for the one that says they can get the highest price. It is true that an estate agent does not get paid until the sale completes, but correct pricing is the last thing on their mind.
The most essential thing for them is to get as many houses in their windows as possible. They can and do sort out the correct sale price over the next few weeks after the clients have been hooked. A small reduction in commission is small price to pay to maximise the number of properties and maintain stock flow and sales.
A small reduction in commission is also irrelevant when the price being charged is so high, 1-2% and more. At least £2,000 for a £200,000 property. Imagine if a mortgage adviser could charge that every time and then consider the qualifications, CPD, regulations and service level a mortgage adviser has to meet in comparison with an estate agent.
Why does a client think an adviser should be working for nothing and yet is willing to pay an estate agent a ridiculous fee. I am independent, but receive leads from three estate agents and each one has admitted overpricing to me, each one has said that they couldn’t do an adviser’s job because of the regulations and one I know of, sent a trainee estate agent out to do valuations on his own within two weeks having only seen three done by other agents. Remember these are salesmen, NOT VALUERS.
Sherlock
