In a survey of 2,000 sellers in England and Wales, emoov.co.uk found that over half (56%) of respondents would list their property at the price quoted by the agent, while around a third (36%) would list at a lower price.
The online estate agent suggested there was a significant disparity in what sellers expected to get when selling their home and what they actually achieved, with the average sold price in the UK at £207,000 compared to the average asking price of properties listed on Rightmove at £281,000.
Emoov.co.uk criticised high street agents of overvaluing properties “on purpose to win business”. It added that such agents were motivated by making a percentage fee which prompted them to suggest a drop in price if the property failed to sell, which would result in a marginal difference to the profit the agent made.
Founder and CEO of eMoov.co.uk, Russell Quirk, said the practice of overvaluing was “common place” in the high street sector.
“The agent is driven by a percentage fee so they will overprice a property to try their luck, win the business and increase their profit margins.
“Understandably the seller opts for the agent that claims they can get the highest price, as we are all motivated to some extent by money. Then as regular as clockwork the agent will ring them a few weeks down the line and ‘advise’ on a lower asking price in order to sell.
“It is in part down to the seller. If someone has it in their head they should achieve a certain amount, they will list at this regardless of what advice they receive. However, as the professional hired to aid the sale, the agent should always provide a realistic, truthful valuation based on what the market at the time dictates.”
