Can You Trust An Estate Agent Or Are You Just Chasing Rainbows?
Not so long ago, Shakespeare's famous line 'there's something rotten in the state of Denmark' could quite easily have applied to the property industry, but it looks like things have cleaned up a lot in that department these days. That's even though there are certain issues when it comes to knowledge and expertise because of the lack of qualifications or licensing in the UK.
But it's the word 'trust' we're looking at here - especially when it comes to the valuation an estate agent applies to your home. It's common practice for property sellers to ask several agencies for a valuation, even though they have a pretty good idea based on web searches... and how much they originally paid for their home in the first place. A professional valuation merely confirms the correct asking price. In theory.
With over a millions and a half residential properties for sale across the UK though, things might be a little bit different in practice. Hometrack tells us that back in 2007 the average property sold in five weeks, as opposed to the 12 weeks it takes today. Property website Zoopla reported in January 2011 that 37.4% of the properties in this overstocked market have had their asking price reduced by an average 6.9%. That, typically, works out to 18,475.
Obviously everyone wants the most that they can make when selling their home, but they also have to be realistic about it. According to the Halifax, house prices have reduced by an average of 15% between 2007 and 2010. But on Rightmove, asking prices remain the same as they were three years ago. For the first time in over a decade, estate agents are facing a buyer's market and they're not used to it. They're either too ignorant or too scared of losing business to give sellers a true valuation. Many prefer to overvalue to give them a better chance of gaining the instruction. This, in the current economic climate, is a mistake.
We hear that one national brand of estate agents purposely overvalue and tie the vendor into a lengthy sole agency agreement. During that time the asking price is reduced on the advice of the agency and, on average, 12 weeks later the property is sold and that all-important commission cheque is written out. In this kind of housing market, selling a property at the valuation price is similar to searching for that pot of gold at the end of the rainbow - the closer you get, the more it fades away.
But it's the word 'trust' we're looking at here - especially when it comes to the valuation an estate agent applies to your home. It's common practice for property sellers to ask several agencies for a valuation, even though they have a pretty good idea based on web searches... and how much they originally paid for their home in the first place. A professional valuation merely confirms the correct asking price. In theory.
With over a millions and a half residential properties for sale across the UK though, things might be a little bit different in practice. Hometrack tells us that back in 2007 the average property sold in five weeks, as opposed to the 12 weeks it takes today. Property website Zoopla reported in January 2011 that 37.4% of the properties in this overstocked market have had their asking price reduced by an average 6.9%. That, typically, works out to 18,475.
Obviously everyone wants the most that they can make when selling their home, but they also have to be realistic about it. According to the Halifax, house prices have reduced by an average of 15% between 2007 and 2010. But on Rightmove, asking prices remain the same as they were three years ago. For the first time in over a decade, estate agents are facing a buyer's market and they're not used to it. They're either too ignorant or too scared of losing business to give sellers a true valuation. Many prefer to overvalue to give them a better chance of gaining the instruction. This, in the current economic climate, is a mistake.
We hear that one national brand of estate agents purposely overvalue and tie the vendor into a lengthy sole agency agreement. During that time the asking price is reduced on the advice of the agency and, on average, 12 weeks later the property is sold and that all-important commission cheque is written out. In this kind of housing market, selling a property at the valuation price is similar to searching for that pot of gold at the end of the rainbow - the closer you get, the more it fades away.
About the Author:
eMoov makes it easy for you to sell your house online. You can sell your house quickly and with the advantage of cheap estate agents fees. All properties are listed on UK's top 25 property websites including Rightmove and Prime Location, to revery 170 million buyer visitors every month. Plus as Internet estate agents, their low cost service reveryes millions of people 24/7.