Homeowners tricked into paying higher commissions by overvaluing their homes.

Homeowners could be tricked into paying higher rates of commission due to expensive agents misleading them over their properties’ values.

The estate agencies most commonly overvaluing properties (saying they’re worth more than they really are in order to win business) are also those that charge the highest rates of commission, according to an investigation by the Times. The research claims that homeowners who use estate agents that have overvalued their properties end up reducing their asking prices – but still, pay higher fees than they would have with other firms.

Property sellers pay the price for overvaluations The Times’ analysis of Zoopla data found that homeowners who list their property with any of the 10 estate agents that overvalue the most would pay on average double the rate of commission charged by the 10 agents that overvalued the least. It also found that the largest estate agents were most likely to overvalue sellers’ properties. The asking price on a third of properties was reduced by an average of £23,400 (6.9%), according to the Times.

The findings reiterate an investigation by Which? in 2017 that found estate agents that overpriced properties cost sellers £4.3 billion, as the initial asking price of one in five properties sold in England and Wales between September 2015 and 2016 had been reduced by at least 5%. Overvalued properties can also take longer to sell, as potential buyers can be put off by the asking price or might miss seeing the property altogether if they filter their online search by price.

There’s little point asking for substantially more than your property is worth. Buyers will be doing their 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 property is worth less.

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At Mark Beaumont, we take property pricing very seriously. We want our clients to sell for the best price, but pricing too high can put off buyers.
We provide free no-obligation valuations and our experts can give you accurate pricing based on local selling markets, the strength of the market within your area, any modifications you may have made or the general condition of your property.

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Info Courtesy of Which? - DailyMail -Times