New industry research suggests that estate agents overvaluing properties to win instructions is becoming more common. A GetAgent survey found that 95% of agents have seen competitors provide what they believe are unrealistic valuations.
Almost nine in 10 agents, 89%, also stated they had lost a potential instruction to a rival offering a higher valuation. Furthermore, 67% of agents believe this practice has become more common over the last year, with an additional 28% saying it has remained broadly unchanged.
The survey indicates that 33% of agents believe sellers favouring the highest valuation is the primary factor behind overvaluing. Competition between agents was cited by 28%, while 22% pointed to pressure to increase market share.
Most agents, 89%, believe sellers place too much importance on the highest valuation. Additionally, 95% said that initially overvaluing a property could harm a seller's chances of achieving the best outcome. Agents suggest vendors should instead focus on an agency's previous sales performance, with 33% highlighting the percentage of asking price achieved as the most important consideration.