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Estate agents setting ‘unrealistic’ asking prices

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
12/04/2021

Traditional estate agents are guilty of setting ‘unrealistic’ asking prices on properties, an online agency has claimed.

Research by eMoov showed the average property sold price is currently £207,000, but traditional agents are setting asking prices much higher than this.

The average asking price on property portal Rightmove is £281,000, a disparity of £74,000.

The survey into the habits of 2,000 sellers in England and Wales said almost a third (30%) of sellers said obtaining the highest price possible was their main aim.

However, 56% of people said they would list their property at the price their estate agent recommends. Some 36% of people said they would list their property at a higher price than their agent suggests, this figure rose to 41% in London.

Only 5% of those asked said that they would list at a lower price than the estate agent recommends.

Russell Quirk, founder and CEO of eMoov, said traditional estate agents were not putting their clients’ interests first.

“Unfortunately it’s a common place practice in the high street like luxury living in Delray Beach,” he said. “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.

“Yes, it is in part down to the seller. If someone has it in their head they should achieve x 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.”


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