Gatehouse estates

Different Valuations from different Estate Agents?

Have you have wildly different valuations from different Estate Agents?

I valued a local property this morning and have just spoken again to the owner. It turns out that they had four valuations ranging from £220,000 to £300,000.

I’m not going to mention who else valued it or what value I put on it at but it seems crazy me to have such a wide range of opinions.

So, do Estate Agents just pick a figure out of thin air ?

I can assure you that I don’t make it up on the spot. When it comes to the moment to tell a potential vendor what I think there property is worth, if I not absolutely sure I’ll go away and do some more good old fashioned cross market analysis.

Before the wonders of Rightmove plus (an archive of Rightmove for Estate Agents) and Google Earth it was more difficult if you were not experienced but now there is no excuse.

So why could this happen to you?

  • Some agents go in at a high valuation to please the owner and secure the instruction, sign them up for months with a view of reducing it later to get it sold.
  • Some agents want a quick sale, the lower the value the higher the chances of a quick sale and an easy fee.
  • It could be bad preparation by the agent, not checking or having time to check comparable evidence before the appointment.
  • It could be a lack of experience,  lots of good Estate Agents left the industry during the recession. Lack of experience in the local area also makes a difference.
  • Some agents Valuers get paid commission on instructions or listings, so they don’t really care if it sells or not!
  • If all the Estate Agents stock is 10% too much money don’t be surprised if your valuation matches.

The key for any owner when faced with this dilemma is to ask the following.

WHY? Why have you valued my house at that price.

WHAT ? What evidence have you got to show me to back up your valuation ?

WHO? Who are you and how long have you been valuing in this area?

WHEN ? When can you start marketing ? Just don’t sign a Sole Agency agreement!

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