Agents blamed for price cuts due to ‘high valuations’
Research carried out by consumer body Which? claim that one in five properties sold between October 2015 and September 2016 had been reduced in price by more than 5% of its original listing price implying that the original valuation was too high.
The report suggests that properties that had been over valued took on average of 64 days longer to sell and had an average sale price of nearly £20,000 less than properties which sold without a significant reduction in the initial marketing price.
The article by Which? claims, “Heavily reduced properties started with a higher listing price of £266,000 on average and [had] a much lower sale price at £241,000, leaving the seller £20,000 (to the nearest thousand) worse off than the rest. It adds up to an estimated loss of £4.3 billion a year to these sellers in England and Wales”
It may therefore not seem to be in the agents’ interest to over value a property however the piece does state that it is worth remembering that a £20,000 reduction in the price of a property is only £200 less for an agent on 1% commission.
Full story available from EstateAgentTODAY: https://www.estateagenttoday.co.uk/breaking-news/2017/2/estate-agents-blasted-by-which-for-over-valuations-of-homes-on-sale