Valuation versus Value

“Valuation versus Value”

Estate agents’ market valuations are usually free, and because of this, it is very tempting for prospective sellers to invite a number of agents to comment and then select the agent that suggests the highest likely sale price for the property.

The first question you should ask an agent who is valuing your property is;

  1. Are you personally being paid an incentive just to put my property on the market or are you paid to sell it?

Some agency “valuers” are paid on the number of new instructions they secure, irrespective of the saleability of the property. It is therefore in the interest of the ‘valuer’ to suggest a flatteringly high marketing price, knowing full well that they (the valuer) will be asking you to reduce the price a couple of weeks later blaming ‘the market’.

The other major consideration before instructing an agent is to establish whether or not the agent is only paid on results. If you are being asked to pay up front on the premise that you will be saving ‘thousands’ you have immediately taken away any desire on the part of that agent to sell your property at the best price, and why should they, they have already been paid!  

Could you imagine walking into a restaurant and being asked to pay £300 before you have even sat down and eat the meal! Can you imagine also being asked to pay more to sit down, or use cutlery, or if you wish to visit the lavatory, because they are classed as ‘extras’.  Well, this is exactly the analogy of using a pay upfront estate agent only the repercussions could be far more expensive, frustrating and disappointing.

The recent high profile demise of several ‘pay upfront’ companies confirms our view that not instructing an agent that is only paid on results could cause many problems that aren’t always apparent before proceeding to put your property on the market.

Ultimately, an upfront fee obligation, payable irrespective of whether a property sells or not, is not the right solution for most sellers. Our customers for example, overwhelmingly demand our ‘full service’ and local expertise that blends traditional marketing techniques with the best technological advancements. We have never lost sight of our core estate agency beliefs, such as, face-to-face accessibility, intimate local market knowledge, a progressive digital offering, dedicated sales progression - and not just a focus on winning instructions. This policy undisputedly works best for our customers and is becoming increasingly essential in a more challenging marketplace. Our decision serves the best interests of both our business and customers.    

In estate agency, a high valuation does not necessarily mean you’ll get more for your property, nor does it indicate a high-value service! To learn more about how an established, trusted local independent agent who has a proven track record and who can offer superb post-sale facilities can help, please call 01322 228090.