Horton and Garton call for an end to agents overvaluing homes to dupe sellers
Newspaper investigation finds repeated ‘deception’ from estate agents as sellers pay inflated fees to hit false promise of unachievable asking prices.
Horton and Garton is calling for fellow estate agents to end their unscrupulous practice of overvaluing homes in order to bank commissions.
A recent investigation by The Times [paywall] of more than 200,000 properties listed online revealed that some estate agent chains are ‘overvaluing properties by up to a fifth in a practice that can mislead sellers into paying higher rates of commission’.
The research uncovered that overvaluations are rife, with the biggest chains being ‘the worst offenders’.
John Horton, founder of Horton and Garton, said: “In my 20 years of working in west London I’ve come up against the same set of agents who time after time are overvaluing homes in the hope of securing an instruction and lock owners in to a long exclusivity period. Take every one of these high valuations of your property with a fist full – not a pinch – of salt.”
John added: “And when it comes to the fee, expensive doesn’t mean better. On the flipside, low fees don’t necessarily mean a great savings. If your agent folds like a deck of cards when you ask them to lower their fee, how hard do you think they’ll negotiate for you when it comes to the sale of your home?”
The data
In their investigation, The Times reported: “The data suggests agents with the highest commissions are overvaluing properties the most to attract homeowners. The properties then sell at lower prices, but the agents take big fees.
“Nearly two-thirds of homes listed by Foxtons, the biggest agent in London, have to be reduced from their initial price before they can be sold, almost double the national average. Foxtons charges a commission of three percent, which is more than twice the national average.
“When properties marketed by Foxtons had their asking prices cut, the average reduction was 10 per cent, or £56,000. Land Registry data on a sample of these homes shows that the sale price was lower still, falling 16 per cent or £85,000 from the original asking price. The research shows that the agents that overvalue the most, including Hamptons International, charge twice as much on average as the ten agents who overvalue the least.”
Paul Cooney, Horton and Garton’s Chiswick Sales Director, reacted to the investigation by saying: “Ultimately, sellers need to know that inflating an asking price means eventually devaluing the property and achieving less than its true worth. Our advice would be to avoid the big chains altogether and secure valuations exclusively from local independent agencies.”
And what should you do if you’ve been duped into an unrealistic asking price and long tie in period by a rogue agent? “Hang tight,” advises Paul. “Allow them to continue to market your home until the tie in period has expired, then pull the plug as quickly as possible: remove your home from the open market.
“Secure valuations with independent agencies who have your interests at heart then heed their advice. We develop different marketing strategies for each property we list for sale. One size definitely does not fit all.”
Shocking
Henry Pryor, a respected London buying agent, was interviewed by The Times. He noted: “The scale of overvaluations is shocking. Some sellers are clearly being misled into choosing more expensive agents, but we need to remember that an asking price is not a valuation, it is just a marketing gimmick.”
While John added: “My wise grandfather once told me to be careful of the people who will tell you what you want to hear… the people that tell you what you need to hear are the good folks!
“It’s our job to ensure our clients, locals living in Hammersmith, Chiswick and Shepherds Bush, are properly, intelligently advised and receive the finest service.”
If you would like to know how our hard working, professional teams can work in your best interests, give us a call or an email to arrange an honest and independent valuation – or if nothing else, a coffee and a conversation. We’re at your service.”
