Andrews accuses other agents of overvaluing to secure sales

It may seem obvious to many that accurate pricing makes for a quicker sale, but now Andrews has data to back this up.

The agency looked at sales figures for its 54-strong branch network between January and June and found that 70% of completions have either closely met or exceeded the asking price.

The analysis found that a small difference between asking and selling price of 5% or less will see a sale secured within 69 days, whereas a difference of up to 10% results in a property remaining on the market for an additional 49 days, so 118 days in total.

This of course begs the question whether Andrews agents are overvaluing the remaining 30% of properties that didn’t match the asking price in the research.

A spokesperson said: “Andrews would argue that they always strive to value accurately. Hence the statistics being as positive as they are.

“Of course, there are times when circumstances, or sellers, impact the outcome in such way as the selling price drops.

“The fact though that their speed of sale at or near valuation is positive vis-a-vis the average suggests they’re accurately pricing more often than not.”

David Westgate, group chief executive for Andrews, added: “Media reports which focus on vendors reducing the asking price of their property are often tales of an inaccurate valuation in the first place.

“Simply, a well-priced property will sell fastest. We’ve seen in the first six months of this year that properties which sold either at, or above, the asking price spent just 49 days on the market which compares favourably with the industry average of 96 days.

“A smart combination of an accurate initial valuation and hands-on marketing by agents with genuine local knowledge is vital to securing a swift sale in what remains a challenging market.”

Westgate said agents needed to manage vendor expectations.

He said: “Unfortunately there remains a significant percentage of agents prepared to provide a high valuation simply to secure the listing.

“When this is coupled with a vendor flattered by the news that their home is worth a seemingly favourable amount, the property is placed on the market with unrealistic expectations and consequently hangs around for longer and sells for less.

“Of course, these figures don’t provide a foolproof recipe for sales success, and recent shifts in the market mean that a certain level of haggling is almost the norm in many cases.

“This data does, however, suggest that accurate pricing isn’t yet standard across the industry and it’s this that’s to blame for such high levels of price reductions.”

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8 Comments

  1. Moveaside01

    Over valuing has always been a problem and will continue to be so whilst the Corporate agents continue to allow unqualified staff to value. I can recall when I worked for a large chain years ago they had a specific training course for listers and you were told that whatever you thought the actual price was, add 20%. So with that in mind, if I went out and told sellers what I actually thought the price was, I wouldn’t get any listings, even if I was factually correct?

    It’s a game we play unfortunately!

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    1. aSalesAgent

      In my experience the problem does not stem from unqualified corporate estate agents. My office’s direct completion is an independent that overvalues properties (or undercuts our fee) because, I assume, they cannot win instruction based on service or likeability.

      “You can’t sell what you don’t have.” Tie the vendor into a sole agency contract and then go for a price reduction within a couple of weeks of marketing. That’s the plan.

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  2. ArthurHouse02

    And in other news, Water is wet.

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  3. Jonty73

    Take it Andrews have got a work experience in their PR department for a few weeks churning out the blindingly obvious.  Andrews are far from perfect themselves from what I’ve seen.

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  4. Property Poke In The Eye

    Anything for a bit of free publicity.

     

    Welcome to the party Andrews!!

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  5. Moi

    Estate agents appraise properties. Qualified valuers value. These words are being used interchangably.

    On the point of free publicity. Always good if you have something to say.

    I do: Bringing romance joy to all those who care to chill-out.

    Check it out. http://amzn.eu/h0L8ixV

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  6. Agent779

    In other news; Pope declares ‘I’m a Catholic’.  Scientists confirm, night likely to follow day & bear seen entering woods with Andrex tucked under arm.

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  7. PAG45

    Zzzzzzzzzzzzz

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