Some estate agents believe that more than 50% of homes sell with a second agent, but this is simply not the case, according to property data and analytics company TwentyCi.
This stat regarding more than half of homes being sold with a second agent has been floating around the market for a number of years, points out Christopher Watkin, a regular contributor to EYE.
This statistic has often been quoted by industry leaders and PropTech suppliers, and typically goes unchallenged, but fresh findings suggest something very different.
“Historically for the last decade, it was believed that only 40 to 50% of properties sold with the first estate agent,” Watkin said. “This [new data] dispels the myth that a second agent is more successful.”
The data reveals that more than 18 out 20 UK homes sell with the first estate agency listed to market the property.
He continued: “It must noted that while 1.77m properties have sold STC since the 1st January 2023, over 2.9m UK homes have been listed since January 2023, meaning only around 60% of properties listed have had a sale agreed on them. Once you take into account sale fall throughs, that drops to only 53% of listings exchanging and completing (when the agent is paid).”
“The key challenge for estate agents is not just securing the listing first time but ensuring the property is priced correctly from the outset to guarantee a successful sale. This data should serve as a wake-up call for UK agents and homeowners alike – overvaluing might massage your ego in the short term with your listing’s market share, in the long-term, you are setting yourself up and the homeowners you serve to failure, wasted time, lost homes they want to buy, and ultimately, financial loss for everyone.”
The 10% of rats out there, ruin 90% of my week.
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The assertion by Mr Watkins that:
“The key challenge for estate agents is not just securing the listing first time but ensuring the property is priced correctly from the outset to guarantee a successful sale.”
Is in fact completely wrong if the agent is doing what they should be doing which is acting in the best interest of the vendor. Listing a property with the view of getting it sold quickly so I can bank my fee is only in the interest of the listing agent. Listing a property with a view to secure the best possible price and working the market and advising the vendor professionally is acting in the best interest of the vendor which is most important, in fact its the Law!
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Thank you for sharing your thoughts ARC
I believe there’s been a misunderstanding regarding my assertion. When I refer to “pricing the property correctly from the outset,” this isn’t about pricing low for a quick sale to merely “bank the fee.” Instead, it’s about ensuring that the property is positioned within the market at a price that reflects its true value, ensuring it generates sufficient interest from the outset.
Correct pricing doesn’t mean underpricing but rather an accurate reflection of what the market will bear, supported by comparable sales data and market conditions. The goal is always to work in the best interest of the vendor, and an accurate price maximises interest and competition, which can, in turn, help secure the best possible price for the vendor.
Ultimately, it’s about ensuring that we’re working towards a successful sale in a reasonable timeframe without overvaluing, while adhering to the vendor’s best interests, which, as you rightly pointed out, is also a legal obligation.
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EDIT – Chris replied at the same time as I did!
You say ‘Listing a property with the view of getting it sold quickly so I can bank my fee’, which is not what Chris said.
You’ve even quoted him NOT saying that, but actually saying ‘ensuring the property is priced correctly from the outset to guarantee a successful sale’.
In a tough market, getting the price too high can result in multiple price reductions over many months, often ‘missing the original best price’ and selling for less than if priced more in line with the original market conditions.
So not sure you are correct when you say Chris is completely wrong.
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