Estate agents overvaluing properties to win instructions is becoming more common, according to new industry research.
A GetAgent survey found that 95% of agents have seen rivals provide what they believe are unrealistic valuations.
Almost nine in 10 (89%) also said they had lost a potential instruction to a competitor offering a higher valuation.
Meanwhile, two-thirds (67%) believe overvaluing to win instructions has become more common over the past year.
A further 28% said the practice had remained broadly unchanged.
The findings highlight the pressure facing agents when competing for new instructions.
According to the survey, 33% believe sellers favouring the highest valuation is the biggest factor behind overvaluing.
Competition between agents was cited by 28%. Meanwhile, 22% pointed to pressure to increase market share.
A further 11% blamed internal listing targets.
The research also found that 89% of agents believe sellers place too much importance on the highest valuation.
Moreover, 95% said initially overvaluing a property could damage a seller’s chances of achieving the best outcome.
Instead, agents believe vendors should look more closely at an agency’s previous sales performance.
A third (33%) said the percentage of asking price achieved should be the most important consideration when selecting an agent.
Meanwhile, 28% pointed to an agent’s track record of selling similar properties locally.
A further 22% identified the average time taken to sell.
Overall, 83% selected one of these three performance measures as something sellers should prioritise when choosing an agent.
“It’s naturally tempting [for the vendor] to choose the agent promising the biggest number,” said Colby Short, co-founder and CEO of GetAgent. “The problem for agents is that this creates an increasingly competitive environment where those providing realistic, evidence-led advice can lose the instruction.”
