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Why do estate agents overprice property?

After a long search for the perfect property, it struck me that some properties which were overpriced, had been on the market for years! What is the sense of marketing property at a price no one will pay? I am just curious really as the most overpriced properties were not that nice, even lacked potential, so estate agents are perhaps playing up to the more narcissistic characters.

Asked on Jun 20 2014, House Prices in Nottinghamshire | Report content

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  • Simple, to convince landlords to list their properties with them. They go to niave home-owners looking to get the most they can for a property and say they can Y for a property -- when really they can only get X. This way they will chose that agency over another. From there they will go back to seller after receiving much lower offers reflective of the real market value and make up any reason as to why they should accept that offer. Although in this current market, some prices are actually reflective of a recovering and perhaps even an over-heating property market.

    Answered on Jun 20 2014, Report content
  • Because the owners have paid too much for it? They would like to move but cannot afford to sell at a realistic price. So thy wait in hope that the market will rise. Outside London and environs it probably won't.

    Answered on Jun 20 2014, Report content
  • Not my experience. Agents want a quick easy sell and tend to under price their valuation to achieve a quick turnover. It is the seller who then insists on a higher selling price. Your property is only worth what someone is prepared to pay for it, end of story!!!

    Answered on Jun 22 2014, Report content
  • Estate agents overprice property out of greed, and to get more properties on their books. Some under price to sell more and do their clients out of a good price. Then some estate agents, 'a small few' price right because they know the market. Too many estate agents don't know how to price property, other than to overprice and then keep telling the vendor to knock thousands off the price to sell. This is what gives estate agents a really bad name. I think people are bored with how they operate and would rather try and cut them out altogether.

    Answered on Jun 23 2014, Report content
  • Hi, That is a great question, although in some cases the prices may be based on what the vendors of the proprerties are willing to accept, although in some cirucmstances as you say, it could well be the estate agent overpricing which could be for a variety of reasons such as they velieve they have registered buyers waiting that are willing to pay that price. However we feel that for a property to sell it should be attractively priced and we would always advise against a vendor listing with an agent who says the highest price. We did blog about the subject of overpricing which we would always advise a future seller to read http://www.peterheron.co.uk/news/72/why-overpricing-may-leave-you-out-of-pocket/ We hope this helps.

    Web reference: http://www.peterheron.co.uk/news/72/why-overpricing-may-l...

    Answered on Jun 26 2014, Report content

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