Over or under valued?
Are Estate Agents in Bournemouth and Poole trying to rack up prices artificially or are the valuations for mortgage purposes too low?
Asked on Sep 5 2009,
House Prices in Bournemouth |
Estate agents only concern is to maximise the number of sales they make. In the current market they need to get house on their books first. If they suggest an inflated price then this increases the chances of being selected as an agent by the seller.
I'm amazed at how asking house prices have jumped up in the last few months. Three agents have directly stated that this is because they have given high qoutes to get the house and now they are trying to get the seller to drop the price.
Valuations however lag the market.
Answered on Feb 11 2010,
Some agents will give an inflated price for a couple of reasons
1) They assume if they go in at a higher price there is a greater chance they will be instructed.
2) Some agents operate a sliding scale fee (mainly corporates) who will give an inflated price to justify a fee that is then fixed at that level, regardless of sale price. They will then sign the vendor up to a lengthy sole agency agreement (sometimes 16 0r 20 weeks)and then pester for a price reduction until they agree to drop it to what is true market value.
Answered on Feb 23 2010,
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