Do you think that online estate agents will artificially raise prices?(5 Posts)
I live on a popular estate. Houses here generally sell within a week.
When ever anything goes on the market I have a nosey online.
However I have noticed that a couple of houses have gone on with online estate agents for far more than they are worth, in my opinion.
I think this is because they look at the most recent houses to sell on the estate which were either detached, extended or bungalows. The standard semi is simply not worth the same.
Last week a house which needed a new kitchen, bathroom etc went on with an online estate agent at around the same price as a detached house which sold last week.
I feel that a high street agent who knew the area would not have priced it so high.
If this house does sell at this price then others will follow suit and the agent will have raised the price.
It won't sell at that price unless it's a steeply rising market. You only have to read the experiences of sellers and buyers on here to see that EAs over value to get business - it flatters the seller to tell them their house is worth x when it's really worth x minus y. Then a few weeks later if they I haven't accept what seems a low offer the agent advises them to lower the price.
I've read quite a number of contributions where the online agent has valued higher than any other agent. Often that agent deals with a huge patch and just doesn't have the knowledge or the information the high street ones have.
The true value of a house is the amount that a willing buyer is prepared to pay. If it is put on the market with a price tag that is too high then it won't sell and they will drop the price. If it is put on the market and is snapped up in a week then the price tag was too low and the vendors threw money away.
I've been wondering this myself. We're in the process of selling.
I spend my entire life on rightmove and I've noticed that most of the houses round here that are on with an online agent always seem to be very overpriced. Our newish build 4 bed semi was on for a fairly realistic £220k and sold in 3 weeks (the market here is slow).
A 3 bed terrace round the corner (much smaller, needs work, tiny garden) is on for the same price with House Network. It's been for sale for a couple of months now.
Around here I don't think it will inflate prices. People aren't desperate for houses and we're not in a particularly 'desirable' area. But I can definitely see how it could contribute to a big increase in very popular areas where people are desperate to live.
As a pp said though, I guess houses are worth what someone's willing to pay.
No - I don't think online agents will artificailly raise prices.
High St agents always put the next 'similiar/same' house they market in an area on for a higher price too - they want the buiness and they flatter the vendor with how 'desirable' their house is...
However, online agents do give the vendor final say over the marketing price ... and if a vendor is lightly deluded/excessively houseproud/a massive egotist/greedy etc etc
But in the end a house is always worth what someone will pay - sometimes people pay too much, sometimes they pay too little - sometimes it just depends on a desperate buyer turning up when there's nothing else on the market near a new workplace or good school.
But vendors want their house prices to rise - buyers want them to fall.
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