Do estate agents estimate too highly? If so, by how much?

[JacqueslePeacock]

Just had EAs to value house. They gave amazingly high estimates of how much it is worth! Anyone any idea if they inflate it above realistic asking price, and if so, by how much? I'm trying to get a sense of how much it would actually go for.

They vary, some overestimate and some are more realistic. You should get 3 or 4 estimates and compare them. We had some recently and they all said the same but a friend had her flat valued at 300K, 340 and 400!

Take the average, and work figures on that.

They all said about the same! I just wondered if I should be taking the figure with a big pinch of salt (as they are trying to get my business and all that).

also worth seeing which estate agents sell property quickly, and which have lots of reduced stickers all over their adverts - there is one agent in our town in particular which has v high asking prices and lots of discounted property. our v average priced semi valuations covered a 20k band.

They might want your business and be a little bit optimistic. But they won't want to try and sell a house that is far too highly priced. For a start, they won't be able to get anyone through the front door. It would be a waste of their time and effort.

If they are all saying about the same, I would assume that is what they think it is worth.

Have you researched what other houses are selling for?

When I put my house up for sale last year, there was £100K difference between the lowest and highest estimates from about 6 estate agents. One of them is an agent I've found to be a bit pushy. The man suggested a price and I didn't react as I had no particular expectations. He clearly wasn't happy that I'd shown no reaction so he then immediately suggested a higher price! He did it twice. He then wrote me a letter supposedly confirming our conversation but giving a suggested price which was higher than any of those he'd mentioned when we met!

In the end, with £100K difference in the estimates, I decided to go for one on the slightly higher side (but not a pushy agent and not the ones who gave the highest estimates), then fairly quickly dropped it in response to viewings. After a failed sale, I put it back on the market at a reduced price of the £50K mark, so the average estimate, and sold it at that price.

I'd recommend you get at least 3 or 4 estimates and then decide. If the estimates all seem too high, well you can test the market by putting it on at that price and see what happens.

Bear in mind that you can ask the agent you like best to put your house on at a different price to the one they suggested.

Did you ask them to back up their price with similar properties they have sold or know the sold price of (not the asking price)?

When my mum died the valuers wanted 3 agents to visit so they could get a median amount for IHT. I think that is the best way forward to get a realistic idea.

Thanks all - very helpful advice!

For anywhere I've sold I've given far more weight to sold prices in the neighbourhood than anything estate agents have told me. Even easier now you can see them on rightmove

Try and look on www.nethouseprices.com to see what prices were actually achieved recently in your area. That will give you an accurate picture of what people are actually prepared to pay. Bear in mind that in most areas the market has picked up a little in the last 6 months too.