Different estate agent valuations/ strategies - how to decide?

[CornflakeMum]

Putting our ex-rental property up for sale. It's been completely redecorated and staged with furniture.
Two recommended estate agents have visited and both described it as 'gorgeous'/ 'brilliant'/ ready to go etc.

Agent 1 suggested price range £500k - £525k and seemed to suggest I should be happy with anything over £500k.
Agent 2 suggested £525K - £550k and suggested he'd be disappointed in anything less than £525k.

Agency 1 - 'new kid on the block' agency - does very lovely photos and high end marketing. Staff are ex agency 2, so have many years of local experience.
Their properties seem to be under offer/selling quickly. Part of me wonders if they tend to price on the lower end for a quick sale/higher turnover.

Agency 2 - Strong established local brand. Good reputation. Claims to have large interested buyer database and they have sold similar to mine recently. Seem to start high and their properties are later reduced.

I can't decide which strategy is best? My feeling is that buyers always like to feel they have got a bargain, therefore starting at a price you are willing to accept a lower offer from makes sense?

Any thoughts from those with recent experience?

I would start with the higher price- but only for a week or so. If you don't get an influx of viewings drop it.
You will quickly know if they are being optimistic, and probably both of them are.

Yes I’m sure they are being optimistic, but the fact remains that their estimates are £25k apart. I’m not under pressure to sell (no mortgage) although obviously there’s the ongoing costs and the lost income (rent or interest).
I sort of feel I should at least try at the higher price?
Don’t you have to sign up with an agent for a minimum period of time?

I would ask how confident are they at achieving the price they say , and then say OK for every £1,000 that the actual offer is below that value you will deduct that from their commission, and see what how they react.

(Don't be fobbed off with their 'commisdion is already based on the sold price' rubbish...)

What are similar properties actually selling for? What does Land Registry data tell you? People will primarily find your property through e.g. Rightmove, and they aren’t necessarily going to have an opinion on the agent: they’re just looking at the price and the photos. I’ve always priced low and ended up selling for offers over: if you’re priced competitively you’ll get people through the door and keen to get in quick on what they feel is a bit of a bargain. If you price high and it turns out to be too high to draw much interest, you just sit on the market becoming stale product with new potential viewers wondering why you’ve been hanging around so long (and often not concluding anything good.)

Get a third opinion

@greencartbluecart

Get a third opinion

Yep - I’ve always got 3 valuations/quotes for pretty much everything important/expensive.

I had 5 agents round in the end which were 50k apart. Went bang in the middle and sold quickly twice! Second time went to sealed bids and got offers of 5k and 30k over!

Don’t you have to sign up with an agent for a minimum period of time?

They will try to get you to sign a contract for anything between eight weeks and six months. You do not have to. I would say:

“If you are so confident that you will easily be able to sell my property, you shouldn’t need me to sign a contract.”

Saying that to both could weed out the bushitters/overpricers.

I would list it at 525k which is where the 2 valuations overlap.

If that is too expensive you won’t be getting many viewings and no offers. It will quickly become clear within a few weeks that you need to reduce to 500k.

If it’s on the cheap side for the house you will get multiple viewings and competing offers which will help to drive the price up.

First agent sounds more realistic. It's a buyers market currently. The others are selling a dream to you...

I wouldn't pay attention to their claims of a database of interested buyers. As long as it's on Rightmove the same buyers will see it regardless of EA.

I think no 1 sounds best.

Haha - so I got a third EA around and he said £550-£600k !

It's a tricky house to value as its location is extremely attractive for two massively oversubscribed local schools and also access to rail/road networks. So the person looking specifically for these may value it more highly.

My gut feel is £530-£550, based on what's selling/sold nearby.

Blimey that's quite a variation £500k to £600k!

But surely other houses have sold nearby? Can you see what they went for?

Also you said it's an ex-rental, is it in good condition?

When I sold earlier this year I was given valuations between 424 and 575 🙄

what was the sale price?

Ask the startup agency if they have hit the VAT threshold yet as my brother used a startup agency with two agents who we t out on their own and they didn't charge VAT on their commission. That 20% can be a big chunk.

I would be asking the agents what makes them different from other agents in the area and what their current similar properties are like that they have on the books in your price range and how long they have been on the market.

Yes, it's in very good condition - has been completely redecorated. Kitchen isn't brand new, but it's all in a condition where someone could move in without having to do anything if they didn't want to.

The start up agency has definitely hit the VAT threshold - they're dealing in a lot of £1m-£2m houses at their top end!

Are you us from 6 months ago? We had similar. Agency 1 said 600-625 for a sale within a few weeks, but would list at 650 if we really pushed them to. Their spiel is effectively “accurate pricing sells quickly”. Agency 2 said 650-675. Their spiel was “we have a big network to find you a buyer” (not exactly a USP).

Both agreed it was hard to value because nothing similar had sold for approx 10 years. We also weren’t in a rush, went with agency 2 and listed at 675, received an offer of asking price within a fortnight. Sadly they weren’t proceedable, but we accepted a second asking price about 6 weeks later.

For what it’s worth, the prospective first buyers then listed their property with agency 1 and it took about 8-9 months to sell.

Don't know what the above post is about but any update on your situation @CornflakeMum ?

Yes! We sold at the end of last year for £512K!

Ended up going with Agent 2 as I just found Agent 1 too pushy and aggressive.
Went on market for 'Price Guide £550k' and got quite a few viewings but feedback that people could get more downstairs space elsewhere (which was fair).

Reduced after about a month as I was keen to sell and accepted an offer of £515k which was then reduced by £3k after survey.
I was pretty happy with the end result and think it was a fair price.

Put it on for offers over 525.

edit - should have read the thread 😂

Ooh thanks, I love an update! Congratulations on getting it sold.