Q&A: Why do property valuations differ so much between agents?
This week's question is from C. Rodriguez:
I am currently in the middle of selling my house. When I first invited estate agents to value the property I was given three different valuations from three different estate agents - £375,000, £385,000 and £395,000. I
was insistent that we could get more for the house and put it on for £430,000, and we have since secured a purchase price (subject to contract) of £423,000. Here are my questions:
1) Should I ask for a discount from the estate agent?
2) Do you think the estate agents I contacted where only interested in turning over the property quickly?
3) If not, why would three estate agents by so wrong, lets face it the market has been relatively fast moving for a while now?
Nick Leeming, Propertyfinder.com's property expert (and chartered surveyor/former estate agent) suggests:
This is an interesting case and reflects something that every agent knows....property valuation is an imprecise art! That three, presumably reputable firms were so close in their figures may well indicate that this is the level at which comparable properties were trading at in the area.
However, some purchasers have an alternative view of value which reflects more their own need, how much they liked the property and whether there were other considerations which made them prepared to pay a premium. It may be that the purchaser didn't know or didn't care about comparable values in the area.
The likelihood of any discount from your fee will very much depend on the agent and the wording of the agency agreement which you signed with them. Many clients would be delighted that their house had outperformed the market and reward their agent accordingly!
Do you have a question for our estate agents and property experts? Please let us know below, or read our previous Q&As.
