WARNING – Overvaluing to overpromising: How some estate agents could be slowing down the property market

The property market can be a competitive and challenging
place for both buyers and sellers.  Unfortunately, some estate agents are
making it even harder by overvaluing properties to win instructions. This
unethical tactic could be artificially slowing the property market down and causing frustration
for both buyers and sellers.

Some estate agents are often the culprits of this
tactic, promising unrealistic valuations with no evidence to justify their
claims. In a market with fewer transactions and less stock coming to market,
some estate agents are overvaluing properties to win the instruction. Once they
have secured the client, they will then tie them into a lengthy contract and
encourage them to reduce the asking price after a few weeks.

This practice is unethical and harms both buyers and
sellers. Sellers are often left with properties that are overpriced and
difficult to sell, while buyers may be deterred by inflated prices and
unrealistic expectations. In addition, this tactic is causing the property
market to slow down, as these overvalued properties sit on the market for
longer periods of time.

It’s important for potential sellers to be aware of this
tactic when selecting an estate agent to sell their property. They should pay
attention to the tie-in period they are being asked to agree to and ask for
evidence to justify the estate agent’s valuation. A reputable estate agent will
be able to provide comparable properties that have sold in the area to support
their valuation.

If a property is coming to the market at an inflated price,
it will likely need to be reduced before selling. This can create the
impression that property prices are being slashed when in reality, the original
price was inflated in the first place. Property prices are remaining relatively
stable, but overvalued properties are causing problems in the market.

In conclusion, it’s essential for potential sellers to be
cautious when selecting an estate agent to act for them and to do their due diligence  thoroughly.