For many, the first important step when considering a move is understanding the likely value of your home. Historically, without the abundance of information available online today, this was a delicate art where estate agents held all the knowledge. Now, with Rightmove, Zoopla, On The Market and a plethora of online valuation tools, most sellers have a sense of what their home is worth and the price they want to achieve, long before the estate agents arrive. So how confident can sellers be in their choice of estate agent, when agents’ valuations differ so greatly? Deborah Richards Managing Partner of Maddisons Residential based on The Pantiles, Tunbridge Wells, expands.

Why do estate agents’ valuations differ from a seller's ideal price’?

The reasons are varied:

  • Firstly, the estate agent visiting your house may be dominant in the sale of your particular property type and area, and therefore have a far greater – and more reliable – sense of a property’s value than an online portal.
  • Secondly, for most agents, they want to win the instruction – this is after all how we make a living! A high valuation might therefore be offered in the hope of flattering or seducing the seller.
  • Thirdly, valuations will be dictated by market conditions. In a booming sellers’ market, you can punch for a high price, but in a more cautious, buyers’ market, valuations must be realistic. The danger of overvaluing a property is real: sellers anchor on the unrealistic valuation given and feel they have lost money if a lower figure is subsequently achieved.

Working together to achieve a house sale

With the current market this Autumn feeling a little more cautious, estate agents must work with their clients, understanding the prime objectives of the sale and creating a pricing strategy that supports these. It must then remain a relationship of trust - with no sense of blame, but a desire to arrive at a common goal.

Conclusion: Are estate agent valuations an art or science?

The reality is, that any property is only worth what a buyer is prepared to pay, and so ultimately their opinion trumps what sellers, the portals, or even an estate agent believe.

If you are looking for professional guidance on selling a property, we would love to hear from you to better understand your needs. Contact us to experience the difference we can make to your property sale.