Estate agents’ valuations can vary wildly, sometimes up to a breathtaking £125,000, according to a press release I've just had from Which?
The mag invited estate agents to value 14 homes throughout England. In six of the homes the top valuation was 25% or more above the lowest.
Halifax valued one home in Tyne & Wear at £200,000 while Moody and Co suggested £325,000 – a staggering 63% more. Bradford & Bingley thought a house in Liverpool worth £125,000 while Halifax came in at £180,000 – 44% higher.
‘Touting’ for business – deliberately overvaluing – is a common problem, according to a property expert. Some agents give high valuations to get a customer’s business, then suggest a more realistic price when they’ve locked in sellers into a contract.
Undervaluing is also a problem. A man sold his house in Exmouth and was glad he’d had three valuations – or he would have lost out on a cool £70,000. Two estate agents valued his home at under £250,000, but a third, Bradleys, recommended a price of £325,000. Bradleys eventually sold the home for £320,000.
Which? is currently campaigning for estate agents to be regulated and a proper redress system set up. We at 4money back that campaign. This latest research is more damning evidence of the way estate agents conduct their business.
The Ombudsman for Estate Agents (OEA) should be monitoring the industry more effectively and punishing those who tout for business or deliberately undervalue. Which? says the ombudsman must take a far more robust view of breaches of its code. For instance, the ombudsman thinks that estate agents should still get their commission even if they’ve broken the law.
Do you consider you lost money because of an estate agent? Do you think the system needs overhauling? Do you think the Ombudsman should be more proactive and tighten its rules? Let us know about your dealings with estate agents – either good or bad.
To read how to cut out the estate agent altogether and do your own house selling, read 4money's informative article:
http://www.channel4.com/4money/mortgages/diy_homeselling.html
