Why the Agents Overvaluing model is harming the Central London Market
Sales figures speak for themselves! It’s a sticky sales market, 3.5% of properties across Central London sold within 3 months compared 14.6% across the whole of London, these figures are from November to January 2023. Does that mean overpricing? A drought of buyers or simply a lack of faith in the current market?
41.1% of properties had a reduction in price during this same time period which suggests to us that fellow agents are once again overvaluing properties in an attempt to win the valuation. It’s a dangerous game, not only does this give other potential vendors false ideas of what their own homes are worth, it also encourages buyers to make reduced offers meaning ultimately the vendor may eventually agree to a lower than market rate under false pretences.
It is also a waste of everyone’s time and resource.
More recently have been the take overs of smaller agencies without necessarily the knowledge of the client. The purchase (but not re brand) of Marsh and Parsons, Jackson Stops, Wetherell, Frank Harris by well-known Dexter’s has meant vendors thinking they have 2 separate valuations, in fact have had one price dictated by one firm.
Rob Hill, Greater London Properties Director
“ The issue when we come up against Dexter’s and a Dexter owned business which is yet to be re-branded is our Vendor receives three values, and often ours will be the lowest and most accurately honest. However, without the knowledge of the Vendor the other two are simply conspiring to win the Valuation with no thought to what this does to the local market in general and to that particular property. It is simply not honest.
As a specialist Central London Agent, we feel being independent is a huge advantage. Firstly, because we are undoubtably more flexible and we generally care about selling properties. We don’t want our stock list stagnating, we want to reduce void periods plus we feel price reductions once marketing has commenced has a negative impact on the property. “
Vendors need to be fully informed of where their valuations are coming from and also be educated in the art of negotiations, there are always options available to them whether it be off market launches or final sealed bids.
At Greater London Properties we don’t just want to win valuations, we want to ensure all our vendors get the very best value for their home, with a motivated buyer for a smooth, stress free transaction.
Please do not hesitate to call our Residential Team on 0207 734 4062 if you’d like to discuss any of the above, or require a Property Valuation.
We look forward to hearing from you,
Kate Hill, Director