The dangerous and rising trend of estate agents over valuing properties

This is honestly one of the biggest pains in my arse as an estate agent. It’s unbelievably frustrating seeing cowboy high street agents wildly overvaluing properties simply to win instructions, because ultimately it gives the entire industry a bad name and creates unrealistic expectations for homeowners from day one.

This interesting article from Property Industry Eye highlights a growing issue within the housing market - the widening gap between asking prices and what buyers are actually prepared to pay. It points towards affordability pressures, higher mortgage rates and unrealistic seller expectations as key reasons for longer selling times and increasing price reductions.

What the article only briefly touches on, however, is the role some estate agents play in creating that disconnect in the first place.

The Dangerous Trend of Estate Agents Overvaluing Homes to Win Instructions

One of the biggest problems facing the property market today is not a lack of buyers. It’s not even necessarily interest rates, it’s the growing disconnect between what properties are being listed at and what buyers are actually prepared to pay.

And unfortunately, much of this stems from estate agents overvaluing homes simply to win instructions.

Telling Vendors What They Want to Hear

My conversation rate is pretty high however if I lose an instruction it is is for this reason almost 100% of the time and it goes someting like ‘well the other agent seemed confident he could get more money for our sale’ – great that they were confident, but are they being realistic and did they justify their valuation using data...because if they didnt their confidence is misplaced!

But I can see why people fall for it - if homeowner invites a few agents out to value their property, one says £425,000 another says £435,000 and the third says £475,000, who usually wins the instruction?

More often than not, it’s the agent quoting the highest figure not because their methodology is better, not because their marketing is stronger, but because they’ve told the seller what they want to hear.

The problem is that many of these valuations are not grounded in genuine comparable evidence, buyer affordability, or actual market behaviour. They are often based on optimism, emotion, or worse, a deliberate strategy to secure the listing first and reduce the price later.

Industry commentary has repeatedly raised concerns about this exact issue, with some agents accused of “selling fantasy prices” to homeowners in order to gain market share. (Property Industry Eye)

The Market Always Tells the Truth

The reality is simple - buyers determine value, not estate agents.

An estate agent can suggest a figure, but the market decides whether it is realistic.

Right now, buyers are cautious. Mortgage affordability has changed dramatically over the last few years. People are stress tested harder, monthly payments are higher, and buyers are analysing value far more carefully and that means pricing strategy matters more than ever.

A property can be beautifully presented, fully renovated  and in a desirable location, but if its overpriced by £50,000 buyers simply move on.

The consequences

·       Properties sit on the market for months

·       Sellers become frustrated

·       Multiple price reductions follow

·       The listing goes stale

·       Buyers assume something is wrong with the property

The eventual sale price is often lower than it could have been had the property been priced correctly from day one

Overpricing Creates Stress Not Value

One of the most frustrating parts of this process is that homeowners are often unknowingly being set up for disappointment.

Selling a house is already stressful enough. People are often dealing with onward purchases, divorces, probate, downsizing, financial pressure, or major life changes, so when an agent inflates expectations unrealistically, they create a false sense of security around what the property is worth.

Then reality hits

·       Few viewings

·       Little or no offers

·       Negative feedback

·       Endless conversations about reducing the price

·       A breakdown of trust between seller and agent.

The homeowner feels frustrated, the agent starts managing down expectations and the process becomes far more emotionally draining than it ever needed to be.

Data Should Drive Valuations Not Ego

A proper valuation should be grounded in evidence!

That means;

·       Comparable sold prices

·       Size of the property

·       Price per square metre

·       Condition and presentation

·       Layout and functionality

·       Location nuances

·       Current competition

·       Buyer demand in that exact price bracket

·       Mortgage affordability in today’s market

Not simply pulling a figure out of thin air because it sounds attractive.

The best agents are not the ones who tell you the highest number. They are the ones who tell you the truth even when it’s not necessarily what you want to hear, because realistic pricing, combined with strong presentation and intelligent marketing, is what creates competition and ultimately achieves the best result.

The Best Properties Create Momentum

Ironically, the properties that achieve the strongest prices are often not the ones that start highest.

They are the ones that are

·       Presented exceptionally well

·       Priced intelligently

·       Generate strong early interest

·       Create urgency amongst buyers

·       Attract multiple viewings quickly

Momentum matters enormously in property sales.

The first 2-3 weeks of marketing are usually the most important period of a listing’s life cycle. If you miss that window because a property is overpriced, it can be very difficult to regain momentum later on.

Honesty Matters More Than Ever

The property market does not need more overpromising it needs more honesty.

Vendors deserve transparent advice grounded in evidence, logic and real world buyer behaviour, not inflated promises designed to secure another instruction.

In today’s market especially, realistic pricing is not about underselling a home. It is about positioning it correctly so it actually sells.

And ultimately, that is what every seller really wants.

#independentestateagent #estateagencyowner