The rising trend of estate agents over valuing properties

Why Overvaluing Homes to Win Instructions Backfires

As an estate agent, one of my ongoing frustrations is seeing properties valued well above what the market will realistically support, often in an effort to win the instruction. It's a practice that creates unrealistic expectations for homeowners from the outset and, over time, affects confidence in the wider industry.

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 valuations play in creating that disconnect in the first place.

The Real Issue Isn't a Lack of Buyers

One of the biggest challenges facing the property market today isn't a shortage of buyers, or even interest rates. It's the growing gap between what properties are listed at and what buyers are genuinely prepared to pay. A significant part of that stems from homes being valued too highly in order to secure the instruction.

Telling Vendors What They Want to Hear

My conversion rate is strong, but when I do lose an instruction, it's almost always for the same reason: "the other agent seemed confident they could get more for us." Confidence is fine, but it has to be realistic and backed by data. Without that, it's just optimism.

And I understand why sellers respond to it. If three agents value a property at £425,000, £435,000 and £475,000, the highest figure is naturally appealing, not because the methodology is better or the marketing is stronger, but because it's the most attractive number to hear.

The problem is that figures like these often aren't grounded in genuine comparable evidence, buyer affordability or actual market behaviour. They can be based on optimism, emotion, or in some cases a strategy to win the listing first and reduce the price later. Industry commentary has raised this concern repeatedly, with some valuations described as "fantasy prices" offered to gain market share. (Property Industry Eye)

The Market Sets the Value

The reality is straightforward: buyers determine value, not estate agents. An agent can suggest a figure, but the market decides whether it holds.

Buyers today are cautious. Mortgage affordability has shifted considerably in recent years, stress testing is tougher and monthly payments are higher, so buyers are assessing value far more carefully. That makes pricing strategy more important than ever. A property can be beautifully presented, fully renovated and in a desirable location, but if it's priced £50,000 too high, buyers simply move on.

The consequences tend to follow a familiar pattern: the property sits on the market for months, sellers grow frustrated, price reductions follow, the listing goes stale, and buyers begin to assume something is wrong with it. 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

What's often overlooked is that homeowners are unknowingly set up for disappointment. Selling is stressful enough on its own. People are frequently managing onward purchases, divorce, probate, downsizing or other major life changes. When expectations are inflated unrealistically, it creates a false sense of security about what the property is worth.

Then reality sets in: few viewings, little or no interest, negative feedback, repeated conversations about reducing the price, and a gradual breakdown of trust between seller and agent. The process becomes far more draining than it ever needed to be.

Data Should Drive Valuations

A proper valuation should be grounded in evidence. That means looking at comparable sold prices, the size of the property, price per square metre, condition and presentation, layout and functionality, location nuances, current competition, buyer demand in that specific price bracket, and mortgage affordability in today's market.

The best agents aren't the ones who quote the highest number. They're the ones who give an honest assessment, even when it isn't what the seller hoped to hear, because realistic pricing combined with strong presentation and intelligent marketing is what creates competition and ultimately delivers the best result.

The Best Properties Create Momentum

It's worth noting that the properties achieving the strongest prices are often not the ones that start highest. They're the ones that are presented exceptionally well, priced intelligently, and generate strong early interest, creating urgency and attracting viewings quickly.

Momentum matters enormously. The first two to three weeks of marketing are usually the most important period in a listing's life cycle. If that window is missed because a property is overpriced, regaining momentum later can be very difficult.

Honesty Matters More Than Ever

The market doesn't need more overpromising; it needs more honesty. Vendors deserve transparent advice grounded in evidence, logic and real buyer behaviour, rather than inflated figures designed to win an instruction.

Realistic pricing isn't about underselling a home. It's about positioning it correctly so that it actually sells. And ultimately, that's what every seller wants.

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