Aylesbury estate agents overvaluing properties is killing sellers chances of getting the right price for their property, according a local independent estate agent.
Overvaluing properties, a lack of knowledge and a lack of professionalism is killing any chance of getting the best price for their homes in Aylesbury Vale, according to a source close to the industry.
They claim that corporate estate agents and some independents, the bigger, national agencies are under increasing pressure from targets set by their boards to get properties sold through their portfolio at any costs.
This means that the bigger agents will give the sellers a higher estimation of the value of their properties, which will encourage the sellers to use their estate agent.
But this causes a negative spiral.
Our source said: "Unfortunately this isn't an uncommon trait, it's been going on in Aylesbury for around 15 years now.
"We currently have more information than ever available to us as agents on a property, so we can be quite accurate what a house is worth.
"Unfortunately, due to a lack of knowledge, a lack of confidence and a lack of professionalism some agents are willing to massively overvalue the property to get the sellers on board. Sellers think great, more money - but it has a massively adverse affect."
Our source claims that sellers will then be surprised that the're is initially very little interest, mainly because of the price.
This means the agents will then reduce the price, continually, in order to encourage people to view the property.
Most buyers will look at properties like On the Market, Zoopla, and Rightmove , and will be following the fall in price of the property.
They will then offer much less than they would have done, had it been marketed at the correct price in the first place because they will believe the price is there to be 'shot at'.
Our source continued, "When an agent over-values a property and gets instructed, they will then tie the seller into a lengthy sole agency contract because it will give them the time they need to chip away at the price.
"Standard sole agency contracts should be 12 weeks, however these agents will stretch it to 16, 20 or even 24 weeks. That's six months being tied to the same agent.
"Sellers get desperate at the lack of viewings and offers, and it creates a negative spiral where the property owner doesn't get the price they deserve for their house. The agents will do their level best to persuade the owners that the low-ball offers are a good price.
"They get fed up and accept these lower offers. Whereas if they went on the market at the correct price, they would get much nearer to what they deserve for their properties."
For example, the local agent took over a property from a corporate estate agent who had over valued a house considerably, and wasted 12 weeks of the sellers time.
After an honest and frank discussion about the overvaluation, the property was then remarketed at a price that was £40,000 less than the initial valuation.
The agent said it destroyed the hope of the family getting a decent price for their home as offers came in lower and lower every week.
Overvaluing is also causing issues for sellers who are buying on. If they think they are going to achieve the price suggested, they might well be tempted to go and view houses that fit that sales price. Then, then they achieve a price well under what the initial valuation was, they are forced to make a low offer on their desired home, or to start looking again at properties in a lower price range.