How do I choose an estate agent to sell my house? Part 3 - House Price
Things you should consider when choosing an agent to sell your home.
When you invite an estate agent out to your home, unless they are Chartered Surveyors, you will not be given a Valuation. You will be given a market appraisal.
Whilst it is often referred to as a valuation and the person carrying it out may be referred to as the Valuer, strictly speaking they are not. Again, unless they are a Chartered Surveyor. This is why some agencies call them a Lister.
What you are actually receiving is a considered, ‘honest’ opinion of what your property is likely to achieve on the open market by an experienced property professional. They should be able to provide you with information on how they reached the figure suggested.
You have to bear in mind that to operate as an estate agent in the UK you do not have to have any formal qualifications, although there is a proposal for this to change in the next few years in accordance with Government proposals.
This is why you can obtain a free market appraisal. Chartered Surveyors charge a fee for a Valuation. They are highly qualified individuals with a degree and years of training. Therefore, if you are not paying a fee, it is not a Valuation. Valuations can be relied upon in court. Hence terminology such as Probate Valuation.
An interesting point though is that in marital splits, solicitors require both parties to agree on a single Chartered Surveyor to act on behalf of both parties. This is because ‘valuation’ still comes down to one persons opinion.
This is also why you should have 3 estate agents come and give you a market appraisal. As they are each giving you their opinion and as we all know, opinions can vary.
It is also the reason why, whilst an agent might suggest an asking price and a buyer be happy to offer that price, or more. When the Mortgage Lenders Chartered Surveyor values the property, he can state a lower ‘valuation’ figure. This is disappointing for both the seller and his agent and if the buyer does not have sufficient funds to make up the shortfall or is not willing to pay more than the Surveyor has told his Mortgage Lender it is worth, then a property will be subsequently down-valued.
This is probably a good time to point out that if an agent is struggling to list properties in a difficult market, then it is very easy for them to over inflate the marketing price to get the listing. Beware of this. Greed can be a basic human failing and once a figure has been suggested it does tend to stick in your head. If you think a figure is too good to be true, then it probably is.
Once you have put your property on the market, if you are not getting any viewings, your agent may well ask you to reduce the asking price. You may not be happy with this because you have gone with what they told you it was ‘worth’.
Going back to Part 1. If you have signed a Contract with a long tie in period, then you cannot even leave the agency and go with an agent who gave you a more honest and accurate figure.
So again, please do not base your choice of agent on ‘Asking Price’ alone.