“60% of houses listed reportedly have initial price reduced before they’re sold”
A recent article on the Daily Mail online website leads with the title that estate agents are purposely increasing the valuation they put on to property in order to gain higher commission on sales. An alarming figure of almost 60% of houses listed have reportedly gone on to be reduced before being sold.
Average price reduction at Foxtons was 10% (£56,000) whilst at Hamptons International, it was 8.6%. Other names included in the report were Bernard Marcus, Chancellors and Express Estate Agency. An over valuation figure of 1/5th of the value of homes was mentioned to be taking place.
With a down turn in the property market and prices falling which could in some way highlight further this over valuation situation. Tthough surely consumers are very familiar that in order for estate agents to grab that listing on to their books will take them sometimes to value at a higher rate to their competitors and work hard in order achieving a sale at that price?
Full report can be read on the Daily Mail website here.