Estate agents are being encouraged to be realistic when undertaking property valuations, as the housing market continues to slow.
Hybrid agency Nested has told agents to manage vendor expectations and value homes fairly, despite strong competition to win new business, amid a general shortage of housing stock.
Failure to acknowledge the changing face of the market will result in an over-exuberant valuation, the result of which is stock left to languish on the portals with little to no buyer interest, argues Alice Bullard, MD at Nested.
Valuing too high to initially win business before advising on a price reduction will also lead to a drawn out sales process, she explained. Both of these factors will only slow the market further and could cause a continued decline in house prices.
Good communication between agents and clients, not to mention agents and potential clients, will be the key to helping sellers understand the current market, the best price they can achieve and the quickest way to go about achieving it, according to Bullard.
She commented: “Agents could be feeling concerned about the 2023 housing market given the doom and gloom that’s been portrayed in the media, particularly given the latest numbers from Nationwide and Halifax showing property values have now started to decline, with mortgage approvals also on the slide.
“However, the silver lining of reducing property values is the benefit to buyers which should help maintain a consistent level of demand.
“But agents must be sure that when looking to win business they don’t value properties with too much enthusiasm. Sellers may well expect a little wiggle room during the negotiation stage, but enticing them onto the books with unrealistic market valuations certainly won’t help sell homes.”
“Failure to acknowledge the changing face of the market will result in an over-exuberant valuation, the result of which is stock left to languish on the portals with little to no buyer interest.”
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