The Truth About Property Valuations
Why Three Estate Agents Can Give You Three Completely Different Figures
You invite three estate agents round to value your home.
One says it's worth £250,000.
The second says £265,000.
The third says £285,000.
Now you're faced with a dilemma.
Do you trust the lowest one?
Do you trust the middle one?
Or do you trust the person who's just added £35,000 to your moving budget?
It's a situation we see all the time, and understandably, most sellers assume one of those figures must be "right".
The truth?
They could all be wrong.
First things first – estate agents aren't surveyors
This surprises a lot of people.
When an estate agent visits your property, we're not carrying out a formal valuation.
We're giving a market appraisal.
In simple terms, we're estimating what we believe a willing buyer would pay for your property in the current market.
That means there will always be a degree of judgement involved.
Property isn't like selling a loaf of bread. There's no sticker on the bottom with the correct price printed on it.
So why are the figures so different?
Because not all agents are valuing the same thing.
Some are valuing what they genuinely believe the property will sell for.
Some are valuing what they think they can market it at.
And some, unfortunately, are valuing what they think you want to hear.
It's known in the industry as "buying the instruction".
And whilst it might feel great in the living room, it doesn't always feel quite as good three months and two price reductions later.
The highest valuation isn't always the best valuation
Imagine you had three builders quote for an extension.
One quotes £15,000.
One quotes £18,000.
One quotes £35,000.
You'd probably ask some questions before automatically choosing the highest.
Yet when it comes to property, many sellers naturally gravitate towards the biggest number.
And who can blame them?
If someone tells you your home is worth £20,000 more than everyone else thinks, it's very tempting to believe them.
The problem is that buyers don't see your valuation.
They see your asking price.
And if that asking price feels out of step with the market, they'll simply move on to the next property.
Buyers are better informed than ever
Twenty years ago, estate agents held most of the information.
Today, buyers have access to sold prices, property portals, mortgage calculators and market data within seconds.
They know what's available.
They know what sold last month.
And they know when something looks expensive.
If a property launches too high, it often misses the buyers who were most likely to view it in those crucial first few weeks.
That's usually when the most serious buyers are paying attention.
Sometimes the cheapest mistake is pricing correctly
It sounds backwards.
But we've seen sellers lose far more money through overpricing than through sensible pricing.
A property that launches at the right figure often creates competition.
A property that launches too high often creates silence.
And silence rarely leads to the best offers.
So what should you be asking your estate agent?
Instead of asking:
"What's the highest price you can put it on for?"
Try asking:
Why have you arrived at that figure?
What comparable properties support it?
What has actually sold recently?
How many buyers are looking in this price range?
What would your launch strategy be?
A good agent should be able to explain the reasoning, not just provide the number.
The Bottom Line
A valuation isn't about telling you what you want to hear.
It's about helping you achieve the best possible result.
And surprisingly, those aren't always the same thing.
The right price attracts buyers.
The wrong price attracts reductions.
And whilst nobody likes hearing that their home might be worth less than they'd hoped, it's usually far better than discovering it six months later when it's still sat on the market.
No Fluff Property Stuff
Straight-talking property advice, local insight, and the things estate agents don't always explain properly.