Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Estate Agents Criticise Rivals Over Unrealistic Property Valuations

A new survey has found that 95% of estate agents believe their competitors are providing unrealistic property valuations in order to win instructions. The research, commissioned by GetAgent, highlights growing concerns within the UK property sector about the prevalence and impact of overvaluing homes.

According to the survey, two-thirds of estate agents think that overvaluing to secure instructions has become more common over the past year, while 28% believe the frequency has remained about the same. The findings suggest that competitive pressures are driving this trend, with agents reporting that sellers often favour the agent who offers the highest valuation.

The research also reveals that 89% of agents have lost a potential instruction in the past year because a rival provided a higher valuation than they believed was realistic. Agents identified vendor preference for the highest valuation as the most significant factor encouraging overvaluing, with a third citing this as the main reason. Other factors include increased competition between agents (28%), pressure to grow market share (22%), and pressure to meet internal listing targets (11%).

A large majority—89%—of agents believe that sellers place too much importance on the highest valuation when choosing an estate agent. Furthermore, 95% of agents think that initially overvaluing a property can ultimately harm a seller’s chances of achieving the best possible outcome.

When asked what sellers should prioritise when selecting an agent, a third of agents pointed to the percentage of asking price typically achieved, 28% highlighted an agent’s track record of selling similar properties locally, and 22% mentioned the average time taken to sell. In total, 83% of agents recommended focusing on these measurable indicators of previous sales performance rather than headline valuations.

These findings are particularly relevant for letting agents and inventory clerks, as they underscore the importance of realistic valuations and transparent performance metrics in maintaining trust and achieving successful outcomes in the UK property market.