Estate Agent Tricks of the Trade
Whilst estate agents are experts in helping people buy and sell houses, both buyers and sellers need to be aware of common tricks they may use to maximise their profits, ranging from over- and undervaluing properties to pushing people to buy extra marketing services. Read on to discover the top estate agent tricks of the trade.
Overvaluing a property
One of the most common tricks of the trade employed by estate agents relates to property valuations. Estate agents have a legal and ethical duty to provide an accurate valuation, however, in some cases, they may strategically overvalue or undervalue a property. Overvaluing a property can help them to entice sellers. When a homeowner is told by an estate agent that their property is worth more than they anticipated, they may be more inclined to choose this agent. Once the listing is secured, the agent may later recommend reducing the price.
Undervaluing a property
Comparatively, estate agents may undervalue a property, usually to encourage a quick sale. This can be useful for sellers who need to sell up quickly. Undervaluing can cause an increase in competition amongst buyers too, which can result in multiple bids and a higher sale price. This strategy can benefit both the seller and the estate agent.
Encouraging clients to talk too much
Encouraging clients to talk too much is a common tactic used by some estate agents. By engaging clients in conversations and subtly extracting information from them, estate agents can discover their motivations, preferences, and financial situations. They can then use this informationstrategically during property viewings. Clients should be cautious about sharing personal details that could potentially be used against them in negotiations.
Pushing sellers to buy extra marketing services
One of the most common tricks of the trade used by estate agents is to encourage sellers to buy extra marketing services if their properties aren't selling. These can include professional photography, virtual tours, premium listings on online platforms, and social media marketing. If you're not getting offers for your home, you might need to think about changing your tactics before you start spending more money on marketing. Consider if your estate agent has done everything to can to market your property already. Ask the agent what they will do differently and how it would boost the chances of a sale.
Exaggerating their success
Many estate agents will exaggerate their success when trying to win your business. Whilst it's natural that they'll want to showcase their abilities, don't just take their word for it that they're the best-performing estate agent in the area. Take a closer look at the data and then compare the success rates and track records of different agents.
Another common tactic used by estate agents when trying to sign you up is to tell you about potential buyers that they have lined up looking to buy a property like yours. Often, this is all bluster since many buyers now begin their property search online on property portals likeZoopla and Rightmove.
To find out more about how we can help you achieve your property goals, get in touch today. Call us on 0345 561 0050, send an email [email protected], or send us a message via the contact form on our website.
Image is from a 3 bedroomed, semi-detached house in Maldon, Essex available Nov 2023. For the full listing, please click here.
