United Kingdom – Popular estate agents are overvaluing homes by up to 20 per cent and then charging the highest commission. An analysis of housing agents found that the big ones including Foxtons, Hamptons International and Chancellors are the worst offenders.
ESTATE agents who charge the highest commission fees are overvaluing homes by up to 20 per cent to lure sellers. Property owners then pay their larger fees when they sell at a lower price.
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An analysis of 200,000 houses listed online found the biggest agents including Foxtons, Hamptons International and Chancellors are the worst offenders.
The Times investigation found the ten agents who overvalue the most charge twice as much on average as the ten who overvalue the least the equivalent of £5,500 commission on a £300,000 home instead of £2,200.
The National Association of Estate Agents admitted some unscrupulous agents try to win business by quoting a higher asking price.
Buying agent Henry Pryor added: The scale of overvaluations is shocking.
Nearly 60 per cent of homes listed by Foxtons had to be reduced from the initial price, compared with the national average of 32 per cent.
The company charges a commission of three per cent, more than twice the national average.
Foxtons said: We always price properties competitively in partnership with homeowners.
Author – Greg Wilford
Original source – The Sun