Property Knowledge Centre → Why Do Property Valuations Differ So Much Between Agencies?
Why Do Property Valuations Differ So Much Between Agencies?
Why do property valuations differ between agencies? It is common for property owners to receive quite different price opinions from different real estate agents. While there can be legitimate differences of opinion, a higher figure does not necessarily mean that agent will achieve a higher sale price.
Different agents can interpret comparable sales differently because no two properties are exactly alike. One agent may place more weight on land size, accommodation, condition, renovation quality, street position, scarcity or current buyer demand.
A high quote can also be used to win the listing. Sometimes referred to as “buying the listing”, this occurs when an agent presents an optimistic price expectation because they believe it will make their proposal more attractive to the owner.
The risk is that once the property is on the market, the conversation can shift from the higher figure originally discussed towards reducing the seller’s expectations. This is why the initial appraisal figure should never be considered in isolation.
Ask each agent to show you the specific comparable sales supporting their opinion. Look at how those properties compare with yours in terms of location, land size, accommodation, condition, renovation quality and overall appeal.
Then ask the agent to explain the differences rather than simply presenting a number. A well-considered appraisal should be based on evidence, current buyer demand, competing properties and an understanding of how your property is likely to be received by the market.
The highest appraisal is not necessarily the best appraisal. What matters is whether the agent can clearly explain how they reached their opinion and demonstrate a credible process for testing and maximising the property’s value.
Related Questions
How Do Recent Comparable Sales Affect My Property’s Value?
How Do I Know if a Price Quote Is Realistic or Just to Win My Listing?
What Is the Risk in an Agent Underquoting or Overquoting to Win My Listing?
For an evidence-based assessment of your property’s value, including relevant comparable sales, current buyer demand and market conditions, request a professional property appraisal with Clements International.