Agent valuations 'are a lottery'

How much is it worth?

Estate agents' valuations of flats and houses are a lottery and tougher monitoring is needed, says consumer magazine Which?

The magazine said some agents overvalued in order to get customers on their books, and others undervalued properties to get quick sales.

Staff from Which? posed as vendors and got 56 estate agents to value 14 homes across the UK.

In six cases, the highest valuation was over a quarter higher than the lowest.

For one house in the North East, Halifax Estate Agents gave a £200,000 valuation, while Moody & Co thought it was worth £325,000, a 63% difference.

In Liverpool, Bradford & Bingley estimated a house was worth £125,000, but Halifax gave a valuation 44% higher at £180,000.

Author Pete Tynan said: "Touting for business, deliberately overvaluing, is a common problem, according to a property expert questioned by Which?

It's not in our interests to overvalue because properties just aren't selling Peter Wright Moody & Co

"Some agents give high valuations to get a customer's business, then suggest a more realistic price once they've locked sellers into a contract."

A Halifax Estate Agents spokesman said its agents were regularly trained and used property databases to help them reach better valuations.

Peter Wright, a partner at Moody & Co, said: "It's not in our interests to overvalue because properties just aren't selling; sales are down by more than 30%. My valuers are told under no circumstances to overvalue."

He said he had been unable to get details on the relevant property in the survey.

Robert Scarff, sales director of Countrywide Estate Agents, which now owns Bradford & Bingley Estate Agents, said: "If I thought for a moment that there was any truth in such allegations I would be looking into them personally."

"For two years Which? has been demanding that all estate agents are members of an independent redress scheme," said Which? editor Malcolm Coles.

Punish

"This new government must put legislation in place to protect consumers when making what is often the biggest purchase of their lives."

He also criticised the Ombudsman for Estate Agents (OEA) scheme, saying it was "hopelessly ineffective" and needed to punish those who over- or under-price.

Bill McClintock, chairman of the Ombudsman for Estate Agents board, said: "The criticism by Which? of the OEA Scheme portrays a fundamental misunderstanding of what an ombudsman scheme is all about - and such a misunderstanding is very worrying in a respected consumer organisation.

"What Which? appears to be asking for is a regulator, with powers to impose punitive fines.

"An ombudsman scheme is not set up to punish erring estate agents and to sort them out. It is set up so that unresolved disputes can be referred to an independent third party for settlement."

What are your experiences of house valuations?

Here are some of your responses:

Perhaps estate agents that can be shown to be deliberately over-valuing properties to obtain the business should be made to make up the difference - and pay this direct to the seller. That should make overvaluations a thing of the past!
Robert, Birmingham, UK

While I don't trust estate agents, it is sometimes the customer who pushes for a higher valuation because, after all, a low valuation is considered as some sort of an insult. I observed a friend of mine extract a top valuation from a series of agents because he was so house-proud.
Steve, Exeter

I have little experience of estate agents but I do feel they cannot win on this issue. A house has no intrinsic value. It is worth what someone will pay for it. A third party can only guide a seller in this matter. In Australia the method of selling houses by auction ensures clarity in this process.
Geoff Welsh, Glen Parva, Leicestershire

It is well known that these practices go on - I've certainly had this type of experience. The government should regulate the trade, this would be simple to do by requiring the estate agent and its valuers to be members of the RICS. If the agent then was found to be breaking the rules they would be expelled from the RICS and be unable to continue.
Dave Hough, Nottingham

Estate agents - first against the wall come the revolution. Treat them like salesmen, take everything with a pinch of salt and, if possible, do the work yourself.
Anon, Reading

While I am sure there is a lot of abuse it is equally true that there will always be a subjective element to valuation and it is misleading to pretend otherwise. Some people are prepared to pay substantially more for good design and quality fittings or a fabulous view while others will look simply at floor area, amount of space and number of bedrooms.
Robert, United Kingdom

If a buyer goes for a house that is over valued and pays the asking price then it is the buyer who is a "mug" for not getting an independent valuation.
Debs, Monmouth Wales

I've had an occasion where agents admitted to having a slow month, then tried to undervalue the property to get a quick sale and boost their commission.
Wayne Griffin, Dunstable

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