Should I Choose the Estate Agent With the Highest Valuation?

If you're thinking about selling your home, you'll probably invite more than one estate agent to value it. And there's a good chance they'll give you different figures.

One might suggest £750,000. Another £800,000. Another £850,000.

It is completely understandable to be drawn to the highest number. After all, if one estate agent believes your home is worth £100,000 more than another does, why wouldn't you choose them?

The important question is not which estate agent gives you the highest valuation?

It's which estate agent can give you the best evidence and strategy for achieving the strongest possible price?

Why do estate agent valuations differ?

Valuing a home isn't an exact science. There isn't a database somewhere containing the definitive value of every house in Warwickshire.

Estate agents will look at comparable sales, current competition, location, condition, size, demand and the features that make your home different. Experience and knowledge of the local market matter too, particularly when a home isn't easy to compare with anything else.

But there is another important distinction.

A valuation and a marketing price are not necessarily the same thing.

The price at which you launch your home is part of the marketing strategy. It determines which buyers discover it, how it compares with other homes on the market and, crucially, how buyers perceive its value.

That is why we'd always want to explain why we're recommending a particular price, rather than simply give you a number.

Can an estate agent overvalue my home?

Yes.

Sometimes an estate agent may genuinely have a more optimistic view of the market than another. Different professional opinions are perfectly normal.

But homeowners should also be aware of a practice sometimes referred to as overvaluing to win the instruction: suggesting an ambitious asking price because the agent knows the highest valuation can be the most appealing one.

The difficulty is that the consequences aren't usually apparent on day one.

Your home goes onto the market at the higher price. Buyers see it, but perhaps don't view. Or they view but don't make an offer. Weeks pass and eventually you're advised to reduce the price.

By then, the launch—the point at which your home was new to the market and likely to attract the most curiosity—has passed.

That's why we'd be cautious about choosing an estate agent based on the valuation figure alone.

Does that mean I should choose the lowest valuation?

No.

The lowest valuation isn't automatically the most accurate either.

You are not trying to find the most conservative estate agent. You are trying to understand the evidence behind each recommendation.

If three estate agents give you three different figures, ask each of them:

Why?

What comparable homes are they using? What has sold rather than simply been listed? How does your home compare? Who do they think the likely buyer will be? What price range will those buyers be searching within? What is currently competing for their attention? And what is the strategy behind the recommended launch price?

A good valuation conversation should leave you understanding the reasoning, not simply remembering the number.

What if my home is difficult to value?

This is particularly important for individual homes.

If you own a character property, a period home, a substantial family house or something that has been significantly extended or improved, there may be very few direct comparisons.

Two houses can have the same number of bedrooms and broadly the same square footage while offering completely different lifestyles—and buyers will respond differently to each of them.

In those circumstances, valuing purely by price per square foot or looking at the last few sales in the postcode can be misleading.

The agent needs to understand what buyers are likely to value about your home and where it sits within the wider market.

We've written more about this in How Do Estate Agents Value Unique Homes?, which is coming soon.

What matters more than the valuation?

The valuation is only the beginning.

Once you've agreed a pricing strategy, your estate agent still has to present the home properly, create the marketing, reach the right buyers, conduct viewings, gather and interpret feedback, negotiate offers and then keep the sale together through to completion.

An impressive valuation figure is worth very little if the strategy that follows it cannot support that price.

This is also why comparing estate agents purely by fee can be misleading. Two businesses can both be estate agents while offering very different levels of marketing, experience, negotiation and involvement throughout the move.

The question isn't simply "What will this estate agent cost me?"

A more useful question is:

"What is the likely outcome of choosing them?"

For most homeowners, their home is their largest asset. The objective should be to make a considered decision about how best to protect and maximise its value, rather than choosing either the highest valuation or the lowest fee in isolation.

So how should I compare estate agent valuations?

Invite the agents you are considering into your home and listen to the reasoning behind their recommendations.

You should come away understanding the suggested price, the evidence supporting it, the marketing strategy, who the likely buyers are and what the agent intends to do if the market responds differently from expected.

And if one valuation is substantially higher than the others, don't automatically dismiss it—but don't automatically choose it either.

Ask the agent to show you why they believe they can achieve it.

The answer to that question will tell you far more than the number itself.

Thinking about selling your home?

If you're considering selling a home in Kenilworth or across Warwickshire, we're always happy to talk through its value and the strategy we'd recommend.

You don't need to be ready to put your home on the market. Sometimes understanding where you stand is simply the first step towards deciding what comes next.

Explore More Guides
How to Choose the Best Estate Agent in Kenilworth & Warwickshire
Pittaway Thompson Reviews | Why Homeowners Choose Us

How Do Estate Agents Value Unique Homes? (Coming Soon)

What Actually Sells a House? Marketing That Makes a Difference (Coming Soon)

Why Do Some Houses Sell Quickly While Others Sit on the Market? (Coming Soon)