How to Know if an Agent Has Overvalued Your Property
Overvaluation is one of the most common pitfalls sellers in the UK face, and it can turn what should be an exciting move into a long, frustrating process. In this guide, we’ll explore what overvaluation really means, why it happens, how to spot the warning signs, and what you can do if your home has been priced too high.
1. What Does “Overvaluation” Mean in the UK Property Market?
In simple terms, a property is overvalued when it’s listed for more than it’s actually worth — that is, above what a buyer is realistically willing to pay in the current market.
The true market value of a home is determined by what similar properties in your area have actually sold for (not just their asking prices). It reflects factors like location, condition, size, age, nearby amenities, and local demand.
When an agent overvalues your property, they might be telling you what you want to hear rather than what’s accurate. While it might feel flattering to hear your home is worth more than expected, the reality can be very different once it hits the open market.
2. Why Do Estate Agents Overvalue Properties?
Overvaluation doesn’t always stem from dishonesty — sometimes it’s a misunderstanding, but in some cases, it’s a deliberate tactic. Here are the most common reasons:
a. To Win Your Instruction
In a competitive industry, some agents inflate valuations to tempt sellers to sign with them. Once they’ve secured your listing, they might suggest a “necessary” price drop a few weeks later.
b. Optimism or Inexperience
An inexperienced or overly optimistic agent may genuinely believe buyers will pay more — especially if they haven’t sold many properties in your area.
c. Outdated or Inaccurate Data
Agents sometimes rely on old sale prices or use comparables from dissimilar properties, leading to skewed valuations.
d. Market Shifts
If the market has cooled — for example, due to rising mortgage rates or economic uncertainty — prices may have dipped since the last sale in your area.
e. Seller Expectations
In some cases, sellers themselves push for a higher asking price. Agents may agree to keep your business, even if they know the figure is unrealistic.
3. Signs Your Property Might Be Overvalued
If you’re worried your property has been priced too high, here are the most common red flags to watch out for:
a. One Valuation Is Much Higher Than the Others
If three agents value your home and one comes in significantly higher without clear justification, be cautious. For example, if two agents suggest £400,000 and a third claims £450,000, you’ll want to ask how they reached that number.
b. The Agent Can’t Show Comparable Sales
Professional valuations should be backed up by evidence — for example, recent sales of similar homes nearby. If your agent can’t provide data to support their figure, that’s a red flag.
c. Your Listing Isn’t Getting Views or Viewings
The first two weeks of marketing are critical. If your listing is getting lots of online views but few physical viewings, buyers may be rejecting it based on price.
d. You’re Advised to “Test the Market”
While it’s fine to leave a little negotiation room, pricing your property unrealistically high “to see what happens” rarely works. Buyers compare homes within price brackets — and yours could simply be filtered out.
e. Nearby Properties Are Selling, Yours Isn’t
If similar properties on your street are selling quickly and yours remains unsold after several months, price is likely the issue.
f. Your Agent Recommends a Quick Price Drop
When an agent pushes for an immediate price reduction just weeks after listing, it may indicate they knew the original price was too high to begin with.
4. The Consequences of an Overvalued Property
Overpricing your home might not seem serious at first, but the effects can be far-reaching — and costly.
a. Loss of Early Interest
Most serious buyers look at new listings within the first 14–21 days. If your property is overpriced, you’ll miss that crucial window of attention.
b. The “Stale Listing” Effect
The longer your home sits on the market, the more buyers assume something’s wrong with it. Even if you later reduce the price, it can be difficult to regain momentum.
c. Lower Final Sale Price
Ironically, overpriced homes often sell for less than fairly priced ones. After multiple price drops, buyers may think you’re desperate and offer below market value.
d. Mortgage Valuation Issues
Even if you find a buyer, the sale could fall through if their mortgage lender’s valuation comes in lower than your asking price. This forces renegotiation or cancellation.
e. Emotional Frustration
Extended sales periods can be draining — especially if you’ve already found your next home or need to move quickly.
5. How to Verify if Your Home’s Valuation Is Realistic
Here’s how to ensure your property’s price truly reflects its value in the current UK market:
a. Get Multiple Valuations
Always invite at least three local estate agents to value your property. Be wary of any outliers that seem too high or too low.
b. Do Your Own Research
Use property websites like Rightmove, Zoopla, and Land Registry to look at sold prices, not asking prices. Focus on properties that match yours in:
- Location and postcode
- Property type (semi-detached, flat, etc.)
- Number of bedrooms and bathrooms
- Condition and modernisation
c. Consider an Independent RICS Valuation
A RICS (Royal Institution of Chartered Surveyors) valuer can provide an impartial, professional assessment. This is especially useful for probate sales, shared ownership, or where there’s a dispute over value.
d. Ask for a Detailed Breakdown
A trustworthy agent will explain exactly how they arrived at their figure — showing you data, photos of comparable sales, and adjustments for features like extensions or garden size.
e. Watch the Market Closely
If property prices in your area are falling or demand is cooling, you may need to adjust your expectations.
6. What to Do if You Suspect Overvaluation
If you think your home has been overpriced, here’s what you can do to get back on track:
a. Have an Honest Discussion with Your Agent
Ask your agent for recent sales data and feedback from viewings. If interest is low, suggest revising the price to align with the market.
b. Request a Revaluation
If your home’s been listed for 8–12 weeks with no serious offers, it’s worth revisiting the valuation. Market conditions can shift quickly.
c. Switch Agents if Necessary
If you’ve lost confidence in your agent, you’re entitled to change after your contract period ends. A new agent can re-launch your property with fresh marketing and a realistic price.
d. Refresh Your Marketing
Even after adjusting the price, consider new professional photos, a reworded listing, or a different selling strategy to attract new interest.
e. Stay Objective
Remember, selling a home is both financial and emotional. Try to think like a buyer — what would you pay for your home based on the local market?
7. How to Choose the Right Estate Agent in the First Place
Avoiding overvaluation often starts with selecting the right estate agent. Here’s what to look for:
- Local expertise: Choose an agent with strong experience selling in your postcode area.
- Transparent approach: A good agent will explain the valuation process clearly, without vague promises.
- Proven results: Check how long their listings stay on the market and how close they sell to asking price.
- Strong marketing: Look for quality photography, floorplans, social media marketing, and proactive communication.
- Reviews and reputation: Check Google and Trustpilot reviews for real client feedback.
8. Final Thoughts
Overvaluation might sound harmless — after all, “it’s worth trying a higher price,” right? Unfortunately, this mindset often backfires.
A property that’s priced correctly from the start attracts more genuine buyers, sells faster, and usually achieves a better final price.
The UK property market can shift quickly, influenced by interest rates, local demand, and national economic trends. The best approach is to work with a reputable local agent who provides an honest, evidence-based valuation and helps you sell smartly, not just optimistically.
If you’re preparing to sell, remember: the right price isn’t necessarily the highest — it’s the fairest. That’s the key to a smooth, successful sale.