Are Bad Agents Impacting On Property and Rental Market?
We all know that many factors impact on the property market, influencing what happens. Some of these factors are more important than others and there will be some factors that are given more media attention and coverage than others, such as Brexit, but it is important to remember that property pricing, availability and even the demand for property is shaped by many matters. However, one prominent name in the property market believes that bad estate agents have had a negative impact on the property and rental market.
This is the thoughts of Simon Gerrard, who used to the president of the National Association of Estate Agents or the NAEA. Gerrard states that irresponsible agents have overpriced properties and that this action has harmed the market. It is fair to say that many estate agents are under severe pressure to bring in new clients to their business and to meet targets. This has led to an aggressive policy of overpricing property or inflating expected rental fees, in the hope of signing up clients that would perhaps have signed up with another company.
The property and rental market is competitive
There is a considerable level of competition in the property and rental market amongst agents. If an agent promising a higher price to a client is the factor that helps them earn clients, it is only natural that this is the tactic that many professionals in the industry will use. In the meantime, landlords that offer a dependable service and genuine valuations may find that their services are overlooked by some potential clients.
It is not as though this is just a new phenomenon. In their 2017 review, NAEA Propertymark stated that 77% of properties sold for a price that was lower than the initial asking price. In the same year, only 4% of properties were sold for a price that was higher than the initial asking price. If this trend continues, it is likely that many property owners and landlords decide that the price or fee they will receive is lower than what they expected or are happy to accept. This means that the supply of property will fall even further.
January 2018 property prices rose because of a fall in supply
This could lead to a rise in property prices, as this outcome saw in January 2018 according to Nationwide figures, but ultimately, if fewer people decide to sell or let their property because they don’t trust agent valuations, there will be dire consequences for the market.
At Villabela, we know the dangers caused by bad agents who act irresponsibly. We also know that the market us challenging and that many of our clients turn to us for assurance. Therefore, we aim to provide a reliable and dependable level of support to all of our clients in the property and rental market. We take an honest approach to pricing, and we believe that this is best for you and everyone in the local area. If you are keen to make a move and you want to know what you can realistically expect, choose the local estate agent that aims to provide a responsible service.
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