Many established and experienced estate agents are finding that rivals, desperate to get mandates, exaggerate the prices that are likely to be obtainable on the homes they wish to sell.
For example, on a home for which the market value is quite clearly around R2-million, a seller may insist that it be priced at R2.5-million. When an area specialist agent points out that this is counterproductive and unrealistic, oftentimes the seller will listen to the advice of another agent who is pricing above the market value – and award them the mandate.
At this point, many agents would walk away. However, it generally pays to keep in touch because in many cases the frustrated and annoyed client will, in a few months’ time, recognise the validity of the original estimate and “return to the fold”.