Estate Agents Overvaluing Properties: Impact on Foreign Buyers
A recent survey by GetAgent has highlighted a concerning trend among estate agents: the overvaluation of properties to secure listings. This practice, recognised by 95% of agents, could have significant implications for foreign buyers navigating the UK property market.
Survey Highlights Widespread Overvaluation
According to a survey by GetAgent released on September 9, 2026, nearly all estate agents have noticed competitors overvaluing properties. Specifically, 95% of agents reported witnessing such unrealistic valuations. This practice, aimed at winning instructions, is seen as increasingly frequent by 67% of agents. Moreover, 89% stated they had lost potential listings to rivals who promised higher valuations.
The study also uncovered that 33% of the overvaluation instances are driven by sellers prioritising the highest valuation offered, while 28% are due to heightened competition amongst agents. A worrying 89% of agents believe that sellers place too much importance on the initially quoted price.
Consequences for Property Sellers
Despite initially appealing, overvaluing a property can backfire. The survey indicates that 95% of agents agree that inflated price tags can hinder a seller’s prospects of achieving a successful sale. Properties on the market for longer periods may experience decreased buyer interest, leading to eventual price reductions and a potentially less favourable sale outcome.
When selecting an agent, 83% of estate agents advise sellers to consider an agency's past sales performance, which can often be a more reliable indicator of success than the initial valuation offered.
Impact on Foreign Buyers
Foreign buyers, often less familiar with the intricacies of the local property market, might be particularly susceptible to inflated valuations. Research from Linked studies suggests that these buyers are prone to paying more than domestic buyers, usually due to a lack of experience.
This trend can discourage foreign investment, potentially affecting market dynamics by reducing competition and lessening demand for luxury properties—typically the target of international buyers.
Strategies for Savvy Foreign Buyers
To navigate these challenges, foreign buyers need to approach the market with caution and vigilance. Conducting thorough due diligence on property prices is essential to avoid overpayment. Evaluating an estate agent’s track record, focusing on the prices achieved in past sales, can offer a clearer picture of true market value.
Staying informed about current real estate trends and conditions, especially changes in buyer and seller activities, can further safeguard foreign buyers from inflated prices. Habio's listings, area guides, and buyer guides can be valuable resources for those navigating the foreign property landscape.
Frequently asked questions
Why do estate agents overvalue properties?
Estate agents may overvalue properties to win listings. Factors include sellers prioritising high valuations and competitive pressure among agents.
How can overvaluing affect my property sale?
Overvaluing can lead to longer market times and price reductions, impacting the likelihood of achieving a favourable sale.
How can I avoid overpaying for a property as a foreign buyer?
Foreign buyers should perform due diligence on prices, assess agents' past performance, and remain informed on market trends to avoid overpaying.
Sources
- Estate Agents Overvaluing Properties: A Concern - Property Industry Eye
- Do Foreign Buyers Pay More Than Domestic Buyers? Evidence from International Transaction-Level Data | The Journal of Real Estate Finance and Economics | Springer Nature Link
- U.S. real estate is so expensive it's even keeping out wealthy foreign homebuyers | Fortune
- Buyer demand weakens as seller activity remains stable - PropertyWire
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 10 September 2026.