Why Foxtons and Dexters Could Be Failing 77% of Their Sellers—And What You Need to Know
Hey South Londoners, here’s something that could change the way you look at big estate agents like Foxtons and Dexters. Recent research has revealed that these two giants are only selling 22-25 homes for every 100 listed, which is far lower than the industry average of 50-60%. But what does this mean for you if you’re thinking of selling your property? Let’s dive in and see why overvaluation might be the reason behind their low success rates, and how it could be costing sellers thousands.
Why Aren’t Big High Street Agents Getting Homes Sold?
Here’s the thing: Foxtons and Dexters are two of the biggest names in the UK property game, but their success rates are shocking—just 22-25%. For every 100 homes listed, 75-78 homes just aren’t selling. What’s going on? Well, it seems that both of these agencies are known for overvaluing properties by 20-30%. They do this to secure exclusive contracts with sellers, promising high prices that make you feel like your home is worth more than it really is. But this strategy ends up backfiring, leaving properties sitting on the market for months, while the seller continues to pay for bills and mortgage repayments.
The Real Financial Risks for Sellers
So, what happens when a property doesn’t sell quickly? Sellers are left holding the bag—continuing to pay for utilities, maintenance, and, of course, the mortgage. And if they eventually drop the price or switch agents? You could end up selling for far less than you originally hoped, which could cost you thousands. Not to mention, this delay in selling impacts social mobility, as it slows down the whole housing market and makes it harder for people to move to new homes.
Here’s the real kicker: If you’ve got an agent overvaluing your property and it doesn’t sell, you risk missing that sweet spot where you could have gotten a great price in a hot market. When your listing drags on, you might have to lower the price later, and even then, you’re not guaranteed a sale.
So, Why Is This Happening?
Public exposure of these overvaluation tactics could cause a serious shake-up in the industry. If buyers and sellers start getting clued up about these practices, there’s a chance that estate agents might have to make some changes or face the possibility of lawsuits. But the property industry isn’t always the quickest to reform, so don’t expect this to be an easy fix.
What Does This Mean for You as a Seller?
For South London homeowners, this is a big deal. Selling your property should be a straightforward process, but if you’re working with an agent who’s not performing well, you could be in for a frustrating—and costly—ride. If you’re currently thinking about listing your property, here are a few things to consider:
Don’t Get Swept Up in the Hype: When an agent tells you your property is worth a lot more than you expected, take it with a pinch of salt. Sure, it might feel great to hear that your home could sell for more, but make sure the agent has a solid track record of getting properties sold at a reasonable price.
Research Your Agent’s Success Rate: Look beyond the flashy marketing and check how successful they actually are. Don’t just take their word for it—check reviews on sites like GetAgent.co.uk to see if they’re really moving properties in your area.
Get Multiple Valuations: One agent’s valuation might be an outlier, so always get a few opinions. This way, you’ll have a better sense of your property’s actual value and can avoid the overvaluation trap.
Avoid Lengthy Exclusive Contracts: Be careful about signing exclusive contracts for too long—especially ones that tie you to a single agent for months. If you’re not getting results, you’ll want the flexibility to switch things up.
What Should You Do If You’re Already Stuck with a Low-Performing Agent?
If you’ve already listed your property with Foxtons or Dexters and aren’t seeing the results you hoped for, don’t panic. You have options. If you’ve been on the market for a while with no offers, it might be time to reevaluate your listing price and consider switching agents. While it can feel frustrating, sometimes you’ve got to adjust to make sure you’re selling your property at a price that reflects the current market conditions.
Final Thoughts
At the end of the day, if you want to get the best price for your home without the headaches, it’s all about choosing the right agent who can deliver results. Foxtons and Dexters might be well-known, but their low success rates should serve as a warning sign. Don’t be afraid to shop around, get multiple valuations, and choose an agent who’s proven they can get homes sold. By staying informed and proactive, you’ll avoid unnecessary costs and give yourself the best chance of selling at a great price.
Key issues to address are as always pricing, and presentation. I always liken your property to a car showroom. If it doesn't look as good as that, then you are selling yourself short! If you are after some advice on presentation please feel free to reach out via email or phone: 07837 093554.
Key Citations
– Foxtons H1 2024 Results, financial details and sales volumes
– GetAgent.co.uk Data for Foxtons, branch performance and listings
– Estate Agent Fees – HomeOwners Alliance, success rate comparisons
– Online Estate Agents: TheAdvisory, industry failure rates
