Sellers warned of agents' unachievable property values
With the current upsurge in the market, leading agents have warned of rogue companies offering inflated prices at the valuation stage.
Paul Davey, managing director at agent Davey and Co, agreed there was a growing tendency among certain agents to overvalue. "Beware of agents which offer you a one-headline price," he said. "Less experienced agents will snatch at a figure. They will give a price that they suggest is achievable, when clearly it is not."
He added that over-pricing could damage the long-term chances of the pub being sold.
David Watson, a director at agents Colliers Robert Barry, which specialises in hotels and licensed premises, claimed there were too many agents who were adopting this practice.
"The problem is that there are some agents who deliberately over-value to gain the instructions," he said.
"Pubs are totally different to other businesses, they need a different approach. There are many occasions when we see prices and fall about laughing."
He warned that some agents claim to be specialists in the licensed trade but aren't. "Do your research and take advice from a professional," he added.
Colin Wellstead, director at property agent Christie + Co, said: "There is a growing trend for this at the moment because there has been an upsurge in the market. There are people whose main aim is to only take instructions and people should be wary of this.
"Make sure that the person who comes to view your pub is the person that is going to sell it and not just list it.
"Make sure you get their business card so you can check on the progress of your pub."
Barry Gillham, chairman of agent Fleurets, also said the practice of over-pricing was symptomatic of a rising market.
He urged: "When licensees are selling their pub they should check on the prices that others have sold at and not at what they were being advertised for, which can be a very different."
A spokesman for the Royal Institute of Chartered Surveyors (RICS) advised licensees to check that any company they were dealing with were accredited by RICS. For further advice call RICS on 0870 3331600 or go to www.rics.org.uk
