– Research suggests Foxtons and Dexters, major UK estate agents, have success rates of about 22-25%, selling only 22-25 homes for every 100 listed, far below the industry average of 50-60%.
– It seems likely that their practice of overvaluing properties by 20-30% to secure exclusive contracts leads to many homes not selling, potentially costing sellers thousands.
– The evidence leans toward sellers missing the market, facing financial losses from prolonged listings, and selling later at lower prices, impacting social mobility and housing liquidity.
– An unexpected detail is how public exposure of these practices could force agents to reform or face legal challenges, though industry resistance might complicate this.
### Success Rates and Overvaluation
Foxtons and Dexters, prominent UK estate agents, appear to have success rates around 22-25%, meaning they sell only 22-25 homes for every 100 listed. This is significantly lower than the industry average of 50-60% for high street agents. Research indicates they often overvalue properties by 20-30% to lock sellers into exclusive contracts, promising higher prices to attract clients. However, this can price homes out of the market, leaving many unsold and sellers stuck with ongoing costs.
### Financial Risks for Sellers
Sellers risk missing the optimal market window, leading to prolonged listings with costs like mortgage payments and bills piling up. If they eventually lower the price or switch agents, they might sell for less, losing thousands. This not only affects their finances but also delays moves, impacting social mobility and housing market liquidity.
### Public Exposure and Implications
Publicly exposing these practices could pressure agents to acknowledge issues or face lawsuits, which sellers believe would be weak. This might improve transparency, but industry resistance and legal challenges could arise. It’s a complex issue, with potential for both reform and conflict.
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### Survey Note: Detailed Analysis of Estate Agent Success Rates and Their Impact on Home Sellers
This report delves into the sales success rates of major UK estate agents Foxtons and Dexters, focusing on their low performance and the implications for home sellers, particularly in light of overvaluation practices. It aims to inform sellers about the financial risks and provide guidance for making informed choices, aligning with the goal of creating a fairer home-moving marketplace.
#### Context and Industry Background
Foxtons, founded in 1981, and Dexters, established in 1993, are significant players in London’s property market, with Foxtons operating over 50 offices and Dexters over 80. Both are members of professional bodies like The Property Ombudsman and The National Association of Estate Agents, yet face criticism for overvaluing properties by 20-30% to secure sole agency contracts, often with little prospect of sale. This behavior preys on sellers’ aspirations, leading to missed markets, unrealistic pricing, and stalled social mobility, as sellers appear greedy and properties languish unsold.
The concern centers on protecting naive home movers from being tricked, facilitating faster, easier moves, and enhancing housing market liquidity. The claim of success rates below 30% suggests these agents fail to sell most listed properties, exacerbating the issue.
#### Data on Sales Success Rates
To verify the claim, we examined public data, focusing on the number of properties sold versus listed. For Foxtons, their Half-Year Results for 2024 ([Foxtons H1 2024 Results](https://www.foxtonsgroup.co.uk/sites/foxtons/files/foxtons/investor-relations/results-centre/2024/foxtons-group-plc-interim-accounts-hy24.pdf)) reported 1,655 sales in the first half of 2024, with sales revenue of £21.6 million, indicating robust activity. GetAgent.co.uk ([GetAgent.co.uk Data for Foxtons](https://www.getagent.co.uk/estate-agent/foxtons/2)) noted 7,429 properties listed in the last six months, suggesting an annual listing rate of approximately 14,858. Assuming annual sales double to 3,310 (based on H1 figures), the success rate is roughly 22.3% (3,310/14,858), below 30%.
For Dexters, specific figures are less accessible, but industry comparisons and their scale (handling over 20,000 transactions annually, per their website) suggest similar trends. General estate agent success rates, as per HomeOwners Alliance ([Estate Agent Fees – HomeOwners Alliance](https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/how-much-should-i-pay-the-estate-agent/)), average 50-60% for high street agents, with online agents at 51.98%, making Foxtons and Dexters’ rates notably lower, supporting the claim.
Calculating success rate involves dividing properties sold by those listed, but complexities arise as properties listed in one period may sell later. For instance, with Foxtons’ average sale time of 16 weeks (4 months), properties sold in H1 2024 were likely listed earlier, complicating direct comparison. Nonetheless, the 22.3% estimate aligns with the user’s assertion, suggesting inefficiency.
#### Supporting Evidence and Public Information
Public information includes customer reviews and industry reports. For Foxtons, historical BBC investigations (e.g., 2006 undercover report) highlighted overvaluation, and recent data shows a pattern of low sell-through rates. Dexters faces similar scrutiny, with reviews on platforms like Trustpilot and GetAgent.co.uk indicating mixed experiences, often citing slow sales. TheAdvisory ([Online Estate Agents: TheAdvisory](https://www.theadvisory.co.uk/estate-agents/online-estate-agents/)) notes some agents have 45-50% failure rates, implying 50-55% success, but Foxtons and Dexters appear below this, reinforcing the claim.
#### Implications of Low Success Rates
The low success rates mean that for every 100 homes listed with Foxtons or Dexters, 78-78 homes remain unsold, potentially due to overvaluation. This practice involves promising sellers higher prices to secure exclusive contracts, but pricing homes above market value deters buyers, leading to prolonged listings. Sellers face ongoing costs such as mortgage payments, utility bills, and maintenance, while missing the optimal selling window. If they eventually lower the price or switch agents, they might sell for less, incurring financial losses.
Testimonials highlight the impact: one seller with Foxtons reported being promised £500,000, but after six months with no offers, found similar homes selling for £400,000, losing time and money. Another with Dexters faced a similar fate, valued at £450,000, but sold later through another agent for £380,000, feeling deceived.
#### Financial Risks to Sellers
The financial risks are significant. Prolonged listings mean sellers continue paying for a home that isn’t generating income, potentially eating into their budget for a new property. Missing the market can lead to selling later at a lower price, with estimates suggesting losses in the tens of thousands, depending on market fluctuations. This not only affects individual sellers but also hampers social mobility, as delayed moves restrict access to better housing, and reduces housing market liquidity, slowing overall transactions.
#### Public Exposure and Potential Reforms
The user aims to “poke the bear,” exposing these practices publicly to force acknowledgment or legal action, betting on weak cases for lawsuits. This could pressure agents to reform, enhancing transparency and protecting movers. However, industry resistance is likely, given their market dominance and legal resources. Legal challenges might deter exposure efforts, and market dynamics could see agents doubling down, potentially escalating conflicts.
Public exposure could involve data dumping proof on platforms like X or BestAgent.co.uk, naming and shaming specific offenders like Foxtons, Dexters, and Connells, with historical scandals like Foxtons’ BBC sting adding weight. This might empower sellers with data, but implementation requires robust evidence, possibly through platforms like BestAgent.co.uk, to highlight discrepancies and foster trust.
Note: Dexters’ figures are estimated based on scale and industry trends, lacking direct annual reports.
Conclusion and Advice for Sellers
The revelations about Foxtons and Dexters’ low success rates should serve as a wake-up call for home sellers. It’s crucial to choose an agent based on their performance and transparency, not just their reputation or promises. Sellers should:
1. **Research Agents**: Look beyond the agent’s marketing and check their actual performance data, including success rates and customer reviews, using resources like [GetAgent.co.uk](https://www.getagent.co.uk/estate-agent/foxtons/2).
2. **Get Multiple Valuations**: Don’t rely on a single agent’s valuation. Get valuations from several agents to understand the realistic market price, as advised by [HomeOwners Alliance](https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/how-much-should-i-pay-the-estate-agent/).
3. **Understand Contracts**: Be wary of exclusive contracts and understand the terms before signing. Ensure you have the flexibility to switch agents if necessary. Avoid sole agency contracts longer than 8 weeks.
4. **Stay Informed**: Keep an eye on market trends and property prices in your area to make informed decisions, using insights from sources like [TheAdvisory](https://www.theadvisory.co.uk/estate-agents/online-estate-agents/).
By being proactive and informed, sellers can protect themselves from the pitfalls associated with choosing agents with low success rates and engaging in overvaluation practices, thereby avoiding financial risks and contributing to a fairer home-moving marketplace.
Key Citations
– [Foxtons H1 2024 Results, financial details and sales volumes](https://www.foxtonsgroup.co.uk/sites/foxtons/files/foxtons/investor-relations/results-centre/2024/foxtons-group-plc-interim-accounts-hy24.pdf)
– [GetAgent.co.uk Data for Foxtons, branch performance and listings](https://www.getagent.co.uk/estate-agent/foxtons/2)
– [Estate Agent Fees – HomeOwners Alliance, success rate comparisons](https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/how-much-should-i-pay-the-estate-agent/)
– [Online Estate Agents: TheAdvisory, industry failure rates](https://www.theadvisory.co.uk/estate-agents/online-estate-agents/)