When you decide to sell your home, one of the first things you’ll probably do is invite three estate agents around for valuations. It’s something most of us do almost by habit. It feels smart to compare offers before you commit. What happens when those valuations are different? And why do some people end up picking the agent who quotes the highest price?
It’s not just about greed or naivety. There’s a mix of psychology, cognitive bias, market uncertainty and real consequences. This is all wrapped up in how homeowners make this choice.
The “Highest Price Wins” House Valuation Mentality
Picture this: Agent A values your home at £400,000, Agent B values it at £420,000, and Agent C says £450,000. If you were selling your home, which one would you pick?
Many homeowners instinctively lean toward a higher number. A higher valuation feels like more money in the bank. It’s human nature to want the best possible outcome, even if it isn’t realistic.
This choice is reinforced by anchoring. This is a psychological bias where the first number you see becomes your reference point. The higher that initial number, the more valuable you think your home is (even if the market data suggests otherwise).
So, if Agent C comes in high, that becomes your anchor. You’re much more likely to treat Agent A’s valuation as “low” even if £400,000 is actually closer to what comparable houses in your area are selling for.
Data Says: The Highest House Price Valuation Isn’t the Only Factor
Recent research shows that while the valuation an agent provides is an important part of the decision-making process, it isn’t usually the top factor. Sellers tend to prioritise local presence, reputation, and proven expertise when choosing an agent. However, price still plays a role in shaping perceptions.
At the same time, market data from analytics company TwentyEA highlights the risks of overvaluing a property. In 2024, over 30% of homes had at least one price reduction before selling.
These findings show that while a higher valuation can attract attention, sellers benefit from balancing optimism with realistic, evidence based pricing. They should take into account recent sales data, market trends, and property features. This approach maximises the chance of a smooth sale without the need for later price reductions.
The Psychology Behind Higher Valuations For Your Home
Several cognitive biases and emotional dynamics influence why sellers are drawn to higher numbers:
- Anchoring Bias
The first valuation you see often sets your mental benchmark. - Endowment Effect
Once you own something, you naturally value it more. Your home isn’t just bricks and mortar, it’s years of memories and improvements. - Confirmation Bias
If you want your house to be worth more, you’re more likely to believe (or lean towards) the estate agent who tells you it is.
Why Realistic Pricing Of Your Home Matters
Choosing an agent purely because they gave the highest number isn’t always the smartest move. Market reality ultimately determines your home’s value, not a valuation on a piece of paper. Overpricing can lead to longer time on the market and eventual price reductions as highlighted in the data findings above.
But Higher Values Can Be Right
That said, sometimes a higher valuation is justified. Unique features, recent local sales, or a particularly competitive market can support an optimistic price. The key is for sellers to understand whether a valuation is evidence based. That way, you’re evaluating credibility and strategy, not just chasing a flattering number.
The “Middle Option” Trap And The Housing Market Reality
Like SaaS pricing models, people often gravitate toward the middle option when presented with three valuations. It feels like a balanced choice. For those selling their homes, the middle number may not reflect the actual market value. This is especially true if one valuation is realistic and another is based on unique advantages or features.
Sellers should compare valuations against real sales data, not just against each other, to ensure their choice is both informed and practical.
Seller Tip: Check the Land Registry Before You Get Valuations
Before inviting estate agents to value your home, spend a few minutes reviewing recent sales data for your street and nearby properties. This shows what homes have actually sold for, not asking prices or hopeful estimates.
By starting with this data, you create a baseline. When agents provide their valuations, you’re assessing whether the numbers are justified. Sometimes, the higher valuation is supported by market activity or unique features. That can guide you toward a strategy that maximizes your house sale while staying realistic.
So if the question is ‘what’s my house worth?’ get some data before you call up the agents who will go and value it for you.
In Summary
Sellers naturally want the best possible price for their home. So invariably higher valuations feel right. However, having access to valuable data can ensure that optimism is realistic.
By understanding the psychology behind valuations and checking recent sales data, sellers can make informed choices and select agents who can deliver a successful sale whether the valuation is high, middle, or market-based.
This approach benefits everyone. Homesellers feel confident, buyers see realistic prices, and professional agents can focus on delivering results rather than just a number on a page.
