A property valuer is a trained and qualified professional. The property valuer will provide an independent report on the property. The valuer has no financial interest in the property. When an estate agent is valuing your property there are a few things to consider.
An estate agent does not value your property but rather offers an opinion on what the property may sell for and there is no legal requirement for the opinion to be accurate or for the agent to be accountable. The estate agent is also motivated by monetary factors and this can influence their opinion of the value of your property.
They may overvalue property to ensure that you list the property with them.
Most property sellers will be flattered when they are told an inflated value for their property and the seller will allow the agent to market their property. This results in two things.
Firstly the agent lists the property on a data base and will get a commission if the property is sold, even if the agent who listed the property did not sell the property.
Secondly, the seller is bound by a contract and the only way to sell the property within a reasonable time, is to reduce the asking price
The agent may undervalue the sellers property to ensure that the property sells quickly. This allows the agent to easily find a buyer and allows the agent to get their commission quickly and with reduced advertising costs and effort.
Agents may also undervalue property to personally buy your property and then sell at an inflated profit.