I have had experience of this from both ends. We had a place in London rented out and are renting a house in Kent while we figure out what we want to do with our lives.
Last year, our tenant in the place in London asked us if we’d sell the place to them, we agreed to get some valuations and come together to talk about it.
The tenant put an offer of about 300k on the table. Sounded pretty good. Three estate agents came through the door, two said to list for 330 and 335, with an expectation of achieving 325-330.
This was SO much more than the tenant was offering that we couldn’t accept the tenants offer. The tenant left, sadly, and we listed with the shiny-suited estate agent who, predictably, had given us the highest estimate.
Long story short. We changed agents after no nibbles in 8 weeks, listed for 315 and sold for 300. We then had to pay 6k estate agents fees on top of that, so we would have been a lot better off accepting the tenants’ offer.
This year, we asked our landlords if they would sell their place to us.
We then watched as EXACTLY the same situation played out for us.
The estate agents told the landlords that they would achieve 40-60k better than our best offer (which we felt was probably 10k over true value). The landlords saw the pound signs and turned us down.
We are now leaving, after having an offer accepted on a place up the road.
The moral of this long (sorry) post, is that estate agents are bastards. They over-inflate the listing price to get you on their books, then will wait the weeks and months it takes to slowly erode their fictional valuation. The price will drop, and somebody on the open market will get it for a bargain.
Suggest to the landlord that he puts it on the open market. Leave your offer on the table. If it sells for more, good for them. If they get bored and sell to you, good for you.