Why you should not Market Your Home at an Inflated Price
Ensuring your home is on the market with a realistic price tag is the first step to securing a timely sale. Here are our reasons not to overprice your home.
Your home could take longer to sell
It is common sense that homes that are overpriced can take longer to sell compared with accurately priced properties. Homes that had been reduced from their initial price when listed take on average 2-3 months longer to sell according to data from Zoopla.
Less buyers will see your home
The majority of potential purchasers use property websites like Zoopla and Rightmove when searching for their new home, and one of the key search filters is the maximum price you want to pay. So if you price your home too high it will appear in fewer searches and many potential buyers may miss your property. It may also compare unfavourably to homes listed in the same price bracket that have been realistically priced.
Buyers can be suspicious
Although it may be tempting to test the market with a high price, reasoning that you can always discount it later if there is little interest, this may to trigger suspicion among potential buyers. People tend to be wary of properties that have been on the market for too long, assuming there must be something a wrong with them. You should be aware that some property websites show the details of price reductions.
Even if you do sell – will it complete?
If you are lucky enough to find a buyer at the inflated price, the buyers surveyor may down-value the home, meaning they may try to renegotiate or even pull out of the sale altogether. Wasting valuable time and eventually money.
You can waste your chance of a first impression
Buyers prefer properties that are fresh on to the market, rather than those that have been listed for some time – and you only get one chance to make a first impression. If you price your home right, you may have several buyers interested at the beginning, which could push up the price naturally if it progresses to a bidding war. If your home is priced too high, you may not get this interest in the first place.
Will your agent be on board?
When selling what’s likely to be the biggest asset you own, you need your estate agent to be fully invested in the job. But you risk alienating them if you price it above the amount they recommend. Unrealistically priced properties are hard to shift, and they reflect badly on estate agents, as it could be assumed they are the ones who have overvalued it.
The market may change
Sellers who overprice their homes risk the local property market changing while they wait for it to sell. Homes that have to be discounted can take up to two months longer to sell, which could be enough time for the local market to shift down a gear. If house prices in your area start to fall while you wait, you may find yourself having to discount your home by more than would originally have been the case.
Will a delay risk you losing your dream home
If you have already had an offer on the home you want to move to accepted, you risk losing it if your current property takes too long to sell. Property chains can be long and complex and not everyone will be prepared or able to wait for you to get your target asking price. What’s more, mortgage offers only tend to be valid for three months – and if you exceed this period while holding out for a high sale price on your existing home, you may have to apply again costing you additional fees and causing further delays.
You may be hit with higher estate agency fees
Given the longer time it takes overpriced homes to sell, you may decide to instruct a new estate agent in hope that they will be more successful in finding a buyer. Whether you commission a new agent to the one you’ve got or switch agents completely, you could be exposing yourself to double fees. That’s because many estate agents carry a clause in their contract stating that commission is still payable on the sale of a home they represented, even if they did not broker the final sale.
If you would like an accurate valuation of your home do not hesitate to contact us to arrange an appointment or if you are short of time simply take a walkthrough video of your home and send it to us through our website www.regal-estates.co.uk
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