The Implications of Over-Valuing Your Property for Sale
When you’ve decided to sell your property, setting a realistic asking price is a paramount decision. It’s understandable that as a homeowner, you want to maximise your return on investment. However, over-valuing your property can create more problems than solutions. Let’s explore why it’s vital to check your property value and not to fall into the trap of over-estimating your home’s value.
The risks of over-valuing your property
One key reason to avoid an inflated asking price is the risk of deterring potential buyers.
When potential buyers are scrolling through online portals, they typically set price brackets that suit their budget. An overpriced property may fall outside these filters, causing your property to miss out on a significant portion of the market.
Remember, the more people that see your property, the greater your chance of attracting the right buyer.
Avoid price reductions
Over-valuing your property can also cause it to linger on the market longer than necessary.
A property that stays on the market for a prolonged period tends to lose its appeal and might even raise suspicion among buyers. This situation can necessitate drastic price drops in the future, which could lead to a lower final sale price than if the property had been appropriately priced initially.
Beware of agent’s tactics
It’s also crucial to be mindful of less scrupulous estate agents who might be tempted to overvalue your property just to win your instruction.
This practice is sadly nothing new. “Over-valuing your property to impress” is a deceitful tactic that can have detrimental effects on your sale process. Beware of such tactics, and don’t allow flattery to cloud your judgment.
Use a regulated agent
This leads us to the importance of engaging a regulated and qualified local agent.
Professional bodies such as Propertymark exist to uphold industry standards, ensuring their members operate ethically and professionally. Agents accredited by Propertymark will provide an honest, informed valuation. Backed by comprehensive market knowledge and a transparent approach to selling your property.
How to determine your home’s ‘worth’
So, how can you check your property value and accurately determine how much your home is worth? Here are a few questions to ask:
- How have similar properties in the neighbourhood been priced, and what were their final sale prices?
- How long do properties in the area typically stay on the market before selling?
- What are the current market conditions?
- How does your home compare to others in terms of features, improvements, and condition?
A Propertymark regulated agent will be able to answer these questions comprehensively and provide a reliable valuation. Instilling confidence that your property will be marketed at a price that reflects its true worth.
Be aware when ‘valuing’ your property
While it can be tempting to inflate the asking price of your home, it’s essential to remember the negative implications of overvaluing.
Setting a realistic asking price, avoiding greed, working with a regulated and qualified local agent, and understanding your home’s market value are all key elements to a successful sale.
You’ll not only attract more potential buyers but also increase the likelihood of selling your property in a timely manner for a price you’re happy with. Remember, the goal isn’t just to sell, but to sell smart so check your property value.
Last Updated: September 22nd, 2024
