The goal for every seller is to get the best possible price for their property, and many are tempted to enter the market with a value higher than that advised by their agent - what's there to lose, right?! Well, a lot.
Here are nine reasons not to overprice your home...
1. Your property is likely to take longer to sell
Data from industry leading portals such as Zoopla shows that overpriced homes can take up to 10 weeks longer to sell across the UK, compared with accurately priced properties. As they say; you only get one chance to make a first impression (more on that later), and once the shine wears off that "new property" listing and buyers see that your property hasn't sold as quickly as others, they'll start to wonder why... is there something wrong with it? Did it fail some checks? Any buyers that do still view the property are likely to feel confident in their position to haggle.
2. Fewer buyers will see your home
Most buyers use property websites like Zoopla or Rightmove when searching for a new home – and one of the key search filters is the maximum price they want to pay.
If you price your home too high then it'll appear in fewer searches and bypass many potential buyers. If the price is unrealistic then it'll also compare unfavourably to homes listed in the same price bracket that have been realistically priced, putting it at the bottom of their list.
3. Buyers can be suspicious
While it may be tempting to test the water with a high price, with the thought that you can discount it later if it doesn't sell, this approach is likely to trigger suspicion among potential buyers. Again, 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. Bear in mind that price reductions are noted next to the home for sale on property websites, so buyers can clearly see how much it came to market for, and how much it's dropped. Buyers might start to wonder why... and their imagiations will likely be much wilder than reality!
4. Even if someone offers at an inflated price, there could be problems in store
Even if you find a buyer at an inflated price, it may still cause problems later. The buyer is likely to have a valuation survey carried out by their mortgage lender – and if it returns a value significantly below the offer you have accepted that could put their mortgage offer at risk. They may try to negotiate a discount or pull out of the sale altogether.
5. 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. If you price your home right you may have several buyers interested at the beginning, which could naturally push up the price if it progresses to a bidding war.
If your home is priced too high, you may not get this interest in the first place.
6. You risk alienating the estate agent
When selling what’s likely to be the biggest asset you own, you need your estate agent to be fully invested. If you choose to ignore their expertise on the market appraisal then you risk affecting tha important relationship. Unrealistically priced properties are hard to move, and they reflect badly on estate agents as it's often assumed they are the ones who have mispriced it.
7. The market may change
Sellers who overprice their homes risk the local property market changing while they wait for it to sell, and this is particularly true in the current market. With homes that have to be discounted taking up to two months longer to sell, and with heightened uncertainty and slowing economic growth that 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 the original market appraisal given by your agent.
8. You run the risk of losing the home you want to buy
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 dream asking price.
Plus 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.
9. 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 second agent or switch agents completely, you could be exposing yourself to additional fees. 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 - so check those contracts carefully.
Don't forget; your agent works for YOU
It's important to remember that, as your Estate Agent, we're there to represent YOU, the seller. It's in our best interest to get you the best possible deal, and we work very hard to do so. We're also experts on the housing market - and how it changes from month to month - and of course the local market specifically. A good agent will base a market appraisal on a number of factors, including comparable properties recently sold in the area, and our job is to guide you through your sale successfully. At Dylan Davies we have no lengthy contracts, and we don't take upfront flat-fees like some agents that are payable regardless of whether or not your property sells, so we have every incentive to price your property accurately and to ensure the sale goes as smoothly as possible. That's quite literally what we're here for!
If you're thinking of selling, contact us today for a free property valuation.
If you have a property to sell we would love to hear from you. Get in touch to arrange your no obligation property appraisal, or take a look at our free instant online valuation tool for an idea of what your property might be worth. On the other hand if you're looking to buy please make sure you register your interest early, plus keep an eye on our Facebook and Instagram stories for sneak peeks of the properties we have coming to market soon!
Postcode areas we now cover;
CF15, CF37, CF38, CF39, CF44, CF45, CF72
Posted on: 10 February 2023