The Dangers of Overvaluing Your Property: A Seller’s Guide

If you’re a vendor considering selling your property this year, it’s essential to understand the risks associated with estate agents overvaluing properties. Overpricing not only impacts the timescale of your sale but also the amount of money you ultimately walk away with. Let’s explore why accurate pricing is key to a successful sale.

Why Overvaluing Can Hurt Your Sale

In today’s market, being realistic about your property’s value is crucial. When you list a property, you’re likely doing so with the intention to sell. Overpricing can lead to your property sitting on the market for months before attracting a buyer. This delays the entire process and can be incredibly frustrating.

The Mindset of Buyers

Buyers are savvy and often scroll through property portals looking for value. If your property is listed at an inflated price, you risk it being overlooked. Potential buyers may assume it’s overpriced and skip past it, waiting for a price reduction or focusing on more competitively priced alternatives. This loss of initial impact can be detrimental, as early viewings are crucial for generating interest and driving offers.

The Slippery Slope of Price Reductions

Some estate agents may suggest listing your property at a higher price with the idea that “we’ve got time.” However, statistics show that properties which sit on the market often end up selling below their true market value. By the time you reduce the price, you may already have lost the momentum and interest necessary to secure the best offers.

Why Do Estate Agents Overvalue Properties?

Overvaluing often occurs because agents want to win your business by offering an inflated estimate of your property’s worth. However, pricing your property correctly doesn’t mean you’re giving it away cheaply. Instead, it ensures your property sells quickly and has a better chance of completing the transaction.

The Importance of Pricing It Right

Research shows that properties selling within 25 days have a 94% chance of reaching completion. In contrast, those selling after 100 days have only a 54% chance of completing. This difference is significant. The longer your property remains unsold, the higher the risk of deals falling through, potentially leading to lost onward purchases and stressful renegotiations.

How to Determine the Right Price

When estate agents overvalue properties, how do you determine the correct price? The key is to focus on properties that have sold in your area, not those currently listed. Look at the prices achieved for similar properties and base your pricing on realistic data.

Questions to Ask Your Estate Agent

To ensure you’re working with the right agent, ask:

• What research supports their valuation?
• What properties have they sold recently, and at what prices?
• How quickly do they typically sell properties?

An agent with a strong track record of accurate pricing and quick sales is likely to secure the best outcome for you. For example, my average sale time is two to four weeks because I prioritise thorough research and realistic pricing. This approach ensures maximum impact, the best price, and successful completion.

Final Thoughts

If you’re thinking of selling this year, avoid the pitfalls of overvaluing your property. Accurate pricing is the key to a quicker, smoother sale and a better final outcome. For personalised advice or more information, feel free to reach out to me.

Have a great day, and best of luck with your property journey!