When selling your home, at David Phillip Estate Agents we always advise pricing your home competitively but realistically (we have 100% sales valuation accuracy on the AllAgents property review site), this now this is even more important as the market re-aligns to some sort of normality plus buyers are even more conscious of a realistic price at this time when household bills and the cost of living is increasing.
Properties are still moving quickly although we are seeing more ‘price reductions’ on Rightmove, where properties have been overvalued or the Estate Agent has recommended ‘offers over’ which is really off-putting for buyers, and we think it is a ‘put your finger in the air and think of a number’ valuation – the price then often reduces to a guide price! So, it is even more important to price your property competitively so that your home isn’t overlooked in favour of something priced realistically.
So, here are the 8 good reasons not to overprice your home, (most of them are common sense too!)
Your property could take longer to sell
Homes that are overpriced can take more than two months longer to sell compared to accurately priced properties according to Zoopla. The extra time it took an overpriced property to sell ranged from an average of 68 days in the North East to 49 days in the West Midlands.
Fewer buyers will see your home
Most buyers use property portals like Zoopla and Rightmove to ‘kick start’ their search for a new home, and one of the key search filters is the maximum price you want to pay.
As a seller, if you price your home too high, it is likely to appear in fewer searches and bypass many potential buyers, it may also compare unfavourably to homes listed in the same price bracket that have been realistically priced – and that is a big chunk of the market.
Buyers can be suspicious of properties that have been listed on the market for too long
While it may be tempting to test the water with a high price, or list at ‘offers over’ reasoning that you can always discount later if your home does not sell, this approach is likely 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 wrong with them.
Bear in mind also, that a price reduction will be noted next to the home for sale on the property websites- there is no hiding place from this one!
Some agents will advise you market your property at ‘offers over’, (apologies for labouring the point on this one) however, through experience this may dissuade people from looking at your property – buyers fear that they will be outpriced and therefore don’t even bother viewing – if the property had been listed at a ‘guide price’ then people know more realistically what they are likely to pay – this also means that your home is likely to get more viewings too (buyers have told us they have discounted looking at properties for sale at offers over) generally resulting in more offers, and therefore potentially a sale agreed over the guide price (people always have a search criteria price ceiling on Rightmove – and ‘offers over’ may eliminate potential viewers).
Sometimes people may put in an inflated offer to secure the property, only to reduce and re-negotiate further down the line – at this time other interested parties may have moved on to another property.
You can create problems further down the line
Buyers requiring a mortgage will need a valuation survey carried out by their mortgage lender, and even if you have found a buyer at an inflated price, then it may return a value below the offer accepted – at this point the buyer may try to negotiate a discount or even pull out of the sale altogether. If the buyer does pull out, then you may need to re-advertise your house arising even more suspicion.
You can waste your chance of a first impression
Buyers prefer properties that are fresh on the market rather than those that have been listed for some time and especially with a price reduction too – and you only get one chance to make a first impression. If you price correctly then you may have several buyers interested at the beginning which could push up the price naturally.
If you have over-priced in the first place then you may not get this interest
The market may change
Sellers who overprice their homes, risk the local property market changing while they wait to sell. The stamp duty holiday saw an increase in house prices and although house prices are remaining consistent, the market is showing signs of adjustment, and if your home has had a price that has been inflated then this may cause problems later down the line – we have already noticed price reductions in LS16 and LS21 taking place.
Homes that have to be reduced can take up to 2 months longer to sell, that could be enough time for the market to shift down a gear.
You run the risk of losing the home you want to buy
At David Phillip Estate Agents, we are finding that people who have sold their property and ready to proceed are in a much better position to have an offer accepted on their dream home. We are currently taking offers from people who are proceedable. Property chains can be long and complex and not everyone will be prepared to wait for you to find a buyer at your overpriced asking price.
You may be hit with higher Estate Agency fees.
Given the time it takes for overpriced homes to sell, you may decide to instruct a new agent in the hope that they might be more successful in finding a buyer – at David Phillip Estate Agents, we have sold properties unsuccessfully listed by other agents, but our fees need to be paid too, this can put the overall price up too. We do though have fairer fixed fees so that you know exactly what you are paying, and also unlike other agents, we do not tie you into lengthy contracts as we are confident in our ability to sell – as long as your property is priced correctly.
As the dynamics of the property market continue to change if you are considering selling your home you need to use an Estate Agent that has experience in all market conditions. David Phillip has over 30 years’ experience and knowledge selling properties in North and West Yorkshire and is a fellow of the Royal Institute of chartered surveyors so if you are looking for a realistic valuation and market advice based on experience then call us 01134 676 400.
David Phillip Estate Agents, 86, Leeds Road, Bramhope, Leeds, LS16 9AN www.davidphillip.co.uk
Covering properties in Bramhope, Pool-in-Wharfedale, Adel, Cookridge and North Leeds