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Good Reasons not to overprice your home

Thursday 20 Jan 2022

Good Reasons not to overprice your home

When selling your home, at David Phillip Estate Agents we always advise pricing your home competitively but realistically, this is even more important after the frenzy of the stamp duty holiday.

The market is already returning to some sort of normality at the beginning of January and we have a number of very nice properties in Bramhope and Adel  about to be launched . Properties are still moving quickly 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 can be on the market 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.

Offers over

Some agents will advise you market your property at ‘offers over’, 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 generally resulting in more offers, and therefore potentially a price over the guide price.

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

All properties 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 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 priced your house too high 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 may adjust, and if your home has had a price that has been inflated then this may cause problems later down the line.

Homes that have to be discounted 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 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.

David Phillip has over 30 years’ experience and knowledge selling properties in North and West Yorkshire, so if you are looking to have a no-obligation, realistic valuation completed then call us on 01134 676 400.

86, Leeds Road, Bramhope, Leeds  w: davidphillip.co.uk

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