Good Reasons not to overprice your home during the Stamp Duty Holiday.
When selling your home, at David Phillip Estate Agents we always advise to price your home competitively but realistically, this is even more key during the stamp duty holiday when we have heard of agents overpricing properties because the potential buyer will be making a saving as a result – this potentially could give the property market a false impression around price increases.
The market is very buoyant at the moment and properties are moving quickly so it is even more important to price your property competitively as you have much more competition to contend with.
However, it is important to note that the stamp duty holiday ends at the end of March, when only properties that have completed in this time will benefit from the stamp duty holiday – the Home Owners Alliance have undertaken research that shows it can take up to 6 months to sell your home, and as we are nearing the end of September then this is even more important.
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, 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.
You can create problems further down the line
Most 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. Once the stamp duty holiday is finished (and you need to be listing your property soon to get to completion by the end of March) then the property 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 – particularly at the end of the stamp duty holiday
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 open market appraisal completed then call us on 01134 676 400.