So, your home is on the market, you’ve decluttered, the sink is sparkling, and you’re patiently waiting for potential buyers to come and view your property. A few people arrange appointments, but no one seems interested; it’s been weeks. Have you been hit by the curse of an overvaluation?
Overpriced properties can sit on the market for months. Viewings become as rare as sighting the Loch Ness Monster; the agent’s gone quiet and your hopes of moving are slowly slipping away.
In this quick read, we look at why an overvaluation can be disastrous and how to avoid this costly mistake.
Potential sale delays
If your property has been overvalued, chances are it’s been seen by numerous potential buyers on various property portals. The more they see it, the less interest they’ll have and the harder it’ll become to sell.
As a seller, it may take months to realise what’s happening. And while a price reduction may start the ball rolling again, potential buyers will have the upper hand as they’ll know the property has been on the market for a while and may have more room to negotiate.
Search criteria
When people are browsing properties, they often use search criteria such as number of bedrooms, property type and price.
It’s possible that your overvalued property hasn’t even appeared on the filtered list of houses or apartments they’ve been searching for, so you’ve already lost out on a potential buyer.
Losing out
If you’ve overpriced your home to be able to afford your next property, then you’re probably in for a long wait and could also be stretched financially. An overvalued home may mean you lose out on another property as you can’t afford to buy without selling first.
Also, at a time when mortgage rates are at their peak, overvaluing a property could cause you longer delays to the sale than normal.
How to avoid the curse of an overvaluation
Agents that overvalue properties have been accused of trying to win more business for themselves, but in fact they can be hampered by a seller’s unrealistic expectation.
To avoid the curse of an overvaluation, it’s important to do your own research. Look at similar properties on the market and what they’ve been valued at. Also, what have similar properties sold for?
Choose your agent carefully. Get a few agents round to value the property and choose the one with the most realistic price and clear marketing strategy. A good agent will be able to clearly explain why they’ve valued your property at a specific price point.
If you’re looking to sell your property or need to change agent, contact Greyfox today.