March, 2022
If you want to sell your home as easily as possible, it is crucial to set a realistic asking price.
It’s only natural to hope for the highest price for your property, but it is important not to be greedy. If you spend too long holding out for a more lucrative offer, you may miss opportunities to sell – especially when the only thing putting buyers off is an unreasonable asking price.
If your house is already on the market, the first indicator is if you are not getting any interest at all or are getting a lot of people coming in but offers are low.
A market appraisal is simply what the agent thinks someone might be prepared to pay, and if people aren’t willing to pay that price, the property is overvalued.
Sometimes this is down to lack of the local market knowledge or not doing their research beforehand. The most common reason for an overvalued house is so the agent can lure you in and secure your business.
But is this really what the estate agent wants? A house that sits on the market for weeks on end with little to no interest. Most agents want a property they know they can sell easily so they exchange quickly and get their commission.
Typically, you would assume that having a higher priced property leaves you more “wriggle room”, but this isn’t the case.
Whilst there are a lot of Brits who love to negotiate and get the best value for their home, a recent survey suggested that 30%.
Putting a property on the market for more than it is worth, thinking you can negotiate downwards, could risk you missing out on 30% of the potential buyers.
HS Homes of Solihull is a small independent estate agent based in Shirley, Solihull. If you are interested to know what your home is worth, call us on 0121 430 4448. Alternatively, click here to book a free market appraisal.
Having a property on the market at a realistic asking price with “offers over” will attract 100% of the potential buyers. This could leave you in a stronger position and subsequently a better price for your property.
The last 24 months have seen houses being sold for over asking price, however this is only the case when the house has been valued accurately in the first instance.
When you get your valuations, do some research yourself.
Look on Rightmove and Zoopla to see how much similar properties in your area have sold for.
Things you need to take into consideration when looking at comparable properties:
1. Check like for like properties – for instance it is no good comparing a 3 bed terraced with a 3 bed detached.
2. The condition of the home – if your property has been modernised throughout, it could justify a higher price that similar properties that need modernising.
3. Any extensions and conversions – if you have an extended kitchen-diner with breakfast bar and bifolding doors, this will also add value to your property in comparison to similar properties that have not extended.
Look on Zoopla at sold on your street prices. Do they compare to your property? When were these properties sold? How has the market placed changed since then?
You can see what market trends are for the type of property and the date ranges by checking house price index here:
It’s very easy to get carried away and want to get the most money for your property, but is it realistic?
When you are looking for your next home, are you likely to choose the overpriced or the reasonably price property?
The majority of potential buyers will do their own research, in the same way I have advise you above, to ensure the property they are viewing is reasonably priced.
So, there are occasions where an overvalued property gets an offer at its asking price.
However, this is usually when you are relying on one buyer who hasn’t done their research or understands the local market.
Either way, if you accept an offer on your property and you suspect is overvalued, this could lead to problems further down the line.
Well, apart from your property sitting on the market for weeks on end, leaving potential buyers wondering what is wrong with it, there are also more deep-rooted issues too.
Imagine you have put in an offer on a house at £800,000. You instruct a solicitor, start your searches and a chartered surveyor commences their valuation. The valuation report comes back and the house is valued at £700,000. How will this leave you feeling? Would you still be happy to go through with the purchase? Are you likely to see what other properties are available? Will you be able to get a mortgage on a property that is £100,000 over the valuation of a chartered surveyor?
There are so many issues with overvalued properties.
Is it really worth the extra stress and worry?
HS Homes of Solihull is a small independent estate agent based in Shirley, Solihull. If you are interested to know what your home is worth, call us on 0121 430 4448. Alternatively, click here to book a free market appraisal.
