Is over valuing a problem when selling your home?
The answer is simple … YES!
Since the birth of Rightmove and the growth of the internet, information about property in general has become very easy to obtain. For a buyer this information can be powerful when entering into negotiations, however, as a vendor it can be extremely frustrating as properties in the area may have sold at a lower price due to forced sale situation (repossession, death in the family, break up).
Conversely, there will be properties in your area that will be at a higher value which have not sold. When you have been given a figure by an agent, have a look at the comparables provided, how long have they been on the market for? And what price reductions, if any, have they taken?
The early stages of marketing are essential and that starts with the marketing price of your home. Your home could look fantastic on Rightmove, Zoopla and On The Market, however if there is a similar property either on the market at that time, or recently sold for a substantially lower price, it will almost always be detrimental to you.
The agent has the most important part to play and inaccurate pricing in the first instance can cost you £1000’s.
Here are our top tips to always ask an agent at your valuation appointment in relation to the price they give you: –
1) What comparable properties can you show to support your valuation?
2) What have you sold in the area & how long did it take to sell?
3) Are you paid commission for listing properties?
4) What strategy are you going to implement to get me the best price?
5) What percentage of stock do you reduce before agreeing a sale?
6) (If the comparables are at a lower value than yours)– What is the difference between my property and the comparables? What makes my property worth more/less?
Remember for most people their home is their biggest and most valuable asset, so taking the time to make the right decision at the beginning can make you thousands of pounds.
If you have any questions, then please feel free to call the team on 01204 329975.