The Selling Process - Risk of Over Pricing
We all want to get the very best price for our home, and so it’s always tempting to ask just that little bit more for it. Unfortunately, some less scrupulous estate agents are only too well aware of this, and will deliberately over-value your home in order to get your instruction.
However, this does not mean you will end up with more money! Remember, buyers can spend months looking for the right property. They know an overpriced home when they see one, and they simply walk away.
Think about it – would you pay several thousand pounds more for something than you know it’s worth? No, we didn’t think so!
All that happens, if you put your house on the market at too high an asking price, is that it will languish there while other, more sensibly-priced properties sell all around you.
In the end, you will have to bring the price down to where it should have been in the first place. But meanwhile, of course, you will have missed out on all that initial market interest…
Risks of Over Pricing
There are a number of other risks associated with over-pricing:
- Buyers notice the amount of time a property is on the market, and may wonder if there is something wrong with it.
- The Internet makes it much easier for buyers to become experts on asking prices.
- Even when you reduce your price, it can be difficult to persuade buyers to reconsider a property they have already rejected.
- Having your home on the market for an extended period can be very stressful, because it can mean your life is on hold. Also, constantly trying to keep it in a suitable condition to be inspected by complete strangers can be inconvenient, to say the least!
- Many buyers won’t make a low offer for fear of insulting the seller – so they just go away without even giving you the chance to negotiate.
- Missing out on a sale may mean losing the dream home you want to buy. Or, it could mean you end up trying to pay two mortgages for a while!
- The longer your property is on the market, the greater the chance that something will need repairing, leading to expense that could have been avoided.
- Last, but by no means least, lenders are not impressed by over-priced properties – so, even if you do find someone willing to pay your asking price, they could have problems getting a sufficiently large mortgage!
Your best chance for achieving the highest price for your home is to have it valued by an experienced local independent estate agent who can set a fair market price for it. Your home will compete successfully with other houses on the market and give you the best chance of achieving the best price for you.
You could achieve a far better result buying or selling your home through a Guild Member.