Is Your London Home Overvalued?
So, your home is on the market, youve decluttered, the sink is sparkling, and youre patiently waiting for potential buyers to come and view your property. A few people arrange appointments, but no one seems interested; its 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 agents 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 its been seen by numerous potential buyers on various property portals. The more they see it, the less interest theyll have and the harder itll become to sell. Basic sales psychology at play.
As a seller, it may take months to realise whats happening. And while a price reduction may start the ball rolling again, potential buyers will have the upper hand as theyll 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.
Its possible that your overvalued property hasnt even appeared on the filtered list of houses or apartments theyve been searching for, so youve already lost out on a potential buyer.
Losing out
If youve overpriced your home to be able to afford your next property, then youre 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 cant 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 sellers unrealistic expectations.
To avoid the curse of an overvaluation, its important to do your own research. Look at similar properties on the market and how long they have been available. 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 theyve valued your property at a specific price point.
If youre looking to sell your property or need to change agent, contact me today.
