Are you thinking of overpricing your home in the confidence that you can reduce the price later? Beware: it is a plan that could have serious repercussions. We talk to Colin Shairp from Fine & Country South Hampshire about the importance of not overvaluing your home.
Everyone likes to think that their home is the best in their street or town and that it’s worth more than neighbouring properties. But pricing your home too high, often discourages potential buyers. Price it right, however, and its attraction to more than one buyer could well draw offers above the guide price.
For example, we have a property for sale in Southsea at the moment, which is now under offer above the asking price. It was never low in the first place as that would mislead clients, but it was sensible enough to attract buyers, who could see its real value, then they bid accordingly.
Setting the price too high can be an expensive mistake. The house sticks on the market, becomes familiar with buyers, who avidly scan search engines, and instantly recognise when the price drops. That of course, is when shrewd buyers move in and seek yet another reduction before they will sign on the dotted line. It leaves both your ego and your finances severely bruised.
Looking around search engines to discover what has sold in the past, and at what price, can be misleading. You can’t really tell how such properties compare with yours and the recent house market history, means that there’s no reliable way to apply old data to current situations.
It is far better to have an agent who knows your market well, can give a fair market appraisal, come up with a reasonable price based on their experience, rather than setting the price too high from the outset. The right agent will be able to demonstrate a database of potential buyers with the financial means to deliver.
So the message is that overvaluing your property can be financially wounding. It will stay on the market for longer, while you continue to pay the mortgage, rather achieve a realistic price.
If the only reason for increasing the price is because you need those extra pounds to afford the next property, then the chances are you will be disappointed. Set your values, and your budgets sensibly and you are more likely to move home faster this autumn.
Are you looking to sell your property in the South Hampshire region? Colin Shairp is the director of Fine & Country South Hampshire. For further information, please call 023 93 277277 or click here.