Selling a property isn’t just about putting it online and hoping for the best.
There is a degree of psychology involved and pitching a home at the correct price is part of this process.
In fact, homeowners in Plymouth could be losing thousands of pounds on their properties due to incorrect valuations by estate agents.
According to a recent study, homes that required one or more price reductions in the last 12 months sold for less money than homes that required no reductions.
For example, those homes that required three reductions sold for 88% of the original list value and took, on average, 146 days to sell.
Properties that required no reductions sold for 99% of their original list price and took, on average, 40 days to sell.
Estate agents in Plymouth report the city’s housing market is currently very price-sensitive.
That makes it vital that if you are thinking about moving, your property is priced correctly.
Paul Preen, Managing Director of Lang Town Country, says: “An overpriced home may scare buyers, thinking that they’re dealing with an opportunistic seller.
“You may be open to the possibility of selling for less, but a buyer may not even bother looking at it if the home is overpriced from the start.
“Inflated valuations will often deter potential buyers, who may perceive the property as overvalued and unaffordable. This can in turn lead to longer time on the market, resulting in increased costs and reduced interest for the seller.”
What happens if a property is priced too high?
If your property is priced too high, it can have hugely negative consequences for you as the seller.
An overpriced house can signal a lack of motivation to sell, further discouraging potential buyers. Over-valuations can also limit the pool of qualified buyers, leading to missed opportunities for you as the seller.
Paul says: “The longer a property is sat on the market, the less attractive it appears to potential purchasers.
“When the property has had price reductions, this can sometimes send the wrong signal to a potential suitor. They may see the reductions are due to the fact that there may be something wrong with the property.
“Some will see the reductions as a sign of desperation on the sellers behalf and make them come in with offers substantially below the asking price.”
How can I tell how long a property has been on the market?
Property portals like Rightmove and Zoopla have a time clock attached to each listing to show you how long the property has been on the market.
The listings will also tell you if there has been a price reduction. Zoopla goes one step further and will tell purchasers about the marketing history.
What are the consequences of an incorrect valuation?
Paul explains: “If a property is overvalued in the first instance, the seller may themselves fall into the trap of expecting to sell their property at a figure considerably higher than they actually achieve.
“They will potentially be looking at properties that they may not necessarily be able to afford if they are expecting to achieve a sale close to the price they have been advised.
“If the seller has been on the market for a number of months with little or no interest and then reduces the property in price and a ‘cheeky’ offer is made, they may well consider the offer as they may have become deflated and think that no one wants their property and be tempted to take the offer they have.”
How can I make sure my property is the right price?
Paul explains: “One of the most important factors is to do your research on the local market and the estate agents.
“Look for agents who continually reduce their stock in price, ask people you know have recently sold their properties or had dealings with local agents and look for Google reviews on people’s experiences.
“And don’t forget, if it sounds too good to be true, treat it with caution!”
I’m thinking about selling. What’s the next step?
If you’re thinking about selling your home, your first step should be to get it valued.
Get in touch with our Lang Town & Country team and we’ll be more than happy to offer advice and a free valuation of your home.
Plymouth Sales – 01752 256000 / Property@langtownandcountry.com
Plymstock Sales – 01752 456000 / Plymstockoffice@langtownandcountry.com
Waterside Office – 01752 200909 / Waterside@langtownandcountry.com
Lettings – 01752 201010 / enquiries@langtownandcountry.com
Land & New Homes – 01752 278499 / newhomes@langtownandcountry.com
