Homeowners in Plymouth could be losing thousands of pounds on their properties due to incorrect valuations by estate agents.
Estate agents in Plymouth report that the local housing market is currently very price-sensitive.
That makes it absolutely crucial that your property is priced correctly, if you are thinking about moving.
Paul Preen, Managing Director of Lang Town Country, says: “I think there’s been a lot of speculation in the press recently about the housing market, property prices and where the economy currently stands.
“The importance of property valuations in the current climate is essential to attract the correct buyer and not let the property stagnate on the market for too long.
“We know how important it is to get your asking price right at the first attempt and attract the correct buyers.”
What happens if a property is priced too high?
If a property is priced too high, it can have hugely negative consequences for the seller.
Inflated valuations can deter potential buyers, who may perceive the property as overvalued and unaffordable.
This often leads to prolonged time on the market, resulting in reduced interest and increased costs for the seller.
An overpriced property 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 the seller.
Paul Preen discusses the importance of property valuations in the current climate
How can an incorrect valuation affect a property sale?
Ultimately, if a property remains overpriced for an extended period, the seller may be compelled to reduce the price significantly. This can result in potentially huge financial losses.
Paul explains: “Nowadays, there’s plenty of available information to the buying public that will tell them how long the property has sat on the market, and if it’s had price reductions.
“If you look at both of the major property portals in the UK, they inform potential purchasers how long it has been on the market and if it has been reduced in price. Zoopla in particular will tell purchasers how many price reductions the property has had”.
“Once you fall into the trap of being available for more than two to three months and you’ve had numerous price reductions on the property, these are red flags to a potential buyer.”
There are a number of properties currently on the market where our expert team have advised clients on the marketing and the pricing of their property a number of months ago.
We have provided valuations where in some instances other estate agents were also asked to provide a valuation. They priced the same properties in some cases at almost £50,000 more than our experts.
Subsequently, the vendors opted to go for the agent citing the higher figure, for which they could be forgiven. However, it has proved to be an incorrect decision and one which looks set to cost them a substantial sum of money.
Since the start of 2023, one property in particular has seen multiple reductions. The screen shot above shows it is now on the market for £425,000, a staggering £75,000 less than its original asking price.
Paul adds: “Those reductions, together with the time the property has been on the market, are going to be very off putting for potential buyers.
“A savvy buyer would think nothing of trying their luck now with an offer below the £400,000 mark.
“Had the vendors gone with the correct valuation at the outset, we are confident they would have sold at close to the asking price. Instead, they are in a situation where they’re going to lose out on potentially £50k or more – if they even sell at all.
“This is just one case in point which re-enforces how crucial it is to get the original valuation correct.”
Is now a good time to move in Plymouth?
Paul says: “There are certainly people out there still looking to buy, and the sales figures that we’ve produced so far this year have been very positive and completely against the grain of what the media are telling us.
“What is clear is that the current housing market is very price-sensitive, so correctly pricing your property is absolutely crucial.
“You have to get your asking price right at the first attempt to attract the correct buyers.
“Using our expertise and experience in the local property market, we can help you do just that.
“If you want any further information, please do contact your local Lang Town & Country office, and our teams will be more than happy to help.”
How do I get in touch with Lang Town & Country?
If you’re thinking about selling your home, your first step should be to get it valued.
Please do contact us 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 / firstname.lastname@example.org
Land & New Homes – 01752 278499 / email@example.com