Selling a home can be an exciting and nerve-wracking experience. As a homeowner, you understandably want to get the best possible price for your property.
However, setting an unrealistic price tag can lead to disappointment and delays in the selling process. Here are seven key reasons not to overprice your home.
1. It’ll reduce your pool of potential buyers
Overpricing your home can deter potential buyers. In today's competitive property market, buyers have better access to local market data and can easily spot an overpriced listing.
When your home is priced beyond its actual value, it may not appear in search results that match your target buyers' criteria, reducing its visibility. Consequently, you'll likely receive fewer enquiries, prolonging the time your property stays on the market.
2. It can slow down your sale
According to data from Rightmove, overpriced homes can take up to 10 weeks longer to sell on average, compared with correctly priced properties which go under offer within an average of four to five weeks.
If you’re hoping to get moving fast, receiving an accurate valuation, and pricing your house accordingly is the best course of action.
Looking to move now? Use these top tips to help speed up your sale
3. Risk of stagnation and price reductions
If your home sits on the market for an extended period, buyers may assume there's something wrong with the property, leading to a negative perception.
As time goes by, you might be forced to reduce the price, eventually selling it for less than its market value. This can be frustrating and financially disadvantageous, especially if you are eager to move on to your next home.
5. Attracting the wrong buyers
Overpricing your home might attract buyers who are looking for properties with higher price points.
Unfortunately, your property might not meet their expectations. This can lead to wasted time and effort for both you and the interested buyers.
Pricing your home accurately will ensure that you attract serious and qualified buyers who are genuinely interested in your property.
6. Missed opportunities
The first few weeks of listing your home are crucial for attracting potential buyers. If you overprice your home initially, you risk missing out on the most active period when buyers are actively searching for new listings.
This period of heightened interest can translate into competitive offers, helping you secure a better deal. By pricing your home correctly from the start, you increase the chances of receiving competitive offers and a quicker sale.
7. You may run into problems later
Even if you’re able to secure a buyer at an inflated price, selling your property above its accurate value may cause you problems later down the line.
The buyer will most likely have a valuation survey carried out by their mortgage lender and it could return a value that is significantly below the offer you accepted. In this case, the buyer may then try to negotiate a discount or even pull out of the sale if they feel deceived.
Looking for an accurate valuation? Contact Whitegates’ expert team today