If you’re planning on putting your property on the market, there’s one key piece of advice to remember.
“If it’s too good to be true, then it probably is.”
Vendors should keep this in mind when choosing an agent to sell their property in Wigan, because some agents deliberately inflate valuations to gain the instruction.
It’s a self-centred strategy that is all about the agent and not about the customer, and it can have a disastrous impact.
Here are six reasons why overvaluing your property can prove costly.
1. Lengthy Delays
Moving home, especially if you are in a chain, can be a lengthy process at the best of times.
Starting on the wrong foot, with a totally unrealistic price, only makes matters worse.
According to consumer watchdog WHICH ?, overvalued homes take on average up to 9 weeks longer to sell than other properties.
In most overvaluation cases, reality kicks in after a month or two, and the vendor ends up dropping the price, sometimes more than once !
2. It Deters Potential Buyers
If you overvalue your property, expect viewings to be slow or non-existent.
A considerable amount of information about property sales is available online these days, meaning most buyers know what property is worth.
They can spot a rip-off a mile off and will steer clear.
Buyers also tend to filter their online property searches by price, so if your agent has inflated the asking price, it might not even register in their search.
3. You Lose Your Dream Home
You find your dream home, but youstill need to sell your existing property. The problem is your agents inflated asking price leaves you in limbo.
Soon, the owners of your dream home ditch you for a buyer who is ready to move and you’re back to square one.
4. Your Mortgage Deal Is Redundant
When lenders calculate how much you can borrow, they factor in what you expect to get for your existing property. So, if an agent promises to get £400,000 for your home, and you wind up dropping it to £350,000, it leaves a black hole in your finances.
All your calculations are now in tatters, and you must start again with downgraded expectations.
5. Your Property Underachieves
The same WHICH ? report mentioned above also pointed out that overvalued properties are also more likely to sell for less than similar realistically priced properties.
This has also been confirmed by reports from Rightmove and Zoopla.
It has been calculated that this can cost the average seller in the UK as much as £20,000
Here in Wigan, an agent told one seller in Standish they would achieve £155,000. After several months and several price reductions they were about to accept an offer of £135,000, before we took over and sold it for £147,500.
6. Trust Is The Key
For most people, selling a home is the largest financial transaction of their life. It’s essential to go through the process with an agent you trust to achieve the best price.
Has your agent provided you with comparable evidence to justify their valuation ?
Do they have a reputation for overvaluing or a high number of price reductions ?
Were they the agents who gave you the highest valuation ?
At Alan Batt Sales and Lettings , I promise to give you Qualified Expert Valuation Advice which will help you to achieve the best possible price in a realistic time frame.
01942 233 999
sales@alanbatt.co.uk
