If you’re selling your home, it’s important that you aren’t over-ambitious with your asking price and choose an agent that is going to value your home correctly. The first step to selling your home and giving the sale the best chance of success is to put it on the market with a realistic price tag.
What are the consequences of listing your home at a price that’s simply too high?
A word about your agent
It’s important that you and your estate agent are on the same page when it comes to the valuation of your property and agree on the price tag. At Vanilla Square we will always be transparent and ensure that you know why we have given your property the valuation we have – using our local knowledge, market insights and details of properties that have sold in the area. It’s important to have this information and not to go with the agent that gives you the highest valuation and insists that it’s achievable when it may not be.
Time on the market
If you home is overpriced it can take more than two months longer to sell according to Zoopla. An accurately priced home can sell as many as 91 days faster. Once your property has been on the market for some time, buyers could lose interest and conclude that there’s a problem with it and even negotiate you right down on price.
If buyers are searching on Zoopla, they will be setting filters as per their budget. As a seller, if your property price is too high, your home will be seen by less people especially as in many areas the Offers Over situation sees homes sell for as much as 15% over the asking price – so their selected top end really will be just that. In addition, when compared to similar homes in your area, it could appear overpriced.
Buyers will be wary
Although it’s tempting to try your luck and start high, if you have to discount your property it will seem suspicious to buyers. They will be wary that it’s been on the market too long and assume something is wrong.
If you find a buyer, their mortgage company may value the home lower than the sale price making securing a mortgage difficult. You could even find that a buyer pulls out of the sale.
First impressions last
If your home is priced properly, you will have several buyers interested from the off and you could find that there’s a bidding war which may push the price up. This first impression will carry buyers through to a sale – whereas if they see your property and discount it due to the price, even when you do reduce it, they have already made their mind up whether it’s of interest.
A changing market
If you overprice your home, you could risk your home sitting on the market for longer and in that time, the market could change. If prices start to fall, you could find that you lose out even more than just the time it takes to sell.
Your purchase could fall through
If you have an offer accepted on your next property and your existing home is overpriced, you could miss out as the chain becomes impatient waiting for your property to sell. Having a secure offer puts you in the driving seat and gives you an element of control.
It’s worth remembering that mortgage offers last for three to six months, so if you hold out for an unrealistic price you could find that this expires and you’re hit with further mortgage arrangement fees.
Vanilla Square – highly personal sales! At Vanilla Square you will always be liaising with one of our business partners, which makes our service that much more responsible and approachable. When you instruct us, your property will reach a wider audience as we are one of the few agents who are present on all the major property portals to offer sellers maximum exposure. If you’re looking to buy or sell your property, or you’re simply considering the idea, contact us by calling 0141 229 0210 or pop into our new office at 711 Great Western Road. One of our partners will be delighted to help and provide you with impartial, expert advice.