Whilst we're all aware that house prices are peaking and we all want the best possible price for our property, don't make the mistake of overpricing your home.
It will likely have the opposite effect you want it to!
If you aim too high, you could find yourself waiting a while for your property to sell and end up causing suspicion among buyers. Research from Zoopla suggests that an overvaluation could cause you to be waiting around 10 weeks longer to find a buyer for you property, and buyers will often think there must be something critically wrong with it. Active buyers are very attentive when it comes to their property search, and if your property has been hanging around, it won't go unnoticed.
Fewer potential buyers...
Buyers will have specific budget limits set when they're looking for a property. If you're price is set too high, you'll be limiting the number of potential buyers you have. When searching on property portals like Rightmove and Zoopla, your property will be amongst most other properties on the market. When using these sites, buyers will filter by price, style, number of bedrooms and other features, and if your property is overpriced it will be very obvious to anyone searching as all the similar properties will be on the same page. This is likely to deter buyers from even making an enquiry.
This one is a bit of a biggie..
Even though you could find a buyer that offers the asking price, if they are using a mortgage their lender will instruct a surveyor to conduct a mortgage valuation and this surveyor is likely to provide a lower, accurate valuation to the lender and the full mortgage offer may not be provided to the buyer. This means you'll have to renegotiate the sale to the lower price to keep your buyer, or withdraw the sale, re-market and hopefully find a new buyer - which will be even harder this time.
Even if you find a cash buyer, you may not be safe. Most cash buyers will instruct a surveyor to carry out a valuation or home buyers survey on the property and you could end up in a similar situation.
Over asking price offers...
Something we have had a lot of recently. When the price is right, you are likely to have a number of offers in a short time frame and this gives your agent an opportunity to secure an offer over the asking price. In practice, this will often mean you'll end up with a better price than if you overvalued the property and were forced to accept a lower offer.
Missing out on your onward purchase...
As you wait for your property to sell, you could be missing out on your ideal future home. Things are moving fast at the moment and there's nothing more disappointing than seeing the perfect property sell whilst yours is still sat on the market.
So what should you do?
Trust your estate agent!
As many can appreciate, it's a bit belittling when someone comes to you for your advice and expertise but then dismisses it.
When going to an estate agent to sell your property, we hope you'd choose someone with a good reputation and most importantly, someone trustworthy. Most of us have many years of experience in selling property and its a good idea to trust your agent to get you the best possible price for your property.
If you're thinking of selling, visit www.valuation.averyea.co.uk to get an instant online valuation, or call 01934 614893 to speak to either myself or Daren to arrange a visit.