Overpricing – The curse of a high valuation

It’s a sellers market, and according to figures released by the National Association of Estate Agents (NAEA), there is said to be 11 buyers registered on estate agents databases actively looking for property for every property available. But what if advice from an ‘expert’ is also leading you to the conclusion that you should add a few grand to the price of your property to take advantage of the number of buyers out there actively looking?  As a seller, this is the kind of information you want to hear, but don’t get swept on a wave of hype without understanding how the current market is.

Providing you with a high valuation plays on your desire to achieve the highest price possible for your property, but heading down this road can only lead to disappointment.  At Anthony Pepe, we also will provide you with an accurate valuation that is researched and realistic to the performance of the current market.  We are skilled negotiators so we will work hard to achieve the best possible price for your property, but we will never over price.

If the goal is to achieve the highest price why wouldn’t we just add a few grand onto the asking price especially with it being a sellers market?

The curse of providing you with a high valuation begins when we list your property.  Although people are looking to buy, they are cautious.  There has been a great deal of uncertainty this last couple of years and the future also provides no clear answers.  Although they want to continue moving forward with their lives rather than putting things on hold, they are also not taking major risks.

We have seen that buyers are coming onto the market with a clear and set budget and are not willing to even look at properties above that figure.  This is due to a fear of liking the property too much they will feel a personal pressure to make it their own, and a desire to simply find something within the budget.

Our experience mirrors recent research conducted my Rightmove.  “The majority of the market is price sensitive with most agents we surveyed reporting that possible buyers are reluctant to enquire about a property just a few per cent too high, so it’s vital to get the price right.” Said Rightmove Director, Miles Shipside.

In the past buyers would often look at properties above and below their desired purchase price, now that this practice is not as common is even more important to choose and estate agent who will provide you with an honest valuation of your property.

We recently met with a now client, he had listed his property with another agent and it had been overvalued.  Initially, he was happy about the valuation figure as it was more than he expected and started to think about his future plans based on this figure.

A couple of months and no viewings later, he was starting to get frustrated so asked for advice.  They advised him to reduce the price of his property, which he agreed to do.  By now his property had been on the market for nearly three months.  One day he was in the estate agents office and overheard a conversation of a couple looking for a property, they picked up the details of his property so of course listened in to the conversation.

The couple asked how long it had been on the market, 3 months was the agents’ reply, what is wrong with the property? Asked the couple.

Realisation hit, not only had his property been given a high valuation to win his business bit because it had in effect been left on the shelf people now saw it in a different light as if it was new to the market.

Angry and frustrated the gentlemen gave notice to the agent and walked straight into our office.  We had given him a realistic valuation in the past and he now understood and respected our honesty.  With new property details, our sales team got to work and we’re pleased to say his home is now under offer.

When you are choosing an estate agent and one provides you with a high valuation, don’t be attracted by the curse.  If the others suggest a similar figure it is because they are listening to the market not embellishing it to win your business.

If you would like a realistic valuation on your property, contact your nearest Anthony Pepe branch today.