Beware the Over Valuation
The price of a property is without doubt the single most important aspect to get right when advertising a property for sale. The risks of getting it wrong can be costly.
Over valuing properties is an age old tactic becoming more prevalent in an era of fixed agency fees payable regardless of a sale, as these agents have nothing to lose, but all to gain.
When seeking the advice of an estate agent, you need to be wary of this tactic, as it is designed to gain your signature. Many people will choose an estate agent based on the valuation. The highest valuation will often gain attention of unsuspecting homeowners, believing this agent is delivering more money in their pocket! There’s nothing to lose, you can always reduce the price, right?
There are pitfalls to this strategy and you could lose more than you bargained for.
These days’ house hunters have a lot of information at their disposal and can be quite savvy when it comes to the single biggest investment of their life. Buyers who spot an overpriced property will give it a wide berth.
Alarm bells ring when they see price reductions and can lead buyers to assume there is a problem with a property. Many continue to overlook properties long after the price has been corrected. The longer the property is on the market, the more pessimistic buyers become about it and this will ultimately reflect in any eventual offers.
If a buyer is purchasing with a mortgage, a third party RICS (Royal Institute of Chartered Surveyors) surveyor will need to visit the property and conduct a survey. They will be looking for evidence of several similar properties actually selling in the area in the proceeding months, to justify the price to the bank. If there is no such evidence, then they will have to advise the lender not to lend, wasting more time.
So, when receiving a valuation from an estate agent, ask to see their evidence of other properties they have actually sold at the suggested price. If they can’t demonstrate or back up their claims, they are either lacking experience or possibly misleading you.
Give The Property Hive a buzz today on 01302 247754 if you are thinking about selling your home in Doncaster. We have many years of experience and expertise of property sales and prices in Doncaster and can provide guidance, advice and a second opinion.
Find out more about selling your home with The Property Hive Estate Agents Doncaster.