How overpricing your property can slow down your sale
When it comes to selling your home, pricing it correctly is crucial for a successful and timely sale. Setting realistic prices will help captivate buyers.
Research by GetAgent.co.uk indicates an urgent need to reduce the tendency to inflate house prices to secure instructions. The estate agent comparison site highlights that merely 36% of properties that underwent price reductions in the current market have been marked as sold subject to contract (SSTC). GetAgent's analysis of the market revealed that about 34% of all homes for sale, not already under contract, have had their prices lowered since initially being put on the market. If you're thinking of selling your home, our insight into why overpricing your property can slow down your sale and what the negative consequences of this common mistake are will help you avoid this pitfall.
The psychological impact of overpricing on potential buyers
Setting a high price for your property can make buyers question its value and deter them from showing interest or booking viewings. Buyers usually look for the best deal, and pricing above the market average can discourage them. Buyers, equipped with research and market comparisons, might find similar homes that offer more features, better locations, or newer amenities for a similar or lower price. This comparison can easily dampen the appeal of your home.
In today's market, buyers usually start their journey online. If a property is too expensive, it may grab initial attention but savvy buyers will move (without booking a viewing) if they question its value. Understanding how buyers think can help set a pricing strategy that matches market standards, making your property more attractive and generating more initial interest.
Overpricing can lead to longer listing periods
The most common consequence of overpricing your property is the inevitable extension of its time on the market — sometimes lingering unsold for weeks or months.
Properties that have been online for a long period tend to be viewed with caution, with potential buyers assuming that the seller might be desperate to sell, prompting them to make lower offers than they otherwise might. This can initiate a cycle of price reductions which, while necessary to reignite interest, can also signal to buyers that their initial reservations were justified, further complicating the sale process.
By setting a realistic price, you invite a broader spectrum of interested buyers, reducing the likelihood of prolonged listing periods and ensuring that your property is viewed in the best possible light. Remember, the goal is to make your property an attractive proposition, not a market outlier.
The right estate agent is key
Choosing the right estate agent is a pivotal step in ensuring your property is marketed effectively and sold for the best possible price, within a reasonable time frame.
Some local agents adopt a overpricing strategy — giving you a high valuation to win your business, in the knowledge that they will drop the price later.
At Dybles, our team have a deep understanding of the local property market and a track record of realistic, honest pricing.
If you want to avoid the pitfalls of overpricing and ensuring your home sells in a timely manner, give our team a call 01962 866 644.
