When putting your property on the market, it might be tempting to overprice it. And although at times, a house may sell for more than it’s worth, it’s not always the way. Which is why you mustn’t overprice your home in the first place. A dangerous risk to take, not only will it create issues down the line (i.e. when a valuation survey is carried out), but you’re directly sabotaging your chances of getting a good deal in the first place.
But those aren’t the only reasons as to why you shouldn’t overprice your house when it comes time to sell. Here are five other key reasons:
Avoiding a bidding war between buyers
It’s no secret that a competitively priced house will attract several potential buyers. As they see your property and realise that it’s well priced, you will start to receive offers within the first few weeks that it’s on the market. When you receive similar offers, it starts a bidding war which will, in turn, drive up the value of your home.
If you overprice your property, however, this will have the opposite effect. Not generating a lot of competition, you’ll find that you are alienating buyers who can usually afford properties in your location.
It will be on the market for longer
Following on from the above point, the moment that you put your property on the market for more than it’s worth, you’ll find that it takes a lot longer to sell. Without a timely sale, you’ll find that not only the interest with your home goes down but that it’s harder to find a property for yourself.
Whilst waiting for your current home to sell, it will be difficult to secure your next property – as many homeowners are looking for a quick sale rather than having to wait until a potential buyer is chain free.
The Market Could Change
While you’re waiting for your overpriced home to sell, you might find that the local property market changes. With the uncertainty within the market and economic growth, you could discover that you’re putting your home on sale at a price which simply isn’t realistic within the current climate. If the prices locally begin to fall and the market gets more competitive, you’ll find that you’re left behind.
An Invisible Warning Sign?
If your home has been on the market for a while, buyers might think that there is an issue with it. Resulting in the home becoming stigmatised, buyers will be either turned off or uninterested in discovering why it’s priced the way it is when other, similar houses in the area are priced less.
Making a bad first impression, you’ll find that people avoid even looking at it – never mind making an offer on it.
You’ll Lose Money Whilst Waiting
During this period, you’ll find that you’re losing a lot of money. From bills to taxes, fees and other costs, you’ll find that you’re in a stalemate while you wait for it to sell. If you successfully moved into a new property, you’ll also have to pay two different mortgages.
Contact Priestley’s Today
Established in 2010, we offer unparalleled real estate services in West Yorkshire. Managing both student and professional properties, we’re trusted by hundreds of landlords and homeowners across the area.
Whether you’re looking for the best property for sale in Leeds, you’re interested in what the surrounding areas have to offer or you’re wanting to sell your property, we’re on hand to help throughout the process. To find out more about our services, get in contact with us today by either calling us on 0113 222 4537 or by emailing us on [email protected].