Pricing - continued
The dangers of over pricing
Naturally, we all want to get the best possible price for our home, so it's always tempting to ask just that little bit more for it. Unfortunately, some less scrupulous agents understand this only too well, and will deliberately over-value your home in order to gain the instruction.
However, this does not mean you will end up with more money! Buyers aren't stupid. They can recognise an overpriced home when they see one - the internet has made this even easier - and they simply look elsewhere. Put your home on the market at too high a price, and it'll just sit there, unsold, while other more sensibly priced properties fly off the shelves.
In the end, you will have to reduce your asking price to a more realistic level. Is that a problem? Yes - because you will have missed out on that precious, never-to-be-repeated surge of buyer interest that greets every sensibly-priced new listing.
Remember, the longer your home is on the market, the harder it becomes to stimulate buyer interest.
There are a number of other risks associated with over-pricing:
- The longer a property remains unsold, the more buyers start to wonder if there is something wrong with it.
- Even when you reduce your price, it can be difficult to persuade buyers to reconsider a property they have already rejected.
- Having your home on the market for an extended period can be inconvenient and stressful.
- Many British people often feel uncomfortable about haggling. So, instead of making a lower offer and giving you the change to negotiate, they will simply walk away
- Unless you fancy paying two mortgages at the same time, missing out on a sale might mean losing the home you want to buy.
- The longer your property is on the market, the greater the chance that something will need repairing.
- Last, but by no means least, lenders are not impressed by over-priced properties - so, even if you do find someone willing to pay your asking price, they could have problems getting a sufficiently large mortgage!
Your best chance of selling your home quickly, for the best possible price, is to offer it at a fair market price from Day One.
