There’s no doubt that anyone looking to sell their property wants to hear from an estate agent that they are going to get a good price for it. However, the saying of ‘too much of a good thing’ is rather apt in cases of overvaluation. So what do we mean by overvaluation? And why do some estate agents way overvalue properties?
Overvaluation can happen when estate agents are extremely keen to secure your interest in order to be the seller of your property. Sellers can hardly be in a position to say no to more money, so overvaluation can win out. Who doesn’t want more money? However, research has shown that properties that are overvalued will take longer to sell and will sell for far less when compared to properties that have been professionally evaluated with accuracy.
In fact, recent surveys have shown that, on average, houses are being overvalued at significant levels. Within cities, this problem can be even more pronounced due to prices being far higher. This can lead to discrepancies of hundreds of thousands of pounds between such overvaluation and actual selling prices. This is especially unhelpful if you are looking to sell your property in good time. Most people selling don’t want to be left wanting around for a couple of years before eventually lobbying their estate agent to drop the price in order to actually secure a sale. Plus, if a professional survey then reveals further issues, such as pest control being needed or structural damage, the price is going to be drummed down even further.
When a seller begins to realise that their property has overvalued, they feel angered by the behaviour of their estate agents and seek to change to another agency. This, in turn, just adds to the expenses of eventually selling the property.
Damage can also be done in the eyes of buyers when they see that a property has been reduced in price. Since many changes in property prices are stored via online property portals so that buyers can easily access them, the slowly decreasing price-point can serve as a warning sign. ‘Why has the property’s value fallen 20%?’ In fact, many sellers have chosen to publicly talk about how overvaluation saw them miss out on their dream home. This is why it is important to find an estate agency that knows the area and has a proven track-record of consistently selling properties in your area.
Proper valuation performed by fully qualified surveyors is recommended. They do want to maximise the profits of their clients, but they also want to ensure that clients are given accurate and honest valuations too. Finding an agent that can straddle both these positions is extremely important to getting the best deal on your property.
Thankfully, there are estate agents that are able to do just that – particularly in areas with luxury properties. You can even find an estate agent that already has a good list of potential high net worth buyers to ensure that your property is sold at a great price in no time at all.