News The Dangers of Overvaluing Your Property
Published by Jon on 21st August, 2017
When selling your home, it can be tempting to choose the agent that values your property at the highest price. Research carried out by Which? suggests that if you go with a higher valuation that's been overinflated, your property could end up selling for much less and can take you a lot longer to sell. In a sample taken from properties sold over a12-month period, on average, properties that were overvalued took 64 days longer to sell, if they sold at all.
Estate agents want your business and many of them will tell you what you want to hear in order to get your business. This often involves giving the client an inflated valuation. But why would an estate agent over value your house if they can’t sell it? A tactic used by many estate agents is to overvalue your house and then tie you into a long contract often 20 weeks or longer. This means that you are unable to move to another agent and your current agent can chip away at the price and make you to reduce it.
Previous sold prices are easily accessible to everyone through sites like Zoopla and Rightmove. Because of this, buyers can easily see if a property is overvalued or not and if your property has been reduced. This can put you in a much weaker position to negotiate. Many overvalued properties actually end up being sold for less than their real value.
When you get a valuation it’s a good idea to do some research and see what similar properties have sold for in the area. If you’re not tech savvy or don’t have a lot of time, ask the agent to supply you with a list of comparables. A good agent may already turn up with a list of comparables to show you. Also, make sure you don’t sign up to a long contract so, if you feel your agent isn’t doing a good job you can move somewhere else.If you are happy with what your agent is doing and there are valid reasons for your property not selling you can always stick with them. At M&W, our standard contract length is 8 weeks.