Figuring out whether you've put your house on the market at the right price can be the source of a whole heap of stress for first time sellers. And, ultimately, the market value of your house is whatever someone is willing to pay for it, at that unique point in time. In the UK the value of a property is an intricate combination of factors, so it's unlikely that you'll ever get a completely 100% accurate valuation. But, that doesn't mean you should just accept whatever the internet, or any old estate agent says.
Putting an overpriced property on the market can mean you lose out on potential buyers, and have to drop the asking price in order to attract an offer.
On the other hand a competitively priced property will attract lots of interest, and hopefully several offers.
In this post we examine how you can tell if your home has been overpriced, and what to do about it.
No, estate agent valuations are not always accurate.
In part this is because a property's true value is based on what buyers in the market are willing to pay for it at that very moment. And, that's pretty hard to give an accurate estimate for.
However, some estate agents are much better at giving an accurate valuation than others. This often relates to their level of local experience. Those who know the area well, and network regularly with buyers in your neighbourhood, will have a much greater grasp on what homes are currently worth.
On the other hand, agents with little local knowledge, nor direct interaction with your community, are unlikely to know confidently the true value of your home. They will focus their assessment on size calculations, which give a general, but not very accurate valuation. (You may even get a better result from an online calculator, than an agent with no local experience.)
Some estate agents will not even try to give an accurate valuation. Rather they will try and produce a figure that will encourage you to work with them. It can be quite enticing if an agent says they may be able to sell your home for more than you thought it was worth.
To make sure you're getting an accurate valuation from your agent, ask them to provide evidence for their price suggestion. They should be able to show you proof of other properties nearby that have sold recently, and give justifications for why they expect your home to sell for less or more than these homes.
It can also be worth asking your agent for two figures: 'the best asking price', and the 'competitive asking price'. In lieu of a truly accurate valuation - which is very difficult to achieve - this may give you a sense of the sort of range you should be aiming for when you sell your property.
If you're worried about putting your property on the market at the wrong price, we would also recommend getting valuations from at least three agents. If you're not sure who's best to talk to, try this free tool. It'll show you the best performing agents in your postcode - including the top-rated valuers in your neighbourhood.
It can be frustrating to have multiple agents come round to value your property, only to find they've all said it's worth something different. Which one are you supposed to pick? There are a few reasons why you might find variation in estate agent valuations. The most common factors include:
Remember: don't always go with the agent that gives you the highest valuation - it may not be accurate.
Make sure you get at least one valuation from a high street agent, so you can get their insight into your local market.
Ultimately there will be variation among estate agents' valuations because there isn't actually an exact value for your house until you see what buyers are willing to pay for it. Agents can simply offer their best estimate based on their wealth of experience and knowledge.
To get the best chance of an accurate valuation, take the time to research the top-performing agents in your neighbourhood. This comparison tool can help you find the top-rated valuers near you.
The first sign that your house is overpriced is if you've not had any potential buyers come for a viewing within your first two weeks on the market.
The first few weeks that your property is on the market are the most important. It's during this period that your property will get the most views on online portals like Zoopla, Rightmove, and OnTheMarket. If these views aren't translating into in-person viewings, something is wrong.
The other telltale signs that your property is overpriced include:
Read more about what to expect from house viewings - and what to do if you're not getting any - on our blog.
If you think that your property might be over priced, it's time to take action to ensure you still get the best result in your home sale.
For more information about how to go about switching, check out our blog post. To find the top-performing high street agents in your neighbourhood, check out this nifty comparison tool. It uses data to find you the best local agents for your sale.
Picking the right estate agent is vital for a successful sale. GetAgent makes choosing simple. Discover the best performing agents in your area.
Picking the right estate agent is vital for a successful sale. GetAgent makes choosing simple. Discover the best performing agents in your area.
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