If you’re planning on
putting your property on the market, there’s one key piece of advice to
remember.
It’s not a slick statement
from a TED Talk or the title of a trendy self-help book. It’s an age-old saying
that your grandmother probably used: “If it’s too good to be true, then it
probably is.”
Sellers should keep this in
mind when looking for an agent to sell their property.
Please beware of estate agents
inflating prices to persuade you to sign a sole agency agreement and lock you
in. They’re not helping you, and it can have a disastrous impact.
Here are five reasons why overvaluing your property can
prove costly.
1.
Lengthy delays
Moving home, especially if
you are in a chain, can be a convoluted process at the best of times.
Starting on the wrong foot,
with a totally unrealistic price, complicates things.
According to consumer
watchdog Which?, overvalued homes take on average up to two months longer to
sell than other properties.
In most overvaluation cases,
reality kicks in after a month or two, and the seller ends up dropping to a
more realistic price (the price they probably should have asked for initially).
All overvaluing achieves is a delay.
2.
It deters buyers
If you or an agent
over values your property, expect viewings to be slow or non-existent.
A
considerable amount of information about property sales is available online
these days, meaning most buyers know what property in their desired area is
worth. They can spot a rip-off and will steer clear or drive a hard bargain.
Buyers also tend to filter
their online property searches by price, so if you’ve inflated the asking
price, it might not even register in their search.
3.
It messes with your next move
Imagine this: you find your
dream home, make an offer, and it’s accepted. Hurrah! Now, all you must do is
sell your existing property. The problem is the over-the-top asking price
deters buyers, leaving you in limbo.
Soon, the impatient owners
of your dream home ditch you for a buyer who is ready to move and you’re back
to square one.
4.
Your mortgage deal is threatened
When lenders calculate how
much you can borrow, they factor in what you expect to get for your existing
property. So, if an agent promises to get £300,000 for your home, and you wind up
dropping to £240,000, it leaves a black hole in your finances.
All your calculations are
now in tatters, and you must start again with downgraded expectations.
5.
Trust is key
For most people, selling a
home is the largest financial transaction of their life. It’s essential to go
through the process with someone you trust – not someone who has trapped you
into a lengthy agreement by deliberately misleading you.
Before you commit to an
agent, do some research of your own.
As The GOOD Estate Agent for
North Nottinghamshire I promise to give you honest, expert advice about selling
your home.
Call me or message me or
drop me a note:
Tel: 01777 237310 or 07981 744003
Follow
me on Facebook:
https://www.facebook.com/thegoodestateagentnorthnottinghamshire
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