Every seller is tempted to overprice their home. They may have carried out lots of work over the years or may need the extra money to trade up.
Buy as a buyer, you want to pay the market price.
So how do you spot an overpriced home? Here are our top five tips.
How long has it been on the market?
If it’s more than 60 days, chances are that it is not selling because it’s overpriced. Though be aware that some high-end homes can be on sale for a longer period.
Have home improvements inflated the price?
If an owner has just spent a lot of money on an extension or refurbishment, they may price their home higher because they want to make a profit. But love and investment in a home doesn’t always get a reward.
A home in poor condition should not try to compete with a newly refurbished home on the same street, either.
Does it match the value of other properties nearby?
If the house next door recently sold for a fraction of the one you are viewing, something isn’t right.
Take a look at current listings and properties that were recently sold in your postcode area to compare. Remember, the asking price isn’t the same as the sold price, but previously sold prices could guide you towards a good offer.
Do your research
Always do your homework. At the Guild, we recommend looking at lots of online resources, from mortgage advice to solicitor reviews. Getting things in order now will save time and stress down the line.
Is the location desirable?
Similar properties can vary in price hugely from one side of town to the other. The trendiest place is always going to fetch a higher price, so keep that in mind.
The best solution is to set the price sensibly. Sometimes a low price may generate more interest. If in doubt, talk to your agent.
You can get more information on overpriced homes on the Guild’s blog online, as well as lots of other topics to help you with buying and selling.