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.
Number one
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.
Number two
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.
Number three
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.
Number four
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.
Number four
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.
