The value of your property

Valuing a property correctly is crucial to the successful sale of your home.
Pitch the price too high and your property may compare unfavourably with others at the same price and you risk losing ideal buyers; too low and buyers may question what is wrong with it.

It has been known for some estate agents to over or undervalue property for their own financial gain. Agents who over-price property do so to impress the vendor and win their business. At this point, the seller is then tied in to a contract. Discontentment and frustrations flare when you are then forced to lower your asking price, because the property fails to sell. Under-valuing can be just as risky; cheaper properties tend to sell quickly allowing the agent to earn their commission faster but leave you in real danger of selling for less than the property deserves. It is fully understandable that you will want to achieve the best price for your property, and it is very tempting to ask just that little bit more. As discussed, some less scrupulous agents understand this only too well, and will deliberately over-value your home to win your business. However this can have less than satisfactory consequences for you!

Ready access to information via the internet has made it easier for savvy buyers to clearly identify over-valued properties – utilising a variety of sources available to them (rather than simply relying on the word of an estate agent) to make informed decisions on the accurate value of property. The range of options for finding property has also increased over the last few years. Buyers are no longer restricted to the selection provided by their estate agent and will look elsewhere for similar property, in the same location, but at lower, more appropriate prices.

There are several problems with over-valuing your home; the most important are outlined:

• Over-pricing your home can price the right buyers out of the market; many will overlook your property simply because it is above their budget.
• Over-priced properties tend to remain unsold for longer, prolonging your next move and other possible transactions if in a chain.
• Properties that remain on the market for over 12 weeks start to attract negative questions about their condition and many serious
  buyers will avoid them.
• If a property fails to sell, you may be forced to reduce the asking price. However you will have already missed out on valuable ’first to market’ activity – when buyers show the most interest in your property.
• A reduced price can provoke any uncomfortable questions from buyers and may result in you selling the property for less than it was actually worth in the first place.
• Mortgage Lenders are not impressed by overpriced properties, so even if you do succeed in finding a buyer, they may face problems qualifying for a mortgage.

At Newton Fallowell we will have considered several important factors when valuing your property:

• The location and character of your home.
• Its features and condition.
• The current market price for similar properties in the same location.
• The demand for similar property in the market.
• Projected market trends and conditions.

Understanding the current market place and trends in the industry provides the best insights into the accurate valuation of your home. There is no harm in carrying out some research of your own, but be prepared to discuss openly with your agent and agree on the best price that will sell your property, to the right buyers, in the shortest possible time.