Property News

“Why Overpricing May Leave You Out Of Pocket”
Added on 20 February 2017 by Peter Ryder

As a seller, it is tempting to accept the highest estate agent’s valuation you receive. However, there are three sound reasons why you should avoid overpricing your home initially, as overpriced property often ends up selling for less than it otherwise might have.   

Firstly, buyers buy by comparison. Why should they buy your house if it is more expensive than a similar alternative? This simply does not make sense, and your property is unlikely to sell until such time as any competing homes have sold. By that time your house may have suffered overexposure and be “going stale” on the market.

Secondly, buyer activity is highest when the property is new on the market. If your price prevents buyers from seeing the house, you will have missed this opportunity and may have to wait some time before a suitable buyer is found. Competition between buyers drives up your price, whereas time on the market drives it down.

Thirdly – a clear response to sellers who say “but we can always take an offer!” The problem here is that if fewer buyers see your house, the chance of an offer being received is significantly reduced. The wrong price also attracts the wrong buyers, who have high expectations and are therefore unlikely to offer in any event. People tend to purchase a property at the top of their price range; so your likely buyer pool is people looking in a lower price range than your property, not a higher one. So don’t scare away the right buyers!

Intense buyer activity in the early days of marketing is the key to achieving the highest price for your property, and our job is to help you stimulate such activity.

So be realistic; be competitive; quote the right price and stick to it, and you should readily secure the highest price the market will pay for your home. Accurate pricing combined with an optimistic approach has been one of the keys to our being able to help so many people fulfil their home-moving dreams – to budget and on time!

Peter Ryder

Managing Director

Thorntons Property

News Index “Why Overpricing May Leave You Out Of Pocket”20 February 2017“Cupid the Estate Agent?”13 February 2017“How Long Has It Been On The Market?”07 February 2017Market report – January 201729 January 2017“Valuation Versus Value”17 January 2017“How Many Should We See?”08 January 2017“Should Your House Have Sold By Now?”17 December 2016“Removal Planning”05 December 2016“A Winter’s Sale?”27 November 2016“Distorted Opinions?”21 November 2016“The Advertising Myth”14 November 2016“A Move by Christmas?”07 November 2016“Finding the Right Property”31 October 2016“Relative Values”17 October 2016“It’s Not Just About Selling”26 September 2016“A Proactive Approach Essential”19 September 2016“Avoid Virtual Tours”05 September 2016“How Serious is my Buyer?”29 August 2016Clutter Costs !22 August 2016The Feelgood Factor15 August 2016The Agent you Prefer - at the Right Price08 August 2016First Impressions30 July 2016Choosing Your Solicitor25 July 2016“Should I Sell During the Summer Holidays?”18 July 2016What does Brexit mean for the Scottish property market01 July 2016Top tips for viewing properties like a pro17 June 20165 methods for improving your kerb appeal17 June 2016Tips for saving for a deposit17 June 2016Property perfect move for Natalie30 May 2016Thorntons Top after ESPC Mystery Shop29 January 2016Increased buyer demand will drive house prices up during 201622 December 2015Property solicitor gives local food bank a boost20 December 2015Second home levy will boost Dundee property market 15 December 2015Unique opportunity to buy a stunning new home in an award-winning development in St Andrews11 November 2015Tayside property specialists lead the way in boom time16 September 2015
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