How to tell if your property is overpriced.
Getting the pricing right when you put your property on the market is vital to selling. There is a fine balance between overpricing and leaving money on the table. We all want to get the highest price possible for our home. It is the most significant single investment that most people have, so it makes sense that you want to earn back as much as possible when you sell it.
Not to mention that the amount you can sell for impacts the available budget for the property you want to buy.
So, how do you know if you've got it right?
- Regular viewings—You should have regular viewings, particularly in the initial 4-6 weeks, as this is when the property listing is new to the market and has the most promotion with online platforms and your agent's database of buyers.
- Regular calls with your agent—You should speak to your agent weekly with updates on the marketing of the property, including feedback from your viewings. But if there are no viewings and no feedback to give from those viewings, then your agent will not have much to update you on.
- Some offers—Not necessarily of an acceptable level at this stage, but having some offers on the table to negotiate on shows that there is interest.
Without interest, viewings, or feedback, your agent's calls will dwindle. There is simply no update to give, and therefore, not much to say. If you find yourself in this situation, you should expect a call from your agent in the coming weeks suggesting a price reduction to get things moving. If this sounds like you, and there is almost no interest from buyers in your property, this is a key indicator that you might have pushed your price a bit too high.
What should you do?
- Review—Arrange a meeting with your agent. Their expertise and understanding of the market will provide valuable insights into the impact and interest level of the marketing efforts.
- Re-assess—Your agent should be able to indicate where your property sits within the market, allowing you to discuss the price.
- Relaunch—Decide on the best way to relaunch the property to the market with refreshed marketing and promotional material and a new pricing strategy.
Marketing a property at a competitive price from the outset will be much more successful than allowing it to go stale before you have to start discounting.
And you shouldn't be worried about selling the property short. Under-pricing your property is often self-policed. If you list your home for a very low price, there will be considerable interest early on. This interest will lead to multiple offers that should, in theory, result in a sale higher than the low asking price.
So, to get your home sold and make your moving plans a reality, make sure you are not pushing your marketing price too high. It is a false economy, and with the inevitable price reduction that will come, you could end up achieving less for your property in the long run.
If you are struggling to sell your home, why not get in touch with our property experts for advice on how to get you moved. Give us a call today.