Why over pricing by an inexperienced estate agent may leave you out of pocket.
As a seller, it is tempting to accept the highest estate agent’s valuation you receive. However, there are sound reasons why you should avoid overpricing your home initially, as overpriced homes often end up selling for less than they otherwise would.
First, 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.
Second, 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.
“But we can always take an offer!” The problem with this is that if fewer buyers see your house, the chances of any offer being received are less. The wrong price also attracts the wrong buyers, who are unlikely to offer anyway. Intense buyer activity in the early days of marketing is key to achieving the highest price for your property.
So be realistic. Quote the right price, be competitive, and you should readily secure the highest price for your home.