A home close to the author just went on the market, but despite receiving a lot of attention, it is still available. Here’s the issue: the property is around 25% overpriced in comparison to its neighbors. What can you do about an overpriced house and how can you tell when an estate agent has overvalued a property?
Finding an overpriced house
If your home is already on the market, the first sign that it could be overpriced is if you get no interest at all or if several individuals see the property but make offers that are far below the asking price. A valuation is just the amount the realtor believes a buyer could be willing to pay; if they aren’t, the property is overpriced.
A local estate agent should always have a good notion of what the market can sustain, even if overvaluing sometimes results from a lack of knowledge of the local market. However, some real estate brokers purposefully overestimate, and there is a good business motive for it: If the valuation is much higher than everyone else’s, clients are more likely to choose that estate agency.
The real estate agent places the home on the market and receives paid. They could be fortunate enough to discover someone who would purchase the property at that price, or they might see a price decrease, but this might take some time.
Because selling a home fast is usually preferable for an estate agent than waiting a long and trying to collect the whole fee, overvaluing is seldom about more commission. This is because the changes might range from 10% to 20%, or a few hundred pounds. Therefore, selling 10 homes in 10 weeks for £200,000 is preferable to selling 7 properties in 10 weeks for £250,000.
Overvaluation often results in the seller having to spend a lot more time on the market, which may be frustrating and cause delays, particularly if you are in a chain.
What can you do, therefore, if you believe your agent has overestimated the worth of your house?
Identify the worth of your property.
When doing any appraisal, you must first look up local property values. To compare your property’s features to those of similar properties, look at their offerings. A four-bedroom home is normally valued at 8% to 10% more than a three-bedroom property, therefore the number of beds is a useful indicator. However, other elements, such as the exact location, neighboring services, and even the road name, could increase or decrease the value of your home. For instance, a home next to a bustling nightclub will almost always sell for less than a nearly comparable property a few roads away in a much calmer neighborhood.
The state of your home must then be considered. For instance, compared to an equivalent property with double-glazing in excellent condition, the long-term maintenance costs for a listed home with single-glazed windows in need of considerable repair would almost surely be higher. It might take some time to prepare the documentation for full planning authorization and to get clearance from the council for buildings that are listed on the National Heritage List for England. There is also always a chance that the proposal may be rejected by the council. As a consequence, the final cost should be much cheaper owing to the additional expenses needed.
Keep those little details in mind
In London, allocated parking may increase the value of your house by an additional 2% to 3%. Additionally, a garden acre may increase value by 10%, and outbuildings can increase value. Your value should take into account each of these elements, and you should modify it appropriately.
Use online valuation tools
Several valuation tools are also available online, albeit the accuracy of these tools varies depending on what they’re measuring. The majority of the time, they use a prior price and modify it to account for a local price increase. Some people do not even consider the area’s maximum allowable value for real estate.
Get another opinion
Since an accurate value is necessary for selling your house, we highly advise obtaining a second opinion from a local real estate professional. You may click on the button below to get a second opinion from one of Yopa’s helpful local agents without incurring any obligations.
If you’re looking to sell or let your home with a Lee On the Solent Estate Agent, Stubbington Estate Agent, Gosport Estate Agent, Fareham Estate Agent, Portsmouth Estate Agent then please do no hesitate to email on email@example.com or call on 023 93 960 169.