Property prices in the UK have risen steadily throughout 2022 despite the pandemic and the hikes in living costs. Many sellers are literally cashing in on this boom and anyone planning to go to market will be going with the highest valuation they can get.
However, jumping at the highest asking price isn’t necessarily the best move and could actually backfire on you. Here’s why the highest valuation isn’t always the right one to choose.
The estate agent might not be totally honest
Some estate agencies will promise vendors the earth if it means they get an instruction, so they’ll be somewhat over-optimistic about the asking price. As long as they snag the customer, it doesn’t matter too much what happens further down the line…
What will probably happen further down the line is a price reduction after a series of viewings that went nowhere. This isn’t a great situation to be in as the property has been on the market for a while and is now a bit stale, with buyers wondering what’s wrong with it.
The agent might not know the area well
An inexperienced estate agent or a larger chain agency might not have the in-depth local knowledge that smaller agencies often have. This can lead to inflated valuations (and, of course, sometimes low valuations) that lead to a readjustment later on. An estate agent with a more fine-tuned knowledge and “feel” for your postcode will be able to make those adjustments before you go to market.
As well as a bespoke asking price, your agent will also be able to point the right house hunters in your direction as they’ll know more about the area and its amenities and idiosyncrasies than most.
That attractive valuation is outside your banding
Your price banding is vital – your ideal buyer has their budget already set out and will only be viewing properties that are feasible. If you price yourself out of their sights, you’ll miss the opportunity to make a quick sale and maybe even start a nice bidding war to bump up your sale price.
There’s no point trying to appeal to buyers in the next price banding up, because they’re also going to want their money’s worth, so they’ll simply reject your property for being overpriced.
Look for a realistic estate agent who will give you some home truths
Ignoring the pun, you need an agent who isn’t afraid to tell you the truth, even if you’re a bit disappointed. Your focus is on finding a buyer and so you need to hit the right asking price from the start. Too low and people may wonder if there’s something wrong; too high and you’ll just deter potentially great buyers.
