They say fortune favours the brave, so should you try your luck and ratchet up the asking price of your property?
In a word, no!
Overinflating your asking price is never a good idea – especially in a shifting market. The only thing it is guaranteed to do is increase the time it takes to sell your property.
You'll deter genuine buyers
Most buyers start their property search online by filtering homes according to price. Many genuine buyers won't even see your property if you've priced it too high.
Buyers do their homework
With so much property information available online, buyers are price savvy. If you’re asking price is much higher than similar local properties, buyers will spot the anomaly – and view the properties that offer better value.
Lenders could refuse a mortgage
Before a lender approves a mortgage, they carry out their own valuation. They'll refuse the mortgage application if they think the property is overvalued. This means your buyer will either ask for a price reduction or withdraw from the sale.
If your property is languishing on the market because it’s overpriced, there's a risk house prices drop across the board. If this happens, you'll have to accept an even more significant price reduction to secure a sale.
You lose out on your next property
If you've found a property to buy, the people you're in a chain with could grow impatient if you can't progress the deal. The sale could collapse, and you'll lose out on the home you had your heart set on.
There's a difference between being optimistic and unrealistic. Contact us today for a no-nonsense property valuation.