When you are buying a property, you want to get the best price possible. Similarly, when you are selling a property, you want to make sure that you get the best price for the property. If you list your property with a high asking price, in which case your estate agent may have overvalued your property, you might not find too many potential buyers. On the other hand, if you undervalue your property and set a low asking price, potential buyers might fear that there is something wrong with the property.
The key to setting the right asking price is getting the right property valuation. If you are unsure about the valuation your estate agent has quoted, feel free to book a free, no obligation property valuation with Leaders. If you feel that you have not got the right kind of offers for your property, there is a high chance that your estate agent may have undervalued or overvalued your property. Here are the two important signs to look out for to know if your property has been undervalued or overvalued.
Two signs your property has been undervalued:
- Too many quick offers:
Usually, potential buyers take a few weeks to decide on the property they like. However, if you have received too many quick offers, within a time span of a few hours or days, then your property might be undervalued. Essentially, potential buyers might feel that the deal is too good to pass up. While getting quick offers is great, you might end up wondering if you could have asked for more money for your property.
- No offers at all:
Sometimes a deal seems too good to be true, and that’s often the case with undervalued properties. Potential buyers might feel that the valuation is so low that there must be something drastically wrong with the property. For instance, if a house is worth £250,000 and your asking price is just £200,000, then potential buyers might get a little suspicious because the property is highly underpriced.
Two signs your property has been overvalued:
- Lack of offers:
Usually, a property will get a few offers from potential buyers no matter how long it has been on the market. However, if you have not received even one single offer from potential buyers, then your property might be overpriced. The best way to find out is by doing your own research. Compare the asking price of your property with the selling price of similar properties in your area. If those properties have sold for a lesser average than your asking price, then your estate agent may have overvalued your property.
- Very low offers:
If you have received offers from potential buyers but they are much lower than your asking price, that is a sign that your property might be overvalued. Most potential buyers and their agents will do their research before making an offer; their research might have shown that a property like yours sells for much lesser than the asking price, hence the lower offers.
How can you fix this?
Get a second opinion:
If you can see the signs that your property is overvalued or undervalued, then it is a good idea to get a second opinion. You can either contact another estate agent or hire a property valuation expert or a surveyor who will inspect your property thoroughly and be able to help you determine the value of the property. You can even opt for a free property valuation online to find out the approximate valuation.
Do your research:
Look at the selling price of similar properties in similar neighbourhoods. When you start comparing properties, be sure to look at properties that are very similar to yours – the number of bedrooms, the amenities, the number of bathrooms, the size of the house and so on. Remember, properties with additional features such as a garage or a backyard could fetch more money, so be sure to compare your property with other similar properties. This will give you a fair idea of how much such properties have sold for in the past 6 months.
Relist your property:
The best way to sell an overvalued or undervalued property is by relisting your property on the market. Take new pictures of the property, change the interiors and flip some things around, stage the interiors differently and then rewrite the property description so it looks brand new. Then, you can list your property on the market again with the right asking price.