In North London’s competitive property market, it can be tricky to know if your home is priced just right. With prices on the rise and fewer homes available, you’d think selling would be easy. But despite an impressive 11.2% year-on-year price increase in May, only 1 in 20 asking prices were slashed by 9%. So, how can you tell if your home has been priced to sell or if it’s destined to languish on property portals? Let’s dive into the dos and don’ts of valuing your home and how to spot the warning signs of an inflated asking price.
It’s tempting to go high with your asking price. After all, what if someone falls in love with your home and is willing to pay way over the odds? Sounds great, right? Well, not quite.
Overpricing your home can cost you and cause a lot of headaches. For starters, fewer buyers will see your home if it’s priced outside their search range on property portals, meaning you miss out on valuable interest. High prices also deter many buyers from even viewing your property, leaving it on the market for too long. Nobody wants their property to linger unsold. It quickly shifts from ‘new and exciting’ to ‘why hasn’t this sold yet?’
Then, you’ll find yourself unable to put an offer in on your dream home because you’re still waiting for yours to sell.
Even if you do manage to secure an offer at a high price, there’s the risk of the mortgage lender or surveyor down-valuing the property. That can lead to last-minute renegotiations. Shrinking your budget for your next home, or worse, the sale falling through altogether. In short, overpricing can turn what should be an exciting time into a frustrating waiting game.
So, how can you tell if your home is priced too high? There are a few tell-tale signs to watch out for:
We’ve all been there: you’re excited to sell, you meet with a few estate agents, and one comes in with a sky-high valuation. It sounds great on paper. Who wouldn’t want to sell for more than expected? But here’s the catch: sometimes, estate agents will overvalue a property as a tactic to win your business, knowing that it’s unlikely to sell at that price. It’s called “flattering pricing” and while it might feel good in the moment, it can have some serious downsides. Overvaluing might get your home onto the market, but it won’t get it sold. Instead, it can lead to:
In short, overpricing your home can cost. It might give you a temporary high, but it can quickly lead to frustration, disappointment, and wasted time.
Estate agents should always aim high with their valuations. But if one agent is quoting way above everyone else, it’s worth digging a little deeper. Ask how many of their sales go for the asking price or higher, and how often they need to reduce prices before getting a sale.
You should also ask about the average time their listings stay on the market and what percentage of homes end up being withdrawn unsold. These answers will give you a clearer picture of whether the agent is being realistic, or if they’re just trying to get your listing through the door with some sweet talk and high hopes.
You can also check for price reductions and time on market yourself by looking at the property on Rightmove. The listing on Rightmove should indicate when the property was first listed and whether it was reduced and when. You can go one sleuthy step further too by installing the ‘Property Log’ plugin on Google Chrome. Which will show you a list of historic price changes to property listings on Rightmove.
Let’s say you go with an agent who’s given you a significantly higher valuation. That’s fine, as long as you protect yourself with a fair contract. First off, negotiate a short initial contract length – something like four weeks is usually enough. You’ll also want to check that the notice period isn’t longer than seven days, so you can move on quickly if things aren’t working out.
Make sure you won’t be on the hook for marketing costs if you decide to switch agents, and get any changes to the contract in writing. If an agent truly believes in their high valuation, they’ll be more than happy to agree to flexible terms. But if they’re pushing for a long-term commitment, it might be a sign that they’re not as confident as they seem.
If your home’s been sitting on the market for a while, you’re probably wondering whether it’s time for a change. Start by having an open and honest conversation with your current agent to see if they can adjust their strategy. But if you’re not convinced, switching agents could give your property the fresh start it needs.
Your home will be re-labelled as a new listing on property portals. Which can generate renewed interest. A new agent will bring fresh energy to the process, and they’ll likely want to update the listing with new photos and maybe even a bit of home staging magic to make your property stand out.
At the end of the day, if your home isn’t getting offers in today’s market, something’s off. With so many buyers out there, your property should be getting plenty of attention. A new agent with a new approach might just be the key to getting things moving again.
If your home isn’t selling, or if you’ve received a surprisingly high valuation that doesn’t seem to line up with what’s happening in the market, we’re here to help.
Get in touch with Mark, our Director of Sales, for a fresh opinion, and let’s make sure your home is priced to sell: mark@daviesdavies.co.uk / 0207 272 0986
Get a £50 M&S voucher on us! Simply quote ‘BLOG’ when you contact us, and receive your voucher upon completion.
mark@daviesdavies.co.uk – Sales Director (contact for sales, lettings and new homes)
katrina@daviesdavies.co.uk – Head of Property & Block Management (contact for property and block management)
020 3820 2492
Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG
Article & images by Barefaced Studios
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