Hampstead Homeowners: The Perils of Overpricing

As a vendor, naturally, you want to achieve the best price possible for your home. It’s normal to get the opinions of the three local estate agents about the price and go for the highest quote. In truth, overpriced homes will always sell for less and take considerably longer to sell. Here are the 3 things to bear in mind.

1)    Buyers make their decisions based on emotion and intellect. As much as they may like your home, they make comparisons with other offerings in the local market. Why should they buy your house if it’s more expensive than a comparable alternative? ..... It makes either practical or economical sense. Your home will languish on the market, with little interest shown until such time all the similar homes have sold. By that time however, it may have gone “stale” due to over exposure in the market.

2)    When your home is first listed, the highest level of interest will be within the first 3-4 weeks. An overpriced home will prevent serious purchasers form registering their interest that will focus on other similar alternatives. This is a missed opportunity to attract the interest and attention of purchasers who may well be in the buying window. The trade off is time vs. footfall. The more buyers that view, the competition between them will drive price up as where time will drive it down.

3)    Sellers who say they are “open to offers” often set themselves up for failure and disappointment. The fact is, fewer purchasers will view the house, and therefore the chance of an attractive offer is fairly remote. Overpricing attracts attention form the wrong type of buyer with unrealistic expectations who is unlikely to offer in any case. People’s emotions play a big part in the buying process and what the are willing to pay. Correct pricing is essential, as trends show that serious buyers tend to purchase at the top of their budget. Therefore, the pool of buyers for your home will be looking in a lower price bracket not a higher one. These are the people that you need to attract not repel!

Intense buyer activity in the early stages of marketing is what will secure the highest price and here at Ashmore Residential our job is to bring about the best results possible. In essence, realistic pricing and good presentation will make your home competitive and attract buyers who are serious and committed. Your home is being offered to the market in competition – not in isolation to others.  The right strategy from the onset will save you time and make you money.