How Can You Avoid Over Valuations?
Like 'Down Valuations', Over-Valuations can pose an obstacle to buying and selling property. As a seller, a high-valuation on your property can seem amazing, especially when the Estate Agent convinces you they can sell it for the top end valuation. But sellers should beware of this as overly high-valuations can backfire – here, we discuss how to avoid over-valuations;
Do Your Research
Make sure that you research similar homes that have currently sold in the area. You should be looking for properties in comparable condition to yours, and those that have sold in the current climate. A property's For Sale price, and what buyers are actually paying, are two very different things, so be sure to see what people are currently paying for similar properties to yours. Doing your research before-hand can arm you with the knowledge to know whether you are being given an over-valuation or not.
Get More Than One Valuation
The majority of Estate Agents will come out to value your property for free. Bear in mind that this is because their aim is to get you to list your property with them. Why not take advantage of this however and get more than one valuation done on your home if you think your initial valuation may have over-valued your property.
Don't try to hide anything that you think might devalue your home. In terms of structural problems, or repairs that have been carried out, covering these up can come back to haunt you even after the sale has gone through. Do not aim for the highest-valuation possible by not being honest about aspects of the property, always be transparent when getting a property valuation done.
Choose A Reputable Estate Agent
As Estate Agents, we have no qualms in telling you that there are Estate Agents out there who's aim is to not only sell your house, but list new ones. The problem with this, is that they can use over-valuations in order to give the appearance of a large portfolio of high priced housing, to lure in new sellers. As long as you are committed to them, they see that they can then have you lower the price when you see your house isn't selling. Some agents are paid commission on simply getting a listing, rather than a sale, and their best way to do this is to give an over ambitious valuation, convincing the seller that this is achievable if you sign up with them. Beware of the new breed of Estate Agents who don't charge commission on sales too, their interest can lie more in having your property listed than selling it.
Choose a reputable and transparent Estate Agent to avoid problems with over-valuation. At iLove homes, we are only too aware of the problems that can arise from over-valuating a property, and that is why we like to make sellers aware of the traps they can fall into, as well as give information on how to avoid them. Having an accurate and realistic valuation on your property will result in more interest from buyers, and a quicker sale.