While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
Modern buyers are well-informed on the property market and what they can expect for their money. They are thus more likely to avoid overvalued properties altogether.
Homeowners that have overpriced their property - whether on their own accord or because of poor advice from an agent - often end up selling for far below market value because they don't know how to bounce back from their mistake.
How to tell if your property is overpriced
- The home is priced well above neighbouring properties for sale
- Buyer interest is very low - even on show days
- Despite months of marketing, all the offers are below the asking price
- Properties in the neighbourhood are selling quickly, while yours aren't
However, not all hope is lost at making a good sale though. Here are our top tips on how to go about remarketing a previously overpriced home.
Plan a fresh start
Buyers who recognize a listing as having been on the market for months without selling are going to assume there is something wrong with the property.
We recommend taking down your old listing, sprucing up your property if possible, and taking fresh photos of the property - this is especially helpful if the property was first listed in winter when the garden wasn't looking its best.
Not only will this reduce the chances of house hunters immediately recognizing the property and jumping to negative conclusions about its desirability, but it will also put your home's best foot forward in a competitive market.
A coat of paint on key areas, a garden clean-up and a good decluttering are often enough to convince buyers to give a home a second chance, but if your agent isn't willing to put in the time and effort to take fresh photos and create a new listing, you may need to have a serious conversation about expectations and performance.
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Don't make the same mistake twice
No amount of pretty pictures and descriptive adjectives is going to sell your home if you get the price tag wrong a second time.
To avoid that, we suggest getting a revised set of valuations done before re-listing, preferably by two or three agents who are active in your area.
Make sure your agent can back up their valuations with good, hard evidence like a comparative market report that showcases facts and trends for property in your area.
Be transparent with buyers
If you do attract buyers that previously avoided your property because of its overvalued price tag, be honest and upfront with them.
They might have some doubts about potential flaws or defects that could have caused the price reduction. Your job is to ease the doubts by having copies of approved plans, comprehensive defect lists and even getting a professional home inspection report done if possible. Nothing is more comforting to a buyer than a seller that is a 100% above board.
Defect lists are best drawn up with the help of your agent, who can assist you in being unambiguous without overplaying ordinary flaws. Professional home inspection reports can be commissioned at any number of inspection agencies, but make sure your chosen inspector is fully accredited.
