As a homeowner, getting a property valuation is a crucial first step when you decide to sell your home. However, what happens when the valuation you receive is significantly higher than expected? It may seem like a great opportunity, but overvaluation is not always a good thing.
In this three-minute read, we look at the reasons why people fall for overvaluations and why it can be detrimental to the sale of your home.
Flattery
It’s only natural to feel flattered when an agent values your property higher than expected. After all, you’ve invested time and money into your home, and it’s easy to become emotionally attached. Unfortunately, an overvaluation can be misleading, and falling for flattery can lead to delays in selling your home, as well as missed opportunities to move on to your next dream home.
What the overvaluation represents
When your home is overpriced, it’s easy to think that you have more buying power than you originally thought. However, you must remember that you’ll still need a mortgage, and it’s essential to be realistic about what you can afford. Overvaluing your home can set unrealistic expectations, leading to disappointment and frustration when you can’t find your dream home.
Lack of research
Before putting your property on the market, it’s important to do your research and find out what similar properties in the area have sold for. If you don’t do your homework, you run the risk of an overvaluation, leading to a delayed sale or missed opportunities. By researching the local market, you can get a better idea of what your property is really worth and set a realistic asking price.
Naivety
It’s easy to be swayed by the promise of a higher return on your property, especially if one agent values your home significantly higher than others. However, it’s important to remember that not all agents are the same. A good agent will give an honest and accurate valuation based on hard evidence, including the price of similar properties in the area. An ethical agent will not promise an overvaluation, but they may suggest minor improvements that could add value to your home.
In conclusion, while an overvaluation may seem like a good thing, it can be detrimental to the sale of your home. By doing your research and working with a trustworthy agent, you can set a realistic asking price and move on to your next dream home without any delays or missed opportunities.
Are you looking to sell your home? At Martin & Co Chelmsford, we pride ourselves on providing accurate, well-researched valuations. Get in touch with our team today.
