Let’s admit it, we’ve all found ourselves in the role of an inquisitive neighbour at some point, haven’t we?
The appearance of a ‘for sale’ sign on a property in your vicinity triggers an immediate online investigation into its market status. Before long, you find yourself admiring or raising an eyebrow at your neighbour’s interior design choices, while also sizing up your own abode, comparing it in terms of spaciousness, sophistication, or casual charm.
There’s no denying the value in this behavior; in fact, if you’re considering selling your own property, it’s a form of insightful market analysis. However, it’s crucial to maintain a balanced perspective, lest you fall victim to what experts in the real estate industry refer to as the “Next-Door Syndrome.”
This phenomenon pertains to sellers whose price expectations are exclusively anchored to the sale price of their neighbour’s property. (Typically, individuals believe their home is worth at least as much as their neighbour’s, if not a bit more.)
While it’s certainly informative to be aware of the sale prices of other properties in your vicinity, it’s imperative to take a holistic view. Other pertinent factors include:
- Square Footage: Is your neighbour’s property of comparable size to yours?
- Selling Price: Although you might have glimpsed the initial asking price during your online reconnaissance, your neighbour might have eventually accepted a lower offer.
- Completion Time: Occasionally, a transaction might take several months to finalize, and the agreed-upon price might have been determined six months prior when the real estate market dynamics were different.
The Consequences of Next-Door Syndrome
Fixating too intently on your neighbour’s property transaction, rather than focusing on what’s optimal for your unique circumstances in the present market, can lead to misjudging your pricing strategy and needlessly extending the sales process.
The risk is that you might set an overly ambitious price for your property, dissuading savvy buyers. After months of lackluster interest, you could find yourself compelled to reduce the price.
A Calculated Valuation Approach
When soliciting the opinions of three real estate agents for a property valuation, it’s prudent not to accept their estimates at face value. Instead, inquire about the methodology they employed in arriving at their assessments.
A reputable agent will welcome the opportunity to elucidate their calculations and the diverse datasets they employed to ascertain the property’s value.
Moreover, remain cognizant that some agents might intentionally overestimate a property’s value in order to secure your business. Subsequently, they might promptly recommend a price reduction after securing the listing.
Opt for an agent who combines ambition with candor. Selling a property is a substantial endeavor, and the foundation of trust between you and your sales team is of paramount importance.
For a free valuation, contact us here today.
