The Danger of Over Valuing your Property – March 2017
Lets talk about the The Danger of Over Valuing your Property – March 2017. It is critical that you value your property right when placing it on the open market. We are dealing with very intelligent and informed buyers now and they have access to so many information links like property price register, Google etc. We as auctioneers have gone from being the suppliers of this information to being the interpreters of this datafeed.
It is also important to note that if a buyer is obtaining a mortgage a bank valuer will look at the property on behalf of the buyers when the property goes sale agreed and they will tell the buyer if they are paying too much for the property and will not sign off on the mortgage.
If a property is over valued one of two things happens both of which are disastrous. First of all the viewing activity is dead and no buyers even come to look at the property. This lack of activity in the first few months does not get any better. In this scenario the buyers are totally put off by the price and do not even waste their time to come and look at the property. The property becomes shop soiled and stale. As time lapses the buyers think there is something wrong with the property.
The next scenario is when a property is overvalued and it has viewing activity.
A lot of time
a) the buyers are time wasters looking for décor ideas or
B) the buyers do not wish to place a bid as they are confused about the high price and do not wish to offend the vendor by placing a lower bid. Again the property becomes shop soiled over time.
To obtain the best price for your property it is critical to get buyers to look at your property. I would professionally recommend vendors to have their opening price that is fair yet attractive. Remember strong singers start low and it is not where we start that counts but rather where we finish. Its rather like taking a car for a test drive before you can fall in love with the car and buy it. It is no different for a home purchase. You have got to get people over your door saddle to get the results you want. Once we can get the buyers in we can work our magic and promote your property to the widest audience possible and get you a price you will be delighted with.