The Real Cost of Overpricing Property
"Why did another agent value my home £50,000 more than you?"
The Cost of Overpricing
One question we’ve been asked more recently is:
“Why did another agent value my home £50,000 more than you?”
It’s a fair question and one that’s difficult to answer properly during a valuation appointment. So we thought we’d put our thoughts down in writing.
After all, when you’re thinking about selling your home, you want to achieve the best possible price. Whether you’re moving to a bigger property, downsizing, relocating, renovating or simply moving on to the next chapter, every homeowner wants to maximise what they can get from their sale.
So if one agent tells you your property is worth £50,000 more than another agent does, why wouldn’t you choose them?
Well, that’s where things get interesting.
Ask Them to Justify It
Whenever an agent gives you a valuation, ask them one simple question:
“How did you arrive at that figure?”
Any good estate agent should be able to explain exactly how they’ve reached their valuation.
Before we even walk through your front door, we have access to sold price data, market trends, comparable properties, house price indices and online valuation tools. Then we combine that with local knowledge, buyer demand and experience of what’s actually happening on the ground.
A valuation shouldn’t be a guess. It should be backed up by evidence.
If an agent can’t clearly explain why they’ve arrived at a certain figure, it’s worth asking yourself why.
Are they genuinely confident that’s what the property is worth? Or are they simply trying to win your instruction by telling you what you’d like to hear?
Unfortunately, it does happen.
Some agents know that the highest valuation often gets the business. The problem comes a few weeks later when viewings are slow, enquiries are limited and the conversation turns to reducing the price.
And then reducing it again.
The trouble is, buyers notice.
Once a property has had multiple reductions, people naturally start asking questions:
“What’s wrong with it?”
That’s not the position you want your property to be in.
Be Mindful
Is the agent who is over-inflating prices tying you into a contract or charging you upfront costs? Be vigilant of this, as once they’ve got you, they’ll of course try to keep you, and you’ll likely want to stay because of the penalties to ending your contract now, but if your property isn’t selling what’s the first thing?
Reductions
The Market Decides the Value
This is probably the most important point of all.
An estate agent doesn’t decide what your property is worth, the market does.
As agents, we can advise, analyse data and guide you based on our experience, but ultimately the value of any property comes down to what a buyer is willing to pay for it.
Putting a higher figure on a valuation sheet doesn’t magically add value to your home.
If only it were that easy!
First Impressions Count
When your property first hits the market, it’s at its freshest.
Buyers who’ve been actively searching receive alerts almost immediately. They’re excited to see what’s new and they’re comparing your property against everything else available in their price range.
If the price feels right, they’ll click and if it doesn’t, they often won’t.
One of the biggest risks of overpricing is that you lose those crucial early weeks when interest is at its highest.
A well-priced property creates activity. It generates enquiries, viewings and conversations.
An overpriced property can end up being overlooked before buyers have even seen the photographs, if they see them at all!
The longer it sits on the market, the harder it can become to generate excitement around it.
A little fact here – if your property hasn’t sold within the first 12 weeks it has only a 14% chance of actually selling…
The Cost Isn’t Just Financial
Of course, overpricing can affect the final sale price, but that’s only part of the story.
Selling a home can already be stressful enough.
Months of uncertainty, viewings that go nowhere, plans being delayed and chains being held up all take their toll.
For many people, selling isn’t an isolated event. It’s linked to a job move, a growing family, retirement plans or the purchase of another property.
When the sale drags on longer than expected, everything else can be pushed back too.
And if you do manage to secure a sale above market value, the buyer’s valuer and lender will not simply accept that price. They’ll want to see comparable properties that have sold and when there aren’t any, they’ll reduce their offer that they are willing to lend to reflect local sale prices. This almost always leads your buyer renegotiating the price which will cause more emotional energy and stress for your onward purchase.
Why Honest Advice Matters
The best estate agents aren’t always the ones who tell you what you want to hear.
They’re the ones who give you honest advice, backed up by facts, experience and evidence.
A realistic valuation isn’t about undervaluing your home.
It’s about positioning it correctly from day one, attracting the right buyers and giving yourself the best possible chance of achieving a successful sale.
So if you’re comparing valuations from different agents, don’t just focus on who has given you the biggest number.
Ask them how they got there.
Ask them what evidence supports it.
Ask them what comparable properties have sold for.
Ask them why buyers in today’s market would be willing to pay that amount.
Because any estate agent can write a number on a piece of paper.
The real question is whether a buyer agrees with it.
And in my experience, honesty and accuracy will almost always outperform optimism.
Emma Rose – Director
‘Honesty and accuracy will almost always outperform optimism.’
Want to know more?
If you are looking to understand the local area a little better or would like a chat about the property market in general.
I would be delighted to meet over coffee and share my personal perspective.
Emma.