Realism and honesty are the keys to selling houses...
We were disappointed today by the article in The Times that the sub-editors have sensationalised to look like all agents are trying to pull the wool over their clients’ eyes by systematically overvaluing property to get the listing.
Yes, overpricing does happen. We all know that. Some agencies have done this for years and I would definitely NOT agree with this: It’s not transparent, honest or fair to less experienced sellers, and it often leads to lower viewings and properties sticking, when they have no business to! But we’re not all like that!
There is definitely a responsibility on the agent to be honest about the value of the property and what it will sell at…However, there is also an onus on the seller to be realistic and this is what we always say to our clients. If the vendor won’t accept a realistic, achievable valuation and wants to start off higher, then there are risks!
Some vendors hold on to past valuations that were either in a different market or inflated in the first place. Or they’re being a little bit greedy and simply believe that their property will sell for more than their neighbours, for no particular reason other than they want it to!
But let me tell you, that, generally speaking, there is no reason your house will sell more than your neighbour’s in the same market, unless it’s an exceptional product that genuinely deserves a premium price.
If you have a good house in a good street, but your house needs a bit of work, you have to accept that you will not get that premium price that your neighbour will get, because they have just renovated and already have an immaculate garden and top-of-the-range kitchen. With building costs inflated as they are, we all know that renovating is a lot more expensive these days and a canny buyer will take that into account…
It’s definitely a tricky market. Prices got inflated just after COVID, but they have corrected now and valuations you may have had in 2020/2021 will likely have come down.
We will always be realistic in pricing a client’s house. There’s no point in being otherwise because it really doesn’t help anyone in the long term. As we said in our recent update, “over-priced properties are losing out as canny buyers are not prepared to hedge their bets on a falling market. If you turned down a good offer over the last few months, you may regret it.”
On the flip-side if we are looking for property for a client, we will advise them if we think it’s over-priced. If you are buying, at the moment, don't be tempted to pay over the odds in a volatile market out of sheer desperation. A desperate purchase is never a good one!
For advice on buying or selling in Prime Central London, give us a call or email us - info@roseandpartners.co.uk.