Selling your property can be a daunting task, and finding the right agent to help you through the process can make all the difference. But, beware of agents who give inflated valuations simply to win your business. Inflated prices can cause you to miss out on the most active and lucrative time for selling your property. In this article, we'll take a closer look at why accurate property valuation is important and what you can do to avoid falling for inflated prices.
The Importance of the First Four Weeks
During the first four weeks of your property hitting the market, you will see the most activity and offers. This is known as the "golden period" and is crucial for achieving the best possible price for your property. Buyers who have been searching for properties will already have a good idea of the market, and if your property is priced correctly, it will attract the most attention during this period.
The Problem with Inflated Valuations
The problem arises when agents give inflated valuations to win your business. They know that most sellers will usually go with the highest valuation, and this can be tempting for sellers who are hoping to achieve the highest possible price for their property. However, this tactic can be detrimental to the seller as it can cause them to miss out on the most active and lucrative time for selling their property.
Tie-In Periods
Most agents will ask for a tie-in period on the contract of anywhere from 15-25 weeks. This means that you are stuck with the agent and a property that has been overvalued for a significant amount of time. During this period, the agent's job is not to price the property to sell but to simply price it to win the instruction. This means that the property will go live and see very little interest during the golden period, and you may miss out on potential buyers who would have been interested if the property was priced correctly.
The Consequences of Falling for the Tactic
If you fall for this tactic, you can expect a call from the agent around the 6-week mark suggesting a price reduction. Not only will buyers think that you are getting desperate, but you will have missed out on the most active time for selling your property. You can expect to get less for the property than you would have if you had been given an accurate valuation from the outset.
Avoiding Inflated Prices
To avoid inflated prices, it is important to choose an agent who will give you an accurate valuation from the start. A good agent will be able to provide you with a detailed market analysis and comparable properties that have recently sold in your area. This will help you to get a realistic idea of what your property is worth and what you can expect to achieve.
It is also important to ask your agent how they arrived at the valuation. A good agent will be able to provide you with evidence to support their valuation and will be able to explain the process they went through to arrive at the figure.
Finally, don't be afraid to challenge the valuation if you think it is too high. Remember that the first four weeks are crucial for achieving the best possible price for your property, and an accurate valuation will help you to achieve this.
Conclusion
Inflated valuations can be a tempting tactic for agents to win your business, but they can be detrimental to achieving the best possible price for your property. By choosing an agent who provides an accurate valuation and avoiding falling for the tactic, you can achieve the best possible price for your property and avoid missing out on the golden period. Remember, the first four weeks are crucial, and an accurate valuation will help you to make the most of this time.
