What Happens When You Over-value Your Property?
Everyone wants to sell his property for profit and gets the highest price possible because no wants to bear the loss. Everyone has different approach to get the most of his investment but most of the people overvalue their property. Obviously, it is your property and your emotions are attached to it, which leads them to think their home is worth more than the prospective buyers do. Overvaluing a home may not seem to be a bigger issue but it can fire back even in a hot housing market and peak season.
The Cheaper Option Wins
When it comes to valuing a home, landlords often price their home above the market average price in hope of getting more money. They probably think that they have upgraded their house in a chic way, they have decorated it with the luxury items, so, it is definitely the best one available in the market. However, a property buyer may have different aesthetic sense or he may have already seen a beautiful but relatively less decorated home so your home is just another (yet expensive) property for him. It simply means that the other home is more affordable for buyer. When the property contours are same, the buyer will definitely want to go for cheaper option.
Buyers May Miss the Option Altogether
When it comes to home shopping, buyers set their range first regarding how much they plan to spend for their new home and if a home is above their range, there is possibility that they will move on to the more affordable options instead of stopping by to bargain. In this era, when most of the home searches are made online through property portals such as HomesPakistan, sellers can limit the prospect buyers simply because their home is overvalued. Majority of the online property portals offer search ranges (price, area) and if your property is overvalued, it would not appear in the buyers’ search result.
The Deal won’t be Sealed
Overvaluing your property can harm you in a number of ways such as pricing your home high means giving the negotiating power to potential buyers and lowering the price at the end. Property sellers may think that if they will price their property high, they can walk away with a handsome profit. The tactic may have worked in the past but now the savvy buyers are equipped with the knowledge and do not get carried away by the negotiation game. Instead of making an effort to visit the property and quote a price, they will get turned down. The seller will eventually have to come to the fair price, if the owner really wants to sell it.