Are your expectations for the value of your property realistic in today's market?
Are you being realistic about the value of your property? If you are comparing your property to those that sold in 2021 you could have unrealistic expectations. Read this article to find out more.
The property market is dynamic, with prices fluctuating from one month to the next. It's a topic that often makes headlines, and as a homeowner, it's natural to be interested in the value of your property.
Before arranging for an estate agent to provide you with an estimate of your home's value, you will likely already know the price you are looking for. With this figure in mind, it stands to reason that you will align yourself with the agent closest to your price. But where are your expectations?
It is human nature to be optimistic about the value of your home; of course, you want it to be worth as much as possible. But what if you are being unrealistic? What happens if an agent, rather than presenting a carefully considered, evidenced-backed valuation estimate, simply agrees with your perhaps overly optimistic estimate of your home? You will likely instruct this agent because you think they are right about your property value. But, they have simply agreed with the figure you want without any real consideration of the market or the property's true value.
If no thought is given to the actual value of the property, simply an optimistic, perhaps even aspirational price is given, then your home will be overpriced compared with other properties on the market.
The issue is that homeowners are not necessarily greedy, ambitious, aspirational, or optimistic. It could simply be the case that your expectations were set by a market that is no longer here.
It's important to consider potential buyers' mindsets. They may be pessimistic about current market conditions and property values. News reports of rising inflation and increasing mortgage rates might make them feel that the market is falling. Whilst you and your expectations could still be in 2021, the market's peak, they may be looking back to 2008, a time of much lower property prices.
Understanding these differences can help you set realistic expectations for selling your home. A property will not sell unless there is a buyer willing to pay the price for it, so the key is to balance your expectations of the highest price possible with the buyers' expectations of a lower figure.
If you are considering selling your home or are already on the market and not seeing the interest you had hoped for, get in touch with our property experts right now. They are there to help and advise, with unrivalled expertise, to help you to sell your property, whatever the market.