When selling your Lancaster home, it’s tempting to list it at a high price, hoping for a bigger payday. However, pricing your home too high can lead to delays, stress, and, ultimately, disappointment. Many homeowners and estate agents overlook the problems that come with overvaluing. Here’s why correct pricing is essential for a smooth and profitable sale.
Overpricing: A Common Problem in Lancaster
Lancaster’s property market saw a boom in 2021, with homes selling quickly and often above asking price. As competition among estate agents grew, some agents started overvaluing properties to win business. They offered inflated appraisals, giving sellers unrealistic expectations. While this may seem like a good strategy, it has led to long sale times and many unsold homes.
The Consequences of Overvaluing
Properties priced too high often sit on the market for extended periods without serious buyers. This can be frustrating for both homeowners and agents. Homes that stay on the market too long may develop a negative reputation, causing potential buyers to wonder if something is wrong with the property. Even when the price is eventually reduced, the home might sell for less than it would have if priced correctly from the start.
Lancaster Overpricing Statistics (2019-2024)
Since 2019, 3,864 Lancaster homeowners have taken their properties off the market unsold, many due to overpricing. Here’s a breakdown of the data:
- 2019: 47.8% of homes didn’t sell.
- 2020: 44.6% didn’t sell.
- 2021: 26.6% didn’t sell.
- 2022: 24.2% didn’t sell.
- 2023: 38.6% didn’t sell.
- 2024 (YTD): 41.4% didn’t sell.
These figures show how overvaluing can make selling your home much harder. Research has also shown that homes listed for over 100 days only have a 56% chance of successfully completing the sale. In contrast, homes that find a buyer in under 25 days have a 94% chance of completion.
Why Do Some Agents Overvalue?
You might wonder why estate agents overvalue if it makes selling harder. The answer lies in the competitive nature of the industry. Some agents are under pressure to secure as many listings as possible, even if it means overpricing. They might promise homeowners an inflated valuation to win their business, hoping the price can be lowered over time. Unfortunately, this can lead to missed opportunities for homeowners who may need to sell quickly or who are trying to buy another property.
How to Avoid the Overvaluing Trap
Pricing your Lancaster home correctly from the start is the key to avoiding these problems. Here are a few tips:
- Get Multiple Valuations: Don’t rely on just one agent’s opinion. Ask several estate agents to value your home and compare their suggestions. Be cautious of any agent who gives a significantly higher estimate without clear evidence.
- Research Comparable Sales: Look at recent sales of similar properties in your area. This will give you a realistic idea of what your home might sell for.
- Understand the Market: The property market is always changing. While prices were high in 2021, the market has cooled. Make sure your price reflects current conditions, not past highs.
- Work with a Trustworthy Agent: Choose an estate agent with a reputation for honest pricing. A good agent will focus on finding the best buyer for your home at the right price, rather than inflating the value just to win your business.
Final Thoughts
While overvaluing might seem like a good idea, it often leads to frustration, longer sale times, and a lower final price. Pricing your home accurately from the start is the best way to ensure a quick and profitable sale. By working with an experienced and honest estate agent, you can avoid the risks of overvaluing and achieve the successful sale you deserve.
If you need advice on selling your Lancaster home, feel free to get in touch, at JDG we’re here to help!
Thanks for reading
Michelle
