The Temptation of Overpricing

The price of property in High Wycombe & Hazlemere has witnessed significant appreciation in value due to increased demand and limited supply. With this surge in prices, which began in 2020 with the 'stamp duty holiday', some sellers may be tempted to over-inflate their property's value in the hope of maximizing profits.  However, since the market changed midway through 2022 & mortgage rates began to increase, the price of property has changed, adjusted --- dropped.

Many estate agents in High Wycombe will, unfortunately, over value property now. Why do they do that?! My simple view is because they have no unique selling point themselves. The only way to distinguish themselves from other companies is to say they can achieve a higher price.

Essentially they lie. Telling someone, “this is the price we achieved in 2022”, is completely irrelevant now 2023. This is why there are SO many price reductions in High Wycombe & Hazlemere.

While it's natural for homeowners to seek the best possible returns, overpricing can lead to several detrimental outcomes.

Prolonged Time on the Market

One of the immediate consequences of overpricing is an extended time on the market. When a property is listed at an unreasonably high price, potential buyers may be discouraged from even considering it. As days turn into weeks and weeks into months, the property may acquire a reputation for being undesirable or flawed, making it even harder to attract interested buyers in the future.

Diminished Interest and Buyer Perception

Buyers in High Wycombe & Hazlemere, like in any market, are savvy and well-informed. They research the local property market and have a good understanding of property values. When a property is priced too high compared to similar offerings in the area, potential buyers will likely perceive it as an overvalued investment. This perception can severely diminish interest and result in a lack of competitive offers, forcing the seller to eventually reduce the price.

Loss of Negotiation Power

Overpricing a property can also weaken the seller's position during negotiations. Serious buyers, aware of the property's inflated asking price, might not even bother engaging in negotiations, assuming the seller is not open to reasonable offers. This situation can lead to missed opportunities for both parties, leaving the seller with limited room to negotiate and the buyer looking elsewhere for better deals.

Market Stagnation

The danger of overpricing is not limited to individual sellers. When a substantial number of properties are overpriced in a particular area, it can lead to a market stagnation. An oversupply of overpriced properties can create a buyer's market, where buyers are in a more advantageous position to negotiate, and overall sales and property values can suffer.

Prolonged time on the market, diminished buyer interest, loss of negotiation power, and the risk of market stagnation are just some of the potential consequences sellers might face when pricing their properties unrealistically.

It's crucial for sellers to be realistic about property valuations and seek guidance from experienced estate agents who possess a deep understanding of the local market.

If you have been marketing your property and after only a couple of weeks’ you are asked to ‘reduce’ in price - well I would question your estate agent & why they got the initial price wrong. I’ve no doubt, another phone call will follow in a months time…asking you to reduce again!

Get the price right to begin with.