Northampton Vendors: Importance Of Property Valuations

30th September 2019

Selling your home is a challenging process, but there are ways you can make the process run more smoothly. When you have useful information, and you're willing to help the buyer meet their needs, the sales process becomes more straightforward.

We're pleased to say we have assisted many Northampton vendors in selling their home, and we cannot overstate the importance of property valuations.

Outside of buying or selling property, the following instances are areas where property valuations are critical:

·         Planning your will or estate

·         Planning for retirement

·         Renovation work

·         Arranging suitable insurance coverage

·         Preparing for bankruptcy

·         Determining capital gains tax

All these situations call for an accurate valuation of property, but the most crucial reason to have your home valued is to help you sell your home.

If the price is valued too highly, you will scare buyers away

Modern buyers are savvy, and they are more likely to undertake significant research on the property market, especially compared to previous generations. Therefore, if your property is overvalued, it is expected most buyers will recognise this, and will likely take no further interest in your home.

There is nothing wrong with your home being valued above the average price for similar homes in your area if your property is better than comparable homes in your area. If a higher valuation can be justified, you should place this higher valuation on the property. The issue isn't about matching average or expected values; the most important thing is to offer an accurate assessment of the house.

Some vendors offer an inflated valuation to win instructions. It is easy to see why the promise of a more substantial sales fee entices vendors, but if the agent fails to deliver on this price, the sales process can be a drawn-out affair.

If a house has a high value and then doesn't sell, an obvious strategy is to drop the price. However, savvy buyers will then have follow-up questions as to why the price has fallen, and this may result in some buyers being cautious about your home.

An undervalued home loses the vendor money

If you need to sell your home quickly and the price you receive isn't too important, there may be a justification in placing a lower value on your property. However, for most vendors, this is a poor strategy and one you should avoid.

You want to maximise the return from your home, so undervaluing the property to generate interest is a risky process. Also, with buyers researching the market, they may have concerns as to why the price is low. If prospective buyers have concerns about your home, they have many alternative houses to consider. Therefore, you could end up connecting with fewer buyers when you utilise this strategy.

Remember how buyers search in the present day

The vast majority of prospective buyers begin their property search online, and this involves setting a minimum and maximum price for their searches. If your house falls outside of this price range, prospective buyers won't see it, and you won't have the chance to connect with them.

Therefore, you must place an accurate valuation on your home to ensure you reach the most likely buyers for your property.

If you plan on selling your Northampton home, you must correctly start the process. To book a free valuation, contact Merrys today, and we will be more than happy to provide you with this service, and any other estate agency service you require.