The top 5 reasons that sellers overestimate the value of their home

Posted: April, 2023

If you’re about to sell your house, it’s important to be realistic with your asking price. 

 

Paul Keighley, our residential partner at Huddersfield estate agents Bramleys says that some vendors believe their home is worth more than it is, which can lead to disappointment when their home is valued by a professional.

 

He is also warning against getting drawn in by agents that over inflate the value of their home.

 

Paul says: “The property market is stable. There are a lot of new houses coming to the market, but it’s key to get the price right. 

 

“Those that are priced accordingly are selling well, but those who are trying to get last year’s prices are sitting on the market. Some agents use the tactic of overvaluing to get the listing, which can adversely affect the sale – don’t get drawn into it.”

 

Paul has revealed the top five reasons that sellers overestimate the value of their home:

1. Everyone thinks they have the best plot on an estate

 

“It is human nature for everyone on an estate to think their home is the best. Whether it’s the orientation, a double garage, or a bigger garden – people tend to believe their home is the best, and therefore think they will get more for their home than their neighbour.”

2. People tend to think their home is bigger than their neighbours’

 

“In a similar vein, homeowners tend to think their home is bigger than their neighbours. There is a tendency for people to say, ‘The house across the street sold for £X amount, but we have a bigger third bedroom, so ours should be worth more’. It’s not always the case, though!”

3. They don’t realise their home is tired or dated

 

“When homeowners have lived in a home for a long time and love it, they can tend to see past the tired kitchen or worn carpets – they don’t see what a potential buyer or valuer sees. It can be difficult to tell clients when their home is dated and in need of modernisation!”

4. Another agent has overvalued their home, giving them false hope

 

“I had an instance where I valued a home, and the seller effectively told me I didn’t know what I was doing – in less kind words – because they’d had a valuation from another agent for £100,000 more. They went with that agent, but their home sat, unsold, for 18 months. They came back to us, and we sold their home within six weeks for a fair and realistic price.”

5. People remember all the changes they’ve made to their home

“Another common reason that owners overestimate their home’s value is their unrealistic expectations about how much the improvements they’ve made to the house will add to its resale value. They remember how long it took them to lay their paving stones, or how much they spent on their bathroom tiles. But it doesn’t always equate to a higher value!”.

 

If you're looking to sell your home in 2023, contact us to book your free market appraisal, at one of our estate agency branches across Huddersfield, Halifax, Elland, Heckmondwike or Mirfield.