Overpriced properties – spotting them and how they can give a buyer an advantage. There’s certainly no shortage of properties in East or North London that appear to have been languishing on the market and gathering dust.
I wanted to share a few ways to help you spot an overpriced property to ensure you don’t get stung, aid you to value your own home accurately and how to use such properties to your advantage as a buyer.
How long has the property been on the market?
From experience, the first month is when a property attracts the most attention. ‘Fresh to market’ properties always attract the most eyeballs, clicks and viewings.
From the perspective of the typical East or North London property, if a home remains unsold after 6-8 weeks, the current quoted asking price is likely to be seeing resistance from a buyer’s prospective and need a revision.
Should a property remain unsold after 3 months, it can usually be said with certainty that the price needs a trim. I should add that unique and very high-end homes do tend to take longer to sell.
What’s the condition really like?
It’s tricky not to let emotions creep in. It’s well known that many a seller believes their home to be best on the block.
But if a property hasn’t been extended, doesn’t have the en-suite or the kitchen has seen better days, the costs of such upgrades should be factored in and reflected in the price when making comparisons to similar local properties that are ‘all singing, all dancing.
What did the neighbours get for theirs?
Did number 4 sell for £100,000 less 1 year ago? If so, why?
Provided the houses on a road or within the same area are similar, prices should be, within reason comparable.
Take a look at current listings and recently sold properties. My favourite way to do this is to Google the street or postcode. The first link is usually a Rightmove one showing actual recent property sales data with prices from the Land Registry.
Where is it?
Location, location, location as they say. A 3 bed semi in Highams Park will be more expensive than a similar size home in Edmonton. I appreciate this may be obvious but it can also be more nuanced. For instance, the below points will affect value.
Is the property south facing?
Is it within the catchment of good schools?
Is it that bit nearer or further away from transport and shops?
Is it on a busy main road?
Don’t follow the herd.
If you’re a buyer on the hunt for the ideal home, please don’t automatically dismiss properties that look likely to be overpriced. They should be viewed as potential opportunities.
You see, many house hunters browsing the portals will ignore the listings that appear ideal but overpriced even if they’ve been on the market for a long time.
Rather than make an appointment to view and make an offer that appears more reflective of value, many buyers will sit on their hands and wait for the asking price to be reduced.
Use this to your advantage. Go and have a look, make a cheeky offer, you might be surprised to have the selling agent on your side and perhaps a firm offer on the table will help make the penny drop for the owner.
It’s worth highlighting that there’s often a difference between a property’s asking price and ultimate selling price.