How to Tell if Your Property is Overpriced

Setting the right price for your property is one of the most important decisions when putting your home on the market. Price too high, and your home could sit unsold, leaving you frustrated. Price too low, and you risk losing money on your most significant investment. So how do you know if your property is overpriced?

Key Indicators Your Property Might Be Overpriced

1. Lack of Viewings
   The first 4–6 weeks of a property being on the market are crucial. This is when your listing gets the most exposure on property platforms and through your agent’s buyer network. A steady flow of viewings during this time indicates the pricing is appealing. If viewings are sparse or non-existent, it may suggest the price is deterring buyers.
2. No Offers
   While you might not receive an acceptable offer immediately, the absence of any offers is a red flag. Offers, even low ones, show that buyers are interested and provide a starting point for negotiations.
3. Minimal Communication From Your Agent
   An experienced estate agent will keep you updated regularly, especially in the early stages of marketing your property. If updates become infrequent because there’s little interest to report, it’s time to reassess the price.

What To Do if Your Property Isn’t Selling

If your property has been on the market for a while without generating interest, it may be time to take action:

1. Review the Situation
   Arrange a meeting with your agent to discuss the property’s performance. They can provide feedback on the market and buyer behavior, helping you understand how your property is perceived.
2. Reassess the Pricing
   Using your agent’s market knowledge, determine where your property fits within the current market conditions. A realistic price adjustment can reignite buyer interest.
3. Relaunch With Refreshed Marketing
   Work with your agent to relaunch the property with updated promotional materials, such as refreshed photography and a revised description, alongside a new pricing strategy. This can help your listing stand out as a fresh opportunity.

The Pitfall of Overpricing

An overpriced property can go stale on the market, leading to price reductions that may ultimately result in a sale price lower than expected. On the other hand, a well-priced property can generate significant buyer interest, potentially leading to competitive offers that drive the price up.

Under pricing rarely results in selling for less than the property’s value. If your asking price is low, the increased interest often results in multiple offers, which naturally drives the price up to its true market value or higher.

If you’re struggling to sell your property or think it may be overpriced, we’re here to help. At Fisher and Partners, our experienced managing partners provide expert advice tailored to your property and goals. Contact us today for a free market appraisal, and let us help you take the next step towards your move—we’d be delighted to hear from you!