⚖️ The strategy of real estate overvaluation: good idea or bad idea?
Valuing a property is a crucial step when putting it on the market.
Some agents choose a risky path: deliberately offering an inflated valuation to attract the owner, then returning a few months later, claiming a lack of interest to justify a price reduction. Here is a comprehensive analysis of this strategy, its advantages, risks, and alternatives,
intended for both real estate agents and property owners.
🔄 Understand the survaluation strategy
🎯 Initial objective: to win over the owner
Many agents seek to secure mandates, sometimes exclusive ones.
A high valuation can:
- Reassure the seller about the value of their property.
- To create a sense of prestige.
- Facilitate obtaining the mandate.
Advice for agents: don't overestimate yourself just to impress, your credibility depends on it.
Advice for homeowners: never choose an agent solely based on a flattering price.
⏰ The critical period of the first three months
A price that is too high leads to:
- Few inquiries and very few visits.
- A loss of visibility on portals.
- An impression of being "far too expensive".
Agents: clearly inform them of the risks of a price above market value.
Owners: if you have no viewings after 30 days, consider the price.
⬇️ Return to the owner to lower the price
After a few months without results, the agent contacted the seller again to:
- explain the lack of applications,
- propose a price reduction,
- present recent comparative sales.
Agents: prepare the evidence before this key moment.
Owners: take action before your property loses value due to stagnation.
💎 The potential benefits of overvaluation
🎉 Attracting ambitious homeowners
A high estimate can work if the market is very dynamic or steadily rising.
But this approach remains fragile.
Advice for agents: base your strategy on data, not seduction.
Owners' tip: always compare with properties that have actually been sold.
🌼 Gradual readjustment
Rather than a sudden drop, some agents opt for a gradual decrease:
- step-by-step market testing
- controlled sales image,
- better psychological acceptance.
Agents: accompany each decrease with quantified arguments.
Owners: set a limit before marketing.
⚠️ The risks and disadvantages
🔥 Loss of credibility
An overpriced property attracts few buyers.
It becomes suspect: "Why isn't anyone buying it?"
Agents: a property held up for too long is bad for your image.
Owners: an inflated price does not lead to more negotiations, but more mistrust.
🔄 More effective alternatives
⚖️ Estimate the price accurately from the start
A rigorous estimate is based on:
- the sales actually concluded
- the condition of the property and its location,
- professional analysis tools.
✅ Attractive pricing strategy
Setting a price slightly below the market rate allows you to:
- generate more visits,
- to provoke several offers,
- accelerate the sale.
📢 Careful communication
Professional photos, clear text, transparency on returns…
Good communication strengthens buyer engagement.
📚 Summary
Overpricing is an attractive but dangerous strategy.
It attracts listings, but lengthens the process and often devalues the property.
A fair valuation, effective communication, and regular follow-up remain the most reliable approaches.
Agents and owners alike share a common goal: to sell quickly and for a good price.
The right price from the start is your best ally.
