⚖️ The strategy of real estate overvaluation: good or bad idea?
The assessment of the price of a property is an essential step in the sale. Some agents adopt a risky strategy: to estimate the well above its real value to convince the owner, then push him to lower the price a few months later for lack of interest. This article details the advantages, disadvantages and good practices for real estate agents and owners in order to optimize the sale.
🔄 Understand the survaluation strategy
✅ Initial objective: to seduce the owner
Real estate agents must capture mandates. A high estimate:
- Reassures the owner to the value of his property.
- Gives a feeling of exclusivity and prestige.
- Allows you to obtain the mandate more easily , especially exclusively.
Advice for agents : Do not promise an unrealistic price just to win a mandate, it could harm your credibility.
Advice for owners : Do not choose an agent only on the highest estimate. Check your references and market analysis.
⏰ The critical period of the first three months
Once the property has been sold at too high:
- Few buyers are interested in it , the property seems too expensive.
- Visits are rare, even nonexistent.
- Ads lose visibility on real estate gates.
Advice for agents : Be transparent on the risks of a sale above the market.
Advice for owners : if your property does not receive visits after a month, question the displayed price .
⬇️ Reminder to the owner to lower the price
After three months without success, the agent contacted the seller for:
- Explain the absence of requests and offer a drop .
- Justify the decline by a recent sales analysis .
Advice for agents : anticipate this moment by preparing concrete evidence of the market.
Advice for owners : do not wait too long before readjusting. A good that stays too long on the market loses perceived value .
💎 The advantages of overvaluation
🎉 attract ambitious owners
Sellers always want to maximize their price. A high estimate:
- More easily seduces sellers.
- Can operate if the market is rising sharply.
Advice for agents : do not only bet on the seduction of the seller, but on proven strategies to sell quickly.
Advice for owners : beware of too attractive estimates. Check if they are realistic in comparison with similar goods sold recently .
🌼 Gradually readjust
Rather than brutally lowering the price, some agents recommend a gradual drop .
- Allows you to test the market without losing too fast value.
- Gives the impression of a controlled sale .
Advice for agents : if you have to drop, justify each step with specific figures.
Advice for owners : Set a limit before putting on sale to avoid unpleasant surprises.
⚠️ The risks and disadvantages
🔥 Loss of credibility
A overestimated price entails:
- Less interest of buyers.
- An impression of unsaleable good.
Advice for agents : a good that hangs over the market harms your reputation. Be realistic from the start.
Advice for owners : do not think that a higher price allows you to negotiate lower. Buyers are looking for goods at the right price, not endless negotiations .
🔄 More effective alternatives
⚖️ Estimate at the right price from the start
- Analyze recent sales .
- Take into account the state of the property and its location .
- Use specific assessment tools .
Advice for agents : Base yourself on factual data rather than an emotional approach.
Advice for owners : an honest estimate often allows faster and more serene sale .
✅ Attractive price strategy
- Set a price slightly below the market.
- Attract more buyers and cause competitive offers .
Advice for agents : put forward the psychological effect of the attractive price .
Advice for owners : a well -positioned price can generate several offers and speed up the sale .
📢 Treat communication
- Present a quality ad with photos and detailed description.
- Be transparent on the evolution of offers and the market .
Advice for agents : reassure your customers by showing them how you are going to market their well effectively .
Advice for owners : Be reactive to returns from the market and adapt your price if necessary.
📚 Conclusion
The initial overvaluation can be a double -edged weapon. It attracts owners but can waste time and devalue a property if it stays too long on the market. The best strategy remains a fair estimate from the start, transparent communication and a constant monitoring of the market .
Agents and owners, the objective is the same: sell quickly and well. Attach the right price from the start and maximize your chances of success!
