Stop the cycle - Overpricing

📰 Stop the Cycle: Why Choosing the Highest Valuation Can Cost You Time and Money

It's one of the most exciting days of your selling journey: receiving valuations from estate agents. If one agent comes in significantly higher than the rest, it feels like a win—you've found the one who sees the true potential of your home!

But hold on. In the world of real estate, the highest number isn't always your friend. In fact, that inflated figure might be the beginning of a vicious cycle that costs you much more in the long run.

As a seller, you naturally want the best possible price. However, many agents know this and use a tactic called "buying the listing"—they deliberately give you an unrealistically high valuation just to secure your business, knowing you'll choose them over the honest agents.

The problem is compounded when sellers look at high prices for properties online that haven't actually sold yet. This creates a market where expectations are based on asking prices, not selling prices.

The result? A "vicious circle of unexperienced people working together" that leads to months of frustration.

Choosing an agent based on an inflated valuation might feel good for a day, but here are the concrete ways it hurts your sale:

The first 2–4 weeks a property is on the market are the most crucial. Buyers and agents are constantly watching for new listings, and your home is at its freshest and most desirable. If you launch at an inflated price, serious buyers (who search within their budget) will simply never see your property. You miss the wave of initial interest that often drives competitive offers.

When your home is overpriced, other, correctly priced properties in your neighbourhood suddenly look like incredible value. You end up making your neighbour's house look like a bargain, directing all the serious buyers straight to them.

Once your property sits on the market for 6, 8, or 12 weeks, buyers begin to wonder, "What is wrong with this house?" The answer is usually the price, but the perception of a problem lingers. When you are finally forced to reduce the price, it signals desperation to buyers, who then feel justified in submitting low-ball offers.

💡 Fact: Homes that require multiple price reductions often end up selling for less than what they would have achieved if they had been priced correctly from day one.

Even if you do find a buyer willing to pay your inflated asking price, the sale could still collapse. The buyer's mortgage lender will require an independent valuation. If the valuer looks at local comparable sales and determines your home isn't worth the accepted offer, they will "down-value" the property.

This forces the buyer to either renegotiate (meaning you accept a lower price anyway) or pull out of the sale entirely, leaving you back at square one with a failed sale on your record.

Every day your property sits unsold is another day your moving plans are on hold. It can cause you to miss out on your own dream purchase, increase stress, and force you to accept a less-than-ideal offer when your contract with the overvaluing agent finally expires.

✅ How to Avoid the Overvaluation Trap

When getting valuations, ask these critical questions to cut through the flattering numbers:

"Can you show me the evidence?" Ask the agent to provide recent, final sold prices for 3–5 properties similar to yours, all within a half-mile radius, sold in the last 6 months.

"How many of your properties sell for the original asking price?" A truly expert agent will have a strong track record of pricing accurately.

"What is your suggested minimum time on the market?" An agent who is confident in their price will usually suggest a shorter contract (e.g., 8-12 weeks), not a long, restrictive one.

Don't fall for the tempting lie. An honest, realistic valuation from an experienced agent is the foundation of a swift, stress-free, and ultimately more profitable sale.

summary:

So how do you choose an agent? - Choose the one that is honest enough to say, "I cant tell you exactly how much you will recieve, but I can tell you for sure I will work my backside off to get you the highest possible price".

Kyri Kyriacou

Director

Property Vine