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Overpricing: A Common Issue in Rugeley’s Property Market

The Rugeley property market has seen rapid changes in recent years. During the peak of 2021, homes were selling quickly, often attracting multiple offers and exceeding expectations. In response, estate agents started valuing homes at higher prices to win more listings. But as the market cooled, many properties were left languishing unsold because they were priced too high from the outset.

The Impact of Overvaluing: Longer Sale Times and Increased Risk

When a property is priced above its true market value, it doesn’t attract serious buyers. Instead, it sits on the market for an extended period, leading to frustration and, ultimately, the property being withdrawn unsold. Here’s how overvaluing has impacted the Rugeley market over the past five years:

• 2019: Out of 1,050 properties that left estate agent books, 41.1% (432 properties) were withdrawn unsold.
• 2020: 34.3% of properties (322 out of 940) were withdrawn unsold.
• 2021: Only 19.9% (187 out of 939) came off the market unsold due to the booming market conditions.
• 2022: The percentage of unsold properties rose again to 26.8% (209 out of 781).
• 2023: A sharp increase saw 44.3% (370 out of 836) properties withdrawn unsold.
• 2024 (YTD): 39.7% of properties (231 out of 582) have already been withdrawn unsold.

Why Does Overvaluing Happen?

Many estate agents feel pressure to secure listings in a competitive market, sometimes even earning commissions just for getting a property on the market, regardless of whether it sells. To win business, some agents inflate valuations, appealing to homeowners’ desire to get the best price. But once the property is listed, they often push for gradual price reductions over time. This strategy can leave homeowners disappointed and missing out on potential buyers who might have purchased had the property been priced realistically from the start.

The Hard Data on Overvaluing

Statistics show that overpricing has a direct impact on the likelihood of a successful sale:

• A UK home that takes over 100 days to find a buyer has only a 56% chance of completing the sale, with 44% of these properties falling through.
• In contrast, properties that sell within 25 days have a 94% chance of a successful completion.

Homes that stay on the market for too long develop a negative reputation, causing potential buyers to wonder why they haven’t sold. This perception can lead to lower offers and a final selling price much lower than if the property had been realistically priced from the beginning.

How to Avoid the Overvaluing Trap

To ensure your Rugeley home is priced correctly from the outset, follow these tips:

1. Get Multiple Valuations: Ask several estate agents to value your home and compare their suggestions. Be cautious of any agent who offers a significantly higher valuation than others without strong evidence to back it up.

2. Research Comparable Sales: Look at similar properties in your area that have recently sold. This will give you a better understanding of realistic pricing.

3. Understand Market Conditions: The market is constantly changing. Make sure your valuation reflects current conditions, not the highs of previous years.

4. Work with a Trustworthy Agent: Choose an agent with a reputation for honest and accurate valuations. A good agent will focus on finding the best buyer at the right price, rather than inflating values to win your business.

Final Thoughts

Overvaluing might seem tempting, but it often results in longer sale times and a decreased chance of a successful completion. By pricing your Rugeley home correctly from the start, you can increase your chances of a smooth, profitable sale.

Remember, the goal isn’t just to sell your home—it’s to sell it for the best price, within a reasonable timeframe, to a serious and motivated buyer. If you have any questions or would like more advice on selling your property, feel free to contact us. We’re here to help!