How to Avoid a Fairy Tale Valuation
Once upon a time in Paphos, a royal family (or was it the Royle family?) decided they wanted to sell up and move to a bigger castle. They called in two different estate agents who arrived on majestic horses with golden flowing manes (the horses that is).
The first agent said the family’s three-bedroom semi-detached palace complete with a garage was worth €300,000 in the current market.
Agent number two declared with a dramatic flourish that the family’s home was worth €350,000 - a whopping €50,000 more.
The family were thrilled that their little piece of domestic heaven was worth so much, and soooooo much more than the first agent’s valuation, so they instructed agent number two, who rode off into the sunset a conquering hero complete with a chain mail clipboard.
But unfortunately for the family the story doesn’t end there.
The valuation of €350,000 turned out to be a vastly over optimistic fairy tale of Hans Christian Anderson proportions. Agent number two, unknown to the family, was known throughout the kingdom for his creative pricing which he used to entice people into long contracts with the promise of a higher than average sale price.
But just like the multi-coloured unicorn of mythical days gone by, buyers at that vastly inflated price didn’t exist. The property stuck on the market like the sweets to the house that lured Hansel and Gretel. It didn’t sell.
Then agent two comes over the horizon three months later declaring there should be a price cut because ‘the property market throughout the kingdom has changed due to the curse of a wicked witch.’
So, you see that due to the tactic of overvaluing the property the agent got his instruction, but the family didn’t get what they wanted which was a good price in the shortest possible time (remember these guys have got their eyes on a future castle).
Here’s where we at Property Canvas like to step out of the fantasy World into reality.
Also, when an overvalued property has a price reduction, savvy and serious buyers are alerted of this and often come in with offers far less than the new reduced asking price.
So, our top tips for living happily ever after are:
1) Ask the agents doing the valuation for evidence of the price they’ve reached.
2) Ask them what their marketing strategy would be to achieve that price.
3) Ask to see the contract prior to instructing them – it’s something at Property Canvas we’re happy to do.
Thanks for reading and remember we’re here to help you achieve your property goals – whether you live in studio flat or magical mountain top castle (not that you get many of those in mid Paphos!!).