In the last 5 years, 7,149 homeowners looking to sell in Bath have been caught out by estate agents overvaluing their property. Now, understandably, if you have considered selling your property then you will have felt the temptation to list it at a higher price hoping to maximise your sale. After all – who wouldn’t want to maximise their return on their investment?
However, this approach has a downside that many have overlooked: the risks and costs associated with overpricing/valuing a property. So let us dive into why correctly pricing your property is essential to secure a smooth, quick, and profitable sale for your home here in the city of Bath.
A COMMON PITFALL IN BATH’S PROPERTY MARKET:
In recent years, the Bath property market has seen a surge in home prices, leading to fierce competition among estate agents. During the peak of the market in 2021, many estate agents in Bath achieved top prices for properties, often receiving multiple offers in a matter of days. This quick time to sell was likely brought about by the desire for those to move out of metropolises such as London due to the pandemic and move to a quieter area with more space for their money. However, this quick time to sell and above-average pricing came with unintended consequences.
As fewer homes in Bath came onto the market after this boom, agents became desperate to secure listings. So, to secure potential sellers, many agents began over-pricing properties. This ‘overvaluing’ has led to delays and distress for many Bath homeowners as their property is then in turn not attracting as much attention as they thought it would leading to a significantly increased sale time and often a price reduction.
THE IMPACT OF OVERVALUING – LONGER SALES TIMES AND INCREASED RISK:
So, why are so many properties in Bath still on the market after a prolonged period of time? Often it all comes back to this concept of ‘overvaluing’. When a property is priced too high, you don’t attract serious buyers. Instead, your property sits on the market for an extended period, leading to frustration for both homeowner and agent and ultimately these properties end up being taken off the market unsold.
So, let’s look at the statistics:
Since 2019, in the regions of the BA1/2 area –
- In 2019, 46.7% of the 3,693 properties that left Bath estate agent books, exchanged and completed. The remaining 1,970 (or 53.3%) Bath homeowners came off the market unsold.
- In 2020, 69.4% of the 3,116 properties that left Bath estate agent books, exchanged and completed. The remaining 1,430 (or 45.9%) Bath homeowners came off the market unsold.
- In 2021, 69.4% of the 3,254 properties that left Bath estate agent books, exchanged and completed. The remaining 996 (or 30.6%) Bath homeowners came off the market unsold.
- In 2022, 72.1% of the 2,885 properties that left Bath estate agent books, exchanged and completed. The remaining 805 (or 27.9%) Bath homeowners came off the market unsold.
- In 2023, 59.2% of the 2,815 properties that left Bath estate agent books, exchanged and completed. The remaining 1,148 (or 40.8%) Bath homeowners came off the market unsold.
- In 2024 (YTD), 57.4% of the 1,877 properties that left Bath estate agent books, exchanged and completed. The remaining 800 (or 42.6%) Bath homeowners came off the market unsold.
THE HARD DATA ON OVERVALUING:
Now, you could reduce your asking price after three or four months to make your home’s price more realistic and affordable. This is certainly an option, yet because homes that sit on the market for too long often develop a negative reputation, potential buyers will end up asking themselves why the property has been on the market for so long and if there is a ‘hidden issue’ in the property that is causing it to not sell – essentially buyers automatically assume something is wrong with the property and get deterred.
As a result, even when the price is eventually lowered, as reported a few years ago, the property is likely to sell for less than it would have if it had been priced correctly from the beginning.
Recent independent research from TwentyEa and Denton House Research, that a UK home that takes over 100 days to sell (i.e. more than 100 days between coming on the market and agreeing on a sale) has only just over a 1 in 2 chance (56%) of successfully exchanging and completing the sale. The remaining 44% of sales fall through.
In contrast, if a property has its sale agreed in under 25 days, the chances of exchanging and completing rise to 19 out of 20 (94%). That’s a significant difference!
THE IMPORTANCE OF GETTING THE CORRECT PRICING ON YOUR HOME IN BATH:
So, what can you do as a homeowner to make sure you don’t fall into the overvaluing trap? The key is to ensure that your Bath home is priced correctly from the outset. Here are a few tips that should help you achieve this with your agent:
- GET MULTIPLE VALUATIONS: Now this may sound backwards coming from a local estate agent. However, do not rely on your first appraisal. Ask several agents for a valuation and compare the suggestions. Then, choose which agent you think will work best for you and your property. We would love for you to choose us so if you are interested in getting a valuation then click here. Our team have been working in the City of Bath for over 15 years and our property consultants are locals to the area having grown up here, so our wealth of knowledge is plentiful!
- RESEARCH COMPARABLE SALES PROPERTIES: Head to a Rightmove page full of sales properties in your local area and compare how similar homes to yours that have sold recently have been priced and see where you feel your property sits. You can also take a look at local agents’ sales property pages as some homes will not be listed on Rightmove.
- UNDERSTAND THE CURRENT MARKET CONDITIONS: The property market is constantly changing. The highs of the 2021 post-pandemic property market have now cooled off, so make sure you are getting a valuation that reflects current market conditions. It is also a good idea to follow local agents. You can keep up to date with the latest on the Bath property market from Bath’s newest Estate Agents here – or you can follow us on our social media pages found in our linktree.
- WORK WITH AN AGENT YOU TRUST: Choosing an agent that is a good fit for you is crucial. Look at how they market properties, do they have a good reputation and whether they will do what is in your best interest, not just theirs. If you want more information about our sales services, then Click here.
FINAL THOUGHTS:
Overvaluing might seem tempting – but the risks far outweigh the potential rewards.
Not only does it result in longer sale times, but it also decreases the likelihood of a successful completion. By pricing your Bath home accurately from the start, you can increase your chances of getting a decent price and a smooth and profitable sale.
Remember, the goal isn’t just to sell your Bath home – it’s to sell it for the best price, within the best time frame, to a serious and motivated buyer. By working with an experienced and honest estate agent, you can avoid the pitfalls of overvaluing and achieve the successful sale you deserve.
If you have any questions or would like more advice on selling your Bath home, check out our dedicated sales page for both Buyers and Sellers – and always feel free to pop into our office or give us a call.
