When it comes to selling a property, owners are often faced with a multitude of estate agents promising high sale prices. However, it is crucial to understand that these promises can be misleading and do not necessarily guarantee a successful sale.
Another agent “gives” me XXX for my property.
We regularly hear this phrase from our customers. But never forget: the agent doesn’t “give” you anything. He only gives you a price, but it’s the buyer who will “give” you his money… based on a realistic market price.
Promising high prices: a deceptive strategy
It is common for some estate agents to promise exorbitant sale prices in order to obtain a mandate. However, it is important to understand that these promises are not binding. The final selling price is determined by the buyer and the market, not by the estate agent.
Owners generally interpret these promises as a guarantee of a sale at a high price, and logically tend to turn to an agent who ‘promises’ them the most attractive price. Unfortunately, it is often the less competent or honest agents who promise the highest prices. Establishing the true “market price” requires not only skill and experience but also honesty to tell the owner the realistic price.
Of course, you can’t be too defensive either! The art lies in determining the “right price”, i.e. a realistic market price that maximises the seller’s assets without being overpriced, which would be counterproductive.
The risks of overpricing
There are three main risks when you try to sell your property at an inflated price.
1. The right target buyers won’t even see your property
All property portals, whether athome, immotop or others, work with price brackets. If your property is realistically worth EUR 650,000 but you advertise it in the EUR 750,000 to 800,000 bracket, the right target buyers won’t even see it.
2. You “burn” your property on the market
If you don’t sell the property within a reasonable time and then have to reduce the price, buyers who follow the market will think that something is wrong. They will lose interest in your property or negotiate the price even lower. So you risk ending up with a lower price than if you advertised immediately at the “right price”.
3. You waste precious time
Besides the frustration and unnecessary stress, you’re wasting precious time, during which you could have already started on the next chapter of your life.
How to protect yourself against the pitfalls of unrealistic valuations
Here are a few tips on how to navigate the property market effectively and avoid the pitfalls of high price promises:
- Be sceptical: Don’t be blinded by unfounded promises. Be sceptical of the agent who promises you the highest price.
- Trust your instincts: Assess the seriousness and genuine skills of the agent you meet. Your instinct can often guide you towards the right choice.
- Look for skills and experience: Establishing the true “market price” requires skills and a great deal of experience. Look for an agent with these qualities.
- Don’t rely on price alone: The final selling price is determined by the buyer and the market, not by the estate agent. Don’t base your decision solely on the promised price, or on the posted prices you see on portals. Unfortunately, real sale prices are nowhere to be seen and are often much lower than the promised and advertised prices.
For an honest valuation, based on many years’ experience and a methodology unique in Luxembourg that combines the independent valuations of 4 property professionals, contact us by email or call us on 585 506.