Is my home undervalued?

Dear Jason,

 

Our home had only been on the market for six days, and we have already had three offers, one of which is the asking price. Does this mean the agent undervalued our home in the first place? Mr & Mrs D Turner

 
Good question Mr & Mrs Turner and the answer is probably not.

 

When a home is put on the market and is immediately inundated with offers, you would normally expect the seller to be absolutely delighted! But when it comes to property, everything gets turned on its head and some sellers immediately start to think that they could have got a higher price.

 

That may be true. Nevertheless, that does not necessarily mean that your agent was at fault as far as the valuation was concerned. Valuing property is a notoriously inexact science, even for those of us who practise it day in, day out. This is particularly true in a market where demand for homes is outstripping supply.

 

A definite reason for your instant buyer activity is the speed at which an agent can ‘talk’ to potential buyers, which has changed dramatically. Social media is instant and the leading property websites (Rightmove, Zoopla etc) are now set up so that your agent can have the details of your home displayed within hours rather than days. The days of sending sets of paper based house details in the post and then phoning those buyers to see if they would be interested in looking at the house are behind us. Nowadays an agent can market a property within a few hours of receiving the instruction by easily sending it to potential buyers mobile devises, they may then want to come and look just as quickly.

 

Let’s not lose sight of the fact that the asking price should attract buyers - not drive them away! Nor should we forget the simple fact that properties usually attract the most buyer interest during their first few weeks on the market. In my experience the best (and highest offer) usual comes within the first month of a property being marketed. With these facts in mind, your flurry of offers looks rather less suspicious!

 

 

 

 

 

 

 

I would suggest that your agent has actually done a good job in pitching your asking price at a level that has generated so much interest – not to mention resulted in several offers that you yourself describe as “quite good.”  So, my advice is to forget what might have been, and focus instead on the extremely pleasant fact that you have several people itching to buy your home!

 

Good luck in your move

 

Jason