How to bounce back onto the market after overpricing your home

While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.

According to David Jacobs, Gauteng Regional Manager for the Rawson Property Group, modern buyers are well-informed on what they can expect for their money. They have little patience for unrealistic prices, and are very likely to avoid overvalued properties altogether. This, he says, has left many a misinformed seller with a stagnant listing attracting no interest on the market, but doesn’t have to spell the end of all hope for a good sale.

“A lot of homeowners who have accidentally overpriced their property – either of their own accord or because of poor advice from their agent – end up selling for far below market value because they don’t know how to bounce back from their mistake,” says Jacobs. “It’s true that it can be difficult to drum up new interest in a stagnant listing, but with the help of a good agent, it can absolutely be done.”

Here are his top tips on how to go about remarketing a previously overpriced home.

Plan a fresh start

“Buyers who recognise a listing as having been on the market for months without selling are going to assume there is something wrong with the property,” says Jacobs. “The best way to work around this is to take your old listing down, spruce your home up a little, take some updated, high-quality photographs and write a fresh description for a brand new listing online. That way, there’s a good chance that prospective buyers won’t instantly recognise your home and jump to any negative conclusions about its desirability.”

A coat of paint on key areas, a garden clean-up and a good decluttering is often enough to convince buyers to give a home a second chance, but if your agent isn’t willing to put in the time and effort to take fresh photos and create a new listing, you may need to have a serious conversation about expectations and performance.

“This can be a tricky topic, we know sole mandates are the best way to sell a property, but we also want our sellers to have the freedom to cancel a mandate if they feel their agent isn’t performing as promised.”

Don’t make the same mistake twice

No amount of pretty pictures and descriptive adjectives are going to sell your home if you get the price tag wrong a second time. To avoid that, Jacobs suggests getting a revised set of valuations done before re-listing, preferably by two or three agents who are active in your area.

“Valuations are part science and part art,” he says, “and experienced agents often have very accurate gut instincts that can be incredibly valuable when trying to position your home on the market. That said, don’t discount good, hard evidence either – make sure the agents valuing your home can back up their estimations with real market facts and trends.”

Market intelligently

“Marketing is vital in the property world,” says Jacobs. “It’s not just about using an agent with a trustworthy and visible brand, it’s also about strategizing and highlighting key elements of your home to attract the right kind of buyer.”

If you’ve already listed your property at the wrong price, Jacobs says an intelligent remarketing strategy is even more important.

“You need to overcome any negative associations buyers may have formed about your home and ensure the new listing gets seen by the right people in the right places at the right times,” he explains. “An experienced agent will be able to advise you on this, but feel free to ask questions and make suggestions as well. Good communication is key to getting good results.”

Be transparent with buyers

“It’s always a good idea to be honest and upfront with prospective buyers,” says Jacobs, “but it’s even more helpful when you’re trying to bounce back from overpricing. Anything you can do to set buyers’ minds at rest about potential flaws or defects is a great idea. That includes getting copies of approved plans, writing comprehensive defect lists, or even getting a professional home inspection report done so that all your cards are on the table. There’s nothing more comforting to a buyer than a seller who is 100% above board.”

Defect lists are best drawn up with the help of your agent, who can assist you in being clear and unambiguous without overplaying ordinary flaws. Professional home inspection reports can be commissioned at any number of inspection agencies, but make sure your chosen inspector is fully accredited.

For more advice on remarketing a property, get in touch with your nearest Rawson Property Group neighbourhood expert or pop into your local franchise for a chat with an experienced agent.