Why an offer price that is too high can deter potential buyers
If you set the price of your property too high, potential buyers may not even turn up for a viewing. This is because prospective buyers are well informed and use online portals to compare market prices accurately. Anyone who has been house hunting for more than a year has a keen sense for realistic offers.
Transparent market thanks to online information
The internet makes property prices very transparent. With the help of search functions and filter criteria, average prices for individual districts and neighbourhoods can be determined quickly. Large property portals offer e-mail notifications that inform interested parties immediately of new offers or price changes. This makes it easy to notice if a property is overpriced and the price has been reduced several times.
Risks of excessive offers
- Long marketing period: A price that is too high usually leads to little interest, which drags out the sales process.
- Necessary price reductions: If the price has to be lowered during marketing, the property will look like a slow seller in the eyes of prospective buyers.
- Impairment: In the end, many sellers realise even less than the realistic market value.
Beware of unrealistic promises
If an estate agent promises you an exceptionally high sales price, you should exercise caution. Such promises are often used to obtain the brokerage contract. The price then has to be reduced later - with the aforementioned negative consequences.
Orientate on market value
To ensure a smooth sale, you should stick to the market value of your property. If the property is in demand, potential buyers will be prepared to offer more anyway. In such cases, you can consider a bidding process together with an experienced estate agent to allow the price to rise naturally.
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Robert Schüßler
Property valuer (EIA and IHK)
