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Damage done by getting a house price wrong and what it costs you

Almost no one actually values their home at the right level when it comes time to sell – and that can lead to costly mistakes.

New figures from property site Zoopla show over-pricing can more than quadruple the time it takes to shift a home, seeing sellers wait more than three months before an offer comes in.

And rather than simply “chancing your arm” to see if someone will bite at the higher price, listing too high might even see you sell for less.

Zoopla spokeswoman Laura Howard said: “Our analysis only goes to prove what every good agent already tells us – that pricing your home realistically results in a better chance of a quicker sale.

“Entering the market fresh with a price that’s too high is not just a gamble that might not pay off, it can actually be detrimental to the selling process.”

Buyers notice when homes have been around a while (Image: Bloomberg)

Zoopla used its own listing data and final sale prices across England and Wales from the Land Registry to make the findings.

Homes were considered over-priced where their original asking price had been reduced at least once – and the average time to sell was compared with homes where sellers had not needed to chop down their asking price.

Worse, getting it wrong means you miss the chance of creating a bidding war.

Homes that are priced accurately from the outset generate an initial flurry of excitement around a property – which may result in several buyers putting in competing offers.

But a property that sits on the market for a while because can appear “stale” – and either put buyers off or see them make lower bids.

(Image: E+)

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Across England and Wales, over-priced homes took 77 days to sell on average – 58 days longer than the average of 19 days for accurately priced homes.

Regionally, properties in the North East and Wales had the most extra time bolted onto the average time to sell.

They took an 90 days and 83 days respectively from initial listing to offer, compared to 22 days and 17 days for homes that were priced right to begin with.

How much longer it takes to sell a mis-priced home by region, according to Zoopla:

1 North East – 68 days

2. Wales – 66 days

3. North West – 64 days

4. London – 60 days

5. Yorkshire and the Humber – 58 days

6. South East – 57 days

=7. East of England – 54 days

=7. South West – 54 days

9. East Midlands – 53 days

10. West Midlands – 49 days

http://www.mirror.co.uk/news/921065753732958