Home sellers overestimating property value

Posted under Advice by Michael

Desperate cash strapped home sellers, in their attempt to extract more return from their property, were overestimating its value, claimed an industry expert.

According to the president of the National Association of Estate Agents (NAEA), the unrealistic approach of the home sellers over price was a problem, since they were overlooking the asking price of homes while trying to attract buyers.

The property market has experienced its biggest slump in prices since the onset of the credit crunch and is likely to suffer for a few more months. The drop in prices is over 12% as revealed by figures from lenders Nationwide and Halifax.

Analysts are predicting that the price fall is going to continue, with some experts even suggesting that it could drop to nearly 35%. At the same time the International Monetary Fund has claimed that the property market in the UK was 30% overvalued at its peak.

The NAEA president, Chris Brown commented that what somebody was ready to pay today was truth of the matter and not what somebody would have agreed to pay yesterday.

Brown added that professionals and estate agents were devoting more time to evaluation of property value to show what was then and what is now. He said the problem was that people were not going to get what they were expecting since they were not looking at the asking price.

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