What Is Next-Door Syndrome and Could It Affect Your Property Sale?

Let’s be honest, we’ve all been a nosy neighbour at some point, haven’t we?

A ‘for sale’ sign goes up on a property in your street, and within minutes you’re online to find out what it’s on the market for.

Soon enough, you’re marvelling or shuddering at your neighbour’s taste in décor and deciding that your home is bigger, smaller, smarter or scruffier than theirs.

There’s nothing wrong with this; in fact, if you plan to sell up yourself, it’s useful market research. But it’s also important to keep things in perspective, or you could develop what is known in the property industry as Next-Door Syndrome.

This term refers to a seller whose price expectations are based solely on what their neighbour’s property sold for. (Usually, people think their home is worth at least as much as their neighbour’s, or a bit more.)

While knowing what other properties in your area achieve at sale is helpful, it’s important to look at the whole picture. Other things to consider include:

  • Square footage. Is your neighbour’s property the same size as yours?
  • Selling price. You probably saw the asking price when you did your online snooping, but your neighbour may have had to accept a price reduction.
  • Completion time. Sometimes, it takes half a year to complete a deal, so the price may have been agreed six months earlier when the property market was in a different place.

The impact of Next-Door Syndrome

Focusing too much on your neighbour’s property deal instead of what’s best for you in the current market could mean you get your pricing strategy wrong and prolong the whole sales process.

The risk is you overprice your property and deter savvy buyers. After months of lacklustre interest, you’ll have to drop the price.

Valuation strategy

When you get three agents around to look at your property, don’t take their valuations at face value. Ask them how they reached their conclusions. 

A good agent will welcome the opportunity to explain their calculation and the different data sets used to determine a property’s value.

Also, be aware that some agents deliberately overvalue a property just to win business. 

Once they’ve secured the listing, they’ll quickly suggest a price reduction.

Go for an agent who is ambitious but honest. Selling a property is a huge undertaking, and it’s important that you trust your sales team.

For a free valuation, contact us here at Allen Residential on 01761 412 300 today.

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Meet Our Founding Director James

Meet Our Founding Director James

James Allen is the founding director and owner of Allen Residential. James started in estate agency back in 1997 and after working for a couple of strong independent estate agencies he established Allen Residential in 2005 Keen to invest back into his team, James is dedicated to ensuring that each team member at Allen Residential is a key part of the business, emphasizing the importance of their contributions. His leadership style highlights the significance of a cohesive and dedicated team, fostering a supportive and growth-oriented environment. The business has flourished in recent years, thanks to the staff's commitment to excellence and the implementation of effective systems. James' appreciation for his team’s hard work and dedication is evident, making Allen Residential a thriving and dynamic company.

Why choose Allen Residential?

Why choose Allen Residential?

With an owner who has 35 number of years experience in the industry and 20 years of company history, we bring knowledge, reliability, and expertise to every property transaction.

Our approach is casual and professional, aiming to form personal connections with the people we work with instead of treating them as a number.

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