Is the Property Really Overpriced or Simply Misvalued?

When a property remains on the market for a long time, the same question usually arises: is the price too high, or have buyers simply not yet recognised its value?

In practice, the answer is usually very simple. If a well-presented listing does not attract serious enquiries, or property viewings do not result in concrete offers, the market is signalling that there is a mismatch between the asking price and what buyers consider to be realistic value.

That does not mean the property is bad. Often, it is simply misvalued.

The asking price is not the market value

Owners often set the price based on listings of similar properties in the same neighbourhood. The problem is that a listing shows how much the seller wants to receive, not the amount for which the property will actually be sold.

An apartment listed at €350,000 may remain on the market for months and eventually sell for considerably less. In that case, its original asking price was not its market value, but the owner's expectation.

A realistic valuation therefore cannot be based solely on active listings. It is necessary to consider the achieved sale prices of comparable properties, current demand, the number of competing properties on the market and the specific characteristics of the property being assessed.

Floor area and location are not enough

Two properties of the same size on the same street can have very different values. The difference may come down to the floor, lift access, parking, orientation, noise, room layout, the condition of the building and the amount of investment required.

An apartment on the fourth floor of a building without a lift will not have the same market value as an apartment on the second floor of a well-maintained building, even if they have the same floor area. Likewise, an apartment with a large amount of wasted hallway space may be less attractive to buyers than a smaller apartment with a more functional layout.

For houses and land, important factors include access roads, infrastructure, development potential, the shape of the plot, the slope of the terrain and whether the documentation is in order.

This is precisely why simply multiplying the number of square metres by the average price per square metre rarely produces a completely realistic result.

Micro-location is often worth more than the name of the neighbourhood

Buyers are not only purchasing an apartment, but also the everyday lifestyle that comes with it.

Proximity to schools, kindergartens, public transport, shops, parks and workplaces can have a significant impact on demand. A difference of only a few hundred metres can sometimes mean a quieter street, a better view, less traffic or easier parking.

This is particularly noticeable in Zagreb, Split and Dubrovnik, where prices can vary considerably within the same city neighbourhood. On the coast, additional value is created by sea views, proximity to the beach, access to the property and the quality of the tourist location.

A property should therefore not be valued solely according to the broader area in which it is located.

Emotional value is not market value

It is understandable that owners find it difficult to view a property completely objectively after living there for many years. They have invested time, money and personal effort into it, and often have strong memories associated with the space.

A buyer, however, does not pay for emotional value. They assess how much the property will cost to purchase, renovate, maintain and adapt to their own needs.

A renovated kitchen may have been expensive for the owner, but if its style does not appeal to most buyers, that investment will not necessarily be fully reflected in the sale price. The same applies to a swimming pool, luxury materials or highly specific interior design.

Not all investments carry the same market value. The most valuable are usually those that improve functionality, energy efficiency, safety and the overall condition of the property.

An excessively high price can damage the sale

Many sellers believe it is better to start with a higher price because they can always reduce it later. This strategy may seem logical, but it can often have the opposite effect.

A property usually receives the most attention during the first few weeks on the market. If the price is clearly too high during that period, serious buyers may not even arrange a viewing. Over time, the listing becomes less attractive, and buyers may begin to assume that there is a problem with the property.

After several price reductions, the impression may arise that the owner is under pressure, creating room for more aggressive negotiations. The property can then end up selling for less than it might have if it had been positioned correctly from the start.

A realistic initial asking price does not mean selling below market value. It means attracting a larger number of relevant buyers and creating better conditions for negotiation.

How can you tell if the price is too high?

If a listing receives a large number of views but almost no enquiries, the problem is usually the price, location or presentation.

If buyers attend viewings but do not submit offers, there is probably a gap between the impression created by the listing and the actual condition of the property. The reason may be required investment, noise, an impractical layout or expectations that the asking price does not justify.

If offers are regularly received but are significantly below the asking price, the market is giving a very clear indication of the range in which it sees the property's value.

Such feedback should not be ignored. It is an important part of the valuation process and of adjusting the sales strategy.

A good valuation is more than just a number

A high-quality valuation must take into account the documentation, condition of the property, comparable sales, competing listings and the profile of buyers the property is aimed at.

The owner's objective is also important. Someone whose priority is a faster sale will not have the same strategy as a seller who can afford to wait longer and test a higher asking price. However, waiting for a long time makes little sense if the initial expectation is completely disconnected from the market.

A correctly determined price increases the number of serious enquiries, reduces the time required to sell and lowers the risk of significant price corrections later.

Eurovilla provides clients with expert support in valuing and positioning properties on the market. Contact us to offer your property at a price that is realistic, competitive and aligned with current demand.