Are you thinking about selling your home? Are you wondering how to decide on the correct price for your property? Have you had a few different valuations? How do you price your house correctly?
I’m sure you have all heard the quote, ‘you only get one chance to make a first impression.’ This couldn’t be more true, particularly when selling your home. Probably the single most important decision you will make when selling your home is the initial launch price. If you over-price a property, your house could be on the market for longer than you want.
Over-pricing your property at the initial launch can be extremely detrimental to the sale of your house. The most likely outcome is that there will be very few, if any, viewings and further down the line the price will undoubtedly need to be reduced. Once a property has been reduced in price, the initial surge in interest (the most vital marketing opportunity) has been lost. An honest and achievable price is always the sensible option.
This initial surge of interest must be maximised and it is your estate agent’s job to get it just right.
Read on to find out how to price your property right…
• Obtain a minimum of 3 valuations from 3 different local estate agents. We recommend that you do this to give you an average price. You could simply add the 3 valuations up and divide by 3 to give you the average, or you could use these valuations to make an informed decision yourself. Let’s say, for example, that 2 of the 3 valuations are very similar, or the same, then I would be tempted to go with that amount. Whatever you do, don’t just go for the agent that gives you the highest valuation; this is a known tactic to drum up business. Choose the agent who gives you the most honest valuation and the agent that you trust.
• Do your own house price research online. Property sales websites such as Rightmove and Zoopla all have land registry data in their search engines. It’s possible to put in a postcode and it will bring up average sales prices etc. Also, look at other properties that are currently for sale in your street or area too. This will give you a feel for the local housing market.
If you are lucky enough to have a larger or more individual property, try and find properties on the market which are of a similar size and age to yours. What did you initially pay for your house? By what percentage have property prices increased since then? This information might give you a better idea about the current value.
• Follow your gut feeling and you won’t go far wrong. When you are deciding which agent to choose to market your property, do your research. An honest agent will give you an honest valuation. Ask around for local recommendations and visit the offices of a few agents to see how you are greeted. Look at their brochures and chat with them to determine how friendly and engaging they are. Are they pro-active? Do they go out of their way to help you? If the answer is yes, then they will probably go out of their way to sell your house too. Don’t choose the agent with the ‘gift of the gab’, who promises you the world, choose an agent who gives you realistic and achievable advice on your asking price, and one with a positive demeanour.
• Allow for a small percentage reduction in the asking price. One in 5 properties will sell for up to 5% less than the asking price. This is fact. Ask yourself what price you would happily accept. Let’s say, for example, that your lowest acceptable price is £160,000, you could market your property for around £165,000. It is extremely difficult to value a property accurately to the nearest pound as they are all so different, so it is important to understand that a valuation is just a guide. At the end of the day, a property is only worth what someone is prepared to pay for it.
We hope this guide will help you to make a more accurate and informed decision when it comes to the launch price of your home.
The bottom line is, “Trust your instinct and don’t be too greedy!”
Have you ever had problems selling your house? Did you drop the price? What was the outcome? How long did your house take to sell? Would you do things differently next time?
We would love to hear your stories on this topic, or indeed any other property topic. Send us an email at [email protected] or give us a call on 01733 893520