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How do I decide on the asking price?

How do I decide on the asking price?

NEWS Kevin Parson 18th April 2017

Are you thinking of selling your home?  Perhaps you are wondering how you decide on the correct sale price?  Maybe you think your house is worth more than it is?

One of the most important things to get right when you decide to sell your home, is the price.  The price is the deciding factor on whether your house sells quickly, or hangs around on the market for months, or possibly years. It’s essential to pitch it ‘just right’, otherwise you may miss that initial rush of interest when it’s first launched onto the internet for the world to see.

If your home is marketed too high, it may become necessary to reduce the price a few months down the line – not an ideal scenario, as reducing the price speaks volumes. 

Obviously, the most important factor in all this is your estate agent; if you trust your estate agent’s valuation, you can rest easy.  At the end of the day, it’s not in anyone’s interest to market your property too high.  Sadly, some estate agents still play this game in order to drum up more business for their agency.  A good agent will always be honest, so don’t dismiss the agent with the lower valuation, as theirs is probably correct.

There are plenty of things you can also do yourself, to put yourself in a more knowledgeable and informed position:-

 

1.     Keep yourself up to date with local and national housing trends

Keeping your ear to the ground is a great way to inform yourself about what is going on in the local and national market place.  We recommend the BBC News App which can be downloaded onto any smartphone or tablet.  You can choose ‘property’ as one of your preferences and set up an alert; that way, if there is any important news or reports about housing, you won’t miss a thing!  If you don’t have a smartphone, keep up to date by reading a national newspaper or checking out the BBC News website.

You may be asking yourself…  Why do I need to know about national property trends?  Let me explain… it can help you to plan your asking price.  Let’s say, for example, that the general market trend is in an upwards direction, well you will then hopefully have a better chance of achieving your asking price.  It allows you to gauge a realistic idea of price so that you can plan your finances accordingly.

 

2.     Get to know your local housing market

We recommend you scan through the property pages of your local newspaper, or scroll through some online sites such as Rightmove or Zoopla.  It’s very easy.  Simply put your local area or town into the Rightmove search box, choose how many bedrooms you require, search radius and price range and it will bring up all the properties on the market that fit your criteria.  Another tip is to tick the ‘under offer’ box too, as then your search results will include any houses that have already accepted an offer.

Researching your local market will give you a great idea of the general price trends and property types in your area.  You can then use these prices as a benchmark for your own house.  Simple!

3.     Seek professional guidance from a trusted estate agent

Some people prefer to get 2 or 3 valuations as this can be great for comparing and for checking accuracy.  Let’s say, for example, that you get 3 valuations and 2 of them are similar, but one is way off the mark, you then have a good idea which price to choose.

 Any reliable and trustworthy estate agent will be totally honest about the achievable value of your home.  It’s simply not in our interest to lie.  We essentially want what you want, which is a quick and trouble-free sale at the price you want.   If you suspect your agent is exaggerating the truth, move on and choose another.  HONESTY is always the best policy, and if you don’t trust your agent, how can you possibly entrust your home to them.

4.     Try to be realistic about the value of your home

Let’s face it, we all love our homes, and we work hard to make them special.  It’s vital, however, that you don’t let your heart sway your asking price.  We become emotionally attached to our home, and can easily fall into the trap of believing it is better than it really is; ‘My house is amazing and much better than anything else I’ve seen on the market’.  It’s important to remember that your taste in décor and your style is not necessarily that of your viewers.  Try to be impartial and realistic. 

5.     Decide on a minimum sale price

Having a good idea of what you are prepared to accept in terms of sale price can help you decide on your final asking price. For example, in the current market, buyers may still expect a reduction in price of around 1% - 5%; if this is the case, you can then budget this in to your numbers.   

Do you have any thoughts or ideas on this article?  Do you agree or disagree with the points raised?  Get in touch by emailing Kevin@parson.ltd.uk  or give us a call on 07919 416831