When it comes to pricing property for sale, there are a number of factors which you and your agent should take into consideration when setting your asking price. Generally speaking, most agents will look at your property and give you their assessment of what they think your property could sell for, as well as what price to begin marketing at. Your agent will take into account several factors when advising you on the best price to bring your property to market, sale price of comparable properties, local supply and demand, the time of year and how quickly you want to sell can all influence the suggested initial asking price.
Of course, pricing property for sale is not an exact science and, if you take the usual advice and get market appraisals from more than one agent, you may well get differing opinions. Ultimately, it is up to the vendor what price they decide to market the property at. Before you do that though – have a look out our property price myths!
This is not a great strategy. We understand that you want to get the best price you can for your property and allowing a bit of room for manoeuvre on the price is often a good idea. Bear in mind, however, price too high and you run the risk of buyers not even bothering to look at your property, or even seeing it. There is a huge amount of information available online showing actual sale prices of properties as well as likely values and with this information at hand, today’s buyers are well informed and price savvy, they can easily spot an over-priced property. Being forced into a substantial price reduction after a few weeks of marketing is not a good look and by this time, a potential buyer may have gone on to buy somewhere else.
Over-valuing property and then forcing an early price reduction is not a great strategy for an agent to adopt. If a property is priced too high, it is unlikely to sell or get much interest. Of course, the better price an agent gets for a property, the better their fee (assuming they are working on a percentage basis). However, as most commission agents operate on a no sale, no fee basis, a strategy which involves over-pricing would not generally be very successful financially! From an agent perspective, the shorter time possible you have to market a property for the better. Although some agents may take the approach of over-valuing, it is not one Seddons would adopt.
It is true to say that a house which is well presented and well maintained will fetch a higher price than a comparable property which needs work. However, this is all relative in terms of the market. There are some home improvements which add value and some which don’t really help to improve the price of a property. Some may even have the opposite effect! (have a look at our blog for more insight into which home improvements may add value). When pricing your property for sale, the factors which you need to take into account are driven by the market rather than what you have invested in the property.
Getting an early offer shows that your property is pitched at the right price to get early buyer interest and, in an ideal world a quick sale. Some sellers may worry that a quick offer is an indication that they could have got more if they had priced the property higher. We would disagree with that and suggest that it indicates the agent knows the market well and that the price is right!
This is a risky strategy and certainly not one to adopt in an uncertain or volatile market. If you are not getting any interest in your property it is probably the price which is putting people off and simply keeping the property on the market for a long time will not usually help to change that.
In a market where buyers are doing their research, and in a position to make immediate online comparisons to other properties, sold and unsold, buyer interest is a pretty good barometer of whether you are in line with the market or not. Quirky or unusual properties are slightly more difficult to accurately price, especially if there are few comparables available and sometimes it may be that you need a bit more time to find the right buyer. Your agent is probably best placed to advise you in those circumstances whether it is good idea to hold out or reduce the price.
When you are selling your home you will often get offered unsolicited advice from all over the place. Whilst doubtless well meaning, there are few people who are in a better position to advise you on the current state of the market than estate agents who are involved in property sales, day in and day out. In a highly competitive market like estate agency, reputation is crucial to success and estate agents who consistently give poor advice will not last long.
For more information and advice on selling, whether you are ready now or just exploring your options – get in touch with your local Seddons branch. Our friendly teams are all experienced in their local market and happy to advise you on the best approach to selling.