Setting the asking price of your property can seem quite complicated. We’d all like these transactions to be done and dusted as quickly as possible and setting an appropriate asking price can really help wrap things up much quicker than if you choose to aim high and stand firm.
To help, we’ve put together a quick overview of some of the points to consider when setting the asking price of your home.
A great starting point for the whole process is getting an appraisal on your home from your local estate agent. A good estate agent will be able to give you an honest opinion on your home with the added knowledge of how the local area is performing in general. If you had an appraisal more than 6 months ago, then it’s worth getting an up-to-date valuation, as it was recently reported that over the last year UK property values have risen 4.5% on average and the average asking price has risen by an average of 3.4%.
Speaking to a local expert also allows you to gain some extra knowledge on what buyers are looking for in the area and what the specific pros and cons are of your home, giving you a better understanding of what makes your home stand out.
In addition to speaking with your local estate agent, you can also do a bit of research yourself, there are plenty of websites available today that provide you with information on the average prices that properties in your area sold for.
Spend a little time taking a look at other houses in your area to see how your house stacks up, is your home slightly more modern? Have you added a conservatory or a garage? These extras matter when it comes to competitively pricing your home.
A useful approach to getting the asking price right is to decide on your selling tactic beforehand. Most sellers would assume that you should set your price slightly higher than what you believe the value of your home to be as you anticipate the buyer to try and knock you down a little. However, if you set the price too high you could not only be pricing out a load of potential buyers, but you could end up with a house on the market for quite some time and the longer your house in on the market, the more likely a buyer is going to ask “what’s wrong with this home?”. If you’re going to price your home slightly higher than the rest, make sure it’s for good reason and you’ve taken into account all the previous research to justify the price.
Another tactic for pricing is to set the value slightly lower than your local competition. While this may seem like you’re setting yourself up for a loss, you could potentially create a bidding war between those looking for a bargain, which could lead to the price being driven up towards your intended sale price.
When pricing your home, it is also important to remember how buyers search for houses. The majority of buyers are likely to have a round figure in their head when it comes to their budget, e.g. £180,000. Therefor if you’re willing to sell your home at £175,000 but you’ve knocked up the price to £182,000 to leave room for negotiation, anyone with a max budget of £180,000 won’t even see your home when searching, meaning you miss out on a potential buyer.
Overall the main thing to remember when selling your home is that you can never have too much information on your area and your competition. The more research you carry out the better chance you have of getting the price right.
As long as you use your new knowledge to your benefit and remain realistic about your property and the current state of the market, you’ll be able to set your asking price and negotiate with buyers with confidence that your home is priced appropriately.
