When selling a property, there is no denying that getting the price right is one of the most critical aspects. A lot of people assume that lowering the asking price is the best way to secure a quick sale but this is not always the case. Below, we will reveal everything you need to know about pricing your property.
Price is not the problem
Price matters, of course, it does! You need to price your home correctly, but you certainly don’t need to take the haggling approach to selling your property. The key is to make sure the valuation is well-researched and you have taken the perspective of several professionals. If your home is struggling to sell, you can be confident that the price is not the problem. Why? Because buyers don’t buy based on the amount your home is on the market for.
If someone was not interested in your property when it cost £240,000 they are not going to be interested if you offer it to them for cheaper. No one bargain hunts when looking for a home. Yes, you look for value, but you don’t look for the cheapest property. Let’s say you are shopping for a new top. You may go on River Island’s website and click to rearrange the tops in order of cheapest to most expensive. Would you ever do that with properties? No, you would type in your price range instead, i.e. £200,000 to £250,000. A buyer sets their budget from the off-set. They search based on this budget. So, if they view your home and they don’t make an offer, it’s definitely not because of the price!
How to value your home
Have you ever wondered how your estate agent valued your home? How did they get to the value they suggested? Let’s take a look at some of the main aspects of your property that will determine its value…
- Property type
- Age of your home
- The features and fixtures of your property
- The standard of building work and the state of repair
- What locality your home is situated in
- If local amenities are available
These six factors will generally help you to determine your home’s worth. So, why use an estate agent’s assistance at all? So you can take advantage of their inside expertise.
Estate agents will factor in the market value of your property. They do this by looking at several different factors, like…
- The asking price of properties comparable to yours in the local area
- Sale price of comparable properties
- Demand and supply forces
- The strength of the local market
You can use these factors too to get a better understanding. Take a look at this page on HDB Yishun. You can zoom in on properties based on the street they are on, so you can get a fully accurate picture regarding the property market in the area. These are the sort of resources you should be using.
So now you have a rounded view of the various factors that are taking into account in order to determine the value of your home. It’s definitely worth doing your own research but you should also get several estate agents to value your home as well. You can then use this to come up with the best asking price!
What do when your estate agent doesn’t believe in your asking price?
Did you decide on your asking price? If so, you may be happy with it, but is your estate agent? This is a question you need to ask them. Don’t shy away from the answer! If your estate agent is not confident in your asking price it will undoubtedly sabotage your chances of selling your property – and your viewers will get a sense that something is not quite right.
Unfortunately, estate agents aren’t magicians! They can’t sell your house at literally any asking price you desire. If they don’t feel like they can sell your house at the price you have valued it they are going to feel somewhat disengaged. They won’t put in as much effort to sell your home because they probably feel like it’s not worth it. Plus, all it takes is for them to accidentally say ‘it’s always worth making an offer’ for the viewer to dedicate that the agent is not confident in your price and thus you may be willing to budge.
So, what can you do about it? Well, it is up to you to make your estate agent feel confident about the price you are asking for your home. The only way to do this is to back it up with cold hard facts. Do your research on comparable properties in the market and if you can do a price per square foot comparison table you should.
Is the number 9 stopping your home from selling?
What is the difference between a property that is on the market for £299,999 and one that’s available for £300,000? A pint of milk? A bar of chocolate? A trip to Poundland? Actually, the difference could be receiving no offers and selling your home! £1 may be nothing in monetary terms, but it is everything when it comes to marketing your property.
Why? Well, there are several reasons! Firstly, £299,999 is quite simply less appealing! No one likes the bargain feel of buying a house. You purchase within your budget and that’s that. It works in supermarkets with baked goods priced at 99p instead of £1.00 but it doesn’t work with properties.
You are also putting yourself at a big disadvantage when placing your property on portals. Popular portals, like Rightmove, allow people to search for a property based on their price range in the following format, for example, £250,000 – £300,000. If you put your house on the market at £300,000 not only will you fall into the category mentioned, but also the £300,000 – £350,000 range. So, you double your exposure! But, a house priced at £299,999 will only fit into the first section, so you limit your chances to sell.
Does dropping the asking price ever work?
I guarantee if I was to randomly go up to a bunch of people on the street and ask them what they would do if their home wasn’t selling most of them would say ‘lower the price’. This is one of the biggest myths about selling your home! Rarely does it ever work.
Generally speaking, there is only one exception to the rule, and this is when the market has changed significantly. If your home has been on the market for a while it is always a good idea to get it re-valued. You may need to adapt the price in order to accommodate a changing market. If your neighbours have houses on the market and theirs are priced much lower than yours, you need to get back in the competition.
But, lowering your asking price just because you are panicking and views have stalled is never a good idea! It doesn’t say ‘wow bargain home’ it says ‘problem home’. A price reduction indicates that there is something wrong with your property. If you do not have confidence in what you are selling, why is a buyer going to? Let me tell you a little secret: buyers never purchase a house based on price!