How do I decide on an asking price?
5th November 2017
Thinking of selling your property?
How to choose the perfect asking price
Are you thinking of selling your property? Are you wondering how to decide on the correct asking price? Have you had different valuations? What is the best way to decide on an asking price for your property?
Deciding to sell your home is a big decision. Once you have made that decision, it’s time to get your home valued and launch your property on the open market. You may be desperate to get your property on the market, but don’t rush! – the asking price of your property is not a decision to be taken lightly. You only get one chance to make a first impression and the first 3 weeks after launch is when 70% of the interest in your home is generated. If you get the price wrong, you may miss out on that initial surge of interest and find yourself in an awkward situation.
You may then find yourself in a position where you have no option but to reduce the price. A reduced property will never get the same interest as a newly marketed one. If a property is reduced, people will wonder why. It can also seem like a desperate attempt to sell.
Read on to find out exactly how to make your decision and avoid this situation: –
- Get at least 3 valuations from 3 different estate agents.
By obtaining 3 different valuations from 3 separate estate agents you give yourself the best chance of deciding on an average price. You can use the valuations to decipher where best to pitch your asking price. Be wary of agents that give you over-inflated valuations as it is probably a ploy to get your business. If you feel you can trust a particular agent’s valuation, go with it. If not, go with the majority, or work out an average of the 3.
- Do your own online research of the local market
Some properties are easier to value than others, for example, if they are on a street of identical properties, you can simply do an online search for ‘sold prices’ for your postcode or road. If, however, you have a more individual or unique property, you may be better doing a search for similar type and sized properties in your area, for example, if your home is a detached 5 bedroomed modern house, look for others similar and see what price they are.
Another tip is to find out roughly the percentage increase in value of property in your area since you bought your house, and add that amount on to the price you paid for it.
- Go with your gut instinct
If you find an estate agent that you can trust, you can probably also trust their valuation. Don’t trust a pushy agent who tries to force you into signing the dotted line immediately. A confident and honest agent will allow you time to think over your decision. Ask for local recommendations and follow your gut instinct.
- Once decided on price, allow for a small reduction
It’s worth remembering that any valuation is only a guide. A property is only ever worth what someone is prepared to pay for it. If you have a figure in mind that you NEED to achieve, it may be worth adding a tiny amount on to allow for any reduction a buyer may want. Not too much though, or you will over-price yourself out of the market altogether.
Hopefully this blog has put you in a more confident position to decide on the right asking price.
In a nutshell, our advice would be, ‘Trust your instinct and don’t be too greedy’.
Have you had a good or bad valuation experience? What happened? What was the outcome? Did the property sell? Maybe you have your own tips on how to decide on an asking price? We would love to hear your ideas and opinions on this topic, or indeed anything else to do with property.
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