With mortgage rates starting to settle down following the Bank of England freezing interest rates last month, this is good news for the property market. It means people can now more accurately plan their finances allowing them to know whether they are able to afford to move or not. With more people potentially joining the market this Autumn, pricing your property correctly matters. Price too high and you may miss out on the initial spark of interest, price too low and you may find yourself missing out on essential funds during the cost of living crisis. Follow our tips below to make sure your property is priced right.
Why you’re moving
The price you start marketing your home at will highly depend on your situation. Do you need to sell or want to sell? Are you looking to move quickly, or have all the time in the world? Ask yourselves these questions as they can have a significant impact on the effectiveness of the marketing of your property once the listing goes live.
Overvaluing
Overvaluing can be dangerous, and a trap many vendors fall into. It has been known that certain estate agents claim your house is worth more, just so they can get your instruction. However effective this plan may be for the agent; it will not help sell your property. The inflated price may be tempting, just to see if there’s some schmuck out there willing to pay over the odds, but in the long run it won’t be cost-effective. Buyers are now able to directly compare houses online with one simple search, so you will rarely find someone fooled into thinking a property is worth more than it actually is. Even if you do manage to secure a buyer who is willing to pay above the odds, there is the risk that later down the line, a mortgage lender or surveyor will down-value your home, which will either mean the sale falls through, or you having to awkwardly renegotiate anyway, slowing the whole process and therefore making it more expensive (and stressful!).
An over-valued home simply won’t attract interest. The people that are looking for a property such as yours won’t see it as it will be above their budget, and the people that will see it, will know they can get more for their money. The first few weeks of marketing are crucial in maximising exposure, so thinking you will try for a higher price, to then have to reduce the price later down the line is a risky tactic. You will potentially sacrifice the initial rush of interest, and no viewings = no offers = no sold home. This could leave you missing out on purchasing your next home as you don’t have an offer on your own. A price reduction on a property that has gone stale on the market can also be a red flag for some buyers as they may wonder if there is something wrong with it, or think you are desperate and therefore go in with a cheekily low offer, under the impression you may be willing to accept anything.
Undervaluing
In general, there are not too many risks associated with undervaluing your home. The main one to concern yourselves with is that some people may be put off as they could believe there is a negative reason if it priced too low. However now that video viewings are popular, and a vast amount of information about a property can be found through a quick search online, the majority of buyers aren’t going to fall into that trap.
Pricing low is often a marketing plan utilised by agents and vendors, theorising, the more viewers you have looking, the more offers you will get. The more offers you get, the more likely it is people will increase their offer in a bidding war, meaning your property will sell for above asking price. If you do decide to go for this tactic, just remember to make sure that any offer you accept comes with proof of funds to ensure they can actually afford what they are bidding.
Do your Research
To make sure you don’t undervalue your home and leave money on the table which you will most probably need for your future buying power, you will need to do your research. Have a look online at similar properties to yours that are both on the market and have recently sold in your area. This should give you a basic understanding of what your property is worth. The current state of the market, and the condition of your house will affect its value, however this is how the help of an agent can come in.
Choose the right Agent
Although we often have a bad rep (we’re not all scumbags I promise!), an agent will be able to give you an accurate valuation of your home. A good estate agent will have knowledge of the local area and current market conditions, along with being able to advise you on how in demand a property like yours is at time of marketing, and a selling strategy to suit your needs.
We always recommend getting valuations from three different agents as this will give you a chance to sample different working styles, and choose the one that best suits you best, and it will also allow you to get a good jist of the correct price. Differences in opinion will usually mean slightly different valuations between the agents you invite to appraise your home, but this is perfectly normal. Just look out for extreme outliers either end of the scale. And remember it is you that sets the final price, so if you particularly liked one agent, but prefer the pricing of another, you can always instruct the agent that you like, but ask to market at a different price than they suggest.
If your home has been sitting on the market for a while, sometimes a fresh approach is all you need to get moving! We are experts of the property market in Combe Down and the surrounding areas with a wealth of experience. Our aim is to provide the highest level of service to ensure your property is sold for the BEST price within YOUR required time frame whilst making sure that you the experience is as stress-free as possible for you. On top of that we offer a FREE, no obligation valuation of your home, provide short-term contracts and competitive fees, and will price correctly from the get-go.
So, get in touch with us today on This email address is being protected from spambots. You need JavaScript enabled to view it., or 01225 840 007.
