One of the first things you think about when deciding to put your property on the market is how much you’d like to get for it and how much you’re likely to get for it. These two figures are rarely in accordance with one another, as you’d obviously like to sell for as much money as possible without taking into account what’s probable!
Finding the best compromise between fantasy and reality is the best place to start, as long as you err on the side of reality…
The first steps to setting the right price
A reliable, local estate agent is your go-to when it comes to setting a sensible asking price. You should get an honest valuation, even if it’s a bit lower than you’d hoped for. It’s also important to do your own homework by looking at recently completed sales of properties like yours in your area.
Spending some time browsing recent sales will tell you if you’re over-priced or under-priced, or if you have something special that you should highlight to bump up your asking price a bit more.
Talk tactics
Another good way to set your asking price is to decide what your selling tactic is before you go live. Most buyers and their agents will assume that you’re overpricing slightly as you expect to be knocked down by the same sort of margin.
However, if you go over this acceptable margin, not only will you escape the online search filters of your likeliest prospects, but you’ll discourage people from asking for the right-sized reduction. Even worse, you could find yourself languishing on the market for too long, which makes people wonder if there’s something wrong with your property.
In some cases, if you’re in a hotly-demanded area, then pricing a little lower than the competition could see you in the middle of a nice bidding war, which can work very well indeed for you. You could reach or even exceed your ideal asking price if you’re lucky.
Think like a buyer
Most buyers have an upper price limit that they’re willing to go to and this is often a round figure like £320,000, for example. This is the figure they’ll use as their maximum when they hit the property portals, so if you’re priced at £322,500 but you’re happy to go to £315,000, you and a good buyer could miss out on a good deal.
Always do your homework
Take your time to get a feel for local asking prices – and completed sale prices – before deciding your own. If you feel that one particular agent offers a higher valuation than the others, be very cautious as it could be unrealistic. The more information you have about recent sales the better, and you can also let your agent know (on the quiet) how much lower you’re willing to go to clinch a deal.
