What to consider when setting your asking price

August, 2020

Selling your home can be a daunting process, with one of the most important aspects of the whole procedure arriving when you consider an appropriate asking price. Whilst choosing to aim high and stand firm can seem like a wise move, there are several things to consider when it comes to putting a suitable price on your home. We’ve compiled some steps to help with the process:

Get your property valued

It might seem obvious to state it, but getting an appraisal from a local estate agent can be a huge help when it comes to setting the right asking price for your property. A good agent will be able to give you an honest opinion on your home with the added knowledge of how the local area is performing. Even if you’ve had an appraisal more than 6 months ago, it’s still worth getting an up-to-date valuation.

Speaking to a local expert also allows you to gain extra knowledge on what buyers are looking for in the area, and what the specific pros and cons are of your home. The benefit of this is that it will provide you with a better understanding of what makes your home stand out.

Compare your home to others in the local area

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 have 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.

Prepare your selling tactics

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.

The problem then becomes that 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 that you’ve taken into account all the previous research to justify the price.

Look at your local competitors

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.

Think about how buyers search for homes

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. Therefore 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.

Always remember that you can never have too much information on your area and your competition when it comes to selling your home. The more research you carry out the better chance you have of getting the price right.

As long as you use your knowledge of the area 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 has been valued appropriately.

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