If you’re asking yourself the question “How much is my house worth?” then you are in the right place! Getting the pricing right for your property is one of the areas where a good agent can add significant value. Certainly the period we have been through has been a challenge in regards to pricing given. One of the things we pride ourselves on is our ability to ensure we generate the best possible offer for our clients homes.
Getting the pricing wrong can result in you losing money or buyers:
- If you overprice a property and it doesn’t sell, you may then significantly reduce the price to create interest. You risk creating the impression that there is something wrong with the property or it is undesirable.
- Conversely, if you price the property too low, you risk selling it undervalue and not achieving the best price. Putting the price up when interest has already been shown only serves to create distrust.
The price at which you should market the property is normally a combination of elements which together will create the best price strategy for your property at the time.
Your motivation when selling
Part of the pricing will reflect your own motivation for selling. If you need to sell quickly to achieve other goals in your life you may price the property more keenly. Or if you are willing to wait until the right buyer comes along you may put the price slightly higher.
Life events such as marriages, births, divorces or the death of a family member, will often be a trigger to move and create a greater urgency.
Giving yourself time to generate the best outcome is always advised as it allows us to fully roll out our comprehensive marketing plan.
What comparable properties in the area have sold for
Knowing what property has sold for in your local area will give you a guide to a base level for your pricing and this will feed into the other factors. It will also give a guide on the general levels of interest in each property type in your neighbourhood.
Understanding the historic data of what homes have sold for in addition to what the real world view is, is important when wanting to appreciate what your homes true value is.
Can Rightmove or Zoopla help you?
There is a wealth of data available on Rightmove and Zoopla which will give you a good sign of the potential value of your home both now and in the future. The main sections on their sites that can help are:
This will tell you what has been sold locally to you and where the property has been listed on Rightmove, show the property details and photographs.
Brings together Rightmove, Land Registry and Registers of Scotland current and historic prices in one place. The tool analyses the asking price of local comparable properties and the prices achieved for recent sales in the same area. Just enter your property details and it will provide you similar properties to help you compare prices.
The wider market and economy
When spending such large amounts on a property, most people will try to avoid taking risks. A lack of confidence in the wider economy, such as the multitude of views on Brexit, can result in many people waiting and watching what happens before making a decision. Conversely, if many buyers are being cautious as a result and with the still historically low interest rates available for mortgages, you might believe that this is actually a good time to buy and sell.
The wider economy will also influence the number of newly built properties coming on to the market. If developers are being cautious and not releasing properties, this may improve the value of those that are available because of their scarcity in the marketplace.
If prices in the property market are falling, this can be the time to ‘trade-up’. For example, if property prices have fallen by 5% in your area and your property was worth £100,000 it would have come down by £5,000. If you are trading up to a property that was worth £200,000 the 5% reduction is worth £10,000.
What is the motivation of the person buying
The number of available buyers will impact the actual price you will achieve. If you have many buyers interested in your property, you will create competition and desire. A property that someone else also wants instantly becomes more desirable. Where there are many buyers and therefore many offers, it will create the opportunity to ask each of them to give you their best price.