The Price is Right
Updated: Jun 14, 2020
When preparing to market your property, there is usually one aspect at the forefront of your mind: money.
The three factors necessary for a swift and profitable sale are:
Great property presentation,
First class marketing and a
Realistic selling price.
If one of these is missing, then it can mean the difference between securing an offer quickly, and your property languishing on the market for months without interest.
So what do homeowners need to think about when setting their property's guide price?
1. Who should you believe?
If you are listing your property then it should be because you actually want to sell it. Your estate agent will have an expert understanding of a realistic selling price for your property, based on the current market. You will probably have three agents to value your house, who may give you three slightly differing opinions. Do your own research and look at sold prices for similar properties to yours in your area. Don't just list with the agent that gives you the highest guide price because you are seeing money signs flash before your eyes.
2. Too high
If you choose to ignore your agents advice and list with a higher guide price, then you may potentially miss your target market. Buyers who are looking for a similar property to yours may not see yours because you have priced it out of their range. If your property is listed in a higher bracket then it will be competing against properties that are there because they have better features than yours, so may actually make yours look less appealing and less value for money. Homeowners who overprice their homes (to allow for negotiation) feel like they are losing money when they then have to lower the guide price. You can't lose money that you have never had.
3. Too low
You certainly don't want to undervalue your home, but pitching it just right will mean you get that immediate interest from potential buyers. The sooner a house gets an offer, the closer to asking price a seller will get and sometimes above asking price. A well priced, well presented home could potentially get buyers competing for such great value. A realistic price will mean your property should stand out against competing properties for all the right reasons.
4. Just right
The initial launch on to the property market is your best chance to target your ideal buyer and make the best first impression to generate viewings. Price your house within the Rightmove price boundaries, and choose a good solid even number. Pricing at £305K means you are cutting yourself off from all buyers who will search a top price of £300K.
5. Should I wait, or lower my guide price?
If you are getting viewings but no offers, chances are it is down to your property's presentation rather than your asking price. However if viewings are not forthcoming then it is probably because your price is too high. So if other factors mentioned earlier are all in place, then it may be worth lowering the price which may mean your property is now accessible to a new group of buyers.
6. Get it right at the start
Homes that have been on the market for a while, or have had price reductions may lead buyers to believe there is something wrong with them. That is not an impression you want to generate as buyers may dismiss the property rather than check it out for themselves.
So think carefully when setting your guide price. Take advice, do your research and don't be greedy. The sooner your house gets an offer, the better for all concerned. Be like Goldilocks - get it "Just right!"
The Home Styling Company can help with all aspects of professional property presentation.
Call Denise on 07870 751108 to enquire about a Home Consultation