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Setting the right asking price

Wed 27 Apr 2022

Setting the right asking price

Once you’ve made the decision to sell your property, settling on the right asking price is one of the most important aspects of the sales process.

Pitch it too high and you risk pricing out a large section of your target market. Set it too low and you could find yourself deluged by viewers and end up with a lower sale price than you otherwise would have achieved. So how do you get it right? Our guide will help you avoid common pitfalls and get the price right from the outset.

Most people arrive at a sale price by asking local estate agents to value their homes. This is where expert advice from estate agents can be invaluable, and we recommend seeking views from a few different agents.

With their extensive local knowledge, they’ll know what current demand is like and have a good understanding of the many factors involved. They’ll consider:

-          Sale prices achieved by similar properties in your area over the last 6 months

-          Condition of your home/whether updating is required

-          Number of bedrooms/reception rooms

-          Parking

-          Location

-          Terms of lease

-          Proximity to good schools and other desirable amenities

-          Time of year/demand

-          Ceiling prices for your street

To complicate matters, you may well find yourself with three very different figures to consider. This is because estate agents can have differing strategies when it comes to establishing selling prices.

Some favour a lower asking price, to stimulate interest and hopefully create a competitive environment which results in multiple offers on your property.

Sometimes this can pay off, and in the right circumstances, you can end up with a sale price that is significantly higher than the listed price. However, you should be aware that this strategy can backfire, with people looking for a bargain and making lower offers. Remember, you can always reduce the selling price if the initial interest isn’t there. It’s far harder to increase the price and still maintain interest.  

Other agents will pitch the selling price higher, to create a higher baseline for offers. Sellers often prefer this strategy as they think it will yield a better final result. It may well do that, but you should also be prepared for the possibility of fewer viewings and therefore fewer offers. If your property is overpriced, it could be overlooked and take far longer to sell than it should.

At the risk of sounding a bit ‘Goldilocks and the Three Bears’, listing your home at a price that is ‘just right’ from the outset is the best way to sell in the fastest possible time and for the best possible price.

To get this right, choose an estate agent with plenty of experience in selling houses in your area. Try asking neighbours and friends for their recommendations. You’re looking for a combination of local expertise and local trust.  

It’s a tricky balance, but getting the asking price right will make all the difference in achieving the goal of selling your home.

At Bothams, we have been selling properties in your local area for over 150 years. Our service has evolved over the years, but our determination to help you sell your property remains the same. We have a wealth of modern marketing tools at our disposal to help you find your dream buyer.

From negotiating the best possible price on your property, to guiding you through the legal conveyancing process, our expert team will make sure everything runs smoothly.

If you’re thinking of putting your property on the market, give Marcus or Andrew a call, email or drop in to see us and we’ll be happy to discuss your needs.