What Price Should I Sell My Home For?

Deciding what price to sell your property for is a very large financial decision and it is important to ensure your sale price is true to value. It may be worth considering making your home more appealing prior to listing it for sale as this can drive the price up substantially with little costs.  It is important to note that the price is not controlled by the estate agents but by the sellers.

It can be very tempting to rely upon a valuation provided by your estate agents or current lender to determine a fair sale price. However, both parties act in their own interests and there is the chance this will differ from the true value of the property.

Many estate agents and mortgage valuers offer national services and it is likely they may not be based in the are in which your property is being sold for. If this is the case, they will usually rely upon previous statistics of sales within the area. Whilst this is a good starting point it is not sufficient to make an informed decision on this basis. There are many additional factors that need to be considered that will influence a property’s price.

Estate agents who are local will have a better understanding. The problem is they are often prone to setting higher valuations to win business, however, after obtaining little interest the price needs to be reduced in order to obtain a sale. We always recommend to find an agent with a good track record of selling properties at the price they are valued at.

Mortgage valuers usually provide lower valuations in favour of their lender. The difference in price between valuations can reach as high as 20%, hence why we highlight the need to obtain a true estimate.

When selling your property we advise you spend a substantial time on researching property prices within the local area. This includes the sale price of properties and how much they are initially advertised for.

Reviewing local house price trends can also be helpful in working out what price to sell your house for. Given the rise and fall of house prices, it is important to keep an eye on how the economy and inflation has affected  properties within your local area. The change in the economy has a consequential effect on mortgage rates which influences the ability of purchasers and how much they may extend to.

It is always important to note that there is usually some form of negotiation in price and therefore the price should be adjusted to reflect this. We usually recommend to implement a 5%-10% uplift on the amount which you are satisfied with.

Once you are certain of the selling price, it is important to consider applying some form of selling strategy. Estate agents, especially those based locally will have a greater knowledge on how to guarantee a sale.

Need a Quick Sale?

There may be various reasons as to why you may need to sell your property quickly. You may require the funds urgently or you may have found a property for sale with a lot of interest. If you need to sell your property quickly – then we recommend:

• Reducing the property price. You are more likely to attract cash purchasers which can significantly reduce the time of the transaction.

• By using sealed bids, each party will put in their best and final offer before the expiry of a certain date. The benefits of this is that buyers will usually place good offers you would not normally receive with a traditional sale. The biggest risk is that you will have little interest in the property, making this a safe and viable option.

If you can afford to take your time, you should not feel pressured to sell at a price you are not satisfied with. There are two approaches:

• Start high, but be prepared to reduce your asking price. If you are able to sell at a high price, great. If you do not, then you can slowly reduce the price until an interested party purchases the property. The danger associated with this is that if the property is left unsold for a substantial period of time, potential purchasers will begin to question if the property has any defaults. If you are wary of this and do have the time, it may be worth removing the property from the market temporarily and recommence the process.

• Start low, attract attention, and try to create a bidding war. This works best with a property which has a lot of willing purchasers. If you are intending to sell using this strategy, it may be best not to accept any offers during the initial period of sale, this is usually the first few weeks of the property being listed.

If you have agreed a sale on your property or require help with purchasing, please contact us for help