What is the right price for my home?

Whether you're relocating with work, or looking to cash in on your home's equity, selling your home is always a mammoth task. There’s an abundance of decisions to make in what might feel like a very short, or a very long length of time. Some of the hardest you’ll make are right at the start of the process.

Contrary to popular belief, putting your home on the market is the easy bit - it’s setting the right price that’s tough.

The importance of setting the right price

Setting the right price for your home has a huge impact on its performance on the market. Set it too low, and you miss out on a huge opportunity to make a profit. Set it too high, and you risk putting potential buyers off.

Unfortunately, there's little room for mistakes. Changing the price of your house while it's on the market can be risky. In a worst case scenario, it can have an adverse effect on its performance. For example, reducing the price could prompt buyers to think your property has undisclosed problems, making them less likely to make an offer. This means setting the right price early is crucial to your success.

How to decide how much your house is worth

While a house valuation is the best way to find out your property's worth, there are other ways you can supplement this research.

1. Find out how much nearby properties have sold for

Your house will likely have an equivalent value to similar properties that have recently sold in your neighbourhood. Finding out how much these properties sold for will give a rough idea of your property's value. You don't need to spend ages researching this - use our free House Prices Tool to find out the average price of recently sold properties in your area.

Remember: While this information is useful, a valuation from an estate agent will actually take all this into account. The sold prices of several properties (nearby and similar in design) are included as a point of reference in your valuation report.

2. Examine the asking prices of properties in your local area

Use property portals like Rightmove and Zoopla to research the current asking prices of similar properties in your local area. While not indicative of your property's true market value, their asking prices will give a good field estimate of your property's worth, as well as how much you might be able to make.

3. Check the current state of the property market

Examine the latest national trends in the property market. How much are properties selling for, on average, across the UK? If they’re higher than usual, your property might be able to sell for more. Our House Prices Tool provides UK house price and market insights based on up to date sold prices. You can also use the government’s UK House Price Index or the Halifax House Price Index for further information.

There's more than one way to supplement your research into property value. Find out, 'How much your house is worth here'

Asking price vs selling price

There are a number of terms we use when we talk about the price of property, with two being a property’s 'asking price' and 'selling price'. These terms stem from a property's initial market price.

Market price

This is the value assigned by a property expert (or online calculator) after evaluating a property's worth. It's the real price they (or it) thinks the property is worth in today’s market.

Asking price

This is the price a property demands once it goes live on the market. This may be more or less than the property's market price, depending on whether you want a quick sale, or as much money as possible.

Feeling curious? Try our asking price calculator!

Selling price

While the market price and asking price of a property are theoretical figures, the selling price of a property is how much you finally choose to sell for.

What affects property value?

Property value is dictated by a number of factors, both internal and external:

Internal factors

• Number of bedrooms
• Number of bathrooms
• Outdoor space (Garden, front garden etc.)
• Square footage
• Extensions and conversions
• Age and condition

External factors

• Location (Regional, neighbourhood)
• Local market (Sale prices of other similar properties)
• The housing market

How to get a house valuation

The best way to find out how much you should sell for is by getting a house valuation. There are two types of house valuation: an online valuation or an estate agent valuation.

Online valuation

An online valuation is a market price generated by a calculator through a mathematical algorithm. There are various house price calculators available, most of which use different algorithms to generate an estimate.

How accurate are online valuations?

Online valuations vary in accuracy because calculators are devices that perform arithmetic operations on numbers alone. This means that while some algorithms are more precise than others, none are more accurate than in-person valuations.

Ideally, the more information a valuation calculator asks you for, the better. For example, the GetAgent Online Valuation Tool asks whether you’ve built any extensions or developments, because they increase the value of your property. Other calculators, like Zoopla's, only use past sold prices and local market data to generate value. They do not take any new rooms or extensions into account.

How to get a free online valuation?

Looking for a quick, accurate estimate of your property's value? Here's a step-by-step guide to using the GetAgent Online Valuation Tool.

1. Go to our free Online Valuation Tool.
2. Enter your postcode.
3. Fill out some information about your property, including its number of bed and reception rooms.
4. Provide further information, including any development details.
5. Enter your name, email address, and phone number.
6. Your free valuation report will arrive in your inbox within minutes.

Online valuation vs Estate agent valuation

No online calculator is as effective as a real valuation from a high street estate agent. However, if you're unsure of selling, an online valuation will help you get a general idea of your property's worth.

Estate agent valuation

Estate agents use a combination of property expertise, local knowledge and market insight to generate a value after viewing your home. They are much more accurate than online calculators because they take into account all the little things that make your house a home.

Can I pick any estate agent to value my home?

You can, but you shouldn't. While generally much more accurate than online calculators, estate agents too, vary in accuracy. Some are more experienced with certain properties and areas than others. What's more, the agent you pick to sell your home will take charge of sales negotiations. Ideally, they should have a history of successful 'asking prices achieved’. This is a track record of properties sold for the original asking price, without any reductions.

How do you choose the best estate agent?

Like any product or service, agents should be compared using reliable, factual data. Our free estate agent comparison service uses data from the HMC Land Registry and property portals to accurately compare agents in your local area. We provide a shortlist of six agents that are ranked according to speed, experience and asking price success. Once you've picked your agent, you can request a free valuation.

For more information, check out our guide 'How to choose the best estate agent?'.

How to get an estate agent to value your home

1. Go to our free agent comparison service.
2. Enter your postcode.
3. Pick the number of bedrooms your property has.
4. Estimate how much you think your property is worth.
5. State when you’re planning on selling.
6. Pick the agent you'd like to value your property.

Remember: It’s always worth comparing valuation results from a variety of local estate agents. We recommend having valuations from three different agents and comparing the results.

A sign of a good agent is strong local knowledge and a realistic approach to what price is achievable. All of your shortlisted agents will have statistics on their recent sales. These can help you make your final decision.

So how much should I sell my house for?

Once you've picked an estate agent whose valuation report meets your expectations, your agent will help you decide the right price for your home. While your estate agent is there to advise, ultimately it’s you that gets to set the final asking price.

Things to consider…

How is the market performing?

Ask your agent about the state of the local market. If properties like yours are in demand, you can expect to receive multiple offers. In line with this expectation, you could set your property at a reasonable price (similar to competitors) and wait for the bids to climb. On the other hand, if the market is performing poorly, choosing a selling price in line with your competitors is unlikely to start a bidding war. There won't be enough buyers to compete with one another. In this scenario, it would be better to set your price lower in order to attract a wider net of buyers.

Do you want to sell your house quickly?

If you want your property sold as soon as possible, you can ‘price your property to sell’. This means choosing a lower asking price. Properties with low asking prices are more likely to attract cash buyers, which will help with the speed of the transaction.

Can you afford to take your time selling?

If you're not in a rush to sell your property, you could test the waters of the market to find the best asking price. You can either:

Start with a high price and slowly reduce until you get an offer

If you manage to get an offer from a buyer at a high price, congratulations. However, if you don’t succeed, slowly scale back your asking price until you start receiving offers. Remember, this tactic has its risks, as reductions will pose questions about your property's integrity.

Start with a low price and start a bidding war

A lower asking price could instigate a bidding war between prospective buyers. This tactic has its merits, but it only really works if the local market currently favours properties like yours.

Summary: Get a second opinion

You can never devalue the power of research when preparing to sell your home. Use every tool at your disposal to find out as much about your local market as possible.

One of the best tools in the business is GetAgent's My Property Tracker. Fast, powerful, and free-to-use, the tool analyses local market data to provide:

• An instant house valuation
• Sold and for sale local properties
• A full analysis of the local market
• Recently submitted planning applications.

Give it a go today!