No obligation
Introduction
This is a tricky and very important stage in the selling process. It’s a decision that needs to be based on research, facts and realistic expectations. Set your price too high and you’ll price yourself out of the market, go in too low with your price and you could undercut the value of your home.
Do your own research.
You don’t need to be a property expert to get to grips with local market knowledge. What’s demand like in your location? Are similar properties shifting? How much for?
Use websites like Zoopla or Rightmove to keep updated on what’s happening price and speed of sale-wise. Commit to learning about local market ups and downs and keep topping this knowledge up.
Source different valuations
Your estate agent is there to advise and assist, but it’s you that sets the final asking price. Many agents will value your property on the high side in a bid to get you to sign up with them. It’s always worth getting a few different valuations from a variety of local estate agents.
Research your shortlisted agents and ask them to provide you with stats on recent sales, these are what you should base your decision on.
Factor in negotiations
It’s always worth remembering that negotiating is a huge part of the selling process. Around half of properties in London are sold for less than asking price. On average, properties achieve £6853 less than asking price.
Asking price vs sold price for London properties
The longer your property sits on the market, the more suspicious and wary potential buyers can get. It can be more strategic in the long-run to knock a little off the price in the negotiation stages than be left with a property that buyers are unsure of.
The chart below shows how important it is to price your property correctly if you want to sell quickly. Properties which change price (increase or decrease - neither is good!) take over twice as long to sell. Make sure you choose an estate agent with extensive local knowledge to get this part right!
Average time taken for properties to go under offer
Should I negotiate once I receive an offer?
As the seller, you are in the stronger position - you own the house that the buyer wants, and you can choose who to sell to.
Your position is further strengthened if there is a lot of interest in your home. The higher the demand, the higher the price you can get for your property.
In any case your agent should advise you. They'll know how much demand there is for the property. Also, let them do the negotiating for you. As sales experts they have a lot of experience getting the most for peoples' homes!
However if your property isn't getting much interest (few viewings and no offers) then dropping price may be the correct course of action. Otherwise you can maintain the same price and wait for the market to catch up - but this can take a long time!
