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How much is your house worth?
Probably the better question is ‘what is someone willing to pay for your property?’ and getting the pricing right for your property is one of the areas where a good agent can add significant value. Getting the pricing wrong can result in you losing money or buyers: If you overprice a property and it doesn’t sell, you may then significantly reduce the price to create interest. You risk creating the impression that there is something wrong with the property or it is undesirable. Conversely, if you price the property too low, you risk selling it undervalue and not achieving the best price, as putting the price up when interest has already been shown only serves to create distrust. The price at which you should market the property is normally a combination of elements which together will create the best price strategy for your property at the time: Your motivation when selling Part of the pricing will reflect your own motivation for selling. If you need to sell quickly to achieve other goals in your life you may price the property more keenly or if you are willing to wait until the right buyer who’s willing to pay the right price comes along you may put the price slightly higher. Life events such as marriages, births, divorces or the death of a family member, will often be a trigger to move and create a greater urgency.
What comparable properties in the area have sold for?
Knowing what property has sold for in your local area will give you a guide to a base level for your pricing and this will feed into the other factors. It will also give a guide as to the general levels of interest in each property type in your neighbourhood. Get started by calling Butson Blofeld for your free valuation on 01253894494.
The wider market and economy.
When spending such large amounts on a property, most people will try to avoid taking risks. A lack of confidence in the wider economy, such as the multitude of views on Brexit, can result in many people waiting and watching what happens before making a decision. Conversely, if many buyers are being cautious as a result and with the still historically low interest rates available for mortgages, you might believe that this is actually a good time to buy and sell. The wider economy will also influence the number of newly built properties coming on to the market. If developers are being cautious and not releasing properties, this may improve the value of those that are available because of their scarcity in the marketplace. If prices in the property market are falling, this can be the time to ‘trade-up’. If for example property prices have fallen by 5% in your area and your property was worth £100,000 it would have come down by £5,000. If you are trading up to a property that was worth £200,000 the 5% reduction is worth £10,000.
What is the motivation of the person buying?
The number of available buyers will impact the actual price you will achieve. If you have multiple buyers interested in your property, you will create competition and desire. A property that someone else also wants instantly becomes more desirable. Where there are multiple buyers and therefore multiple offers, it will create the opportunity to ask each of them to give you their best price.
