A common seller mistake is to set an unrealistic asking price for their home. This week, we have some advice to help clear things up. Despite there being an abundance of valuation tools available online, they can only do so much. Setting the correct value requites specific area knowledge, an understanding of market conditions and an insight into how buyers think.
Many elements affect property pricing. This is why setting the best price can be more difficult than you’d first initially expect. You could have two homes on the same street, but specific features could boost the value of one more than the other. Choosing the best listing price can only be accurately achieved if each external influence is considered.
Pricing a property takes into accounts all movements in the market, buyer demand, the condition of the property, and its location. Another essential element that impacts pricing is the term of lease, as well as any restrictions within it. By turning to a reputable, experienced estate agent in your local area, you will have a valuable asset at hand when you want to establish the correct listing price.
Why is it crucial to price your home correctly?
If buyers cannot see value in your home, it will likely be overlooked and will sit on the market longer than others. If an incorrect price has been set, you are simply making other properties look much more appealing to buyers. Pricing the property below its market value, however, means you are potentially leaving money on the table and losing out on great profits. So, what aspects need to be considered to find the right listing price?
Past sales in the neighbourhood
Looking back at previous property sales in the neighbourhood can sometimes provide some insight into the future. Looking back over sold properties of the past 6 months, you can see what buyers are prepared to pay for homes in specific areas. You should also check out how long certain properties were on the market for before they sold, as well as the gap between the initial asking price and selling price.
You may also want to consider nearby schools and amenities, the condition of the property, its size, finishes and fixtures, and any other features that could help it stand out on the market.
Trends in the market
Elements such as government policy or access to finance will impact the property market throughout the country. However, there are specific influences that impact micro-markets in certain areas. These include new companies moving into the area or plans to improve local amenities such as shops and parks. When setting your listing price, your local estate agent should look at every detail that is unique and consider how it could influence the perceived value of the property.
Type of property
Is the home freehold or leasehold? If leasehold, the length of time remaining on the lease will affect the value. A home with a lease of more than 80 years will be more expensive than one with less. A property with less than 50 years no the lease is usually not mortgageable, meaning it can only be bought with cash. This will reduce the demand for the home, which will likely lower the price.
Selling with a quality estate agent
Listing a home at the right price from the beginning is key to selling within the fastest timeframe and for the best price to a “quality” buyer. Choosing a reputable, experienced estate agent will help ensure that the home is listing for the correct price from day one. This will make a huge difference to the chances of selling your home in the correct timeframe. If you’re selling your property in the Heatons, then turn to Joules Estate Agents for your selling needs. We know the Heatons like the back of our hands, which makes knowing the value of your property a doddle. Get in touch to find out more.