Setting the right price for your home can be challenging, you have to consider the location, the condition of the home and the terms of the lease.
Even if two houses were on the same street there are factors that can place one house higher than the other. Having an experienced estate agent to assist you can be really beneficial.
Why is over pricing a risk?
If a property is priced highly over the original market value, it can put potential buyers off. Buyers could resist inspecting your home because they’ll believe they can find something for a better price.
Potential buyers may not be able to afford your property to begin with, this can lead to less overall interest.
If you did get potential buyers, they may find it difficulty getting financing. Lenders may not approve a loan if the appraisal is lower than the contract price.
Also, the longer your property stays on the market the more likely it is to become ‘stale’. This means that the property loses its appeal to buyers because the property has been on the market for too long.
Eventually, if the property doesn’t sell, you will need to lower the price anyway.
Past neighbourhood sales
Sometimes doing research on your area and any current homes on sale can help put the pricing of your home into perspective and give you an insight on the general price people buy at in your area.
Other things that can impact the properties price is schools, transport, parks and how accessible it is to shops – these aspects might be more important to families or working individuals.
Trends in the market
Besides government policies, access to finances and unemployment, other factors such as – companies moving into the area or plans to upgrade local amenities like parks and shops are things to be considered – when setting a listing price, estate agents will take all these things into account.
Types of property
Is the house a lease hold property? If so, the length of time remaining on this lease will affect the value of the property. For instance, a home with a lease of over 80 years will be more expensive than one of less. A property with less than 50 years will tend to be bought in cash, as it generally wouldn’t be mortgageable. This will reduce demand for the property therefore, reducing the value.
Listing the right price for your property can be quite confusing, but by keeping the above in mind, you can make the right call on the value of your home.
If you are looking to list your home, get in touch to book a virtual market appraisal.
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