Listing your home for the right price can be tricky, especially with the number of factors that need to be taken into account to accurately find a figure. Getting the right price for your home is an area where a good estate agent can certainly be worth their weight in gold.
Getting the wrong price can slow down the process or could make you lose out potential money. Price too high and you may struggle to sell. If you do struggle, and then decide to drop the price, prospective buyers may be put off as it could be a cause for concern. Similarly, pricing too low could undervalue your home as you’re unable to achieve the best price. Rising the price after this can then be a problem – potentially creating a distrust amongst potential buyers.
In this blog, we outline some of the common elements which go into valuing a home:
Your reason for selling
One element which can affect the price is your motivation to sell is time. If you’re looking to move out quickly, you’re likely to take a lower price if it means speeding up the process. Life events are likely to encourage the need for a fast sale, such as marriage, divorce or births.
Comparatively, if you’re in a position to wait for a buyer who’s going to offer you the right price, you’ll have a greater chance of achieving more.
Research selling prices for comparable properties
Perhaps one of the most important influences on how your home is priced is based on how much similar homes have been sold for. Researching these homes and their specifics in comparison to yours will give you a good indication of a selling price, as well as the levels of demand. Tools such as HM Land Registry can help with this.
The bigger picture: Current market & economy
The current state of the housing market and the wider economy, in general, can have significant implications on how much a house is worth. For example, the uncertainty surrounding the UK decision to leave the EU can result in a lack of confidence in the economy – as we see some homeowners wait until the dust has settled before buying or selling.
With this factor, it’s generally a good idea to do some industry research, as well as some wider reading of the UK’s current economic climate and take this into account to understand how your house may be priced.
The buyer’s motivation
It’s certainly not impossible to sell for the best price, especially when your property ticks all the boxes for a prospective buyer. Although this may take some time, a keen buyer can make the wait worth it – especially if there are multiple and you are able to have them compete for the best price. Playing these kinds of situations can be tricky, however, so consulting and getting advice from a trusted estate agent beforehand is highly recommended for achieving the best price for your home.
We hope our tips will give you an understanding on how to price your home correctly.
If you are looking to sell, you can get an estimate by using our instant online valuation tool here.