With a high number of properties coming onto the market this Spring, it’s crucial to determine the right asking price for your home.
Go too high and potential buyers will swipe past your online listing. Go too low and they could dismiss it as being unsuitable. Worse, they might search by price range and miss your listing altogether.
While there’s no hard and fast rule for setting your asking price, some pricing strategies are more effective than others. Let’s look at the various options – and which one Winkworth estate agents recommend to maximise your chance of success.
Start with research
Whatever strategy you use, everything starts with a clear idea of your property’s value. You might begin by researching the local housing market. For example:
- Look at similar properties that are currently up for sale and ones that have recently sold
- Pay close attention to any comparable properties on your same street if, say, it’s a line of similarly sized Victorian terraced homes
There are, however, drawbacks here. That asking price you’ve seen for a house across the road? The property won’t necessarily sell for that amount. And sold prices on Land Registry records can be up to three months old.
What you really need is to talk to an experienced estate agent with in-depth knowledge of the current market. They can factor in more granular information and relevant trends before sharing an accurate figure of your property’s value.
So, do you then put your property on the market for this same figure? Or go higher or lower? Let’s look at these three pricing strategies.
1. High pricing
This can be a tempting option – going in with a relatively high asking price to try and maximise your profits. And it could pay off if there’s strong demand for your type of property or location. You may see it as leaving room for negotiation, so the buyer can offer slightly below and feel they’re getting a good deal.
However, it’s quite a risk, especially in the current market. In Feburary, Zoopla reported seeing the highest number of homes listed for sale for a decade. It’s a buyers’ market.
2. Low pricing
Let’s say you list your home below the figure your estate agent has valued it for. Potential buyers may well flock, attracted to the idea of a bargain. They may get into a bidding war that drives up the price to a point above the original figure.
Then again, buyers may jump to the wrong conclusion – thinking this low price suggests something is wrong with the property. They may not even look at the images before dismissing it.
3. Market pricing
Unlike the other strategies, going in with the price the estate agent recommends can give you the best chance of a good sale. Buyers will likely appreciate the fair and accurate figure, putting their faith in a smooth sales process rather than one involving endless negotiations. Everything starts off on the right foot.
There are various approaches within this strategy. For example, if you and your estate agent are confident in high demand for the property, you could choose a particular day for viewings before asking for Best and Final Offers from all interested parties by a set deadline. This way, you avoid a long process while hopefully getting a choice of good offers on the table.
Final thoughts
When selling your home can be stressful, it’s worth giving your pricing strategy some serious thought. After all, the asking price makes a powerful first impression on potential buyers, determining whether they’re interested or not. Instead of adjusting your price weeks into the selling process, it’s better to nail this from day one. Find your nearest Winkworth office to ask an experienced estate agent for guidance.
