What Price Should I Sell My House For?
Selling your house can be an exciting time, but before you can even put it on the market, there’s one key hurdle you must cross – pricing it. While many sellers don’t even consider just how difficult this process is, the moment you know you’re going to have to attach a price to your home, you’ll come to realise just how challenging this can be. What makes it so difficult, and how do you even begin to go about setting the best possible price for your home? This quick guide can help make it happen.
Why The Right Pricing Strategy Matters
Why does pricing your home well the first time even matter? Can it affect the outcome of your sale? It matters for several reasons. One of the first reasons is that the ideal price attracts potential buyers. In the competitive UK real estate market, buyers tend to be fairly well-informed. These days, they have access to lots of different online tools that help them compare property prices on houses across the country. If you overprice your home, there’s a chance buyers who are looking in a given price range may overlook your house, thus limiting the number of buyers who see your property.
Limiting your potential pool of buyers, though, isn’t the only reason you want to ensure that you price your home right the first time. You could also reduce the amount of time your home spends on the market. Overpricing your property means that it might sit on the market longer than you expected. In the UK, where market conditions can vary, homes that end up sitting on the market too long are suddenly looked at by potential buyers as a problematic situation, as if there’s something wrong with all of them. Accurately pricing your home, though, helps to make certain that your property is competitive and stands out, and that can help to reduce the overall amount of time it may take to find a buyer for your home.
An accurate price does something else, too. It creates realistic expectations for everyone involved in the process. When a property is priced well, a potential buyer walks in expecting a certain set of features common among properties in that price range. That helps to ensure potential buyers avoid disappointment when they see your home, which could end up creating issues during negotiation.
Accurate pricing also helps to ensure the home survey shows near the listed value, which is key for buyers who are looking to obtain a mortgage on the property. Remember that a lender won’t make a loan for more than the home’s survey shows it is worth, so if the home is accurately priced from the outset, there will be no problems as the buyer works to obtain a mortgage and works toward the day of completion.
You may also experience some advantages when you go to the negotiation phase with the buyer. Buyers tend to make fairly reasonable offers anyway, and when your home is priced well, things should go your way during negotiations. If you’ve overpriced your home, though, you’re going to face challenges during that phase, and a potential buyer might walk away from the deal.
How Much Is My House Worth? Three Potential Ways To Price Your House
Now that you know a bit more about why you need to price your house accurately, it may help to better understand exactly how you even begin a house price search to price your property. Still asking yourself “How do I know the price of my house?” For most people, there are three possible ways to come up with the right price for a home.
- Online Valuations: One option is to use online valuation tools to price your home. There are various online valuation tools available that can help you estimate the value of your property. These tools use a combination of data analysis, recent sales information, and market trends to provide an approximate value for your home. You’ll want to start by choosing well-known and reputable online valuation tools or websites to gather data from. These platforms typically use algorithms and data from various sources to estimate property values. For example, they look at the Land Registry and prices sold index to help better understand the price of property in your area. Keep in mind that all of that is public data. You can type something like “How much is my house worth land registry” and at least come up with some of the information on your own, like the price of a property near you and the average house price value in your area. The Land Registry sale prices are fairly easy to access, so just using search terms like “House price in my area” will often help you find the data you need. Once you select a tool (or a few tools if you’re looking to collect a couple of different estimates), enter the details about your property like the number of bedrooms, and bathrooms, the overall condition of the property, any recent renovations or improvements, and additional features. The more accurate and detailed the information, the more precise the valuation is likely to be. At that point, you should get a report that helps you take a closer look at what your home might be worth. In many cases, you’ll also get a list of comparable sales around the area that compare what your property has to offer to others to help establish the value.
- Estate Agents: Another option you have is to work with an estate agent to help learn more about the value of your home. This is a good choice for many people because estate agents bring valuable local market knowledge, experience, and expertise to help you determine the right price for your property. To get started, select at least three estate agents. Look for agencies with a strong track record in your area, positive customer reviews, and a good understanding of the local property market. Then, you’ll want to contact those agents to schedule a property valuation. Most estate agents provide this service for free as part of their efforts to secure your business. During the valuation, the agent will assess your property, consider its unique features, and discuss your goals and priorities. During the appointments, you’ll want to offer each estate agent detailed information about your property because the more information you provide, the better the agent can assess the property’s value accurately. After a careful valuation and market analysis that includes looking at the prices of homes that have sold nearby and what the local area has to offer potential buyers, the estate agent will provide you with a recommended asking price. By comparing the recommended asking price from all three agents, you should be able to come up with a good number for you.
- Professional Surveyors: The third option you have as you try to accurately price your house is to work with a professional surveyor. This is the most expensive option, but it’s also the most comprehensive one. Professional surveyors are trained and qualified experts with in-depth knowledge of property valuation methods. They have the skills and experience to accurately assess various factors affecting your property’s value, such as its condition, location, and unique features. What’s more, though, is the fact that they are independent and impartial. They don’t have a vested interest in the sale of the property, which ensures an unbiased assessment. This independence is crucial for obtaining an objective valuation that reflects the true market value of your home. Once you find the right professional for the job, you’ll book an appointment with them. They will come out and conduct a comprehensive inspection of the property, considering both its interior and exterior aspects. This thorough examination allows them to identify any issues that may affect the value of the property, such as structural concerns or the need for repairs. Once that’s done, they’ll go back to their office and do some research on your property and the area it’s in. They take into account factors such as recent sales in the area, demand for properties, and economic influences that may impact property values. They then prepare a comprehensive report that will help you price your property well.
Why Do Prior Home Sales Affect Your Home’s Price?
In almost every method, the question of “How much did a house sell for that was like mine” comes into play. House sale price data matters to pricing your home. When you know a house price, sales data will follow. Many people ask “Why does what I price my house have to be what others priced theirs?” It’s a good question, and there are several reasons the pricing of other homes plays a role in the price you set for your own home. Prior sales prices essentially help to determine what the market is currently paying for a property like yours. By adding in an analysis of answers to questions like “How much did that house sell for?” if the house you’re considering had the same overall space, the same number of bedrooms and bathrooms, and the same other amenities that have recently sold for, it’s easier to understand what people will pay for your property. There are other reasons as well. Comparable sales also work to influence buyers to help them understand what’s reasonable. If similar properties that buyers are looking at have recently sold for a certain price range, it can influence buyer perceptions of what is considered a fair and acceptable price for a similar home.
Finding The Right Professional For The Job?
Now that you understand a bit more about how to price your home and why the information collected impacts your home’s price, you may be ready to choose someone to help you with the process, particularly if you think pricing your home on your own might be a bit complex. You can use the method where you contact a few estate agents or work with a professional surveyor. How do you find the right professionals to help you do find the right price to meet your needs, though?
If You’re Looking For An Estate Agent
If you’re searching for estate agents to help you better value your home, you’ll want to start by focusing on agents nearby. A deep understanding of the local market, neighbourhood trends, and property values is invaluable when it comes to setting the price on your home initially, and then actually ensuring you have a buyer. Local agents tend to be well-versed in the unique characteristics of your area, and that allows them to accurately assess your property’s value, and then later market it to buyers. As you gather a list of nearby estate agents, you’ll want to look at their track records and success rates. You only want to consult individuals to help you price your home who already have a solid history of successfully selling properties like yours. It’s okay to look into online reviews from estate agents and get some insights into the experiences of other sellers who have worked with those agents you’re considering. While it may not matter to you initially as you’re trying to price your home, you’ll still want to compare both their fees and their services. An agent’s services – past the point of pricing your home and selecting an agent – are not free. That said, though, their fees vary widely, and while the bottom-line cost should be a key part of your decision, you’ll also want to think about what services each possible agent on your list has to offer. Some agents may offer a full package, including professional photography, marketing, and negotiation support, while others may provide more basic services. Comparing both fees and services helps you understand exactly what you get after you select an agent.
You won’t want to stop there, though. Instead, you’ll also want to take a closer look at each possible agent’s marketing strategies. You want someone who can work both online in digital spaces like social media and offline in places like the local community. Finding an agent who has a solid marketing strategy in both places is incredibly helpful after you get the actual pricing of the home out of the way.
More than anything else, look at each agent’s accreditations and qualifications. In the UK, estate agents may belong to professional bodies such as the National Association of Estate Agents (NAEA) or the Royal Institution of Chartered Surveyors (RICS). Membership in these organisations can be an indication of a commitment to professional standards.
If You’re Looking For A Professional Surveyor . . .
If you want to work with a professional, but finding estate agents may not be the right choice, selecting a professional surveyor may be more useful to you. As you begin to look for professional surveyors who are nearby, start by asking family, friends, or even your work colleagues about surveyors they’ve used in the past. That may help you create a shortlist. You could even put out a note to your digital connections on your favourite social media site to get a few recommendations from those who can help.
Once you have a short list, ensure those individuals on it are members of a recognised professional body in the UK, such as the Royal Institution of Chartered Surveyors (RICS). Membership in such organisations signifies they’re committed to the standards of their profession as well as ongoing training.
You’ll also want to look for online reviews and testimonials from previous clients. Websites, social media platforms, and review sites may provide valuable feedback about the surveyor’s communication, accuracy, and overall service.
When you’ve done that, you’ll want to book an appointment with the surveyors you’re considering. While you’re with them, inquire about the surveyor’s valuation methodology and approach. A transparent and thorough explanation of how they assess property values, consider comparable sales, and adjust for unique features is important because it can enhance your confidence in the resulting valuation report. During that same appointment, you’ll want to discuss your expectations, ask questions about their experience, and gauge their communication skills. A good surveyor should be responsive, attentive, and willing to address your concerns. Finally, ask for sample valuation reports or case studies from the surveyor’s previous work. Reviewing these documents can give you an idea of the surveyor’s attention to detail, clarity of communication, and the depth of their analysis.
Housing Market Fluctuations To Expect
One of the aspects of the process that makes pricing your home well so complex is the fact that the housing market varies so widely. Many different things could affect the overall price of your house. Economic factors, such as GDP growth, employment rates, and inflation, play a significant role in the housing market. During periods of economic expansion, people often have more disposable income, leading to increased demand for homes, which means sellers can demand higher prices for their homes. The opposite of those times, though, is an economic downturn, and that may result in decreased demand for houses due to job losses and financial uncertainty. Naturally, this means you’ll end up charging less for your home during one of these periods.
The economy, though, isn’t the only factor that may affect your overall home pricing strategy. Housing market conditions can vary widely from one region to another, affecting what you can charge for your home. Local factors such as employment opportunities, amenities, and the overall desirability of an area can impact demand and property values. If one particular area gains access to a hot new amenity, the area might grow, and housing demand might become quite high at that point. Conversely, if an area loses an amenity or experiences other issues, demand could crash in that area, and along with it, housing prices could crash too.
It may surprise you that even the seasons can affect the housing market in your area. Spring tends to be the most popular time to sell in the UK, so there are often more houses on the market in the spring than at any other time. Autumn can be a good time to sell, too, as people have returned from their summer holidays and people are looking to find a home and be moved in by the time Christmas rolls around.
Working With A Cash Buyer
If you’re considering working with a cash buyer, that, too, could impact the overall sales price of your home. Cash buyers often have many advantages other kinds of buyers just can’t match. Cash transactions typically close more quickly than transactions involving mortgage financing, and that can be incredibly attractive to sellers who need to leave their homes quickly. Cash buyers also tend to be a surer sale. When you’re working with a buyer who may need mortgage financing, there’s a possibility that the bank could say no, leaving you without a possible buyer. When you work with a cash buyer, though, that potential is wholly eliminated. Because of these advantages, working with a cash buyer may mean that they demand a lower price for your home, even if the list price is set at something different. It will be up to you to decide whether the certainty and the overall speed of the sale is worth that kind of discount.
How To Sell Your House Quickly With The Right Price?
Even if you do land at the right price, selling your house quickly is always going to be the goal. What can you do to make that happen? These tips can help.
- It Begins with Kerb Appeal: What many people don’t realise is just how important kerb appeal is to selling a house. Many buyers make their decision the moment they pull up to a home. To create better kerb appeal, you’ll want to take the necessary steps to make your home look neat and clean. Power wash the cladding if you can. Be sure the front garden looks neat, and add a few seasonally appropriate plants and flowers. Power washes the path to your front door, too, and be sure you keep the bins out of sight. It may also help to give the front door a good coat of paint and to upgrade your outdoor lighting fixtures.
- Don’t Overlook the Power of a Clean Home: After you’ve made sure the outside of your home is neat and clean, you’ll also want to make sure the inside looks the same. Declutter each room of your house, and either give each room a good clean or hire a professional cleaning service to do it for you. Wash the windows and the window treatments, and work to eliminate any pet or cooking odours from your space. You may also want to work to eliminate excess furniture from rooms to make them look a bit larger. If minor repairs like scuffed floor tiles need to be addressed, do so right away.
- Keep it Clean: Throughout the sales process, you’ll want to keep your home neat both inside and out. It’s hard to tell when a buyer might want to stop by for a showing, so keeping up with the maintenance and cleaning while it’s on the market is a must.
A Home Sale Starts With The Right Price
You won’t sell your home until you list it for the perfect price. Choose the best way to price your home, then get it listed!