When you put your property on the market, one of the most obvious objectives you will want to achieve will be to secure the best possible price for it. But how can you be confident you have done so?
It may or may not shock you to know that a good many properties come onto the market at too high a price. The inevitable end result is that they do not sell for that figure, if at all. In fact, the ultimate sale price many months down the line can be significantly less than the asking price, and often actually below market value.
The reasons these properties are overpriced in the first place are varied, but include inaccurate valuations by inexperienced estate agents, deliberate overvaluing by unscrupulous estate agents, mere greed on the part of the owners or a combination of all of these factors.
The reality is that a property is only ever worth what a buyer is prepared to pay for it. What the owner wants or the agent says is largely academic if a buyer isn’t interested at that figure. But you can increase your chances of getting the optimum price for your property by pitching the asking price correctly in the first instance.
The worst way to choose your estate agent is by picking the one who gives you the highest valuation. Agents are fully aware that this may sway certain clients and use it as a deliberate tactic to win instructions, particularly in a market where stock is in short supply.
This is dangerous for vendor clients for a number of reasons. For example, the property will more than likely take a long time to get any interest which means the vendor could lose the house they wish to buy or miss important deadlines, such as the start of a new job or school year in a new area. The property will doubtless need to be reduced in price, perhaps even more than once, meaning that it appears a “problem property” to be avoided, or giving a message that you are desperate to sell and will take low offers. On top of these issues, the time of maximum exposure and interest is always likely to be the early stages of marketing – this opportunity will be missed if the property is on at too high a figure at the outset.
So, how do you protect yourself against these outcomes?
Firstly, do your research. It is easier now than ever before to access information about local property prices. The major property portals such as Rightmove are a rich vein of information. Have a good look for homes like yours that are being offered for sale – these are your competition! There is a section that you can access on sold prices too – this is invaluable in your search for comparable evidence.
The local paper may have a property supplement which will also be worth a read.
Consider the main factors that buyers are making a judgement upon – the general area, specific position within that area, style, accommodation, age and, where possible, condition.
Be objective about your property. How does it really compare with the others you are researching? You may love your home, but are there any negatives that potential buyers might take into account?
Secondly, you can protect yourself further against an overvaluation when the estate agent carries out their appraisal of your property. Don’t tell them what you are thinking on price – it may sway them. A professional, prepared agent will give you a figure, or possibly a narrow price range, and support it with appropriate evidence. If the evidence seems flimsy, ask the agent how he/she arrived at their figure. You can share your own evidence with the agent once their suggested value is out in the open.
The best agents will work with you on discussing and deciding an appropriate asking price as well as agreeing what sort of offers would be worth considering. Their knowledge of local activity, current demand and the comparable evidence they have brought with them will form part of the discussion to ensure the price is pitched correctly. Don’t be afraid to question or challenge anything they tell you if you are unconvinced.
The final way to protect yourself against overvaluing is to explain to each agent you speak to that price will not be the deciding factor when you make your choice as to which agent to instruct. In fact, tell them you will ignore the price when it comes to making that decision. Ask each agent why they will be the ones who will achieve you the best possible price for your property.
The best agents will be able to illustrate a successful track record in dealing with properties like yours and will highlight the unique selling points of their service in terms of marketing, training and negotiation.
Employ the right agent and the final selling price will take care of itself.
If you would like to know the current market value of your property, give us a call to arrange an appointment.
