Why asking more for your home could end up costing you thousands.
It’s not always a good idea to try to get a little bit extra for your property, here we explain why if the price is right from the outset of marketing, it could save you thousands in the long run.
For most people when they think about selling their property the first step will be to get 2 or 3 valuations from local estate agents. In most cases the seller would receive similar estimates of a likely sale price and then decide on a price to go to market at. In most instances the seller will ask the agent to try the top price or in some cases to have a punt a little higher than this. The reasoning being that you can always take a lower offer or drop later on if need be.
This can sometimes be a false economy and a dangerous approach that could actually end up costing you more money.
Pricing is key
The best time to sell a property is in the first few weeks of marketing. If you manage this, then chances are you will get the asking price as clearly you have no urgent need to drop. Therefore, going to market at the price you want to get and then holding to that is often a safe approach. People may worry that buyers will try to knock them down but if they do, you can always say no! If you keep getting low offers then you may have to review, but chances are if you have priced it correctly buyers will have no qualms giving you every penny you have asked for.
Contrast this to say pricing the property £10,000 more than it’s actually likely to achieve. Because it’s gone to market slightly over priced you won’t get as many viewers off the bat as you would have done if priced more competitively. In addition the number of hits you get online will be lower and we know only too well that once people have seen and discounted a property online, it is very hard to get them to come back and take a fresh look. We generally make very instant judgements when we scroll through online. The less interest you generate in that crucial first 4 week period means that you will receive less viewers and obviously have less chance of securing an offer. Therefore, it’s likely that you will have to reduce but you have already lost potential buyers.
“So what!”I hear you cry! “At least we tried the higher price and sometimes we might get lucky right?” Well yes, it’s possible and you must weigh up the risk and this is often what people don’t necessarily think about. It can work when the market is booming, but what about then house prices are falling? Your ‘testing the market’ at a higher price will quickly make it feel very over priced, as similar properties reduce you are having to do a series of price drops and find your home chasing the market in order to get a sale.
You have reduced, but that crucial initial period has passed, buyers are aware of your home and they aren’t going to be as likely to look at it now that it’s been advertised for sale for a while, not with all the new houses that are constantly coming online. They see you have reduced and then little questions will start to pop into their heads such as why has it reduced, what’s wrong with it? Is the seller in a hurry? Can we get it for even less?
So, not only have you now reduced but, you are up against other houses that have been on the market less time than yours and potential buyers may perceive yours as having issues that don’t exist. Buyers will use the length of time a home has been on the market as a valid reason to knock you down and with less buyers taking interest you will have less offers to look at.
Getting the price correct is a balancing act and obviously not an exact science but our advice will always be work out what is a realistic price you would be happy to accept and go to the market at that figure. Stick to your guns when offers come in and if the price is ultimately right you will get it.
This is why here at Saxon Shore we always tell you the price we expect to get and not a price we think you might like to hear. Having lived and grown up in the area virtually all our lives we know the market inside out and that isn’t always the case with some other agents who have staff based further afield or moving from office to office.
Getting the price right first time can potentially save you thousands in the long run
Saxon Shore sold more houses in 2018 thank any other Faversham Estate Agent, this is largely due to our local knowledge, extensive industry experience and understanding how important it is to be honest with our clients expectations and being realistic when it comes to providing valuations. If you would like to discuss your current house sale or are thinking of selling in the future please get in touch for FREE, no obligation advise with no hard sell. Call us today