The issues facing sellers
It's a brand new year and you've decided that now is the right time to sell your home. Whether the impetus comes from wanting to downsize or to move somewhere with more bedrooms, or if the motivation is the location or the requirement for a bigger garden, one of the main drivers for any decision is how much you'll get for the property you're selling once you have an interested buyer.
But here's the immediate problem: what is a good price to set for your property?
The pricing dilemma: too high or too low?
If you agree to setting it high, you are likely not to generate that much interest, particularly if there are similar properties for sale in the neighbourhood pitched at a more attractive - and therefore lower - price.
But, being more pessimistic and setting a low price is likely to make potential buyers wary, as they wonder what is wrong with the home to warrant a price lower than what else is on the market.
Working with estate agents: single or multiple?
The problem of getting the price right is exacerbated by the competition of estate agents in the area - you'll get a reasonably good deal if you use just one estate agent since they are not competing with others.
However, if you choose to place your home with a number of estate agents, because they don't have exclusive rights, it's quite likely that they will require a higher percentage of the property sale in fees - the problems escalate for you, too, as you have to manage multiple organisations for viewings and understanding which agent is pressing for a sale and which has been successful.
Using online property portals effectively
Online portals, such as Rightmove, Zoopla and OnTheMarket are useful for getting your property particulars out to a much wider market, and this might appear to be the most obvious solution to the above issues. But, once again, it's all about getting the price right to attract the greatest number of prospective buyers to want to look over your property at as early a stage as possible.
In addition, because the portals have so many properties coming online each day, if your property hasn't been viewed favourably in the first week or so, it will slip down the rankings and the algorithms will favour the newer properties coming up for sale - the buyer searching for the right property is far less likely to keep on scrolling until they find yours a few pages on.
When to reduce your asking price
Whichever method for selling your property you choose, if you haven't had any interest in the first couple of weeks, it's probably an indication that the home is priced too high, which means accepting that a price reduction is the best option. But even this action has its problems - prospective buyers will become wary as to why the price is dropping and might be cautious to the point of avoiding your property altogether - forcing another price drop to try and get it sold.
Your estate agent will almost always want to pitch the price of a property high in order to attract your custom, sometimes in the knowledge that, after a period of time, the price is going to drop if it hasn't already been snapped up.
Understanding buyer and seller psychology
It comes down to basic economics: you, as the seller, want the highest price achievable because it's more equity in your pocket; your buyer, though, is looking for the best (and lowest) price for a property so that they have more money left over from the purchase for improvements, decoration and so on. Somewhere in the middle of that will be a figure where seller and buyer are comfortable.
So, it's about getting the balance right; it's especially important now with the broader economic outlook coupled with impacted disposable income flavouring property purchase decisions.
But the problem is that you are unlikely to have a working knowledge of the housing market, so you are relying on the experts and their experience to get what's best for you without overpricing your property out of the market.
Getting professional valuations
When you appoint an estate agent, they will often provide two figures: one is high to test the market, while a lower one is where they consider you'll eventually get your sale.
You might also want to consider a Property Valuation Report from an independent expert - this can be a powerful statement for your prospective buyers.
Alternative selling platforms
There are also different types of online portals, too, such as Property Drive Buy and Flyp, that are worth looking into to help you decide on the best direction to go to sell your property for the best price.
Ultimately, you want the highest figure you can get for the sale without pricing yourself out the market. Equally, you don't want to go too low to get a quick sale for fear of frightening the horses. You are the customer and not a property professional, so talk to the estate agent about the likelihood of getting interest at the price they are suggesting, and use a chartered surveyor if you are unsure as to the steps you should take.
And good luck!
Whether you are buying or selling a home, Homeward Legal's conveyancers will start work on your plans as soon as you appoint them, with a fixed-price quote that won't change for the standard conveyancing process.
Homeward Legal also operates a 'no completion, no fee' promise - if your purchase or sale doesn't complete, no payment is required.
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