Seller's Guide | Autumn 2023


How to price properly

When you’re selling, pricing is everything. You obviously want the best return, but in a volatile and competitive market, you can easily price yourself out of the race. But equally, you don’t want to lose out.

Here’s some simple tips to consider when making your next move.

Research the market.

Start by researching the local market to gain an understanding of current property prices in your area. Look at comparable properties that are similar to yours in terms of location, size, features, and condition. This will give you a baseline for pricing your property based on real data, rather than gut feel or desire.

Consider location.

Location plays the major role in determining property value. Factors such as proximity to amenities, schools, transportation, and desirable neighbourhoods impact the price. Evaluate the exact location of your property in your neighbourhood and adjust the price accordingly.

Assess property condition.

The condition of your property affects its value. Take an objective look at the condition of your home, considering factors such as age, maintenance, renovations, and upgrades. Adjust the price to reflect the property's overall condition.

Hire an estate agent.

Hire a professional to provide an unbiased valuation of your property. Estate agents have the expertise to evaluate various aspects of your property and provide an accurate estimate of its value. They are in the market listening to buyer feedback every day on similar properties and can give a fairly accurate valuation.

Factor in market trends.

Property markets are dynamic and change over time. Consider current market trends, such as supply and demand, interest rates, and economic conditions. Adjust your pricing strategy accordingly.

Set a realistic price.

While it's tempting to set a high price to maximise profits, it's essential to be realistic. Overpricing can deter potential buyers and result in a longer time on the market. Set a competitive and fair price that aligns with market conditions and the value of your property. Ultimately, poor pricing strategy, both too low or too high can lead to a badly managed sale that means you under-sell. Ask your agent how to play it to maximise the probability of a top price. Remember your asking price is usually not the sale price and it should be thought of as a guide to generate interest.

Consider time constraints.

If you have a specific timeframe for selling your property, consider this when pricing. If time is of the essence, pricing your property slightly lower than market value can attract more buyers and lead to a quicker sale. Over-pricing can lead to your property sitting on the market for too long. This kills interest as buyers assume there is something wrong with it as it hasn't sold. Following price reductions look bad and often lead to a sale below a lower asking price that could have generated the interest to sell quicker.

Monitor competition.

Keep an eye on similar properties in your area that are listed for sale. Pay attention to their asking prices, how long they have been on the market, and any price adjustments. This information can help you position your property competitively. At any given time during the market there will be competing properties that buyers will look at, as well as yours. The key is to be the favourite, be that through price or value. Both of which can be controlled by investment into the property pre-sale and your pricing strategy. Sometimes it pays to wait if there are too many similar options like your property available. These micro-fluctuations in the market can be used to maximise the price achieved.

Monitor your agent.

Often unscrupulous estate agents will assure a seller that they can get them a higher price, or that they can achieve a high price the seller wants. This is to get the seller to sign into a contract, the idea being that once they are 'locked in' then the agent can work on lowering the price to a realistic level and get the sale over their competition. The result however can be that the selling strategy is blown. Too high a list price is set, price reductions follow and the one shot at maximising interest is lost. Of course some agents are experts at getting high prices, just be sure to understand exactly how and why they can do it where others can't.

Be open to negotiation.

Remember that pricing your property is not an exact science, negotiation is a common part of the buying process. Be open to negotiation, consider factors like buyer's circumstances, contingencies, and market conditions. Listen to your agent and ask them how you can play it to maximise the sale.