If you are considering downsizing, moving to a larger property or relocating and are new to the buying and selling market, setting an unrealistic asking price is a common mistake that vendors make.
An unrealistic selling price will lead to a lack of enquiries, with an inflated price resulting in your house stagnating on the market. The wrong price can result in no viewings and a drop in profitability. After a period of the house languishing on the market, the estate agent will probably invite you to reduce the asking price in a bid to attract more viewers.
Many factors should be considered when setting an asking price
There are many factors that come into play when setting the price of a house. Two homes in one street may appear identical, but one may be of a higher value than the other due to features such as a garage or rear extension, a more aesthetically pleasing view, or better internal upkeep. Demand, location and proximity of good schools can also influence prices.
Rightmove reports that buyers are seeing higher average asking prices than ever before, according to Rightmove.
When you have an offer accepted on a new home, it is recommended that you obtain a homebuyers report Hertfordshire or elsewhere. These are available from a range of professionals, such as https://www.samconveyancing.co.uk/Homebuyers-Survey/Home-Buyers-Survey-Hertfordshire.
House prices will react to trends in the market
House hunters with previous experience will have a rough idea of how a home should be priced based on its size, location, and external and internal features. If your home falls outside this expected price range, the prospective homebuyer will pass by your listing and focus their attention on those more keenly priced. When a buyer rejects your listing, it will be difficult to engage them again if you have to drop the price.
This will lengthen your home sale and make your house less attractive to other buyers when they see how long it has been on the market. Initially overpricing your home is always to be avoided.
An experienced and reputable estate agent can advise on setting an appropriate price, and even researching the history of home sales in the area can help. House prices will, of course, react to trends in the market, such as unemployment, and whether the property is freehold or leasehold.
If your home falls outside this expected price range, the prospective home buyer will pass by your listing and focus their attention on those more keenly priced. When a buyer rejects your listing, it will be difficult to engage them again if you have to drop the price. When a buyer rejects your listing, it will be difficult to engage them again if you have to drop the price.