Warners LLP | Making Sure Your Property's Price Is Right
Smart Pricing Strategy Is Key to Getting the Best Price for Your Home
One of the very first stages to selling your house is to get it valued - an important task as this valuation goes on to set the course for the rest of the buying and selling process.
A common misconception is that the higher your house is valued, the better it is for you – sadly this is not the case. Some agents will tell you what you want to hear just to try and secure your listing, but this is not in your best interest.
Don’t be tempted with promises to find the highest valuation of your house because if your house is placed on the market at an inflated price, the likelihood is it won’t sell. For me, an agent that tells you the truth is one acting in order to benefit you as the seller.
If a house remains on the market for an extended amount of time due to an inaccurate valuation price, then future buyers will be put off because the property will have been seen to visibly stagnant on the market.
And more so, it creates no end of frustration and additional anxiety for the seller. In truth no seller puts their property on the market wanting it to remain there for any extensive amount of time.
The result is the time for everyone involved is wasted, and in the long run you will no be able to move on with the next chapter of your life, be it downsizing or buying a bigger family home.
However, there is also no sense in undervaluing your home. It has been known for some estate agents to advocate artificially reducing the asking price in order to encourage a bidding war which will see the property in question sell above it’s value.
Although this can work, it is an approach that causes undue stress to both the buyer and seller, and furthermore, there is often a ‘glass ceiling’ price at a certain percentage point above the guide figure that buyers will simply refuse to pay.
Again, a true and correct valuation are, in my view, the best starting point for any buying or selling transaction.
So the best advice is to work with an agent who tells you the truth, gives you evidence and reasoning to justify their recommendation, and who takes the time to explain the reationale behind it for you.