Pricing Your House Right
Pricing your house just right can be a mind boggling challenge. If you’ve just put your house on the market and the phone never stops ringing then just maybe you’ve priced it a little too low, however, if you’re house has been on the market for a year without a single bit of interest shown towards it then you have probably overestimated the current property market and overpriced it.
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You need to establish the ‘Goldilocks’ price; not too much not too little, just right. Therefore, putting the right price tag on your home is the most important thing to consider and no two agents will value it in the same way.
Location is the most important factor when deciding on the right price for your house. Doing some research into the average house prices in your area is a good starting point. An effective way to do this would be to map out an area of no more than half a mile radius around your home and make a list of all the houses that are or were for sale in the area. This is made significantly easier by the House Price Index.
The House Price Index monitors changes in house prices both annually and monthly, providing a comprehensive view on the current state of the property market in England and Wales. It is the largest most up to date sample of property prices in residential areas.
Through this easily interpretable method of data, presented by graphs and trend maps, you are able to see what similar houses in the area are selling for. You will also be able to discover the ceiling price for your area, or more specifically, your street, enabling you to start putting together the parameters of your own sale price.
It is important to also consider the variability in houses, such as age and square footage when pricing your house as appeal varies between new builds and older properties.
Remember to always be mindful of neighbourhood dividing lines and the divisions between country and city living.
For instance, 2013 figures show that average asking prices in urban areas have seen a rise of 1.9pc since this time last year. By contrast, asking prices in the country are down by 5.1pc over the same period.
Strategise the way you price your home to give you the competitive edge over other sellers.
Find out how much the house prices are falling by each month in your area and price your house in relation to this figure and the time in which you’re looking to sell your home.
For instance, if house prices are dropping by 2% per month in your area and you are wanting to sell within 3 months, drop your house prices by 6% at the start and you’ll make more money, more quickly.
Consulting an estate agent is an excellent way to correctly price your house and to ensure a speedy sale. While you wouldn’t want to leave all the decisions to someone else, estate agents are trained professionals and are the most up to date source of information when it comes to the current house pricing market.
Consulting the Market Trends Price Comparison calculator, is an excellent way of discovering the value of your house in relation to those in your area. Going to an estate agent with a figure already in mind and armed with knowledge of your own will allow you as the seller to have a firmer control over proceedings.
Don’t forget to use the people around you. Ask friends and relatives for their opinion on your property and what price they would pay for it. This way you can discover a wide variety of opinions on the value of your home and a genuine insight into the mood of your potential buyer.